Choosing the Right Hotel Chatbot – With 8 Simple Questions

Posted by:
Antonia Quell
on
November 27, 2023

Choosing the Right Hotel Chatbot – With 8 Simple Questions

The chatbot jungle is becoming denser, and it's easy to lose track. That's no wonder, as nowadays there are many good solutions with varying functionalities, prices, and focuses. So, there is something for every operation. But how do you find the chatbot that truly fits your hotel and your needs?

1. Is the chatbot tailored for the hospitality industry?

This is one of the most important questions you should ask any provider you are considering. Generally, generic chat products are not recommended for hotel operations. For effective results and a good guest experience, an industry-specific chatbot is necessary, with functionalities tailored to the hospitality sector. Following up on this, inquire whether the chatbot is ready to use "out-of-the-box" or if you need to program it yourself or train the artificial intelligence. Unfortunately, both scenarios involve considerable additional effort, and the results are often unsatisfactory. Therefore, it is advisable to choose a solution where the provider handles these steps. This way, you only need to plug in and integrate the chatbot, and you can get started right away.

2. What is the automation rate?

The automation rate indicates the percentage of chat inquiries that the bot can answer automatically. The higher it is, the more labor hours you and your team can save. The automation rate largely depends on the AI and the language model of the chatbot. If the chatbot is based on LLMs (Large Language Models), using the latest AI technology, the automation rate is significantly higher than that of conventional AI. This also applies to languages. If the AI model operates in your most commonly used languages, the automation rate is considerably higher, and you will benefit more from your chatbot.

3. Is it a purely automated system, or can guests also chat live with the team?

Even the best chatbots cannot handle all inquiries. So, what happens if a guest can't get the help they need from the chatbot? There are two options here. The first option is to ask the guest to send an email or call. This can create what is known as a "channel break," where you may lose customers (and revenue) as many people find this frustrating. The second option is for the chatbot to hand over to your team when it can't assist further. Then your staff can help guests directly through live chat or even call or message them back if necessary. This ensures that travelers always receive help and enjoy good service from the start.

4. What are the options for room booking via the chatbot?

This is extremely important since 50-70% of guests use website chats or Google chats for booking inquiries. The best solution is to integrate the chat with your hotel's booking engine. This allows guests to book directly within the chat. If you want to implement this, also inquire about how the booking process is designed, as it significantly affects conversion rates. Bookings made through dialogue over several questions generally convert poorly, as guests often find this too cumbersome. Chats that use graphical elements, such as calendars for selecting dates, are much more popular because they are usually effortless to use. Think of it this way: should making a reservation feel as laborious as climbing stairs, or should guests smoothly slide into the booking interface? Lastly, you should get an idea of the results you can expect. Ask the provider about the chat opening rate, how many booking inquiries are initiated, and how many are actually completed.

5. How user-friendly is the chatbot?

  1. Design Importance: As previously mentioned, the design of the chatbot is crucial for a good guest experience and a solid conversion rate. Therefore, during your research, ensure to check the following points:
  2. Access to the Chatbot: Website visitors should have immediate access to the chatbot without having to first enter their email address. If this is required, the usage rate drops significantly as many individuals do not want to "pay" with their email address for this communication.
  3. Real AI or Rule-Based Bot?: AI offers a higher degree of automation because it can also understand various formulations of the same question (e.g., "When is breakfast?" and "What time is breakfast?") and can correctly assign these to the right answer.
  4. Dialogue Management: Systems that function on a dead-end principle leave the user alone at the end of a dialogue. In contrast, quick response buttons and other interactive elements allow everyone to continue to explore information playfully. This increases the likelihood that guests will find answers to their questions, book a room, or other services.
  5. Content: Ask if you need to script the chatbot yourself (refer to point 3). Be aware that this is associated with a significant amount of time. Some providers take over this task for you. For instance, with DialogShift, you can rely on proven template answers written by a conversational designer.

6. What CRM functionalities does the system offer?

No two chatbot systems are the same, and this also applies to hotels and their specific needs. Therefore, consider whether you need a system that can send proactive messages across various messaging channels. Alternatively, do you want to use the bot solely for direct guest communication and prefer to use a CRM for other marketing messages and campaigns? The clearer your requirements are, the easier it will be to choose the optimal system. Also, consider which chat channels you really need. You don’t have to be reachable on all messenger and social media apps. It's sufficient to be present where your guests are active and engaged. This approach helps you avoid the cost trap of expensive systems with channels that you do not need.

7. What integration options are available?

Integrations with other tools can make the use of your chatbot significantly more efficient. However, once again consider what you really need for your operation. Choose a product that meets your requirements but isn't overloaded with functionalities and integrations that you don't need. This way, you avoid unnecessary costs. Ideally, select a tool without unnecessary frills that focuses on the essentials. This includes integrations with your booking engine, digital guest directory, or guest app, or, if necessary, with your PMS or CRM system. Also, check whether activating the integrations incurs additional costs and how long it takes.

8. How does the provider handle data protection?

Data protection is a critical issue in the EU, taken very seriously by both guests and legislators. Since guests may share personal data in chats, data protection is of particular importance. Therefore, choose a partner who is knowledgeable in this area and meets your requirements. Ask for a data processing agreement (DPA). For safety, have the data protection officer in your organization review it as well. In general, you should be clear about what is most important to you and what you really need. This will narrow down your search and help you avoid costly mistakes. Take your time to review several systems. Ask many questions and follow up. Take your time. After all, this is a central communication tool that many guests will use.