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Smart Stays: How AI Is Affecting the Hospitality Industry

Artificial intelligence is impacting the hotel and venue industry in increasingly innovative ways.

Appellation has four hotels opening in the next few years throughout California and Idaho. (Pictured: Appellation Healdsburg, opening in 2024.) The destinations—which are using AI to enhance the guest experience—have deliberately been chosen due to their proximity to local makers, growers, and artisans, tying into the brand's culinary-first approach.
Appellation has four hotels opening in the next few years throughout California and Idaho. (Pictured: Appellation Healdsburg, opening in 2024.) The destinations—which are using AI to enhance the guest experience—have deliberately been chosen due to their proximity to local makers, growers, and artisans, tying into the brand's culinary-first approach.
Photo: Courtesy of Appellation

If you’re going for a swim at Leonardo Plaza Cypria Maris Beach Hotel in Cyprus, you might notice a discreet camera in the corner of the pool. Meet MYLO, the hotel’s new “virtual lifeguard system.”

Run by Coral Smart Pool, the artificial intelligence-driven system analyzes video above and below the pool’s surface. Pressure sensors identify when a person is entering the pool and can begin calculating risks, and a high-res underwater camera can detect a sinking person and send a series of alarms to take action. 

Leonardo Hotels & Resorts Mediterranean has launched MYLO, a “virtual lifeguard system.”Leonardo Hotels & Resorts Mediterranean has launched MYLO, a “virtual lifeguard system.”Photo: Courtesy of Leonardo Hotels & Resorts MediterraneanMYLO is just one example of the increasingly innovative ways the hotel and hospitality industries are embracing AI. Another property leaning heavily into the technology is Appellationthe new culinary-forward brand from chef Charlie Palmer and former Four Seasons executive Christopher Hunsberger.

As it gears up to open four hotels in the next few years, the brand is leaning heavily into technology, pioneering its own tech ecosystem called Appellation Insights. The goal was to take a more holistic and forward-thinking approach to the technology needed to operate a luxury hotel, says Appellation chief commercial officer Ed Skapinok. “Rather than designing a tech stack of disparate systems that may or may not work well together in the future, we designed an entire ecosystem of technology,” he explains.

Taking a research-based approach, the brand realized that at any given time, over 151 business functions can be happening at a hotel—and technology can help automate many of those. “A typical luxury hotel uses about 120 different pieces of technology to handle those business functions. But the tech ecosystem we’ve designed uses 40 systems,” he notes. 

Other than efficiency, Skapinok says the emphasis on technology allows the team to really personalize the guest experience. Appellation’s AI-driven tech capabilities range from the practical (guest record access across all revenue centers, and the ability to make amenity reservations from anywhere on site) to the more personalized (valet that can check in guests when they’re in close proximity, and real-time personalized offers and content via the website and app). So, for example, a customer who enjoyed a bottle of wine at Appellation Healdsburg’s rooftop bar may receive a special invitation to an exclusive wine-blending class the next time they visit the Appellation website. “Everything begins with the customer experience and the employee experience,” he says. “Using technology to enhance those will always be the right thing to do.”

Skapinok is well aware of arguments about AI taking jobs from humans—and he insists that Appellation’s approach is different. “I don’t look at technology as replacing any job roles—instead, I look at the staff hours required for those roles and ask, ‘How can I use technology to make those hours more efficient, and then we can free up our staff to focus on serving the customer even better?’ We’re not replacing our teams with technology; we’re utilizing our teams in ways that make their job duties more effective.”

He continues, “It’s about taking those friction points in the booking process or in the service delivery process, and then finding technology (or staff that is supplemented by technology) to eliminate those friction points.”

Here are some more unique ways hotels and event venues are using AI now. 

Food and Beverage
Appellation is leaning heavily into personalization and customization with its F&B experience—and using AI to help. “One thing we do with our guest app is to ask guests to tell us more about themselves, so we can be aware of food allergies or aversions to certain ingredients,” Skapinok notes. “So when someone looks at our room service menu on our app, if they have a seafood allergy, they have the option not to see any items that have seafood.” Certain rooms at Orlando’s Lake Nona Wave Hotel offer AI-powered Restorative Beds from Bryte. The Smart Bed adjusts throughout the night to help actively put guests to sleep and stop them from waking midcycle.Certain rooms at Orlando’s Lake Nona Wave Hotel offer AI-powered Restorative Beds from Bryte. The Smart Bed adjusts throughout the night to help actively put guests to sleep and stop them from waking midcycle.Photo: Courtesy of Lake Nona Wave Hotel

RFPs
Skapinok also sees a lot of value in the world of event RFPs, or requests for proposal. AI and other technology can help streamline the process, looking for keywords that match what both the venue and event planner are looking for. While Skapinok believes humans will always be on hand to review RFPs in more detail, he does caution event professionals to focus on special keywords that might trigger interest if a machine is reviewing it first.

