I’m a huge fan of Marvel comics. Especially Ironman A.K.A Tony Stark. You must have heard about him.
However, the most intriguing part of his character is his virtual assistant – JARVIS. The way it helps him fight aliens and do all the cool stuff is commendable.
Inspired by that concept, chatbots came into existence. Yeah, they are your virtual assistants while surfing the internet.
If you see many websites have a pop-up stating – ‘How may I help you?’
Those are chatbots. Considering their importance, many hotels have implemented them.
In this blog, I’ll explain, all about hotel chatbots and their benefits in the hospitality industry.
Table of contents
What is a chatbot?
Chatbots are software applications developed to communicate with page visitors and resolve their queries.
Depending on their backend, we have two types of chatbots:
- Programmed
- Artificial Intelligence (AI)- powered
Programmed chatbots are more or less similar to IVR (Interactive Voice Response). They have a specific set of questions and answers configured. Hence, they cannot provide solutions to queries that are out of their database.
So, they capture details of the visitors which further generates prospects. The concerned department connects with them and addresses their queries.
On the other hand, AI-powered chatbots are way more sophisticated and smart. NLP (Natural Language Processing) and machine learning keep them up to date.
In simple terms, it analyses previous conversations to understand human behaviour and responds accordingly. Because of this, the chat feels like a live conversation with a human.
Chatbots for hotels
Hotel chatbots are virtual assistants to guests in this digital epoch. They are efficient as any hotel’s front desk staff and provide guests with a high-end user experience during the booking process.
If guests visit your website, they might have certain questions. Here the chatbot would attend to their inquiries.
If they are satisfied with the answers, they might book a room at your hotel.
Your hotel’s staff does the same task. Chatbots just make this easier.
Which are some best hotel chatbots?
This might seem a bit exaggerated, but chatbots do help in increasing your hotel’s revenue. Let’s take a look at some famous hotel chatbots.
a. Rose – The Cosmopolitan, Las Vegas
Developed by R/GA, Rose is one of the smartest chatbots in the hospitality industry. It beautifully converses with guests and keeps them engaged on the website.
As per the official statement released by Mamie Peers, Vice President, Digital Marketing, Cosmopolitan of Las Vegas –
"Rose's playful personality has wooed hotel guests who booked directly into spending 37% more than guests who do not engage with her."
Some of its key features are :
- The sassy way of conversing with guests.
- Providing them with the hotel’s information.
- Guiding them through the booking and stay.
- Suggesting them activities, thereby increasing the spending on the hotel.
b. Velma – Zafiro Hotel, Madrid
Velma is an AI-powered chatbot, developed by Quicktext Inc. It can easily handle 80% of guest requests in more than 20 languages.
As per testimonial by Zafiro Hotel, Madrid –
"With Velma, we have seen a revolution, change in management and customer support. Plus a profit of 47000€ from the bookings in the last six months."
Some of the features of Velma are:
- CRM integration helps with guest profiling.
- Generating leads by sending an instant notification to the sales team.
- Maximum engagement with guests by sharing the best available deals and offers.
Where are chatbots used in hotels?
When I say chatbot, you would think of one on a website. But, it’s just the tip of the iceberg. Here are 3 major channels of chatbots in the hospitality industry.
Facebook chatbots
If you visit any hotel’s Facebook page, you may receive an automated message in your inbox. That’s through a Facebook chatbot.
The message conveys general information about the hotel with a link to its website. The page visitors can ask their queries to the chatbot and it will provide them with appropriate answers.
Because these ones are programmed, they have a limited set of memory and functions. However, they do have multiple advantages.
For example, they will register each guest profile in your database for every unique message sent. Further, you can use this data for your hotel promotions.
Website chatbots
Website chatbots are commonly used. But, it’s essential to have one that works efficiently.
I would recommend going with the AI-powered ones in this case. The reason is simple – Increased conversion rate.
The chatbots I talked about earlier are AI-driven. The hoteliers using them claimed an increase in their revenue.
So, you see, chatbots on websites are quite necessary, as they are the first point of contact for guests. For any queries, chatbots can come to their rescue instantly.
WhatsApp chatbots
WhatsApp chatbots also fall into the category of programmed ones. Yet, they are able to perform various complex tasks.
A WhatsApp chatbot looks like a regular chat. It sends you personalised messages about the bookings guests have made or abandoned.
Since they are programmed, the responses are quite generic such as:
- Reply with ‘Yes’ to confirm your mobile number.
- Reply with an appropriate option to proceed: Confirm your booking, cancel your booking, or request a callback from our team.
These chatbots are trending because WhatsApp has become a convenient mode of communication.
How using a chatbot benefit hoteliers?
Before investing in any hotel technology, you would want to know about its benefits. Here are five compelling reasons to have hotel chatbots for your property.
1. Boosts customer engagement at every stage
The primary task of chatbots in the hospitality industry is the guest engagement. A chatbot being available 24*7 for guests, efficiently achieves this.
But, there’s more to it than meets the eye. They work as a personal assistant for guests during various stages of their stay.
Here are some activities hospitality chatbots perform at each stage:
Pre-arrival:
- Sending booking confirmation.
- Sharing details about nearby places to visit and activities to be done.
- Informing guests about their pick up details.
During stay:
- Guiding guests through hotel facilities they can avail.
- Send alerts about events or activities happening in the hotel for rejuvenation.
Post-departure:
- Share feedback links with guests to collect reviews.
- Notifying guests about ongoing offers and deals, to retain them.
Thus, use of chatbots in hotels ensure that none of your guests are left unattended.
2. Increased conversion rate with maximum lead generation
We know that chatbots communicate with guests and resolve their queries. The evolving technology has made them quite agile.
Now, they can guide guests to make a direct booking successfully in your absence. The AI-powered chatbots act as a catalyst in their decision making.
They record the details of lost opportunities for you to act on later.
3. More cross-selling and up-selling opportunities
Chatbots increase revenue by cross-selling as well as up-selling.
When guests are browsing the property website, chatbots highlight room upgrades and discounts they can avail. This results in an upsell.
Many hotels have some paid recreational activities like spa, bar, jacuzzi and others. During the guests’ stay, chatbots inform them about these facilities.
This helps in cross-selling, thereby making guests spend more than usual.
4. Increased promotional follow up with guests
Guest retention costs lower than acquiring new ones. Chatbots assist in this as well.
Post guests’ departure, chatbots keep them up to date with hotel offers. They keep the guests engaged with such follow-ups.
This results in increased guest retention.
5. Higher staff efficiency
Because chatbots are initial contacts for guests, they filter the window shoppers. This saves your staff’s time and efforts.
Apart from this, many hotel bots provide a detailed report of prospects generated, converted and missed. These aids hotels to keep a track of their performance.
Conclusion
Chatbots are quite important in this digital era. They are a new trend in hotel marketing. Websites, social media, or any platform providing hotel information to guests should have a chatbot on it.
Being technologically upgraded is the only way to survive in this competitive world. If you don’t have a chatbot, it’s time to install one now.
