Revolutionizing Hospitality Sector – The Rise of AI in Hotel Chatbots

Kshitij Chaudhary
2 min read
April 1, 2024

New technological advancements come around frequently, but rarely do they disrupt the entire the world as Artificial Intelligence has. With the rise in popularity of AI tools such as ChatGPT, Artificial Intelligence has transformed the way the entire world functions. 

But, do you know what these innovations mean for the hospitality industry? What does AI look in hotels, today, and how will it look tomorrow! According to Hubspot’s State of Artificial Intelligence Survey, 62% of business leaders have already invested in AI and automation tools for their employees. 

So, what are you waiting for?

Decoding the Power of AI

According to Statista, a January 2022 study revealed that hoteliers worldwide have identified a 53% increase in hotel chatbot usage in the hospitality industry. 

“The world is evolving at a fast pace, with AI (Artificial Intelligence) at the forefront, transforming the globe and the way we live. AI has permeated every aspect of our lives, and the hospitality sector is no exception.” At this point, the above statement should not startle you!

AI is transforming the hospitality sector in a variety of ways, offering everything from easy check-ins to seamless check-outs. Hotel chatbots are not only providing guests with a seamless experience but also aiding hospitality teams in optimizing operations, reducing costs, and enhancing efficiency.

What are Hotel Chatbots?

Are customers ready to interact with a bot, or do they still need human agents at the front and back desk? Do these chatbots enhance a customer’s experience or irritate website visitors? And, most importantly, do they contribute to increased sales growth and more conversions?

Hotel Chatbots are a perfect example of automation that has taken the world by storm. They represent one of the latest technologies enhancing customer service experiences. Guests can confirm their location, book hotels, enjoy easy check-in and check-out, make reservations, and get suggestions for nearby attractions and restaurants. 

All of this eliminates the need for guests to wait in long queues and speeds up the entire process. With the help of AI, hoteliers can optimize staff allocation and improve efficiency, ultimately enhancing the guest experience.

Key Use Cases of a Hotel Chatbot for 2024

Hotel Chatbots are becoming the cynosure in the hotel industry. Understand a hotel chatbot as a digital asset that bridges the gap between the hoteliers and the guests.

Chatbot for customer support

1. Bookings

For hotel owners aiming to boost their bookings in 2024, introducing a hotel chatbot is a smart move. Think of this chatbot as your digital helper, living on your website, ready to chat with visitors anytime. It's like having a friendly face who's always there to help, and helping hoteliers increase conversions along the way!

But the magic of chatbots isn’t just for your website. Spreading its charm to places like Whatsapp, Instagram, and Google My Business makes your hotel even more visible. Imagine your chatbot as a digital concierge, available on these platforms, offering instant help and making booking as easy as sending a text. This way, wherever people are online, your hotel is right there with them.

Read Also - How to Boost Hotel Bookings with AI Chatbots

2. Increased Upselling and Cross-selling

RevPAR (Revenue per available room) is a metric that should be on every hotelier’s mind. Upsells and cross-sells are beneficial, but they present a tedious task for your reservation team in understanding and catering to the individual needs of every traveller. 

AI Hotel Chatbots, however, can provide significant assistance in this area. Imagine allowing your guests to effortlessly upgrade their regular hotel room to a deluxe suite or their meal plan from breakfast to all meals at the click of a button. 

Hoteliers can facilitate these upgrades for guests through the use of Hotel Chatbots. Chatbots can offer guest’s options like a better room view or assist them in discovering local tourist attractions, thereby enhancing their overall travel experience.

3. Easy Check-in & Check-out

Check-in and Check-out are frustrating steps that all guests need to go through. 

But, now no more! 

Hotel owners can now use AI hotel chatbots to streamline and automate the check-in and check-out process. This innovation benefits not just the guests but also the hoteliers. Modern-day hotel chatbots make it easy for travellers to upload a photo of their documents with just a click.

4. Informative Notifications

It is important to keep the guests aware of any developments at the hotel. For example, if the swimming pool in the hotel is closed for maintenance purposes, a chatbot can notify the guests about this issue. There could be many such informational use cases, like informing guests about the timings of breakfast, live music events, etc., that you can communicate to your guests in advance to ensure a full house and adherence to timings.

