Amandine Devergies Ginguené

How AI-enabled technologies can boost guest loyalty and retention in the hotel industry

Jan 05, 2024

Guest loyalty and retention are crucial for the success and profitability of any hotel. Loyal guests not only provide a steady source of revenue, but also generate positive word-of-mouth, referrals, and reviews, which can attract new customers and increase market share. Retaining existing guests is also more cost-effective than acquiring new ones, as loyal guests tend to spend more, book more frequently, and require less marketing and promotion.

In the highly competitive and dynamic hotel industry, guests have high expectations and diverse needs, and they can easily switch to other options if they are not satisfied or delighted by their hotel experience. Hotels need to constantly innovate and improve their service quality, value proposition, and customer relationship management to keep their guests happy and loyal.

AI-enabled technologies can help hotels boost their guest loyalty and retention by providing them with data-driven insights, personalized recommendations, real-time communication, and seamless and memorable experiences.

How AI-enabled technologies can help hotels collect and analyze guest data

Guest data refers to the information that hotels collect and store about their guests, such as their preferences, behavior, feedback, and demographics. Guest data can help hotels understand their guests better, anticipate their needs, and personalize their offers and services.

In the era of big data, where the volume, variety, and velocity of data are increasing exponentially, hotels need to deal with the challenges of data quality, integration, security, and privacy, as well as the complexity and diversity of data sources, such as online booking platforms, social media, review sites, and IoT devices.

AI-enabled technologies can help hotels:

  • Collect guest data from various sources and formats
  • Analyze guest data using advanced techniques and methods
  • Use guest data to create personalized loyalty programs, rewards, and feedback systems

Examples of AI tools and platforms that can help hotels with guest data collection and analysis:

  • Revinate is a cloud-based platform that helps hotels collect, analyze, and act on guest data, such as online reviews, surveys, and social media. Revinate uses AI to provide hotels with actionable insights, such as guest sentiment, satisfaction, and loyalty, and help them improve their reputation, revenue, and retention.
  • Zylotech is a customer intelligence platform that helps hotels collect, enrich, and analyze guest data, such as preferences, behavior, and transactions. Zylotech uses AI to provide hotels with dynamic guest profiles, segments, and recommendations, and help them personalize their marketing, sales, and service.
  • TrustYou is a guest feedback platform that helps hotels collect, manage, and respond to guest feedback, such as reviews, surveys, and messages. TrustYou uses AI to provide hotels with semantic analysis, sentiment analysis, and reputation management, and help them improve their guest experience, loyalty, and retention.
Illustration of a smart city concept with a central hotel connected to various icons representing digital services and data analytics. Colorful lines link the hotel to symbols like a shopping bag, a car, a light bulb, Wi-Fi, and user engagement, indicating the integration of AI technologies in urban hospitality management.

How AI-enabled technologies can help hotels segment their guests into different groups

Guest segmentation refers to the process of dividing guests into different groups based on their characteristics, such as their needs, expectations, and motivations. Guest segmentation can help hotels tailor their loyalty programs, rewards, and feedback systems to the specific preferences and requirements of each group, and increase their satisfaction and loyalty.

With asks for personalization, where guests demand customized and individualized experiences, hotels need to deal with the challenges of data complexity, diversity, and dynamism, as well as the trade-off between segmentation granularity and scalability.

AI-enabled technologies can help hotels segment their guests using:

  • Advanced techniques and methods, such as clustering, classification, and recommendation systems. 
  • Dynamic and adaptive approaches, such as online learning, reinforcement learning, and deep learning. 
  • Personalized and contextualized criteria, such as their goals, intentions, and situations. 

Examples of AI tools and platforms that can help hotels with guest segmentation:

  • Clustaar is a conversational AI platform that helps hotels segment their guests using natural language processing and machine learning. Clustaar uses AI to understand the intent and context of guest queries, and provide them with personalized and relevant responses, offers, and recommendations.
  • LoyaltyLion is a loyalty and engagement platform that helps hotels segment their guests using behavioral and transactional data. LoyaltyLion uses AI to create dynamic and customized loyalty programs, rewards, and incentives for different segments of guests, and increase their retention and lifetime value.
  • Intento is a personalization and recommendation platform that helps hotels segment their guests using goal-oriented and situational data. Intento uses AI to predict the goals, intentions, and situations of guests, and provide them with personalized and contextualized experiences, products, and services.
The image depicts a vibrant and colorful isometric illustration of a bustling technology-enabled workspace. It showcases various individuals engaged in different activities, surrounded by icons representing data analytics, cloud computing, and digital connectivity. This dynamic visual metaphorically represents the integration of AI-enabled technologies in enhancing guest experiences and operational efficiency in a hospitality setting.

How AI-enabled technologies can help hotels communicate with their guests in real-time and across different channels

Guest communication refers to the process of interacting with guests before, during, and after their stay, and providing them with relevant and timely information, offers, and incentives. Guest communication can help hotels build trust and rapport with their guests, increase their satisfaction and engagement, and encourage their loyalty and advocacy.

In the era of omnichannel, where guests use multiple devices and platforms to communicate with hotels, such as email, SMS, social media, and chatbots, hotels need to deal with the challenges of communication speed, consistency, and personalization, as well as the preferences and expectations of different segments of guests.

