How Hotels Can Use Artificial Intelligence to Drive Direct Bookings
How will AI solutions allow hotels to shift bookings away from the OTAs onto the direct channel?
Digital Marketing in Hospitality — Viewpoint by Adam Mogelonsky
In the near term, the biggest opportunities AI provides for driving direct revenue revolve around creating richer, more personalized experiences at each stage of the guest journey. Hotel marketers can use AI to better segment potential guests based on behaviors and deliver content and offers — at scale — that match those segments' intent. Increasingly, you can let the AI select and orchestrate campaign messages, images, and offers that align with the needs of potential guests, and drive conversion. Similarly, these tools can provide intelligent rate displays and offer attractive upsell opportunities to guests to improve the revenue you achieve during each stay. Real-time guest service during the booking process, including chat, can help improve that experience and increase conversion rate.
Of course, the guest journey doesn't end at time of booking. Again, savvy hotel commercial teams are beginning to put AI to work to upsell and cross-sell on-property experiences during the pre-arrival and on-property stages of the guest journey to drive greater share of wallet. And, of course, intelligent, automated post-stay campaigns are beginning to produce results in driving repeat bookings from past guests.
In the longer term, we've not yet seen how universal access to AI assistants will shape guest behavior. These tools are likely to shift the way guests interact with information and experiences every bit as much as the internet, mobile, and social media have. We should expect to see new marketing and distribution channels that make it easy for us to reach guests directly — and new gatekeepers who seek to insert themselves into that process. Every silver lining comes wrapped in its own cloud.
Regardless, these benefits come with a cost. Hoteliers must take a serious look at their existing tech stack and team skills to ensure they're ready to put these tools to work. Take a look at the partners you work with. Do they make it easy to connect with new sales and marketing partners? Do they have a well-articulated vision for how they'll incorporate AI into their products? Have they begun to deliver on that vision? If so, you're in great shape. If not, it may be time to start looking at alternatives.
And, finally, don't ignore your people. Does your team have the skills, the resources, and the vision needed to adapt to a changing customer and technology landscape? You will want to give them the support they need to quickly adjust as guest behaviors — and those of your competitors — evolve. The hoteliers who are able to learn the fastest, and put those learnings to use, are the ones most likely to succeed at driving more direct business as AI becomes more common. And there's nothing artificial about that.