This article first appeared as a Forbes Council Thought Leader on Forbes.com on November 22, 2024.
Artificial intelligence (AI) is transforming industries, including the luxury hospitality sector. But will human guests pay a premium for five-star service from a robot?
As an intellectual property lawyer, I carefully analyzed patents and the evolution of new technologies, beginning with the explosion of the internet thirty years ago all the way to smartphones, data analytics, blockchain, and now AI. I’ve often counseled clients to embrace change and invest in and adopt new technologies as a fast follower.
But now, as a luxury spa owner facing labor shortages while also listening to my customers, I find myself questioning the return on investment of time, money and resources. I'm also noticing the importance of maintaining a delicate balance between the human touch expected in luxury service and the automation that can bring more to the bottom line.
The Value Of Human Expertise In Hospitality
Uses for AI in the luxury hospitality sector range from online bookings and personalized recommendations to data analytics. AI can help with predictive maintenance and inventory management, and chatbots or virtual assistants can speed up answering common questions and completing bookings for customers. Kiosks can help check-in, and even check-out in some circumstances.
But I believe true luxury hospitality is defined by exceptional, personalized service that goes above and beyond the expectations of the guest. Our industry thrives on empathy, emotional intelligence and the ability to read subtle cues from guests. This type of service is typically delivered by highly trained staff who understand the nuances of guest interactions and can anticipate their needs.
For example, a seasoned concierge can often tell if a guest is having a challenging day, is sorrowful or sad about a recent loss, or exhibits other human emotions that show up in quiet cues. These professionals can then take steps to brighten their mood without being intrusive.
For many guests, especially those in the luxury segment where they expect to pay more for a better experience, human interaction is not just about receiving a service; it’s about being recognized, valued and understood. Whether it’s the doorman who greets them by name, the chef who remembers their favorite dish or the concierge who arranges a personalized itinerary, these moments of connection are often what make luxury hospitality feel special. While AI can enhance these experiences through data-driven insights, it cannot replace the genuine relationships built between staff and guests.
Finding A Harmonious Blend
I believe the key to successfully integrating AI and automation into luxury hospitality lies in using it to enhance—not replace—human interactions. The challenge is to leverage these technologies in areas where they excel, such as data analysis and operational efficiency, while preserving the personal, high-touch service that defines luxury.
In a luxury setting, AI can act as a tool to empower staff to deliver even more personalized and attentive service or to remove the friction where humans often make mistakes. By handling routine tasks like booking requests or providing real-time updates on guest preferences, you can use AI to free up human staff to focus on the kinds of interactions that require empathy and emotional intelligence. For example, a virtual assistant might help a guest find a reservation at a sought-after restaurant, but the concierge can personally call the establishment to secure the perfect table, adding a thoughtful, human touch to the experience.
When it comes to integrating technology into very high-touch, human services like a massage, facial, manicure or pedicure, it's important to consider whether the pros outweigh the cons. A human massage therapist can only do so many massages in a row and can only work so many days a week, but can a high-end massage chair provide a high-end experience worthy of the description "luxury"? That investment might pay off if your customers accept it as a viable alternative to a human massage therapist. But keep in mind that while modern chairs can replicate some advanced methods, the range of motion is still limited. A therapist can apply a wide range of techniques and work on specific muscles, joints or trigger points that require precision that massage chair technology can't yet replicate.
I’m still surveying my own customers on the subject of massage chairs versus massage therapists. But for those in a post-Covid environment who would feel more comfortable without a human breathing on them for an hour, a private room with a high-end chair in a five-star spa may be just what they need. The question at that point is whether your guests will pay the same for both services.
Conclusion
I believe that maintaining five-star luxury in this industry going forward will necessitate a careful and strategic balancing of using data, automation and AI to predict needs and identify issues. For those of us in the role of making investment decisions about equipment, software and human resources, this means a careful balance will continue to be required.