AI-enabled technologies can help hotels communicate with their guests:

  • In real-time, such as by using natural language processing, machine learning, and chatbots, and provide them with instant and accurate responses, offers, and incentives.
  • Across different channels, such as by using omnichannel platforms, cloud computing, and APIs, and provide them with consistent and seamless communication, regardless of the device or platform they use.
  • In a personalized way, such as by using natural language generation, sentiment analysis, and personalization engines, and provide them with relevant and tailored communication, based on their preferences, behavior, and feedback.

Examples of AI tools and platforms that can help hotels with guest communication:

  • HiJiffy is a conversational AI platform that helps hotels communicate with their guests in real-time using chatbots. HiJiffy uses AI to understand the intent and context of guest queries, and provide them with instant and accurate responses, offers, and incentives, such as booking confirmation, check-in instructions, and upselling opportunities.
  • Sprout Social is a social media management platform that helps hotels communicate with their guests in a personalized way using social media. Sprout Social uses AI to analyze the sentiment, behavior, and feedback of guests on social media, and provide them with relevant and tailored communication, such as responding to reviews, engaging with comments, and sharing content.
Collage of digital illustrations representing AI-enabled technology in hospitality. Features include a virtual assistant, hotel staff using mobile devices for guest services, personalized guest experience through data analytics, and streamlined online communication channels.

How AI-enabled technologies can help hotels measure and improve their guest loyalty and retention rates

Guest loyalty and retention measurement and improvement refer to the process of tracking and evaluating the performance and impact of the loyalty programs, rewards, and feedback systems, and using the results to optimize and enhance them. Guest loyalty and retention measurement and improvement can help hotels identify and address the strengths and weaknesses of their loyalty strategies, and increase their effectiveness and efficiency.

In times of analytics, where hotels have access to a large amount of data and metrics, but not necessarily the right ones, hotels need to deal with the challenges of data accuracy, relevance, and timeliness, as well as the selection and interpretation of the key metrics, such as repeat bookings, referrals, reviews, and revenue per guest.

AI-enabled technologies can help hotels:

  • Measure their guest loyalty and retention rates 
  • Improve their guest loyalty and retention rates 
  • Measure and improve their guest loyalty and retention rates

Example of AI tool and platform that can help hotels with guest loyalty and retention measurement and improvement:

  • Profitroom is a revenue management platform that helps hotels measure and improve their guest loyalty and retention rates using predictive and prescriptive analytics. Profitroom uses AI to provide hotels with forecasts, recommendations, and simulations of their revenue, occupancy, and loyalty performance, and help them optimize their pricing, distribution, and marketing strategies.
Graphic illustration of advanced data analytics dashboard held by a person, showcasing various colorful charts, graphs, and metrics for business performance monitoring. The image represents a high-tech approach to data analysis and decision-making

How AI-enabled technologies can help hotels create a seamless and memorable guest journey

Guest journey refers to the process of interacting with guests throughout their stay, from pre-arrival to post-departure, and providing them with seamless and memorable service, support, and experiences. Guest journey can help hotels create a lasting impression on their guests, increase their satisfaction and delight, and encourage their loyalty and advocacy.

With the desire for experience, where guests demand more than just a place to sleep, but a holistic and immersive experience that meets their emotional, social, and personal needs, hotels need to deal with the challenges of service quality, consistency, and differentiation, as well as the expectations and preferences of different segments of guests.

AI-enabled technologies can help hotels provide:

  • Seamless service to their guests, such as by using smart sensors, IoT devices, and automation, and providing them with convenient and comfortable service, such as smart check-in, keyless entry, and room control.
  • Personalized support to their guests, such as by using natural language processing, machine learning, and chatbots, and providing them with customized and attentive support, such as concierge, recommendations, and assistance.
  • Memorable experiences to their guests, such as by using virtual reality, augmented reality, and immersive technology, and providing them with unique and memorable experiences, such as virtual tours, interactive games, and immersive storytelling.

Examples of AI tools and platforms that can help hotels with guest journey creation:

  • ALICE is a hotel operations platform that helps hotels provide seamless service to their guests using smart sensors, IoT devices, and automation. ALICE uses AI to integrate and streamline the hotel operations, such as front desk, housekeeping, maintenance, and guest services, and provide them with convenient and comfortable service, such as smart check-in, keyless entry, and room control.
  • LoungeUp is a guest experience platform that helps hotels provide memorable experiences to their guests using virtual reality, augmented reality, and immersive technology. LoungeUp uses AI to create and deliver unique and memorable experiences to their guests, such as virtual tours, interactive games, and immersive storytelling.
Illustration of a futuristic smart city with various advanced technologies in use. The image depicts a vibrant urban landscape with people and autonomous vehicles interacting seamlessly amidst buildings. Icons representing data exchange, connectivity, and AI services hover above the scene, symbolizing the integration of technology in everyday life for enhanced efficiency and convenience.

Conclusion

I hope that this article has inspired you to explore the possibilities and benefits of using AI-enabled technologies to boost your guest loyalty and retention, and to create exceptional and personalized guest experiences.

Thank you for reading.

If you are interested by out-of-the-box perspectives on how AI-enabled technologies can boost guest loyalty and retention in the hotel industry, read my additional article here: (link to come soon)

Note: In line with my passion to use technology to help humans’s efficiency and creativity, this article has been written with the support of BingAI & Bing Image Creator.

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