Analyzing AI's Impact on Business Development: Lancaster Hotel & Spa

This report explores the potential impact of Artificial Intelligence (AI) on business development, focusing on the case of Lancaster Hotel & Spa. It identifies the hotel's business needs and technological challenges, highlighting the market opportunity for AI-based innovations like chatbots to enhance customer service. The report details how AI aligns with the hotel's strategic aims, improves customer engagement, and reduces costs. Tangible deliverables and opportunities, such as 24/7 customer support and personalized experiences, are discussed, emphasizing that these benefits are unique to AI chatbot implementation. The AI-based approach, procedures, and operations of chatbots are outlined, along with examples of relevant datasets and a cost-benefit analysis. The report also addresses market awareness, the target market, long-term business growth, wider impacts, and potential risks associated with the project, concluding with recommendations for effective project management and added value for the businesses involved.

The Possible Impact of
AI Artificial
Intelligence on
Business Development
the case of the
Lancaster Hotel and
Spa

Table of Contents
INTRODUCTION...........................................................................................................................1
NEED OR CHALLENGE...............................................................................................................1
Business need.........................................................................................................................1
Technological challenge.........................................................................................................1
Market opportunity behind the AI based new technology innovation...................................2
AIM AND OBJECTIVES................................................................................................................2
Explain how the AI based new technology innovation fits with the strategic aims of the
company.................................................................................................................................2
How the AI based new technology innovation will help the company..................................2
Mention the key tangible deliverables and opportunities that this project will deliver..........3
Demonstrate that these benefits could only be derived from this project and not by other
means......................................................................................................................................3
APPROACH....................................................................................................................................3
Outline the AI based approach...............................................................................................3
Procedures and operations......................................................................................................4
Examples to illustrate the data sets.........................................................................................4
Examples to illustrate the results, explanation, discussion, evaluation analysis....................4
MARKET AWARENESS...............................................................................................................5
What does the target market look like?..................................................................................5
OUTCOMES AND ROUTE TO MARKET...................................................................................5
How to grow the business and increase the productivity into the long term as a result of the
project?...................................................................................................................................5
WIDER IMPACTS..........................................................................................................................5
What impact might this project have outside the project?.....................................................5
RISKS..............................................................................................................................................6
What are the main risks for this project?................................................................................6

ADDED VALUE.............................................................................................................................6
What impact would be the added value have on the businesses involved?............................6
PROJECT MANAGEMENT...........................................................................................................6
How will the project can be managed effectively?................................................................6
CONCLUSION................................................................................................................................6
RECOMMENDATIONS.................................................................................................................7
REFERENCES:...............................................................................................................................8

INTRODUCTION
Artificial intelligence refers to the intelligence which is illustrated by the machines. It is
the capability of the computer to perform the tasks which are done by human beings but in a
more accurate manner. It is basically the ability of the computer program to learn and think.
Computer systems follows the instructions given by human beings to complete and makes the
work more easier (Li, Yin, Qiu and Bai, 2021). The following discussion is based on the
hospitality industry and the organizational case chosen is the Lancaster Hotel & Spa. It is
headquartered in United Kingdom. It renders various services to their customers such as dining,
pool, boardrooms, spa and many more revenue generating activities with good offers and
discounts on occasional basis. The below report will give the insight of artificial intelligence
solutions to the hotel by reviewing the business need and technological challenge along with the
market opportunities. The report also views the AI based approaches and entire project
management deliverables with proper conclusion and recommendations.
NEED OR CHALLENGE
Business need
Lancaster Hotel & Spa has a business need associated with its aims and objectives. They
are looking for the best customer servicing tools and techniques in order to make the customer
experience impressive while giving the quick responses in an accurate manner. They are aiming
for no delays in resolving the customers queries and solving their issues in a relevant way which
must be helpful for them. Objectives of the hotel is to gain loyalty from the customer and long
term relationships from them. Therefore, they are targeting the customer servicing by using the
advanced technologies and in an online manner (Yadegaridehkordi, Nilashi, Nasir and Ghabban,
2021).
Technological challenge
Lancaster Hotel & Spa is facing the technological challenge currently while serving the
customers to their best of their capabilities. Technology adopted by the hotel is not appropriate
and not serving the customers in an accurate manner. Currently they are performing their
customer servicing function in a manual manner by simply using the basic information systems
to revert back to the customer. It delays the process sometimes and somewhat inaccurate in
nature. It is not fulfilling the aims and objectives of the hotel they are seeking for. This is the
1

