Aiosell Technologies Archives - Travellers of India

By Mr. Siddharth Goenka, Founder of AIOSELL Technologies

In recent times, technology is certainly a matter for us. Technology is our best bet nowadays, due to the COVID-19 pandemic. At present, the markets with the latest technology such as AI and machine learning remain unregulated (ML). AI and ML are some of the sectors that have embraced automotive, healthcare, logistics, etc. In India, the hospitality industry is not excluded from the use of such world-class technologies to maximise benefit on the dynamic market.

The hospitality sector covers a wide array of sectors such as tourism, accommodation, transportation, event planning, theme parks and more. It is certainly an extensive market, but in particular, hotels and accommodations with restaurants and bars seem to be pioneers in the region. AI and ML are very necessary in the hospitality sector in India. Not only is it intended to survive in the pandemic, but also to maximise profit margins. In particular, this sector addresses consumers’ desires rather than their needs.

Hospitality firms must also accept AI and ML in order to ensure that best offerings are delivered continuously to their clients at a fair price. So, AI and ML continue to ensure longevity and profits in the hospitality industry.

Hotel operations are improved by AI

Responding to customers’ calls, attending front desk visitors concurrently in response to internet guest inquiries is no longer a difficult problem after such a long time. Artificial Intelligence (AI) does not mean that workers do not have to operate under high performance strain and act as robots that contribute to low standard of service. Chatbots have appeared to save a large number of guests easily. Chatbots take care of all prospective customers’ internet requests while the front desk personnel will provide customers with trouble free services, thus improving hotel operations without compromising on any client.

AI Custom Services Boosts
AI personalization summarizes various consumer information sets to gain valuable input. The hotels will leverage priceless expertise and offer excellent offerings through major marketing campaigns. This aims to have a streamlined service for customers. Hotels can accurately consider each customer’s tastes with AI. AI chatbots also deliver tailored conversations that respond more quickly and efficiently to the individual needs of all customers. Customers prefer quick answers to all questions, in particular online. AI chatbots support this with the smooth management of various client needs and an instant response.

Via ML Competitive Pricing
For a company to compete on the market, using a competitive price strategy is necessary. The hospitality sector leverages aggressive pricing tactics that are known as one of the most important strategies for consumer attraction and revenue improvement without losing earnings. Machine learning is helpful in doing this. The best price is obtained for services focused on hotel experience, seasonality, local contests, external real-time activities, local events, advertisements from third parties and others.

Enhances client satisfaction and services ML
Customers are from diverse cultures, with different preferences, needs and demands. In any industry, particularly in the hospitality sector, a mechanism known as Market Segmentation ensures that customers meet their wishes to suit their individual needs and wishes. The whole range of customers is separated into different groups with preferences and demands more or less alike. The consumer range gets more varied with machine learning (ML) and becomes extremely smaller, unprecedented classes and subsets. This method increases the efficiency and satisfaction of customer service by ensuring

Summing Up
Innovative solutions in any field are led by both artificial intelligence and machine education. They are already discussed and extended every day to new markets. These technologies can also be used by the hospitality industry to address invisible issues and barriers and please consumers. Thus the task of AI and ML to make maximum profits in the hospitality sector is unprecedented: to enhance the operation of a hotel and to provide individual services and reasonable pricing to improve customer loyalty through phenomenal service. It reminds us that innovations that can transform the face of the hospitality industry have untapped potential.

“Written by: Siddharth Goenka, MD Octave Hotels & Founder, Aiosell Technologies“

The hospitality and tourism industries have been particularly hard hit by the Covid Crisis, and the dust will take a long time to settle. Since vacationing is a basic human need, leisure hotels within easy driving distance of major cities have recovered the fastest. Furthermore, since international travel has come to a complete halt, even the luxury segment of vacation destinations has seen a surge in unanticipated demand.

Business hotels, on the other hand, have taken the brunt of the damage, and estimating the extent of the damage is exceedingly difficult. With video conferencing and widespread adoption of the work-from-home model, most businesses (large and small) have reduced business travel (especially to urban centers) to less than half of pre-covid levels. The irony is that business hotels accounted for 70% of total hospitality room availability, and the majority of these hotels are facing an existential crisis due to a lack of customers and income.

