In the fast-paced world that we are living in, most people strive to squeeze in 36 hours’ worth of work into a 24-hour day! Right from the time we wake up until we go to bed, we are always pressed for time. This is the reality of 80% of the world’s population. The eternally time-starved millennial is paving the way for the rise of concierge services across the world. Concierge services encompass assistance services at hotels, apartments, offices, and travel agencies. In short, a personal assistant that can help you in almost every task; from personal services to travel booking; and from hotel booking to housekeeping and maintenance.
Concierge services are among the most popular startup ideas for small businesses. Technology-driven concierge services offer a wide scope for innovation. For a millennial that lives and breathes with a smartphone, access to virtual concierge services can be a great value addition. “With more than 50% of the Internet access being done via handhelds, it is essential that customers have access to our content through mobile phones” as per Gary Fong the marketing head at Quintessentially Lifestyle, New York.
The Scope of Traditional Virtual Concierge Services
The scope of virtual concierge services is limitless! Here are a few services that are under the scope of virtual concierge services:
- Economic ticket booking to concerts and special events
- Transportation services
- Convenient travel route suggestion
- Business referral services
- Dry cleaning pick up/delivery
- Grocery shopping
- Senior care
- Travel and vacation planning
- Meeting and event planning
The US Concierge Services market was valued at $ 4 billion in 2018, with 124,825 businesses providing concierge services. The annual growth rate of this industry was 3.6% between the years 2013 and 2018. This increase was attributed to the decrease in “leisure time” among people. As per the Bureau of Labor Statistics, as of 2010, an average American has about 5.2 leisure hours in a day, which includes time for household activities.
Concierge services are extremely popular in the United States and Europe. A survey conducted in 2010 by Euro Rail on a panel of European travelers revealed that 41% of Italian travelers required concierge services for travel. The way customers use concierge services varies, some may want them on a long-term basis, while others may want a short-term contract.
International travelers going on personal or those going on business trips look forward to extraordinary travel experiences. Travel concierge services are a welcome thing for travelers. Travel concierges often have tie-ups with transport providers, restaurants, and tourist locations which allows them to offer exceptional travel experience.
Value Addition of AI in Concierge Services
AI (artificial intelligence) concierge service is a product that can be used by several industries as a reliable and customized personal assistant, but we will be focusing on the travel and hospitality industry for this article. The millennial gets instant access to data and services through concierge apps. Omni-channel AI Concierge apps provide superior customer engagement and seamless service.
AI Concierge services for the travel industry provide complete, updated information on travel routes, booking choices, latest deals, etc. The AI Concierge apps are like 24/7 personalized travel guides. These apps also provide convenient travel route suggestions and can assist with ticket booking or other integrated third party services.
Another type of concierge service is in the form of targeted guides. An example could be the app being used as an interactive guide for any entertainment and events taking place nearby.
Another use case of AI Concierge is in hotels. From initial customer engagement to feedback after checkout — these concierge services are with the guests through the entire journey. They act as the ultimate reference for information on the hotel, room availability, tariffs, etc.
Travel and Hospitality industry can be breakdown into 4 categories(food and beverages, travel and tour, lodging and recreational). Here are some ways AI Concierge is a great value addition to the industry:
- AI Concierge can be used to interact with potential customers online and provide faster and reliable responses. Businesses can benefit greatly through AI Concierge as basic repetitive questions such as directions to a place can be answered easily leaving human agents to deal with tougher questions/tasks.
- AI Concierge also allows for self-learning and can benefit from every human interactive, thereby becoming more adept at handling future queries.
- Data processing and analysis is one of the biggest advantages of AI Concierge services. AI can quickly sift and sort huge amounts of data and perform an accurate analysis of customer trends. This helps travel businesses to know their customers better and provide tailored services.
- Automated baggage handling: Autonomous baggage handling concierge robots (coupled with AI wayfinding abilities) are capable of transporting baggage efficiently in high traffic areas like airports or even big hotel chains.
Future Scope for AI Concierge
With continuous advancements in digital technology, the scope of AI Concierge services in the travel industry is expected to expand further. AI technology is a great value addition to the travel and hospitality industry in terms of cost, time and effort saving. Repeated tasks can be reliably handled by AI-powered assistants with the humans’ focus directed on more important tasks. AI Concierge service is bound to take customer experience to great heights in the future.
At Winimy, we firmly believe that AI is the way forward. We have pioneered the world’s first voice AI Wayfinding and Concierge solution. This solution aims at providing omnichannel engagement for malls, events, and offices. We would love to discuss how AI Concierge can power up your business. Reach out to us at email@example.com for more details.