technological challenge which the hotel is facing on a current basis (MacIntyre, Maglogiannis,
Iliadis and Pimenidis, 2019).
Market opportunity behind the AI based new technology innovation
AI based new technology innovation in order to fulfil the business need and rectify the
technological challenge faced by the hotel chosen is the Artificial Intelligence chat bots and
apps. This provides the market opportunities in the form of maintaining the stability in the
market place by providing next level customer experiences which also gives the competitive
advantage to the hotel. The reason being is that this solution is not operated by any human being
but is operated by the machine which gives accurate results with no delays and also resolves the
customers issues on a quick basis.
AIM AND OBJECTIVES
Explain how the AI based new technology innovation fits with the strategic aims of the company
Lancaster Hotel & Spa has various strategic aims and objectives which also reflects the
hotel's mission and vision on a current basis. It is based on the technology advancements and
implementation of it within the hotel for the best provision of customer experiences. Chatbots
and its related applications are identified as the new technology innovation in the hotel which
aligns with its strategic aims and objectives of the hotel. AI solution is implemented so that the
aims can be fulfilled and objectives can be targeted as per the needs and requirements of the
hotel. Therefore, proposed solution fits the hotel technological challenges to rectify any gaps
while servicing the customers (Hassanien and Dale, 2019).
How the AI based new technology innovation will help the company
AI based new technology innovation will help the hotel in fulfilling its aims and
objectives. It will increase the customer engagement while improving the lead generations and
also reducing the customer servicing costs. It helps in monitoring the data of the customers in
order to gain the insights of useful information for future considerations and strategic decision
making. It also supports in devising the conversational marketing strategy by balancing the
automation with human touch. It aids in meeting the customer expectations and assists in
achieving the scalability of support by streamlining the customer on boarding process. Moreover,
it will help the hotel in making the customer's entire journey and experience with the brand
smoother.
2

Mention the key tangible deliverables and opportunities that this project will deliver
This implementation of artificial intelligence based solutions has various deliverables
such as computing systems, necessary hardware, required technical equipment and many more as
per the needs and requirements of the chatbots implementation. Opportunities that this project
will deliver to the customers are such that 24/7 availability of the customer query resolving
function can be performed by the hotel which means anytime and from any where. Instant
response opportunities from the end of customers helps the company in gaining the customer
loyalty towards the brand. Chatbots provides the consistency in answers which reduces any type
of complications and delays services as well. Omni channel is the feature of chatbot which
provides the opportunities in using such applications from different websites and different
platforms as well. Moreover, other essential opportunities are the provision of personalization
and multilingual feature along with the order without any human help (Maglogiannis, Iliadis and
Pimenidis, 2020).
Demonstrate that these benefits could only be derived from this project and not by other means
This project provides the implementation of chatbots and the benefits discussed above are
only associated with the chatbot implementation in the hotel for customer servicing. This is
because chatbot is the only artificial intelligence solutions which is providing the benefit of quick
responses without any time delays along with the accuracy and consistency while answering the
customer. This gives the good experience to the customers in their journey with the hotel. The
most important is the customer engagement and long term relationships with the customers
maintenance at any time and from any where. Therefore, it can be demonstrated that these
benefits could only be derived from this project and but not any other means.
APPROACH
Outline the AI based approach
Artificial intelligence based approach chosen for the current project is the chatbot
application implementation by the hotel. It has several functions which assist the hotel in
managing its customer servicing. Such it provides the basic information about the hotel to the
customers which includes the prices, offers and discounts, location, contact and many more. It
updates the details of the customers along with the change of plans while solving the queries of
the customers on an instant basis. It is operated by the machine, human are only responsible for
3

