Exclusive: How is AI driving a new era of Superhuman Hospitality?

Not since the inception of the internet has a technology created a bigger buzz, or possessed more disruptive potential, than artificial intelligence (AI). AI isn’t just revolutionising processes and optimising efficiency at global technology companies; it’s doing so at businesses of all sizes in every industry.

In hospitality, 85% of Australian venues are already using AI, according to research from SevenRooms.

As evidence of its transformative potential, venues aren’t just using AI to improve one process, or a small number of processes. They’re using it across their entire operations, from data analytics (36 percent), inventory management (36 percent) and devising menu items (29 percent), to scheduling (26 percent), staff hiring and training (25 percent) and dynamic pricing (25 percent).

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Here’s how hospitality businesses in Australia are turning AI’s theoretical potential into tangible and present day strategies to drive growth, enhance guest experience and improve productivity and profitability.

Data analytics

Whether you’re an AI novice or expert, you’ll know that AI is built on the analysis of data. The hospitality sector is taking full advantage of AI-powered data analysis to establish an edge, especially in Australia where 36 percent of operators are using it for this function, more than the US (33 percent) and the UK (23 percent).

By analysing data from various systems, such as a reservation platform, CRM, POS and marketing software, venues are able to generate a comprehensive view of their performance.

Critically, venues aren’t simply accessing data, but understanding it in context. In an age of so called ‘analysis paralysis’, AI is enabling venues to more efficiently synthesize their data, create stories about what’s happening, why it’s happening, and what they can do with it. With that context, it’s far easier for venues to digest their data, turning it into practical and actionable next steps.

Menu analytics

For many venues, it’s not just fresh, delicious or eye-catching produce that’s on the menu – AI is too. Operators are using AI to analyse current menu performance, guide future menu decisions and strategically design item placement for maximum sales. For example, if one dish is under-performing AI will advise the operator; just as it will if another dish is in particularly high demand. Venues are using these insights to not only determine what’s on the menu, but where to place it on the menu too.

What’s more, AI will also advise if a venue doesn’t have enough, for example, vegetarian or alcohol-free options.

This is particularly critical today, as demand for menu items like these grows. By analysing a menu’s performance holistically – from volume of dish sales, to margins, and overall contribution to revenue – venues can make insight-driven decisions to not only optimise their menus, but to improve customer experience and commercial performance.

Pricing analysis

Rarely, if ever, before have costs been more top of mind for businesses and consumers alike. Today, venues are tapping into AI to analyse prices and predict trends, as well as suggest revenue-maximising adjustments. This is being done at both a venue-specific and group-wide level.

For example, through AI, one Melbourne-based hospitality group is building a model focused on price elasticity that will enable it to be far more nuanced and strategic with its pricing.

Rather than rolling out one-size-fits-all prices across every venue, AI is enabling it to understand where pricing might negatively or positively impact volume. By analysing everything from customer demographics to product performance, AI is helping it determine the most appropriate pricing strategy for each venue.

Customer reviews and enquiries

For venues, nothing is more important than its guests. Whether it’s to facilitate an initial inquiry or respond to a post-visit review, AI is revolutionising both guest acquisition and retention. From answering calls or replying to emails and social media messages, customer enquiries are a drain on resources, yet are business-critical. AI is streamlining the process, enabling venues to automate the process to improve retention, capture missed revenue, and turn time savings into cost savings.

Through AI-powered voice assistants, venues can reduce the amount of time their staff spends on the phone by anticipating guest needs and automating calls accordingly. AI systems can handle requests for booking reservations, placing online orders or simply answering FAQs – whether through email, text, social media or phone – reducing time spent on admin, and maximising time spent on delivering meaningful in-person hospitality experiences.

Generating customer reviews is critical, but so too is responding and analysing. Through AI, venues can reply to all reviews in context, smoothing over an unhappy guest or turning a delighted customer into a repeat diner and brand evangelist.

AI software can also analyse customer reviews and extract actionable insights. For instance, if multiple reviews mention long waits,  AI can highlight this trend, enabling a venue to make necessary adjustments. Similarly, if many praise a specific dish, AI can identify this and prompt the team to order more of that produce to maximise its serving capacity

AI’s potential is close to limitless, and so too are its use cases. Venues are using AI to optimise table and venue management, to automate their inventory management, and even assist with staff training and management.

We’re on the precipice of a new era of SuperHuman Hospitality and AI will be the driving force. When venues can automate and optimise their operations through AI, the opportunities to enhance guest experience and maximise revenue will grow exponentially.

Paul Hadida

By Paul Hadida, General Manager, APAC at SevenRooms, a data-driven guest experience and retention platform for the hospitality industry

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