5. Tourist Guide 

AI chatbots can act as a tourist guide for the travellers by providing real-time information about the surroundings. The chatbot can suggest nearby attractions, restaurants, and top-notch activities based on the information gathered from the user. By accessing the current data from the location, the chatbot informs users about the cultural events, ensuring a more enriching and personalized travel experience for the customers.  

6. Improving Reviews 

Increasing the reviews on OTAs (like, Expedia) or Meta search platforms is essential for every hotelier. Hotel Chatbots can assist in this regard by streamlining the process of collecting feedback. The best part is that if the feedback is good, the chatbot can automatically send a link to the OTA or metasearch website, requesting feedback there. In the case of negative feedback, the chatbot simply relays the feedback to the hotelier.

Key Channels to implement Hotel Chatbots

Key channels for implementing hotel chatbots across various platforms enhance the overall guest experience and streamline business operations. Here are some of these key channels: 

Social icon

1. Whatsapp:

Whatsapp is the most widely used messaging platform, boasting over 2 billion active users. Given that your guests are already using Whatsapp, this platform becomes one of the best channels to implement a chatbot for enabling bookings, upsells, and collecting feedback.
Utilizing Whatsapp's broadcast features, hoteliers can increase their revenue by reaching out to previous customers with special offers on occasions like birthdays, anniversaries, and long weekends. 

Read Also - WhatsApp Marketing for Hotels

2. Google Pages/ Maps:

Google Search and Maps are channels where most of your customers discover hotels. Integrating hotel chatbots with Google ensures that users can engage with the hotel directly through the Google platform, facilitating quick communication and providing information.
Customers often require clarifications or have questions before they are ready to make a booking. Integrating a chatbot on Google ensures that these questions are answered instantaneously, enabling customers to complete their bookings.

3. Email:

Emails are still the most commonly used channel, especially by the middle-aged and senior population. The reservations team often gets busy with their operational tasks and is not able to respond to customer queries quickly enough via email. This often leads to a loss in revenue. Incorporating hotel chatbots into email communications allows for automated responses to booking confirmations, inquiries, and pre-arrival information, enhancing customer engagement.

4. Facebook:

Having a chatbot on Facebook enables the hotel to engage with guests on social media, address inquiries, and provide updates, creating a seamless communication channel.

5. Website:

Embedding hotel chatbots directly on the hotel's website offers visitors an immediate and accessible way to explore services, make reservations, and seek information.

These key channels collectively provide a diverse and comprehensive approach to implementing hotel chatbots, ensuring that guests can interact with the hotel through their preferred platforms while enhancing the overall guest experience.

Top Benefits of a Hotel Chatbot 

Implementing hotel chatbots in your hotel proves advantageous for both guests and hoteliers. Let’s explore some of the key advantages of chatbot implementation in hotels. Have a look!

A Rise in Direct Hotel Bookings - By assisting guests with reservations and providing instant information, chatbots can encourage them to book directly through the hotel’s platforms, potentially reducing commission fees paid to third-party booking sites. Chatbots can be installed on various social media platforms such as Instagram, Facebook, and even on Google pages or maps to experience a hike in direct hotel bookings and boost revenue.

Improved Operational Efficiency - In the hospitality sector, automation has become the need of the hour, and hotel chatbots play a significant role in streamlining all the processes. These virtual assistants free up staff resources by handling routine tasks such as bookings, easy check-ins and check-outs, and informing guests about hotel amenities with greater efficiency and effectiveness. 

Consider, for example, when your front desk staff is occupied with urgent matters, a chatbot can assist guests and help them with an easy check-in and check-out. These virtual game-changers eliminate the need for standing in long queues for check-ins and check-outs. 

24*7 Customer Service & Engagement - Hotel chatbots provide round-the-clock assistance, ensuring that guest queries are addressed at any time, which is particularly a plus point for hotels with international guests from different time zones. These chatbots prove to be an efficient tool as they provide a great way for upselling and cross-selling through personalized recommendations, thereby improving guest retention.

