The Speed and Risk of Choice - Al and Payment solutions

Clive Edwards, Senior Vice President Operations at Capella Hotels and Resorts

Clive Edwards, Senior Vice President Operations at Capella Hotels and Resorts

The hotel industry is on the cusp of a revolution, thanks to generative Al. This technology has the potential to transform the way hotels operate, from personalizing guest experiences to automating routine tasks.

Imagine walking into a hotel room that's been tailored to your specific preferences, from the temperature to the music playing in the background. Generative Al can make this a reality, creating personalized welcome messages, recommending local attractions, and even customizing room settings all through voice response as an option.

Generative Al can also help hotels streamline their operations, automating tasks such as responding to customer inquiries and generating reports. This frees up hotel the Hotel Team to focus on what really matters—creating unforgettable experiences for their guests. The overwhelming challenge and the additional complexity involve which elements of the architecture of integration does generative Al influence. Will it just be utilised for call centre efficiencies for guest expediting and IRD orders or will it run the gamut of the customer journey from pre- arrival and inclusive of post stay communication. The implication of this decision is key.

The advisable recommendation being to focus the area of scope initially where a subset of customers would interact for examples only customers physically on property or only customers who processed an IRD order or had a query. This allows for continued refinement and allows for the generative Al to continue to adopt the learnings and vernacular of the Organization which may be the most elusive not often discussed feature in affecting the customer experience.

The second recommendation here is to again start small, look at the efficiencies of the team which can be improved with use of Al with such widely available tools as Copilot. It is often said that the displacement of Jobs are not always directly related to Al but are related to the attractiveness of individuals who have a greater comfort in their use of Al and benefits of increased production and problem resolution.

Additionally, it is able to generate new ideas and concepts, such as new room designs, aid technical services and marketing campaigns, helping hotels stay ahead of the competition. Most compelling which is only being recently discussed and experimentally adopted in less than 1% of Hospitality Organizations at the Luxury level is the opportunity for sales and marketing. Specifically related to image generation and more organic Sales and social media campaigns and complete public response to opportunities and feedback.

However, there are risks associated with generative Al, including data privacy concerns, unintended consequences, and job displacement.

For example, the use of generative Al requires access to large amounts of data, including personal information about hotel guests. It is thus imperative for hotels to ensure that this data is stored securely and used in compliance with data protection regulations.

Generative Al may also produce unexpected or undesirable results. On the occasion, it may even generate content that is offensive or inappropriate. AI-generated content needs to be consistently reviewed and approved to ensure brand standards are met—processes need to be set in place to prevent mishaps. The guardrails of the Al during setup are the single most significant prerequisite for implementation. The implications on PDPA and GDPR compliance run deep with generative Al, alternatively it can also be the solution in scanning vast amount of data in CRM's to identify areas on non-compliance.

The automation of routine tasks by generative Al may also result in job displacement for some hotel staff, causing low morale, unhappiness or uncertainty within the team. Companies need to consider the potential impact on their workforce, find ways to reassure their current team and provide support and training for affected employees.

AI-generated content needs to be consistently reviewed and approved to ensure brand standards are met—processes need to be set in place to prevent mishaps. The guardrails of the Al during setup are the single most significant prerequisite for implementation.

Overall, generative Al has the potential to transform the hotel industry, offering personalized services, increasing efficiency, and driving innovation. But it's important for hotels to approach this technology with caution, ensuring that they're using it in a way that benefits both their guests and their Teams.

As hotels embrace generative Al to enhance personalized services, efficiency, and innovation, another technological advancement is poised to revolutionize the industry: cryptocurrency. The use of cryptocurrency has been on the rise in the recent years with more and more businesses accepting Bitcoin, Ethereum, USDT, and USDC as a form of payment.

With its lower transaction fees and growing popularity among younger consumers, cryptocurrency presents a significant opportunity for hotels to tap into a new market and attract new customers. Substantial savings are also generated for hotel businesses, especially for those with a high volume of transactions. While credit card companies usually charge between 2 to 4 percent per transaction, cryptocurrency transaction fees generally range between 1 percent and even lower.

That being said, the nature of cryptocurrency and payment methodology need to be closely examined regionally as the ecosystem for certain regions remain exclusive. As an example, China has developed its own unique payment modes, with mobile payment and digital wallets being particularly popular.

The most popular payment modes in China mobile payment, with platforms such as Alipay and WeChat Pay—dominate the market. These platforms allow users to make payments using their smartphones, by scanning QR codes or using NFC technology. Mobile payment has become so popular in China that it is now common for businesses to accept mobile payments exclusively, with cash and credit cards becoming less common.

Another unique payment mode in China is the use of digital wallets, which allow users to store multiple payment methods, including bank cards and mobile payment accounts, in a single app. This provides a convenient and secure way for users to make payments, without the need to carry multiple cards or remember multiple passwords.

By understanding and adapting to these regional differences, hotels can harness the potential of cryptocurrency and generative Al to create a seamless and innovative guest experience that sets them apart in the industry. The reality as we progress in the next 3-5 years will be one of competitiveness and not differentiation as the landscape will demand as the malleability to be agile and responsive is the greatest offering of these technologies.