The Role of Artificial Intelligence and Big Data in Predicting Consumer Behavior in the Hospitality Industry

Abstract

The hospitality sector is in the process of undergoing a revolution fueled by Artificial Intelligence (AI) and Big Data, which empowers companies to better forecast and respond to consumer behavior. Data-driven methods such as AI-based analytics and predictive modeling have provided hotels, as well as restaurants, with a better understanding of the outlook of their customers, thus allowing them to deliver more tailored services and enhance operational efficiency. Major brands in the industry, such as Hilton and Marriott, are taking advantage of AI-based customer feedback management as well as chatbot technologies. Meanwhile, fast food giant McDonald’s leverages the power of AI to guarantee the freshness of its offerings by real-time modifying placement. Furthermore, the use of AI-based sentiment analysis and dynamic pricing strategies is revamping the management of reputation as well as revenue maximization in the industry. Surprisingly, the hybrid model of service has become a top favorite when it comes to preference among customers, with AI leaving the backend automated while not getting the front place or replacing the human interface. Based on survey reports, AI-based customer services are more permissible by customers rather than having a human being, but they would prefer human touch in personalized interaction. AI is destined to increase with the passage of time, but the usage of advanced Natural Language Processing and machine learning would be the key in bridging the gap between automation as well as emotion. Strategies such as these assist in mapping how AI as well as Big Data can be used in the industry of hospitality in a bid to ameliorate customer satisfaction, assist business operations in becoming more efficient, as well as generate more revenues.