Effortless Data Collection and Analysis - Hotel Chatbots can gather valuable data about guest preferences and behaviors, enabling hotels to provide tailor-made services to guests and implement marketing strategies more effectively.

Multilingual Support round the clock - Are you aware that hotel chatbots offer multilingual support? This ultimately means that you don’t need to hire specialized staff to handle clients' queries from different parts of the world!

Improved Guest Satisfaction - Quick and accurate responses to queries can improve the overall guest experience, resulting in higher satisfaction rates and potentially more positive reviews on your website.

Scalability - Chatbots can handle a large number of queries simultaneously, unlike human staff, making them highly scalable during peak times or seasons.

Hotel chatbots offer numerous benefits, from providing multilingual support across multiple channels and improving operational efficiency to increasing revenue through personalized recommendations. 

So, it’s time to lower the pressure on the front desk during peak season and busy hours, and install a chatbot to provide guests with a remarkable experience. Brance AI chatbots have become an integral part of hoteliers' efforts to give their guests a personalized experience. 

From sending ultra-fast responses and effortless booking to personalized recommendations and optimized follow-ups, Brance’s AI chatbot offers a comprehensive solution. With our chatbot by your side, you can deliver exceptional services to your guests and help them experience a memorable stay in your hotel!

Types of Chatbots in the Hospitality Industry 

Rule-based Chatbots 

These chatbots offer predetermined answers and are proficient at handling guest FAQs. They are relatively easy to integrate and cost-effective. 

For instance, they can quickly answer questions about hotel amenities or check-in and check-out times.

AI Chatbots

Unlike rule-based chatbots, AI chatbots understand the user’s intent. These chatbots are capable of handling complex queries and can even complete the process of booking seamlessly. 

AI chatbots, for example, can provide guests with personalized recommendations based on their preferences.

Read Also - AI Hotel Chatbot Checklist

The Limitations of rule-based chatbots in the hospitality industry

In today’s competitive landscape, giving customers the best experience holds utmost importance, and relying on rule-based chatbots can be a drawback. There is no doubt that they are useful for basic tasks, but they lag behind in several key areas, such as:

Limited Understanding  - Rule-based chatbots can’t decode the nuances of human language. For instance, if a guest asks about 'pet-friendly dining options,' the chatbot might only be programmed to understand 'dining options,' leaving behind the 'pet-friendly' part.

Zero Learning - Unlike AI-driven chatbots, rule-based chatbots don’t learn from past behaviour and interactions. In an industry that is more focused on giving guests a personalized experience, this is a significant drawback.

Rigid Nature - Suppose a guest asks for a late check-out in a different way that’s not programmed into a rule-based chatbot; it could lead to frustration in communication, thereby giving guests a negative experience.

Poor Scalability - As the hotel grows and adds new services for the guests, updating the rule-based chatbot becomes a cumbersome and time-consuming process.

Negative reviews - The limitations of rule-based chatbots often result in providing guests with a poor stay experience, which can harm the hotel’s brand image.

Why Brance’s AI-driven Chatbots are the Future of Hospitality

Brance’s AI chatbot has been designed to overcome the above limitations, offering a far more scalable solution for hotel businesses.

1. NLP (Natural Language Processing) - Our AI-driven chatbots understand the context and nuances of human language, resulting in more natural and engaging communication with guests.

2. Seamless Integration - Our AI-driven chatbots can be easily integrated into existing hotel management systems, providing guests with a unified experience. Not only this, but our chatbots can also be easily integrated with other digital channels of communication like Whatsapp, Instagram, and Google My Business, further improving your hotel’s visibility.

3. Dynamic Learning - Our chatbot learns from users' behaviour in every interaction, continuously improving its ability to offer more accurate answers and personalized recommendations to guests. 

4. 24*7 Availability - Unlike rule-based chatbots that may require human intervention to handle complex queries, Brance’s AI chatbots handle a plethora of guest services round the clock.

