FHRAI Chairman on Integration of AI

Pradeep Shetty, FHRAI Chairman FHRAI

By staying abreast of the latest trends, the hospitality industry is constantly transforming itself into an industry open to adaptability in the face of challenges. It is a major contributor to India’s GDP and acts as a catalyst in driving socio-economic growth.

To understand how the industry is coping with the ever-evolving market dynamics, OT spoke to Pradeep Shetty, the president of the Federation of Hotel & Restaurant Associations of India, who shared inputs on incorporating new-age practices like sustainability or artificial intelligence to address concerns for a technology-driven and environmentally friendly transition.

Read the excerpts from the interview below.

Since tourism plays an important role in the Indian economy, how does FHRAI work with stakeholders to promote sustainable tourism practices that benefit local communities and preserve cultural heritage while ensuring economic prosperity for the hospitality sector?

FHRAI, in collaboration with key stakeholders, has been at the forefront of advocating sustainable tourism practices. One notable initiative involves drawing up Memorandums of Understanding (MoUs) with organizations such as the Sustainable Hospitality Alliance. The overarching objective is to devise holistic solutions to address the social and environmental sustainability issues of the hospitality sector.

Central to this partnership is the use of local businesses and resources to promote sustainable practices. These efforts not only enhance the well-being of local communities, but also protect cultural heritage. By actively promoting the adoption of social and environmental sustainability tools and resources, FHRAI aims to ignite a collective commitment among tourism industry stakeholders to prioritize sustainability in their operations.

The changing dynamics of hospitality/representativeness

Given the recent disruptions caused by the pandemic, what strategies will be essential for the hospitality sector to build resilience and ensure long-term success in the face of future uncertainties?

We believe that several key techniques will be necessary for long-term success. Diversifying revenue streams and experimenting with new business models, such as hybrid services and digital experiences, can reduce the risks associated with variable demand.

In addition, strong business partnerships, collaborations and relationships with government agencies and other stakeholders will be critical to sharing best practices and lobbying for favorable regulations. Investing in workforce development and training programs will ensure that the workforce is adequately trained and adaptive to meet future challenges.

Please tell us about the emerging practices in the hospitality sector. What key trends and developments will shape the trajectory of the industry in India?

First and foremost, there is a robust focus on integrating technology to enhance the guest experience and improve operational efficiency. This includes implementing contactless solutions, leveraging artificial intelligence (AI) and harnessing the power of data analytics. Subsequently, sustainability is gaining popularity, increasing the demand for environmentally friendly projects and locally produced items.

Finally, experiential travel is on the rise, driving innovation in product offerings and destination marketing for real cultural experiences. To effectively meet ever-changing demands, companies must be able to adapt and quickly respond to changing customer preferences, such as wellness-focused travel and convenient accommodations for remote work. These trends collectively reflect a shift towards a more tech-savvy, sustainable and experience-driven hospitality landscape in India.

Integrating new-age technology such as QR codes or AI is an integral part of the hospitality industry

How do you plan to integrate AI into the hospitality industry? Will it be able to meet the growing demand?

We see its potential to change the way we work, interact with guests and anticipate their needs in the hotel industry. By leveraging AI, we can deliver more individualized experiences, increase operational effectiveness, and meet the growing needs of a rapidly changing industry. The use of ‘chatbots’ for customer support is currently an important AI application. These virtual assistants can take reservations, provide information, and respond quickly to visitor questions, reducing wait times and improving the overall visitor experience. This simplifies processes and frees human workers to focus on more complex tasks that require a human touch.

Predictive analytics is another useful AI tool for improving demand forecasting. AI is able to analyze large data sets to identify trends and patterns. It can detect patterns and trends in large amounts of data, which helps predict occupancy rates, seasonal variations and other elements that influence resource distribution. This allows us to optimize personnel, inventory and other operational factors, resulting in a more effective and economical business model.

What is there for the middle or lower middle class, who still prefer affordable dining options to high-end restaurants? Are there plans to make the expensive dining options/stays more inclusive and budget-friendly in an ever-expanding travel landscape?

The hospitality industry is quickly recognizing the importance of diversity for the middle or lower middle class, who prefer affordable meal options. There are plans to diversify the menu with more reasonably priced options, provide discounts and promotions during off-peak hours, and create hybrid models that combine high-end and casual services to make expensive restaurants and hotels more reasonable.

Additionally, there has been an increase in alternative accommodation choices, including budget-friendly boutique hotels and hostels. Community engagement initiatives, such as events and partnerships with local communities, also aim to make luxury properties more accessible. These efforts reflect a commitment to serving diverse economic segments in an ever-expanding travel landscape.

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