Cost savings and returns on a hotel chatbot
Even if you know what a chatbot is, you may still wonder if it’s worth the investment. It’s time we cleared up some of the mist surrounding the returns on chatbots, particularly the returns on a hotel chatbot. Here’s the story of the Rosary Hotel.
The Rosary has a chatbot with a pretty sensational mix of features. The free retargeting options, its ability to take direct bookings and answer all questions as well as its automatic upsales sequences: They’re all important assets in the Rosary’s guest engagement program.
The hotel has 75 rooms at $120 a night. At 85% occupancy they are making a very fair revenue of $230.000 a month.
How the Rosary uses its chatbot as a database
Users who enter the Rosary’s Messenger chatbot can be retargeted forever, as long as they don’t unsubscribe and you stay within Facebook’s 24+1 rule. That means that over time the hotel has created a database of users that they can reach through instant messaging. That totally beats Facebook retargeting and it beats email too, because email only gets click-through rates of 3% while messenger gets 30-70% CTR. The chatbot helps them select the right audience for their messages based on the questions the customers asked and choices they made in earlier interactions. On top of that Facebook lets the Rosary see some of their users’ profile information, too.
The Rosary estimates that the chatbot saves 1.000-2.000 dollar a month that would otherwise be spent on Facebook Ad campaigns.
The chatbot brings OTA fees down to zero
OTA fees are an average 15% and they used to bring in 70% of bookings at the Rosary. This was costing them $24.000 a month.
The chatbot has now increased direct bookings with 10%. That’s a very good start after using the chatbot for 7 months and it’s getting them an extra monthly revenue of $2.300, which amounts to $27.600 a year.
The hotel chatbot reduces hotel staff overhead
People are the most important asset to every hotel. But let’s be honest, they do cost money that could be better used elsewhere in the operation. The chatbot at the Rosary speaks multiple languages and assists staff in giving information (24/7) and by performing automated tasks. These lead to worthwhile savings in staff guest engagement time. What’s more, guest satisfaction rises thanks to the perfect service they received from the chatbot in their mother tongue. Savings and profits from satisfied return guests: at least $2.000 / month.
The chatbot can upsell rooms, extras and leisure tickets
Once a guest has booked a room through The Rosary’s bot, it will know their arrival and departure dates. At any point in the guest journey the chatbot may send compelling, personalized messages to upsell, offer extras and sell tickets and tours. The Rosary is making an additional $1.000 a month from this.
Let’s add that up and our hotel is getting $7.300 a month in additional revenue and cost savings from the chatbot. Want to see how it works? Try out the GoHotel demo bot at m.me/gohotelchatbot , visit the website at www.botbizzbuilders.com/gohotel or send me an email.