As things move forward in the hospitality sector, artificial intelligence (AI) has started to have a significant impact on how businesses run. It is especially apparent in serviced accommodation businesses where the use of AI can increase efficiency better than in any other business. This applies to short term rentals, Vacation Rental houses, and fully serviced apartments. The integration of AI in such operations will enhance revenue, efficiency, and customer experience.
This blog post will guide you about how AI can change your serviced accommodation business helping you to make it more profitable while improving your overall services.
1. AI-Powered Dynamic Pricing
The most profitable area where AI has much to offer in terms of revenue growth within a serviced accommodation business is dynamic pricing. Pricing tools based on artificial intelligence use data points like the time of year, pricing of competitors, demand in the evergreen areas, as well as local events. With the assistance of algorithms, an entire pricing strategy can be fine-tuned in real-time so that the occupancy levels and profit levels are optimized.
For instance, when there’s an obvious surge of demand in terms of accommodation because of an event coming up, with the help of AI prices can be increased automatically. On the other hand, it can provide cut prices during off-peak seasons to reduce cancellations and keep routine bookings.
The traditional way of adjusting rates by going through various reasons changing almost every minute can be quite unfriendly, but artificial intelligence does it beautifully with no work added on your part but extra income to your serviced accommodation business.
2. Enhanced Guest Experience Personification
Guest satisfaction, without a doubt, is of great importance in the serviced accommodation business. This leads AI to assume that bed churn is a data-filled area where one can introduce analytics to improve guest engagement. AI tools capture and process guests’ likes and dislikes in terms of room check-in hours, room types, and other services offered for them and help in accordingly customizing their experience.
For Example, AI chatbots can interact with visitors while they are on the property during their stay by providing them with information and answering questions people may have about available facilities in the area or their room. These interactives with the help of AI add value help improve guest reviews and increase the likelihood of the guest coming back which brings in more income.
3. Enhanced Marketing Strategies
Using AI technology will revolutionize the way the serviced accommodation business is marketed. In general, marketing includes a lot of trial and error, as opposed to artificial intelligence which may precisely locate your best customers based on the data they have analyzed. AI tools can also help you design ideal marketing campaigns, and forecast the type of content that your audience will love and the time that would work perfectly to run a promo or an ad.
You can now target specific guest profiles for your social media campaigns and reduce wastage while maximizing conversion thanks to AI technology. Also, email marketing can be used whereby email messages will be sent to previous or potential guests offering special deals which is likely to increase the number of bookings. These and many more resources increase the viability of the serviced apartments industry as they increase the effectiveness and efficiency of marketing.
4. AI-Driven Review Management
Online Review management of a serviced accommodation business can often determine the future of the company. As prospective guests are mostly dependent on the reviews and opinions shared by others on the internet it becomes imperative to manage the reputation. AI based review management software allows to streamline the process of collecting and responding to reviews from different websites.
These AI tools can also interpret customer reviews and improve guest feedback through appropriate action. By tackling issues related to negative guest feedback and refining services provided to guests, you will obtain positive guest feedback and bookings from more guests.
Also, AI can help streamline processes whereby happy guests are contacted and asked for good reviews. Better online reputation translates to higher trust from potential guests which further leads to higher booking rates and revenues for the serviced accommodation business.
5. Enhanced Prediction of Revenues
Given that AI is best at analyzing and predicting data, it makes it easier for businesses to forecast revenues and grow. In the serviced accommodation industry, it is quite difficult to predict future revenue as it is based on various aspects situational demand, market forces, and pricing. Examining supported reservation patterns, geographical patterns, and economic trends enables qualitative and quantitative forecasting of revenues.
They assist in determining the timing of decisions regarding capital expenditure for improvements on properties the refurbishment of existing properties or how prices should be managed at peak seasons. As such, by utilizing the predictive capabilities of AI, the serviced accommodation market segment of your business will be able to strategize for the near future increasing the chances of continued success.
6. AI Chatbots for 24/7 Guest Support
There is also the area of guest support where AI applications will play a serious role in the business. In the modern world, when guests inquire about check-in timings, additional supplies, or some issues, they expect fast replies to their concerns. Responding to guest questions directly may be difficult, but virtual AI chatbots can be available around the clock.
Once they are trained properly on the AI bots, in most cases the inquiry departments and call centers can answer outsider’s routine questions and give your team more time to deal with the most complex guest questions. The use of AI chatbots takes care of the guest’s queries instantly, at any time, thus helping to increase the level of satisfaction among guests and also garner positive feedback which translates to more income for your serviced accommodation franchise.
7. Increasing Direct Booking
Most serviced accommodation agencies work with travel agents to get more bookings only that they take a hefty chunk of the earnings for doing so. With the help of AI, there’s going to be lower dependence on other resources as it will shore up direct bookings via customer engagement and repositioning of sites. Several AI website tools can analyze the behavior of its users who actively browse the website and suggest to them to make a direct booking from the site.
AI can also replace an existing CRM within your hospitality business and offer loyalty rewards and discounts to former guests which will encourage them to come back for repeat stays. By increasing the number of direct bookings to your serviced accommodation business, you can cut out other third parties allowing you to enjoy more of the revenues made turning most of your serviced accommodation profitable.
8. AI-Enhanced Security Measures
The issue of security has always remained critical in the hotel sector, and the same applies to guests and one’s property, as this is where artificial intelligence comes in handy. Complex security systems driven by AI can engage in the visualization of surveillance footage identify such behaviors and alert the property managers in real time. With improved security attributes, AI offers guests the opportunity to relax and be satisfied with higher reviews.
Security is not only a matter of erecting borders around a property, AI has been able to help prevent data breaches as well by securing guests’ confidential information. Data leakage is one of the major concerns regularly voiced by serviced accommodation patients; however, if stringent measures are observed, this will encourage customers to pocket their fears, a further economic advantage to your serviced accommodation business.
9. AI-Supported Van Sales Potentials
Upselling is a technique that is well utilized in the serviced accommodation industry to gain higher revenue and in this case, it is the application of artificial intelligence that will take it further. For instance, AI tools, and renewable growth techniques could analyze guests and their booking history and propose relevant subsequent offers such as room upgrades, late checkout, extra nights of airport pick up, or spa treatments.
Conclusion
The serviced accommodation business is set to undergo significant transformation as AI is likely to enhance guests’ satisfaction, bring operational systems to the next level, and feed on revenues. Everything AI can do for your business, from dynamic pricing and predictive maintenance to focus on marketing and reputation, allows operating in a contemporary business environment without any struggles.
The reality is by adopting AI technologies, the serviced accommodation business is sure to remain competitive and at the same time sustain a high standard of quality. So, if there is someone among the audience who still operates without the ‘magic spell’ of AI, this is your moment to adventure out of the box put the wheels in motion, and see your profits peak.
To summarize, in the future of the serviced accommodation business, there will be AI technology, and whoever decides to have these technologies sooner will be the first in the market.