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Welcome to the weekly AST Briefing.

Gone are the days when AI was only associated with robots and science fiction.

Nowadays, businesses across various industries are using AI to improve their processes and enhance customer experience.

This week’s Feature Story explores how the hospitality industry can harness generative AI to personalize marketing and guest services while maintaining the human touch.

Generative AI in Marketing: How Can Hotels Leverage It Without Losing the Human Touch

Businesses across various industries are using AI to improve their processes and enhance customer experience.

One area where AI is making a considerable impact is marketing.

Businesses are persistently seeking innovative methods to differentiate themselves and engage with their customers in more meaningful ways. And generative AI is helping them achieve just that, enabling a level of personalization that was once unimaginable.

The key challenge, however, lies in blending these advanced capabilities with the genuine human touch, which is what truly defines hospitality.

AI's Impact on the Asian Hospitality Market

"The Asian market is a hotbed for AI innovation, and hospitality is no exception," observes Katrin Goetzke, Founder of AI Hotel Marketing.

"We anticipate AI playing an increasingly pivotal role in creating hyper-personalized experiences, from predicting guest preferences to optimizing hotel operations for sustainability.

AI-driven dynamic pricing and image generation will also become commonplace, enhancing marketing efforts and driving revenue," she explains.

Enhancing Marketing Strategies with Generative AI

1. Elevate guest experiences with personalized marketing.

"Generative AI is a game-changer for us," says Blessy Townes, Vice President & Head of Digital Marketing and Branding of Discovery Hospitality.

"We think of AI as a creative partner in hyper-personalization, especially with the ever-changing market trends and the multiplicity in ad tech, social media formats, generational preferences, and intent in mobile shopping moments."

2. Create engaging content.

Generative AI simplifies the task of producing unique and compelling content across diverse formats, from social media posts to blog articles.

In this recent report by Travel Asia Weekly, even travel agents are now using AI to curate content.

3. Optimize direct booking strategies.

"While AI’s biggest perk is its efficiency, for us at Discovery Hospitality, it has allowed us to grow our group's YTD Direct Booking share of revenue to 70% (versus OTA’s 30%) with phenomenal Return on Investment (ROI)," shares Townes.

4. Implement AI-driven dynamic pricing.

Skift author Sean O'Neill noted in July 2023 that AI is set to transform hotel revenue management, and we see this happening now. 

5. Enhance customer support with AI-powered chatbots.

Katrin Goetzke, Founder of AI Hotel Marketing, highlights that generative AI tools manage routine tasks such as booking inquiries and room service requests, giving team members the time to concentrate on more complex tasks.

Maintaining the Human Touch

Generative AI offers significant benefits to hotel marketing strategies, but it's important to ensure that the human touch is not lost in the process. AI should complement, not replace, what hoteliers do best.

1. Personalizing interactions

As Goetzke notes, "AI isn't here to replace human interaction. Think of it as a virtuoso guest relations assistant, gathering guest preferences and anticipating needs. This frees up your staff to focus on curating unforgettable experiences, like a guided nature walk with a local botanist."

2. Empowering staff

"We are in the business of authenticity, and human interactions are the essence of the hospitality industry. Businesses need these interactions to thrive.

It’s just a matter of balancing these automated processes with personalization, fostering human creativity, and maintaining our uniqueness," says Townes.

Ethical Considerations in Using Generative AI

1. Ensure guest data is protected and used ethically.

Goetzke recommends using guest data responsibly. While generative AI can provide valuable insights, it is crucial to use this data ethically.

Hotels must safeguard people's privacy and refrain from using sensitive information without consent.

2. Address potential biases in AI algorithms to ensure inclusivity.

Sometimes, AI algorithms can pick up biases and unfair ideas from the information they learn.

It's important to check these programs often to identify and mitigate algorithmic biases, ensuring fair and inclusive service for all guests.

3. Maintain transparent AI processes to build guest trust.

Transparency in AI processes is key to gaining guests’ trust.

Clearly explaining how AI is used and ensuring accountability can help ease concerns and boost confidence in AI-driven services. 

4. Navigate different regulatory landscapes across Asia.

The AI regulatory environment in Asia is rapidly evolving, with countries such as India, Indonesia, Japan, and Malaysia at the forefront of developing guidelines.

Find out the recent AI regulatory developments in APAC here.

5. Be strategic in your return on emissions as AI systems increase energy usage.

AI can be a double-edged sword. On one end, it can aid in mitigating the impacts of the climate crisis, like optimizing smart grids, creating low-emission infrastructure, and predicting climate change. However, on the other end, AI also contributes to carbon emissions on a considerable scale. 

Google’s greenhouse gas emissions in 2023 were 48% higher than in 2019, driven by the rapid expansion of AI-powered services. A recent study reveals that generative AI systems like ChatGPT could consume approximately 33 times more energy than machines operating with task-specific software.

We are just 1 week away from AST Forum Phuket, happening on September 2, 2024 at Angsana Laguna Phuket. 

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AST Forum begins at 2:30 pm with two engaging panel discussions featuring speakers and experts from various parts of the region. We finish the day with a lively business networking session and a cocktail reception. 

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