For years, Indian hotels have been known for their warmth, personalised service, and unique hospitality. But behind the scenes, a quiet revolution is taking place. Artificial Intelligence (AI) and data analytics are transforming how hotels operate and make decisions. The real question is: Can the Indian hotel industry, built on human connection, embrace technology without losing its essence? The answer is clear—the future is here, and hotels that don’t adapt will struggle to stay relevant.The past: Slow to change, but rooted in traditionTraditionally, Indian hotels have been slow to adopt technology. Hospitality is about people, after all, and for a long time, there was a reluctance to introduce tech solutions that could disrupt this personal touch. Property Management Systems (PMS) and Channel Management Systems (CMS) helped manage bookings and reservations, but beyond that, tech innovations were met with hesitation.This hesitation also extended to data. While hotels collected vast amounts of guest data—feedback, bookings, preferences—most of it went untapped. Without the tools to analyse this data, hoteliers relied on intuition rather than insights. The potential was there, but the industry wasn’t ready to fully embrace it.The present: Focus on competitiveness and sales velocityToday, the scene has dramatically shifted. Some hotels are beginning to adopt Revenue Management Systems (RMS) that incorporate competitive data and demand drivers to help optimise pricing strategies. These systems allow hotels to analyse market trends, local events, and competitor pricing to adjust room rates dynamically. While the technology is out there, it’s important to note that AI integration remains minimal, and only a few companies are actively leveraging these advanced tools. Most Indian hotels still rely on static pricing models or use RMS without fully tapping into the potential of real-time data analysis.Hotels today are constantly monitoring their performance on Online Travel Agencies (OTAs), checking how they rank in comparison to competitors, their customer ratings, and how many platforms they’re listed on. Being listed on more OTAs and maintaining high ratings can directly impact visibility and booking rates. This focus on sales velocity—the speed at which rooms are sold—forces hotels to fine-tune their pricing based on how fast or slow inventory is moving.In this competitive environment, even smaller hotels must leverage tools like RMS to stay agile, ensuring their pricing adapts not only to demand but also to how they’re performing across different sales channels. Real-time feedback loops from customer reviews and booking patterns are helping hotels make informed decisions to maximise occupancy and maintain a competitive edge.The future: Hyper-personalised services and sustainabilityLooking to the future, the real game-changer will be integrated AI-driven RMS solutions that offer zero latency and real-time data analysis. These systems will allow hotels to not just react but predict demand shifts, enabling proactive decision-making on everything from room rates to staffing levels. AI will integrate seamlessly across systems, ensuring smooth operations, more personalised guest interactions, and optimised resources.As AI continues to evolve, the future of Indian hotels lies in hyper-personalisation. Imagine a stay where every aspect of the guest experience—from room temperature to dining choices—is customised based on their preferences, all enabled by AI. Guests won’t need to ask for anything; hotels will anticipate their needs before they even arrive. This kind of personalised service will set new standards in hospitality, making every stay feel tailored and luxurious.Finally, the future of AI in hotels will also focus on sustainability. AI-powered energy management systems will monitor and optimise electricity and water usage, reducing the hotel’s environmental impact and operating costs. With growing emphasis on Environmental, Social, and Governance (ESG) principles, AI can help hotels stay ahead in meeting the demands of eco-conscious travellers.The time to act is nowThe future of Indian hotels is not years away—it’s already here. While the full adoption of AI may be slow, hotels that embrace technology now will have a distinct competitive advantage. AI will take care of the behind-the-scenes work—optimising revenue, analysing data, and streamlining processes—allowing staff to focus on delivering exceptional, personalised experiences.For hotels willing to adapt, the rewards will be significant. Those that adopt AI and data-driven tools will redefine what exceptional service means in the modern era and set new benchmarks for the industry. The time to act is now—the future is here, and AI is the key to unlocking it.The author, Anshu Jalora is founder and MD, Sciative Solutions. The views expressed in this article are those of the author and do not necessarily represent those of hoteldealers.in.
Published On Oct 29, 2024 at 01:00 PM IST
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