You cannot open your social media or look at a news site without seeing a story about ChatGPT and other systems which use artificial intelligence (AI) to mimic human conversations. What impact could this technology have on the business of hospitality? We asked the question to expert faculty and the team at Spark, our innovation sphere… as well as to ChatGPT itself.
It can help you cheat on your schoolwork… it’s going to make journalists redundant… there are many wild stories about ChatGPT and similar AI-powered software, making it hard to pick the reality from the fantasy.
The truth is that – as with any technology breakthrough – we’re still only scratching the surface of ChatGPT and what it can do. Given our keen interest in future technologies, led by our Spark global innovation sphere, it’s perhaps no surprise that Les Roches is taking the rise of ChatGPT seriously. Members of our faculty and innovation specialists from Spark are today looking closely at how it might impact the global hospitality industry which we serve.
Dr. Brendan Cronin is among the Les Roches academics who have come together to discuss the impacts of this technology on the business of hospitality. He says, “We can reject the use of ChatGPT, and dismiss its perceived invasiveness, at our peril – or we can embrace this tool, as we embraced previous new technologies such as Google, spell check, and Grammarly, by using ChatGPT to challenge students in areas of authenticity and critical thinking to improve customer experience.”
Brendan’s colleague Pablo J. Garcia is Director of Spark in Crans-Montana. He notes, “As the hospitality industry evolves, ChatGPT stands out as a game-changer in delivering personalized and efficient service to guests, making it a must-have for hotels and resorts striving to stay ahead of the curve. At Spark, we strongly believe that AI technology won’t replace human beings. It can certainly augment their abilities by taking over tedious and repetitive tasks, allowing staff to focus on more valuable, guest-centric activities.”
However, when talking about ChatGPT there’s one voice we really cannot ignore: ChatGPT itself.
So, we asked ChatGPT to explain the challenges and opportunities it can bring to the hospitality industry. And here, delivered instantaneously (and published 100% unedited) is what it told us:
The hospitality industry is a vast and diverse sector that comprises a range of businesses, including hotels, restaurants, resorts, and travel agencies. In recent years, the industry has been undergoing a significant transformation, with the introduction of new technologies that are changing the way hotels and other hospitality businesses operate.
One of these technologies is chatbots, which are computer programs that use natural language processing to simulate human conversations with customers. ChatGPT, a large language model trained by OpenAI, is one such chatbot that can be used in the hospitality industry. In this article, we will discuss the challenges and opportunities of ChatGPT for the hospitality industry.
Challenges of ChatGPT for the Hospitality Industry:
1. Integration: One of the biggest challenges of ChatGPT for the hospitality industry is integration. Chatbots need to be integrated with existing systems and databases to provide relevant and accurate information to customers. This requires significant IT resources and expertise, and may involve custom development to integrate the chatbot with existing systems.
2. Personalization: Another challenge is personalization. While ChatGPT is capable of understanding natural language and responding to a wide range of customer queries, it may not always be able to provide a personalized experience to customers. This is because ChatGPT does not have access to the customer’s personal information, such as their preferences, past bookings, or loyalty program status.
3. Accuracy: Chatbots rely on algorithms to interpret and respond to customer queries. However, these algorithms are not perfect and may not always provide accurate responses. Inaccurate responses can lead to customer dissatisfaction and may even result in lost business.
4. Security: Chatbots may also pose security risks, as they handle sensitive customer information such as credit card details, personal identification information, and booking information. This makes it essential to ensure that the chatbot is secure and adheres to relevant data privacy regulations.
Opportunities of ChatGPT for the Hospitality Industry:
1. Improved Customer Service: ChatGPT can help improve customer service by providing round-the-clock support, answering frequently asked questions, and handling simple requests such as booking confirmations and cancellations. This can free up staff time and allow them to focus on more complex tasks, such as resolving customer complaints.
2. Increased Efficiency: ChatGPT can also increase operational efficiency by automating routine tasks such as booking confirmations and check-ins. This can help reduce wait times and improve the overall customer experience.
3. Cost Savings: ChatGPT can help reduce costs by automating tasks that would otherwise require staff time, such as handling customer queries and booking confirmations. This can lead to significant cost savings, particularly for large hospitality businesses that handle a high volume of customer queries.
4. Personalization: While personalization is a challenge for ChatGPT, it also presents an opportunity. By integrating with customer relationship management (CRM) systems and loyalty programs, ChatGPT can provide a more personalized experience to customers, such as recommending relevant services and promotions based on their past bookings and preferences.
5. Data Analytics: ChatGPT can also provide valuable insights into customer behavior and preferences. By analyzing chatbot interactions, hospitality businesses can identify trends and patterns in customer queries and use this data to improve their services and offerings.
ChatGPT presents both challenges and opportunities for the hospitality industry. While there are challenges such as integration, personalization, accuracy, and security, the opportunities for improved customer service, increased efficiency, cost savings, personalization, and data analytics are significant.
To maximize the benefits of ChatGPT, hospitality businesses must ensure that the chatbot is integrated with their existing systems, adheres to relevant data privacy regulations, and provides accurate and personalized responses to customer queries. By doing so, they can improve the overall customer experience and gain a competitive edge.
Impressive, no? ChatGPT may be artificial, but there’s no doubting its intelligence. And that’s only going to improve as it passes through its development phase. Like other industries, hospitality should be alert to the extraordinary opportunities this technology can offer.
Keep reading bout Spark Innovation Sphere by Les Roches:
- Taking ‘try before you buy’ to a whole new level – MBA students explore the potential of immersive virtual reality in hospitality
- Harnessing the power of collaboration in business
- Bachelor’s students help refine 3D face authentication tech for the hospitality industry
- New olfactory technology is making hospitality experiences more immersive