“Vice versa, as a venue, we know that event professionals are becoming more interested in using AI to find the perfect venue,” he notes. “So we as hoteliers and venue operators need to think about that too and how we present the best combination of factors for anyone that is looking to book an event.” 

Travel Recommendations and Itineraries
Philip Ballard, chief communications officer and head of investor relations at HotelPlanner, predicts that by the end of the decade, travelers will be able to access their own personal travel concierge expert that’s entirely AI-powered.

“Consumers are already starting to use AI tools to generate travel itineraries and recommendations based on one’s lifestyle and unique preferences,” Ballard adds, noting that travel sites like Expedia and Kayak have already started embedding ChatGPT search capabilities into their product offerings. HotelPlanner also recently announced that its new loyalty program, Hotel Buyers Club, is powered by ChatGPT.

“In the future, based on customer data, online travel agencies and hotels will be able to micro-niche market down to the individual traveler level and offer personalized deals, offers, services, and support that are catered to each traveler’s unique needs,” he says when asked about the figure of AI. “For example, someday you’ll be able to check into a hotel room and the temperature is preset to your liking, your favorite news channel is already playing on TV, and the room is set up for unique needs.”

Virtual Check-In and Other Self-Service Options
AI-powered technologies can also help provide seamless guest services, like self-check-in options at hotels. “Increasingly,  we're seeing hoteliers also adopting ‘virtual front desks’ where guests can fully check in without having to meet anyone,” explains Adam Harris, CEO and co-founder of Cloudbeds, a hospitality management platform that provides tech for independent lodging businesses. “On the day of check-in, they receive a notice on their phone that sends them to a portal where they can enter their contact info, upload a picture of their ID, securely input credit card information, and accept terms and conditions. Upon doing that, they receive digital keys to unlock their room.”

This doesn’t necessarily replace jobs, notes Harris—it’s more about freeing up employees to do different things when they’d usually be standing and waiting for guests to arrive. “One of our customers in Barcelona says she saves around 16 hours a week using virtual check-ins,” Harris says. “After switching to virtual check-ins, she turned the former receptionist position into ‘guest experience manager,’ whose job now is to curate local experiences for the guests. Since switching a couple of properties to virtual check-in, she said her review scores have increased.” “Rosie,” the Fairfield Inn & Suites San Diego North/San Marcos cleaning robot, supports housekeeping operations by decreasing the time required to clean a hotel room and reducing work-related injuries.“Rosie,” the Fairfield Inn & Suites San Diego North/San Marcos cleaning robot, supports housekeeping operations by decreasing the time required to clean a hotel room and reducing work-related injuries.Photo: Courtesy of TAILOS

Housekeeping
According to a June 2023 study from the American Hotel & Lodging Association, over 40% of U.S. hotels are still reporting housekeeping shortages. As a result, some are leaning into housekeeping robots like those from Tailos (formerly named Maidbot). Fairfield Inn & Suites San Diego North/San Marcos is taking it a step further with AI, using its cleaning robot “Rosie” to not only clean rooms, but also to efficiently collect data and valuable information at the same time. For example, while cleaning, the robots can identify and resolve issues proactively such as spot weak Wi-Fi spots and mold.

Real-Time Interpretation and Other Language Needs
Jyotika Singh, director of data science at flex-use multifamily and hospitality operator Placemakr, leans on AI for language translation. “ChatGPT can assist with on-the-fly language translation, enabling communication with international customers,” Singh says, adding: “AI will also greatly impact daily tasks for hospitality employees by preparing emails and presentation templates, rephrasing documents in easily understandable language, and summarizing papers and articles when employees don’t have time to read them thoroughly. … Businesses investing in automation benefit from it by freeing up the workforce from general repetitive tasks and focus more on strategy.”

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