5. Multilingual Support - Catering to both Indian and international clients becomes a cakewalk with Brance’s multilingual chatbots. They break down all language barriers and enhance guest satisfaction.

6. Advanced Analytics - Beyond just answering queries, our chatbots collect valuable data from customers, which they then use to modify customer service strategies and offer more personalized experiences.

By harnessing the power of AI, Brance is not just staying updated with the hospitality industry’s demands but setting a new standard for improved customer service and satisfaction.

Ready to redefine your customers' experience? Choose Brance’s AI-driven Chatbots!"

Key Integrations for Maximum Performance

Integrating a hotel chatbot with the following key integrations can significantly boost its performance and utility. Sit back and discover Brance’s top integrations in a hotel chatbot for maximum performance.

Property Management System (PMS)

Nowadays, running a hotel without a property management system is unimaginable.

1. Reservation Management: The AI Hotel chatbot can access real-time availability and booking information, allowing guests to make, modify, or cancel reservations directly through the chat interface.

2. Guest Information: By accessing guest profiles, the chatbot can offer personalized recommendations and services based on past preferences and stays.

3. Room Assignment and Services: The chatbot can manage room assignments, upgrades, and additional service requests, like spa appointments or dinner reservations.

Channel Manager

1. Rate and Inventory Synchronization: This integration ensures that the chatbot has up-to-date information on room rates and availability across all channels, preventing overbooking and rate discrepancies.

2. Omni-Channel Communication: The chatbot can manage bookings from various channels, offering a unified booking experience to the guests.

3. Data Analytics and Reporting: Gathers data from various channels for performance analysis, helping to optimize pricing and availability strategies.

Lead Management System

1. Prospect Engagement: The chatbot can engage potential guests by answering queries, providing tailored packages, and nurturing leads until conversion.

2. Customer Journey Tracking: Tracks the customer journey from initial contact to post-stay feedback, enabling the chatbot to offer timely and relevant interactions.

3. Lead Prioritization: Filters and focuses on the most qualified leads to get promising results.

4. Optimized Follow-ups: Uses a combination of best practices and learning on your data to optimize follow-up frequency.

Seamless Payment Gateways

1. Secure Transactions: Integrating a secure payment gateway allows guests to make payments directly through the chat interface with confidence.

2. Payment Flexibility: Offers various payment options, enhancing convenience for guests from different regions with different preferences.

3. Automated Billing and Invoicing: Streamlines the billing process, from deposits to final payments, and can automatically generate and send invoices to guests.

Each of these integrations contributes to a more seamless, efficient, and personalized guest experience. The chatbot becomes a central point of interaction, handling a wide range of guest needs and administrative tasks, thus improving operational efficiency and guest satisfaction.

The Best AI Chatbot Provider for the Hotel Industry in 2024

Selecting the best AI chatbot providers for the hotel industry involves considering several factors such as ultra-fast response times, round-the-clock assistance, multilingual support, personalization, optimized follow-ups, lead qualification and prioritization, and the ability to handle complex customer queries. Here are some renowned AI Hotel chatbot providers that are well-suited for the hotel industry.

1. Brance

Topping the list for 2024 is Brance, a leading AI chatbot provider for the hotel industry. What sets Brance apart is its understanding of unique hotel needs and its ability to seamlessly integrate with existing systems, thereby transforming the ways hotels interact with their guests. Brance’s innovative features highlight its strong commitment to driving innovation in the hospitality sector.

Giving the First Time Response at Lightning Speed - Brance ensures a timely response to leads within a minute, thereby eliminating any kind of delays when prospects inquire, even at odd hours.

Follow-ups - A feature no other chatbot provides and helps hoteliers increase direct hotel bookings.

Prioritizing Leads - Again, a feature other chatbots generally don't provide. Brance’s AI chatbot filters and focuses on the most qualified leads to get promising results, thereby resulting in better lead qualification and prioritization.

Integration with PMS and Channel Managers - Brance’s AI Chatbot can be easily integrated with more than 140 channels and PMS Managers, including Ezee, Little Hotelier, Djubo, Siteminder, Travelline, and many more.

