In an era where artificial intelligence (AI) is rapidly becoming a cornerstone of various industries, the hotel and accommodation sector in the Middle East is no exception. As customers and travellers are expecting more, AI offers powerful tools to boost revenue by enhancing personalisation, streamlining operations, and creating unique experiences.

Here are some of the current AI opportunities for the industry and the players that are putting them into action already!

Personalisation leads to higher incremental revenue 

Personalisation has become a key driver of customer satisfaction and loyalty in the hospitality industry. According to Marriott Bonvoy’s 2024 Future Travel Trends, in the Middle East high-earning travellers in the UAE (50%) and Saudi Arabia (51%), are increasingly seeking personalised experiences. Hotels have a unique opportunity to tap into this demand. For instance, AI can analyse a guest’s previous stays, preferences, and behaviours to offer customised room settings, dining options, and local activities. 

Amadeus’s Travel Technology Investment Trends for 2024 also found that out of the 92% of hoteliers that recognise the importance of personalisation, 85% believe it can achieve over 5% increase in incremental revenue. This not only improves the guest experience but also increases customer lifetime value.

Unlocking unique experiences 

AI is also unlocking the potential for new and unique experiences in the hospitality industry. IHG Hotels & Resorts, for example, has partnered with MDLBEAST to bring futuristic, AI-inspired experiences to festivalgoers in Riyadh and Jeddah. These include an upside-down hotel room container,  and a secret AI-inspired room, offering engaging experiences tailored to Gen Z and Millennial audiences.

These immersive and sharable experiences not only attract younger travellers but also create buzz around the hotel brand, leading to increased bookings and higher revenue.

Streamlining experiences across hotel groups

Larger hotel groups can often operate independently, using disparate systems that do not communicate with each other. This can lead to a fragmented customer experience, where travellers encounter varying levels of service and amenities within the same brand.

AI can address this issue by unifying data across all properties within a hotel group. For example, AI can analyse bookings from different online travel agencies (OTAs) that are not connected to a hotel’s property management system (PMS) and integrate this information into a single database. This ensures that a guest’s preferences and history are readily available at any hotel within the group, providing a consistent and personalised experience across all locations.

According to a survey by Skift and Oracle Hospitality, 30% of respondents highlighted the need to integrate travellers’ data across their entire trip. By achieving this integration, hotel groups can not only enhance the guest experience but also increase operational efficiency and revenue.

Reducing repetitiveness behind the scenes

AI’s potential extends beyond enhancing the guest experience; it can also streamline internal operations, reducing the burden of repetitive tasks. In the hospitality industry, many daily tasks consume significant time and resources, detracting from the core focus of customer service.

For example, AI-powered tools can automate routine HR processes, such as managing documents for new hires or handling payroll inquiries. Additionally, AI-driven marketing tools can create personalised content at scale, freeing up time for marketing teams to focus on strategy rather than execution.

AI assistants are not just reserved for guest experiences, they can improve internal communication and efficiency. Handling routine inquiries from staff, providing instant access to information, and even offering real-time insights for strategic decision-making. By reducing the time and effort required for repetitive tasks, AI enables hotel staff to focus on driving revenue growth.

Where experience meets streamlining

Combining unique and innovative experiences with streamlined processes is another area where AI shines. A prime example is Emaar Hospitality Group’s AI Concierge, ‘Nuha,’ which is powered by ChatGPT. Nuha offers a natural and intuitive conversational experience to guests while offering in-depth services like tours of Address Hotels, comprehensive guidance on Emaar’s offerings, and personalised recommendations for exploring Dubai.

Sustainability and financial gains

AI is also playing a crucial role in promoting sustainability, which can lead to significant financial savings for hotels. Rotana’s properties in the UAE, for example, have seen a 63% reduction in food waste due to AI technology. This not only reduces the environmental impact but also lowers operational costs, contributing to the bottom line.

But we’re also getting to a stage with technology that can go beyond this. AI can monitor infrastructure and data usage, optimising energy consumption and reducing waste. The Oxagon project, part of Saudi Arabia’s NEOM initiative, is integrating AI-driven systems to manage everything from energy distribution to waste management. These innovations will lead to more efficient operations, lower costs, and a reduced environmental footprint, all of which contribute to increased profitability.