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Discover How Hoteliers are Saving Service Costs with Chatbots

Posted on Jan 29, 2018 5:12:05 PM

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Research has shown that 39% of people in a survey are completely comfortable using chat to contact the hotel front desk and chat communication tools have shown to reduce service costs.

Chat communication has become the norm for many people over the last few years due to its easy and efficient nature. With more consumers preferring chat messaging over phone or face to face communication, it’s important for the hospitality industry to consider their services.

According to research conducted by PhocusWright, “39% of people surveyed said they are completely comfortable using chat to contact the hotel front desk, while only 7% said they would not be.”

There are multiple apps and software on the market specifically designed for chat communication including Facebook Messenger, Whatsapp and even a hotels own app. Communicating with your guests from booking all the way through to post stay, has never been easier.

Chatbots not only help with customer service but can also build accurate guest profiles, provide a more personalized service and increase guest loyalty which in turn will boost a hotel’s RevPAR.

Saving On Service Costs

As well as personalization benefits, chat communications can offer alternative solutions for customer service and care, which have significant savings. According to research conducted by Business Insider “businesses can reduce customer service costs by up to 30% by implementing conversational solutions like virtual agents and chatbots.”

This is due to the efficient nature of chat giving guests fast response rates, 24/7 service and providing a service to multiple guests at one time.

“A  recent analyst report from Juniper Research found that by 2022, chatbots and NLP will save companies about $8 billion per year in customer supporting costs.”

Hotel brand Travelodge UK opted for Andrea, a virtual assistant programed to answer any questions guests have during their stay. Applying this technology into their hotels, reduced the number of customer service queries to their call center significantly.

“Travelodge UK has admitted to saving on customer service costs, improving the happiness of the customer due to its virtual assistant. A Chatbot that can be programmed in any language (according to ‘visitor’s ID) and respond to customer questions 24/7 ”

What Are Hotels Doing?

Travelodge is not the only hotel who has turned to chat communications to aid their customer service process. The Hyatt partnered with Facebook Messenger in 2015 to use a ‘Businesses on Messenger’ solution in order to provide their customers with a chat service.

The Marriott created their own app, which guests can download onto their personal phones to check-in and out, receive alerts and use a chat feature. Guests can chat to the hotel using the ‘Mobile Request’ feature before and after their visit, giving them a smooth service throughout their stay.

With expectations constantly changing in the hotel industry, hoteliers need to keep up todate in order to provide the best quality service to their guests. Chat communication can provide more opportunities for hotels and guest to communicate whiile also saving on service costs.

 

Read on How to Increase Bookings and Ancillary Revenues

 

References

How Marriott is using mobile messaging to transform visiting a hotel;

https://www.mobilemarketer.com/ex/mobilemarketer/cms/news/messaging/20443.html

Hotels face a crucial moment for social messaging and chat tools:

https://www.tnooz.com/article/hotels-social-messaging/

The impact of the chatbot in travel and hospitality: what they are and how they help the customer care:

http://www.nettohotel.com/news/impact-chatbot-travel-hospitality-help-customer-care/

How chatbots can help reduce customer service costs by 30%:

https://www.ibm.com/blogs/watson/2017/10/how-chatbots-reduce-customer-service-costs-by-30-percent/

Can Chatbots Help Reduce Customer Service Costs by 30%?:

https://chatbotsmagazine.com/how-with-the-help-of-chatbots-customer-service-costs-could-be-reduced-up-to-30-b9266a369945

Why chatbots are great for hotels: https://ehotelier.com/insights/2017/04/26/chatbots-great-hotels/

Topics: Chat Concierge, Chat communications, Digital concirege, Chatbot

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