In the latest episode of the AI Business Leadership Podcast, Laura Nelson, Head of Product at SolvedBy.AI, and James Stewart, Head of Sales, reflect on their experience at the B2B Hospitality Tech Expo. Their conversation explores how artificial intelligence (AI) is reshaping the hospitality industry, improving operational efficiency, enhancing customer experiences, and driving profitability. In this blog, we’ll dive into some key insights they shared, offering practical takeaways for professionals in the hospitality sector.
The B2B Hospitality Tech Expo 2024: Key Takeaways
Laura and James start by discussing the Hospitality Tech Expo, an event that brought together leaders from across the industry to explore the latest innovations in technology. AI was a central focus at the expo, with attendees from various backgrounds—from COOs to data scientists—eager to understand how AI can solve their business challenges.
1. Optimizing Capacity and Space Usage
One of the primary ways AI is impacting hospitality is by helping businesses optimize capacity and space. In hospitality, unused capacity can mean lost revenue. James highlighted an example from his conversations at the expo:
“One of the most interesting conversations I had was with a business looking to maximize their space. They were running at 80% capacity across the year, and the goal was to increase that by 10%. For a £100 million revenue business, that extra 10% could add millions to the bottom line.”
AI-powered tools are being used to forecast demand, ensuring that businesses can better utilize their space, whether it’s booking hotel rooms, managing seating in restaurants, or filling leisure activity slots. This precision leads to improved occupancy rates and increased profitability.
2. Data-Driven Decision Making for Workforce Planning
Another crucial area where AI is making a difference is labor forecasting. In a service industry like hospitality, having the right number of staff at the right time is essential to providing excellent customer service while keeping costs in check. James emphasized the importance of accurate workforce planning:
“AI helps businesses forecast labor demand, ensuring the right people are in the right place at the right time. This isn’t just about cutting costs—it’s about improving customer experience by ensuring service levels are maintained.”
By analyzing historical data and predicting future demand, AI can help hotels, restaurants, and other hospitality businesses optimize staffing levels, reducing both under- and overstaffing, and ensuring smooth operations.
3. AI and Price Optimization
One of the most exciting applications of AI in hospitality is its ability to optimize pricing strategies. AI can tailor prices based on a variety of factors, including location, seasonality, and customer demand. James explained how businesses are leveraging this:
“I had multiple conversations about how AI is helping businesses adjust their prices in real-time. For example, a hotel in York may need to price differently than one in London, or a business might adjust pricing around holidays or peak seasons. AI is helping to take the guesswork out of these decisions.”
By implementing AI-driven price optimization, businesses can ensure that they are charging the right price at the right time, maximizing revenue without alienating customers.
4. Innovative Technology Solutions: Tracking Footfall and Queue Management
Technology plays a critical role in enhancing operational efficiency in hospitality. One of the most innovative solutions discussed in the podcast was the use of AI-powered camera technology for tracking footfall and managing queues. This technology allows businesses to monitor how many people are in a space at any given time, helping them optimize service levels and reduce wait times.
“A restaurant group I spoke to was looking into camera technology that tracks footfall and helps manage staff movements. This kind of real-time data can improve efficiency and customer service, ensuring guests are attended to promptly,” James noted.
This kind of technology is helping businesses streamline operations, creating smoother experiences for customers and making better use of staff resources.
5. Leveraging Data for Business Insights
At the heart of all these innovations is data. Hospitality businesses have access to vast amounts of data, from workforce management systems to EPOS data and sensor technology. But as Laura and James discussed, the real value lies in how businesses use this data:
“Data is king,” James said. “Businesses are waking up to the power of data, and AI is the tool that can unlock its potential. Whether it’s labor forecasting, pricing, or understanding customer behavior, AI helps businesses turn data into actionable insights.”
By utilizing AI to analyze data and generate forecasts, businesses can make more informed decisions that improve efficiency, reduce costs, and enhance the overall guest experience.
The Future of AI in Hospitality
As the podcast highlighted, AI is not just a buzzword in hospitality—it’s an essential tool for businesses that want to stay competitive. From optimizing capacity to improving labour efficiency and adjusting prices dynamically, AI is enabling hospitality businesses to operate more efficiently and profitably.
James summarized the future of AI in the sector perfectly:
“We’re entering a phase where AI and data are becoming critical for hospitality businesses. Companies that embrace these technologies will have a significant advantage in offering better customer experiences and driving profitability.”
Whether you’re already exploring AI solutions or just beginning to understand their potential, this episode of the AI Business Leadership Podcast offers valuable insights into how AI is transforming the hospitality industry.
If you’re interested in learning more about how AI can help your business in hospitality, tune in to the full episode, below. Laura and James’s conversation is packed with actionable insights, practical examples, and forward-thinking advice on leveraging AI in the fast-evolving hospitality landscape.