reading out the necessary information and analysis of it (Ramzan, Bajwa, Jamil and Sarwar,
2019).
Procedures and operations
Procedures and operations of chatbots includes the computer program which performs the
natural human conversation. Customers interact and communicate with the chatbots either with
the help of chat interface or voice. Just like a normal human being, chatbots processes and
interprets the customers words or statements which allows it to prepare the pre set answers to the
customers. It is designed to mainly simulate the human conversation. Chatbots uses artificial
intelligence in the form of natural language processing which helps to mimic the human
conversation. Chatbots identify the intent behind the text and then deliver the responses which
matches that intent.
Examples to illustrate the data sets
There are various examples to illustrate the data sets such as yahoo language data is the
ground of questions and answers dataset which is curated from the answers received from yahoo.
It is also contains the membership graph of yahoo. Question answer dataset has three files and
690000 words from Wikipedia which is used to formulate the questions specially for the
academic research. Squad is a dataset in the form of reading comprehension which contains
questions on a set of Wikipedia articles. Natural questions is a dataset which focuses on finding
the answers rather then relying on extracting the answers from any short passages (O’Rourke,
2019).
Examples to illustrate the results, explanation, discussion, evaluation analysis
Analysis of cost of the implementation of chatbots are classified in two types. Such as in
house chatbot costs and agency chatbot fees. Chatbot software platform costs $50 - $500 per
month in both the types. Chatbot setup and development cost in an in house chatbot is the
salaries of 5 - 100 hours of work and agency chatbot fees is $500 - $2500. Ongoing chatbot
support and maintenance in an in house chatbot is salaries of 0 – 10 hours of work per week and
agency chatbot fees $50 - $5000 per month. After evaluating all such requirements and cost of
implementing the chatbot, hotel has decided to choose the in house chatbots development by
hiring the expert technical team so that they can manage it on a regular basis. This will result in
the enhancement of the productivity of the hotel and fulfilling the aims and objectives of hotel.
4

MARKET AWARENESS
What does the target market look like?
Target market for the hotel when it uses the chatbots in order to service the customers in
the strategic manner are the people who are more technology freak and wants their weekends or
vacations in the hotel. Customers use such chatbots when they have some queries or want some
information about the packages provided by the hotel. Target market depends on the lifestyle of
people based on using of the technical devices more than the traditional form of buying
behaviour. Chatbots is an interesting tool and attracts the large number of customers because it
solves the queries on an instant basis without any delays (Sharma, Chaudhary and Singh, 2019).
OUTCOMES AND ROUTE TO MARKET
How to grow the business and increase the productivity into the long term as a result of the
project?
Chatbots project in the hotel grows the business and increase the productivity into the
long term. This is the project which not only grows the business but also the employee's
productivity and overall growth and development of the organizations in terms of customers,
shareholders, suppliers, clients, employees, leaders, managers and many more who are involved
in the project and operating the same. It supports in the organizational operations from
complicated procedures to the simplex form of processes. This is why it helps in improving the
productivity and grow the business (Konstantinidis, Wharrad and Jenn, 2019).
WIDER IMPACTS
What impact might this project have outside the project?
This project has the wider impact not only on an internal basis but also external basis as
well. Outside project involves the gaining of the competitive advantages by applying the
artificial intelligence solutions in the hotel. It has both the type of impacts that is positive as well
as the negative impacts. Positive impacts aids the hotel in advancing its business to its next level
of operations and customer servicing technologies. Negative impacts relates to the security
systems associated with the chatbots which has the risk of data breaching and data losses
(Morabito, 2021).
5

RISKS
What are the main risks for this project?
There are several risks which are associated with the implementation of chatbots such as
it has a high error rate. It has the problem of reliability due to the high mechanical nature of
chatbots. There is also the risk in using the standard web protocols and it also results in the
probable confusions which affects the buying decision of the customers. There are the low level
job openings which are being beaten up. It also fails the Turing test while data handling on the
chatbot platforms used by the hotel. It also has the risk of lack of individuality and generic
conversations. It highly needs the encryption as well (Goralski and Tan, 2020).
ADDED VALUE
What impact would be the added value have on the businesses involved?
Hotel was suffering the problem of technological challenge and therefore, this project is
initiated for the same in the form of AI solutions. This has added the value on the business
involved. Such as it has increased the reputation in the market place along with the improvement
in goodwill and better image in the industry while giving the tough competition to the
competitors (Di Vaio, Palladino, Hassan and Escobar, 2020).
PROJECT MANAGEMENT
How will the project can be managed effectively?
The current project can be managed effectively by following some systematic steps of
project management such as project initiation, project planning, project execution, project
monitoring and controlling and project closing. This can help the hotel in successfully manage
the project on AI solutions implementation (Loureiro, Guerreiro and Tussyadiah, 2021).
CONCLUSION
It is concluded that artificial intelligence based solutions is an important concept to learn
and study so that its applications can be applied in the real world organizations. This is because
now a days, technology advancements in the field of AI is increasing day by day and survival of
business is impossible without adopting such technology in functioning of the company.
Therefore, it is important to analyse the business need, technological challenge and market
opportunity behind the AI based new technology innovation. It is essential to examine that AI
6

