Chatbots and Virtual Assistants in the Hospitality industry

1. Chatbots and Virtual Assistants
How AI is impacting customer service and experience in the travel industry
August 2018

2. AI (Artificial Intelligence) is…
The development of computer systems able to
perform tasks that normally require human
intelligence, such as visual perception, speech
recognition, decision-making, and translation
between languages.
What Is Artificial
Intelligence?

3. Chatbot
A computer program you can communicate
with through messaging applications, chat
windows, or by voice.
(Facebook Messenger, website chat
messages)
Virtual
Assistant
A program that understands natural
language voice commands and completes
tasks for the user.
(Amazon Alexa, Google Home)

4. Businesses Are Racing
For Technological
Advancement
Companies are competing to keep up with
emerging tech trends. Businesses are
finding ways to enhance customer
experience by implementing AI solutions.
37% of organizations
have already started implementing
AI for customer experience.
41% have plans to
implement AI by 2020 to boost
customer experience capabilities
*Oracle Research

5. How Can Chatbots Enhance
Customer Service And
Experience In The Travel
Industry?
Airlines and hotels are implementing chatbots on their websites
and using Facebook Messenger to provide additional assistance and
solutions for customers. Messenger bots are beginning to complete
more complex tasks such as recommending places to visit and
handling bookings and payments. Chatbots provide customers with
24hr service and the ability to inform users from any device almost
instantly.
24/7 Service
Amenities Information
Booking Hotel Rooms
Booking/Changing Flights
Check-ins
FAQs
Flight updates
Travel Recommendations
Capabilities

6. How Can Virtual Assistants
Enhance Customer Service
And Experience In The
Travel Industry?
Hotels are testing “smart room” technologies where guests
will be able to interact with virtual assistants like Alexa, Siri,
and Google Home. These systems would allow customers to
access guest information, request services, and control room
functions. Since guests tend to value convenience, the
hospitality industry is working on enhancing their
capabilities to make the travel experience more efficient and
enjoyable.
Check-ins
Concierge or Room Service
FAQs
Flight Status
Hands-free
Music and Entertainment
Room Temperature, Lights, Blinds
Travel Recommendations
Weather Updates
Capabilities

7. Companies In The Travel/Hospitality Industry That Are Currently Using AI To
Boost Customer Service And Experience

8. So How Can
Businesses Benefit
From All This?
Cost-Efficient
Able to process large amounts of data
24/7 customer service availability
Time saving
Helps improve customer experience
53% of employees say they can save up
to 2 hours a day with automation and AI.
(WorkMarket 2020 In(Sight) Report)
AI technology, specifically chatbots, could
save businesses $8 billion
annually worldwide by 2022.
(Juniper Research)

9. But What Do Customers Think?

10. Customers understand that companies across
different industries are turning to artificial intelligence
and digital tools. When it comes to the travel industry,
guests can appreciate that businesses are coming up
with more ways to improve customer service and
customer experience. They like that they can have
options to choose from when it comes to services for
their travel needs, but digital services need to
match or exceed human capabilities.
Customers Want Fast,
Accurate, And Efficient
Service, Whether They Get
It From Humans Or
Technology
What customers like about chatbots
and virtual assistants:
Sometimes faster than a human
Chatbots can still assist guests with accents
(Unlike virtual assistants that cannot
understand international accents)
Help staff be more efficient
Provides travel booking assistance
Inform about changes and delays instantly
Quick searches and FAQs

11. What Are
Customers
Saying?
Likes/Opportunities
“If AI and Voice Activated Virtual Assistants were able to
"proactively" communicate with United
passengers in times of weather delays or canceling of
flights with various rebooking options by calling the
passengers mobile phone and quickly rebooking them by
voice commands, then that would be useful. If they offered
rebooked options or available flights on other airlines from
the same airport, that would be even better.” – Justin M.,
United Customer
“The opportunities for the travel industry are
enormous - helping to choose a destination to visit,
time of the year, type of flight, type of
accommodation, additional tours etc.. anywhere
guidance in decision making is required
represents a potential opportunity.” – Rodney W.,
Qantas Customer
“Chatbots allow a conversation with any customer
about any issue at any time of day (e.g.
browsing on website and chatbot ask if customer
needs assistance). They can engage in friendly, non-
passive interactions with customers, but they
shouldn't replace virtual face time with customer
service reps.” -Trish H., United Customer
“

12. Customer service and efficiency are the main
priorities for guests who are traveling. Customers say
that these AI-powered tools need much more
development before they can fully depend on its
service. They prefer speaking to a real human because
they can better understand customers’ emotions
and complex questions. If digital tools are not
performing well, customers would rather find
answers themselves.
However, Customers
Think That Businesses
Don’t Value Them
Because Of The Lack Of
Human Interaction
What customers dislike about
chatbots and virtual assistants:
Cannot understand complex questions
Doesn’t value the customer
Needs more development
Customers can find answers on their own
Repeat themselves when they speak to a human
Doesn’t always give accurate answers

13. What Are
Customers
Saying?
Dislikes
“I like having the instant ability to get simple answers
on websites e.g. finding check in times and baggage
allowances or hotel arrival times. It is nice to talk
to a real human when I have a more complex
issue though.” – Carol C., Air New Zealand Customer
"I can see where chatbots would be helpful if a customer
just had some straightforward questions - perhaps about
room amenities, etc. But if you needed actual help in
changing or making a reservation, I'm not sure that they
would be capable of helping with that. Virtual assistants in
hotel rooms might work well - for ordering room service or
housekeeping needs, providing they're set up correctly. If
not, it could just lead to frustration and
dissatisfaction.” – Rebecca N., IHG Customer
“The missing component perhaps is the emotional
part of the system. Human relies on some form of
emotion to enhance customer service.
Chatbots and virtual assistants may not because it
currently runs on a set of rules. Perhaps in the
future, AI can be used to determine fairer travel
system tailored to the customer by using logical
decision making rather than an emotional one.”
– Christopher S., IHG Customer
“

14. So, what do businesses need to
keep in mind to keep their
customers satisfied?
Customers are still fairly new to chatbots and virtual
assistants, but so are businesses. Companies need to keep in
mind that if they plan to fully implement AI-powered tools for
customer service, the technology must be fully developed. If
chatbots and virtual assistants are not advanced enough,
businesses may worsen customer experience rather than
improve it, giving customers more complications with their travel
needs. The travel and hospitality industries focus on service and
prioritizing the customer. If companies want to keep their
customers happy, they need to make sure that digital tools and its
capabilities are being leveraged for the betterment of their
guests, and not only their business.

15. AI tools are not used to replace human interaction, but rather
enhance and revolutionize customer experience…
What role do you think AI will play in the years to come?

16. Appendix

17. ***Infographic and timeline by Futurism