Multilingual Guest Communication Round the Clock - Brance’s prowess in multilingual communication round the clock is unmatched. The AI chatbot never sleeps, unlike human agents. It offers automated interactions in multiple languages, making it an invaluable tool for hoteliers to effectively cater to the needs of international clients. This feature breaks down all language barriers and ensures that every guest is understood and valued in their language of choice.

Seamless Integration & Communication with Multiple Channels - Brance selects the most appropriate communication channel for every lead, be it email, text, Whatsapp, Instagram, Facebook, or other platforms, thereby optimizing the chances of a successful and meaningful interaction with the lead.

Personalized Messages - To stay competitive in the digital age, personalization is the key! Brance ensures a high level of personalization in communication, understanding the requirement and then recommending the right product from the suite of products the business has to offer. The level of personalization Brance offers is a key differentiator, making guests feel recognized.

2. HiJiffy

Securing the second spot on our list is HiJiffy. Specializing in the hospitality sector, HiJiffy's chatbot is designed to streamline communication between hotels and guests, handling tasks like booking, customer queries, and providing local information. It is renowned for its seamless booking assistant and customer support abilities.

3. SABA Hospitality

SABA has made a noticeable impact in the hotel industry by emphasizing the enhancement of guests' experiences through personalized recommendations. By analyzing customer data and preferences, the system provides recommendations, making each guest feel valued and important.

4. Zendesk

While not exclusive to hotels, Zendesk Chat can be customized for the hospitality industry. It's known for its ease of use, integration with other Zendesk tools, and effective handling of customer service queries.

5. Avaamo

Avaamo is a leading chatbot provider, offering conversational AI solutions to various industries, including hospitality. It is designed to enhance guests' experiences. Whether it's handling bookings and reservations or providing information about hotel amenities, AI engages with the guests naturally, thereby enhancing the overall guest experience.

Final Say

With constant innovations taking place in the hospitality sector, a hotel chatbot is one of the technologies that can be valuable for all hoteliers who want to stand out in the entire spectrum. It has become a necessary and fruitful investment if you wish to provide your guests with a seamless experience.

Are you considering installing a hotel chatbot on your hotel’s website and across other digital channels?

Kshitij Chaudhary

Kshitij founded Brance with the vision of helping hoteliers increase their direct bookings using AI. Over the last ten years, he has led the Marketing and Growth of several technology organizations and start-ups such as BCG, Shuttl, House of Beauty, etc.

He also loves traveling and sports.

Frequently Asked Questions

Why is First Response Time important in inside sales?

First Response Time holds a great importance in inside sales because it influences customer satisfaction. Ultra-fast responses improve the chances of potential leads getting converted into paying and loyal customers.

What are the consequences of a delayed first response in inside sales?

A delay in First response time can result in missed opportunities, customer frustration, and a negative impact on conversion rates. Potential leads may lose interest or shift to competitors when experience a delay in response time.

What role does technology play in reducing first response time?

Technology plays a vital role in reducing first response time through automation. AI-driven chatbots streamline the communication process and enables faster interactions.

Why is First Response Time important in inside sales?

First Response Time holds a great importance in inside sales because it influences customer satisfaction. Ultra-fast responses improve the chances of potential leads getting converted into paying and loyal customers.

What are the consequences of a delayed first response in inside sales?
What role does technology play in reducing first response time?

Related Blogs

May 16, 2024

3 min read

Sabre Channel Manager: A Complete Review

Should You Use the Popular Sabre Channel Manager in Your Hotel? Read Our Complete Review and Find Out.

View More

May 15, 2024

3 min read

Hotel-Spider Channel Manager Review: Positives, Negatives, and More

Hotel-Spider Is a Swiss Channel Manager Tool for Hoteliers Around the World. Here’s Our Complete Review of It.

View More

May 15, 2024

3 min read

HotelAvailability Channel Manager Review: Positives, Negatives, and More

Hotelavailability Is an Underdog of the Channel Manager. Here’s Our Detailed Look At It.

View More

Increase your conversion by 2x using Gen-AI

Ready to implement AI at your property?