The Benefits of Combining Artificial Intelligence and Commercial Real Estate
Artificial intelligence (AI) has been a hot topic in the commercial real estate (CRE) industry, with many touting its potential benefits. From data analytics to asset management and risk identification, AI is already being used in various ways within the sector.
Recently, CBRE experts wrote an article discussing another promising combination: AI and hotels. In their piece titled “AI’s Impact on Hotels,” they explained how this partnership could lead to enhanced customer service, increased margins, expanded research and booking capabilities, as well as improved experiences for guests.
Here are some key ways that AI could benefit the hotel industry:
1. Improved Operational Efficiency
By utilizing AI technology effectively, operators can achieve greater efficiencies among knowledge workers. This will also free up more leisure time for travel which will drive demand for leisure-oriented hotels.
2. Industry Consolidation
CBRE predicts that partnerships driven by AI will increase scale benefits and improve data access within the hospitality industry.
3.Improved Booking Strategies
With advanced algorithms at their disposal through AI technology , hotels can move away from fixed pricing models towards personalized offers based on each guest’s total revenue potential.This shift may also prompt online search engines to prioritize direct sales over lodging opportunities .
4.Enhanced Relationships
As technology continues to evolve , it is expected that there will be stronger relationships between hotel brands , third-party management companies,and owners . Additionally,this trend may extend into relationships between online travel agents(OTA),metasearch platforms,and managers .
While there have been concerns about how this partnership might impact jobs in hospitality,the article acknowledges that while job losses are likely,new positions requiring different skill sets may arise.Resort-style properties stand to gain from increased leisure time unless widespread job losses occur.Demand for corporate travel accommodations could decline,but these changes aren’t expected until 7-10 years down the road due largely due current economic conditions such as high cost of capital and pressure on gross operating profits.
Overall, the potential partnership between AI and hospitality is an exciting prospect for the industry. While it may take some time before we see widespread adoption, the benefits are clear. As technology continues to advance, it will be interesting to see how this partnership evolves and impacts the hospitality sector in the future.
This article was originally published on Connect CRE .
