Artificial Intelligence is Changing How the Hospitality Industry Serves Customers
The advancement of artificial intelligence (AI) in the everyday world of business has evolved significantly in the last few years. Businesses, including the hospitality industry, are using AI to augment customer service teams, gather and analyze information about their customers. The evolution of big data (large sets of data that analyzed computationally) is being used to create in-depth understanding of the customer journey and then apply insights that are gleaned to make adjustments and improvements as needed.
The hospitality industry is well-known to be consumer-centric. In order to stay competitive, hotels, restaurants, resorts, airlines, cruise lines and other segments within the industry must create a valuable customer journey from start to finish. The hospitality industry can benefit greatly from powerful data analytics platforms offered by AI and machine learning.
Hospitality is using AI to gain a deeper look into the customer experience. Companies use powerful AI software to capture data about such activities as:
- customer purchases
- location preferences
- travel patterns, and
- customer experience inquiries.
Businesses using AI have seen an increase in customer engagement by 79 percent. This is achieved by targeting the best audiences based on data gathered by AI. As many as 30 percent of hospitality businesses use AI to support their primary sales processes. Companies in the hospitality industry have been able to increase the efficiency of data analysis to improve customer service, increase customer expectations and adapt to market and other unforeseen changes.
The travel segment is a prime example. Travel-related businesses are using AI to automate many aspects of booking, recommendations and customer service. AI is able to handle as many as 65 percent of customer requests. A whopping 99 percent of customer personalization is achieved through AI. The automation of customer engagement means customers are able to receive the immediate feedback they are looking for, leading to an increase in retention rates. Companies that use AI for customer service functions retain 89 percent of their customers, as opposed to 33 percent by companies that do not.
AI is revolutionizing how companies adjust to changing customer expectations for excellent customer service. Powerful data analytics tools help companies track real-time changes in customer sentiment, enabling them to make data-driven decisions that increase the bottom line.
The professionals at Marsh & McLennan Agency (MMA) understand and appreciate the complexity of the risks facing today’s hospitality organizations. Our dedicated team of specialists is available to partner with hospitality organizations to offer the insight and guidance necessary to develop smart and effective insurance solutions. Click here to learn more.