Personalization is an integral part of creating a memorable customer experience. Customers enjoy having experiences unique to them, crafted based on their individual preferences. In the multi billion dollar hospitality industry creating tailored experiences is particularly important in ensuring continuous patronage and customer retention. McKinsey estimates that the use of AI for personalization can yield an annual value of $600 billion.
There is an abundance of data across social media platforms, e-commerce websites, professional networks, etc. that are available to provide an insight into the preference of customers and potential guests as a way to tailor their recommendations. However, it is humanly impossible to rummage through this data for millions of potential customers or even make sense of it. The evolution of the hospitality industry to include the use of artificial intelligence [AI] however, has made this possible. With AI, tons of data can be pulled from different sources and analyzed to create tailored and personalized recommendations for customers.
An example of the use of AI for hyperpersonalization is the use of virtual assistance and chatbots. When travelers/guests visit hotel websites, these chatbots provide suggestions on hotel room sizes and amenities that suit the guest based on the analysis of the data available about them online. A previous tweet about a child having nut allergies will result in the chatbot suggesting child-friendly rooms , adding that nut-free snack and food options are available at the hotel restaurant and for room service.
AI can also help with providing the safest and shortest routes to the hotel, leisure activities best suited to the guests within and around the hotel, arrangement of pickup and drop-off services, etc. User preferences can also be saved, offering return customers a sense of familiarity and ‘belonging’ - similar to getting called by their first name by their favorite Starbucks barista before they even make an order. Guests save time by not having to leave special instructions every time they try to make reservations and this eventually influences their retention rates.
AI can also garner feedback from guests - positive and negative - and use this to create better experiences for new guests or improve the experiences of returning guests. With hyperpersonalization, the entirety of a person’s experience can be handled from arrival to departure.
In conclusion, with AI, hyperpersonalization can be ensured for hospitality customers, tailoring their experiences based on pooled data and solving the problems of tailoring and creating unique customer experiences, keeping track of customer demands, making sense and good use of customer data, and handling customer traffic. This in turn will help to increase revenue and customer retention.