The power of AI: Good for guests, great for business

The accommodation sector has a long association with AI. ChatBots, automated price adjustments and self-check-in options have all gained popularity in recent years.

The rise of generative AI and increased sophistication of AI tools is now providing exciting opportunities for accommodation providers.

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OTAs and major travel platforms are already leveraging AI. This means it is essential for accommodation providers to understand how to remain competitive and visible in an AI-driven digital world.

Adrian Caruoso, Group Managing Director at Fast Tack Digital shared some tips for operators to harness and maximise the power of AI. “The essential AI toolkit for accommodation providers is becoming clear: GEO-optimised websites, AI-powered chat, personalisation engines, and smart review management. Together, these tools help capture attention earlier in the search journey, secure more direct bookings, and keep guests engaged long after check-out.

 “Those who invest now will be tomorrow’s winners in the race for visibility and guest loyalty.”

GEO and search visibility

We’re all familiar with Search Engine Optimisation (SEO)—using key words, and optimised technical aspects like mobile-friendly website design and page speed, to increase website visibility and direct traffic. Now, Generative Engine Optimisation (GEO) is changing search visibility.

Mr Caruoso said the way guests discover and book accommodation is shifting rapidly. “With the rise of AI-powered search platforms like ChatGPT, Perplexity and Google’s Search Generative Experience, Generative Engine Optimisation (GEO) is becoming just as critical as traditional SEO. While Google remains king of search, guests are increasingly turning to AI tools for travel inspiration and booking advice.

“Start by ensuring your website is AI-ready: clear schema markup, detailed FAQs, and content written in a conversational style that mirrors how travellers ask questions. This makes it far more likely your property will appear in AI-driven answers, driving direct traffic instead of losing guests to OTAs.”

To test your property’s GEO, try asking different chat bots what they know about your property. If you don’t like the answers, it might be worth investigating where they are finding their information, and then working to improve your GEO.

“If your property isn’t optimised for GEO with structured data, rich content, and answers that AI engines can easily reference, you risk being invisible in the new digital landscape.”

Related AccomNews article: Should hoteliers become AI experts?

Guest communication tools

“AI doesn’t stop at search,” Mr Caruso said. “Chatbots and virtual concierges are now playing a bigger role in converting browsers into bookers. From handling enquiries 24/7 to upselling during the booking process or assisting in-stay, these tools not only improve guest experience but also free up staff time.”

Before your guests arrive for their stay, AI tools can generate personalised recommendations based on guest information provided when booking. Spa treatments, meal offers, and loyalty packages, as well as interesting things happening in the local area can all be identified and sent via email or text message to your guests.

At check in, AI offers automated processes like facial recognition, details verification, and virtual assistants to help guests settle in. Chat bots give guests the opportunity to learn more about your property and the local area, and again, provide special, personalised offers tailored for specific guests.

AI can also factor in considerations like the weather, day of the week, and local events to provide recommendations that are timely and relevant. For returning guests, AI will remember their preferences from previous stays, helping to make the welcome feel more personal.

Of course, this can free up considerable staff time, as they will not need to perform tedious tasks like data entry and document checks on guest arrival. Guests will enjoy the convenience of the streamlined check in process and reduced wait times.

Smart review management

Guest reviews remain a powerful driver for accommodation bookings. For domestic Australian travellers, reports indicate around 45 percent of people turn to reviews to decide on their accommodation. Internationally, the figure is estimated at closer to 90 percent.

Replying to and acting on customer feedback is essential in maintaining your property’s good reputation and building guest loyalty. In some cases, though, review management can become a full-time job.

Software is now available that harnesses the power of AI to monitor and analyse reviews and automate thoughtful responses. These platforms are more powerful than a human, with the ability to aggregate reviews from multiple platforms, and identify recurring issues, customer sentiment, and overall brand perception.

From analysing customer reviews, AI can generate actionable insights, for example, which menu items people love, pain points in the check in process, or staff members who are particularly helpful. This data-driven information can help you make informed decisions, and act on minor problems before they become major concerns.

Related AccomNews article: AI is the new travel agent

Improved efficiencies

AI has the capacity to analyse large booking and marketing data sets. These insights mean AI can assist in streamlining a range of administrative tasks.

AI can track consumption of essential in-room amenities and automatically place an order, so items are never out of stock. Food and drink can be managed in a similar way. Laundry cycles can be monitored to ensure adequate linen is available. Automation of staff scheduling can ensure you have enough staff during busy periods, while dynamic pricing can adjust room rates to meet demand.

Maintaining the balance

While AI tools can undoubtedly improve your guest’s stay and streamline operations, it is important to maintain a balance between human connection and machine-based interactions. Make sure guests can still find a real-life person to talk to when they need. For some guests, nothing will replace a warm smile and friendly chat. After all, sometimes, it’s the people you meet along the way that make your stay truly memorable.

This article first appeared in the Spring edition of AccomNews. Click below to explore.