How are hotels reacting to the tsunami? Hotels may have no choice but to reinvent themselves and think beyond the box in this modern world. Every disaster brings an opportunity, and those who can swim against the current can reach the shores safely. I’ll try to share some suggestions in this article on what hotel owners can do better and how they can weather the storm.

The three foundations of the fundamental tectonic shift that will emerge for hotels as a result of this crisis are productivity, automation, and technology. Hotels can be compared to vast mega-factories with machinery and employees working long hours in shifts to produce production. Hoteliers may soon experience their own “Toyota” moment, similar to how ideas like “lean manufacturing” and “just in time production” radically changed the manufacturing industry.

Since profit can no longer be taken for granted, hotels would need to follow similar principles that concentrate on sales and cost efficiencies. To shed our extra flab and reduce spare inventory and wastages, fixed costs would need to be converted to variable costs. To optimize performance while minimizing input while maintaining guest satisfaction, we’ll need to use the right combination of machines, manpower, technology, and automation. We’ll have to make tough decisions on which business units to keep and which to shut down.

Hotels would need to carefully prepare their manpower strategy, taking into account the potential for automation in each department. There would be a downward trend in staff-to-room ratios, with a focus on doing ‘more’ with ‘less.’ Reservations and back-office teams that perform routine clerical tasks can be reduced by implementing automated reservation systems and chatbots that are connected to integrated all-in-one systems that handle all aspects of the hotel, including operations, marketing, and guest experience management.

Big, clumsy IT departments in hotels will be replaced by centralized cloud-based automated systems, which will reduce the need for backup and maintenance on a regular basis. Using new sophisticated technologies, core functions such as sales management, CRM, and online delivery can be centralized and automated, resulting in increased efficiency and yields. Through incorporating B2B marketplaces where vendors and consumers can transact directly, large sales and marketing departments that serve corporations and travel agents can be reduced.

Many hotels will need to rethink ancillary business units like restaurants, bars, spas, and gyms that have high operating costs and don’t pass the profitability litmus test. It could be more cost-effective to outsource these functions or withdraw them entirely from the product portfolio. Room service, concierge facilities, travel desk, and check-in-check-out can all be automated with the help of smartphones, tablets, kiosks, and AI-based technology to improve performance. Instead of large centralized units with high fixed costs, energy costs such as electricity and water can be reduced by using IOT devices and energy saving instruments that operate on a “use as you need” basis.

Related Article: 8 Countries That Have No COVID-19 Cases

Hotels would need to set themselves apart from the competition by assembling a lean, productive team capable of and guest satisfaction by incentivizing employees based on feedback and ratings.

The growth of online business will continue to benefit hotels by replacing fixed acquisition costs (large sales teams) with variable costs such as digital marketing. While OTAs will continue to dominate the market, hotels will concentrate their efforts on direct booking platforms, such as their own websites and booking engines, in order to cut distribution costs. Short-term valuation boosts will no longer be considered a measure for performance, so some OTAs will implement continuous discounting schemes to gain market share. This could lead to market maturity and a more equitable distribution of market share across online platforms. Meta-search networks, such as Google, will receive special attention because they will be able to guide consumer traffic directly to hotel websites instead of paying high commissions to OTAs.

Instead of chasing outlandish bets that follow a herd mentality of super-natural development, banks, PE and VC funds can pursue projects that are more sustainable, scalable, and profitable. For new ventures, asset light models such as revenue share and management contracts would be more common than outright purchase or lease models. Because of the industry’s decreased profitability, new supply will not flood the market, as new projects will be shelved or converted to less volatile asset classes. Hotels that survive the crisis may emerge as winners because they will be the last men standing when the crisis is over and returns are demanded.

For the hospitality industry, Covid-19 would be a landmark moment. Rather than writing the industry’s obituaries, we should use this opportunity to regroup, reconsider, and reset. Every crisis always produces winners, and now is our chance to “jump the Rubicon” and write our own stories.

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