ChatGPT Revolutionizing Customer Service: Is AI Taking Over?

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The Secret Weapon: Generative AI Takes on Customer Complaints in Travel

In the hospitality industry, responding to disgruntled customers can be an arduous task. But for Natasha, the director of a five-star resort who prefers anonymity to protect her establishment, she has a new ally: generative AI.

Writing Responses in “Two Seconds”

Natasha has discovered that AI chatbots like ChatGPT can swiftly generate responses to customer complaints. A task that would usually consume an hour now takes a mere “two seconds,” she reveals.

“A Pretty Good Job”

Despite its limitations, Natasha admits ChatGPT does a “pretty good job” at addressing customer concerns. “One [response] was much better than what I would have done,” she says, emphasizing the importance of reviewing the AI’s output before sending it.

While ChatGPT tends to produce responses that can be somewhat “schmaltzy,” Natasha acknowledges that the AI captures the essence of an apology and effectively addresses every complaint raised.

Addressing the “Ghosting” Risk

Responding to negative online reviews poses a greater challenge due to their public nature. Studies have shown that companies that ignore such feedback, even positive ones, risk damaging their reputation.

AI for Reputation Management

The travel industry has recognized the potential of generative AI for “reputational management,” and it’s estimated to be worth .3 billion. Large language models can not only monitor review sites like TripAdvisor and Yelp but also assist in drafting responses, especially for negative reviews.

A 2023 report by Skift research highlights that 45% of hotels already rely on reputation or review management software, including AI capabilities.

Short-Term Rental Boom

Short-term rental platforms like Airbnb have been early adopters of AI for review management. Luca Zambello, CEO of Jurny, notes that it’s becoming increasingly prevalent in the industry.

“The vast majority of the industry will probably adopt it within the next five years,” he predicts, citing the time-saving benefits of AI in responding to reviews.

An Open Secret

Despite the growing use of AI in the travel industry, it remains a somewhat taboo topic, with a lingering belief that apologies should be “heartfelt.” Natasha echoes this sentiment, stating, “I want people to think that I am sitting there toiling away over their letter.”

I want people to think that I am sitting there toiling away over their letter.
Natasha
Director of a five-star resort

However, some companies have begun acknowledging the use of AI in customer service. Voyagu, a travel booking platform, utilizes past customer interactions to inform future responses.

The Future of AI in Customer Support

Brad Birnbaum, CEO of AI-powered customer service company Kustomer, believes AI is playing a significant role in customer support across industries, not just hospitality.

His company assists customer service agents in crafting more professional and empathetic responses. “Customers likely don’t know that their interactions with agents are either generated or improved by AI,” Birnbaum says. “And I don’t think they would care; they likely welcome it for faster and better responses.”

Discovering AI’s Capabilities

While some companies, like Simple Life Hospitality, prefer a human-centric approach to customer service, others are starting to explore AI. Wanping Aw, managing director of Tokudaw, a Japanese travel agency, was pleasantly surprised by ChatGPT’s response to a real-life emergency involving a smoking bus near Mount Fuji.

ChatGPT’s detailed six-step plan and apology letter impressed Aw, who believes it presented an even more comprehensive solution than she could have crafted under pressure.

As AI technology continues to advance, its impact on customer service in the travel industry is expected to grow, offering an array of opportunities for improved communication, efficiency, and guest satisfaction.