AI Technology Is Disrupting the Hospitality Industry
R/GA spoke at Social Media Week Chicago about AI technology and how it has become a disruptor in many industries, particularly the hotel/hospitality industry.
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Micheal Morowitz, Executive Technology Director at R/GA and Matt Marcus, VP & Executive Creative Director of Business Transformation at R/GA spoke at Social Media Week Chicago about AI technology and how it has become a disruptor in many industries–particularly the hotel/hospitality industry.
In 2016 there was roughly $12 billion worldwide spent on AI technology. Many companies from Pepsi to Beats have tried to find ways to implement its use within their brands. The Beats creation of Beats Music was so successful that Apple bought out the competitor for $3.2 million in order to try and gain control of the industry. One of the biggest successes of the use of AI technology, however, is from the Cosmopolitan Hotel & Casino in Las Vegas, NV. The hotel opened in 2010 and is different in many ways from its other competitors on the strip. Originally built to be a condo, the design is vertical and its amenities are offered on 9 main floors for the public to visit. The Cosmopolitan has a personality of its own, embodied within the phrase, “just the right amount of wrong”.
The hotel noticed from the years since its opening that many guests were booking through the use of online travel agents (OTA). They believed that “it should be a criminal offense for anyone who books through OTA to stay at the cosmopolitan and then rebook through the OTA again”. In order to combat this, they decided to change their experience offerings. If a guess booked with an OTA they would simply offer a room, but if the guest booked directly with Cosmo they would get an experience. But what was the special experience they would offer? Rose. Rose was an AI chat/messaging bot that would provide information (weather, pool views, hours), services (reservations, room service), and experiences (facility tours, playful games, conversational teasing). Instead of creating Rose to be an app, they created her as a chatbot because they found that 69% of millennials think messaging is more convenient than websites.
Rose received her name from the hotels social club Rose. Rabbit. Lie. Cosmo designed her to have a distinct personality, but be ambiguous at the same time. They wanted her to embody every woman that came to the hotel, and for guests to be able to relate to her. The video below is a teaser of what Rose is and what she can offer. The Cosmopolitan executives only promised to keep Rose around if she generated positive engagement and a measurable return–and she delivered. The hotel saw a 39% increase in on-premise spending and 9/10 guests said they would recommend her.
Rose, the best concierge on the strip, provides guests with not only quick and relevant information but also special experiences. She can surprise guests by getting them on the VIP list at their clubs and gift them with an extra surprise after tours. She holds the best secrets of Las Vegas and has shown that “automations will rule the age of automation”.
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