The tide is going out, and soon we’ll see who’s been swimming naked

Hotels are finally embracing AI, with virtual assistants quickly becoming a common feature on websites. These intelligent tools promise to enhance customer experience, streamline operations, and boost direct sales.

However, alongside this enthusiasm, the market is starting to get saturated with a flood of quick-fix solutions which have been hastily built to capitalise on the hype of AI and the lack of experience of hoteliers.

But AI is not just this year’s gadget. It is the foundation, the essence of a development which is gradually transforming hotel operations.

As a result, the choices hotels make today in terms of AI will ultimately determine their future failure or success.

With peanuts you get monkeys

The appeal of cheap chatbots based on standard generative AI is clear: quick setup, low costs, and seemingly miraculous results just by scrapping your website. But all that glitters is not gold. These solutions often lack depth, scalability, and resilience. Without a solid foundation, they fail to deliver long-term value, leaving hoteliers frustrated with disappointing outcomes.

What you need to do is not just add a chatbot as a feature on your website. There is no point in opening a new communication channel for customer service and sales if you are not sure that the information will be accurate and consistent.

You must truly understand that the way interfaces are used to find information has evolved, thus moving:

• From computers optimised for search
• To computers and mobile devices optimised for interaction

As a result, you need to fundamentally rethink how you make content accessible and how you sell.

• Content: You need to evolve from just a search to instantly available on-demand information across all mobile channels.
• Sales: From a passive, one-size-fits-all self-service approach TO a proactive, personalised approach

Building Future-Proof AI

Technology is not a product, it is a process, so the question for hoteliers shouldn’t be ‘What can AI do today?’ but ‘What will AI need to do tomorrow?’ And the response to that question is : Answer phone calls, serve as a mobile assistant, respond to emails, modify the website and advertising campaigns in real-time, launch automations, improve SEO, update partner sites, respond to travel agents, and so much more…

To ensure long-term success, AI must be built on a foundation of:

– Clear Strategy: AI is a tool, not a strategy. Don’t expect AI alone to work miracles. To produce meaningful results, it must be aligned with a comprehensive strategy with clear objectives and consistent investments in technology and supporting processes.

– Structured Data: AI thrives on well-organised structured data. High-performing virtual assistants like Velma from Quinta need up-to-date, structured information to fully and accurately respond to customer inquiries.

• Incomplete or outdated data undermines AI’s value. Even the best AI in the world can’t answer your customers’ specific questions about the restaurant’s dress code or parking height without the necessary data. Without structured data, your AI will be useless.

• Beware, many hotels CTO think that they will achieve miracles by plugging ChatGPT to their current database but  more than 60% of the information that characterises a hotel is neither formalised nor digitalised. When starting an AI project, make sure you’re ready to structure and maintain your data.

Hotel information is dynamic and evolves over time. Two key consequences:

• You need a Chief Knowledge Officer (CKO), responsible for structuring and updating the knowledge base that feeds your AI.
• And a structured and scalable database (like Q-Data), capable of efficiently managing the data not only for one hotel but for an entire group.

– Omni-channel Capabilities: As interfaces and content become increasingly independent, AI must operate across different channels (web, social media, OTAs, voice, and email), ensuring a smooth and consistent customer experience. Chatbots based on decision trees (rather than databases) will be unable to cover channels that don’t support rich content (buttons, carousels, etc.), such as Booking.com messaging, email, and voice.

– Hotel Ecosystem Integration: AI has neither arms nor legs. To reach its full potential, your hotel’s AI must integrate with the rest of your ecosystem, and you’ll likely need to acquire new technologies to fully digitize processes such as modifying or canceling bookings, upselling additional services, sending invoices, and more.

From cherry picking to Integrated Ecosystems

The way hotels adopt technology is shifting. The era of isolated tech solutions is ending. AI calls for a broader, interconnected ecosystem where systems PMS, CRM, booking engine, task management, online check-in and ancillary sales systems, etc must work together to create a cohesive guest journey.

Strong virtual assistants such as Velma should act as the “brain” of the hotel, processing data across multiple systems to deliver personalised guest experiences and improve operational efficiency. Hotels and AI providers that embrace this ecosystem approach will unlock the full potential of AI.

Conclusion: Who Will Be Left Standing?

As Warren Buffet rightly said, “It’s only when the tide goes out that you discover who’s been swimming naked.” The tides of technological change will soon reveal which AI providers have built sustainable, future-proof systems versus those who have relied on quick fixes. 

AI is not just another tool; it’s a critical part of a broader ecosystem. Only those who prioritize scalability, adaptability, and deep integration will remain standing as the tide goes out.

Special thanks for helping with this article to: Toni Andujar from Palladium Hotel Group  y  Diego Perez de PongaCEO @Port Hotels. 

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