based new technology innovation fits with the strategic aims of the company. It is necessary to
determine the AI based approach, procedures and operations, data sets, results, explanation,
discussion and evaluation analysis. It is significant to gain the knowledge about target market,
how to grow the business and increase the productivity into the long term, impact, main risks,
added value have on the businesses and project management. Hence, the above information
covers all such areas in order to better understand the conception of artificial intelligence.
RECOMMENDATIONS
It is recommended that the hotel must improve its chatbot accuracy in order to provide
best customer service experience to the customer so that they choose the hotel servicing again
and again. This will help in maintaining long term relationships with the customers and loyalty
towards the brand. Hotel can improve its artificial intelligence based solutions in terms of
chatbots and applications. Therefore, it is suggested that the hotel must implement the map
confusion rate of the virtual assistant so that queries of the customer can get resolved without any
complications. It is recommended that hotel must leverage its natural language processing in
order to enhance the understanding of the bot. This helps in measuring key performances of the
applications with the customer. It is suggested that the hotel must implement the hyper
personalization in order to know the audiences queries in an accurate manner. It is also
recommended that the hotel must frame the empathetic responses using advanced sentiment
analysis. All such suggestions are recommended in order to improve the chatbot accuracy and its
conversational abilities.
7

REFERENCES:
Books and Journals
Di Vaio, A., Palladino, R., Hassan, R. and Escobar, O., 2020. Artificial intelligence and business
models in the sustainable development goals perspective: A systematic literature
review. Journal of Business Research, 121, pp.283-314.
Goralski, M.A. and Tan, T.K., 2020. Artificial intelligence and sustainable development. The
International Journal of Management Education, 18(1), p.100330.
Hassanien, A. and Dale, C., 2019. Hospitality business development. Routledge.
Konstantinidis, S.T., Wharrad, H. and Jenn, N.C., 2019. Conference Programme & Book of
Abstracts.
Li, M., Yin, D., Qiu, H. and Bai, B., 2021. A systematic review of AI technology-based service
encounters: Implications for hospitality and tourism operations. International Journal of
Hospitality Management, 95, p.102930.
Loureiro, S.M.C., Guerreiro, J. and Tussyadiah, I., 2021. Artificial intelligence in business: State
of the art and future research agenda. Journal of business research, 129, pp.911-926.
MacIntyre, J., Maglogiannis, I., Iliadis, L. and Pimenidis, E., 2019. Artificial Intelligence
Applications and Innovations. In IFIP International Federation for Information
Processing.
Maglogiannis, I., Iliadis, L. and Pimenidis, E. eds., 2020. Artificial Intelligence Applications and
Innovations. AIAI 2020 IFIP WG 12.5 International Workshops: MHDW 2020 and 5G-
PINE 2020, Neos Marmaras, Greece, June 5–7, 2020, Proceedings (Vol. 585). Springer
Nature.
Morabito, V., 2021. Digital Entrepreneurship: Management, Systems and Practice. Cambridge
University Press.
O’Rourke, J.S., 2019. Management communication: A case analysis approach. Routledge.
Ramzan, B., Bajwa, I.S., Jamil, N. and Sarwar, N., 2019. An intelligent data analysis for
recommendation systems using machine learning. Scientific Programming, 2019.
Sharma, N.E., Chaudhary, N.E. and Singh, V.K.E., 2019. Management techniques for employee
engagement in contemporary organizations. Business Science Reference/IGI Global.
Yadegaridehkordi, E., Nilashi, M., Nasir, M.H.N.B.M. and Ghabban, F., 2021. Customers
segmentation in eco-friendly hotels using multi-criteria and machine learning
techniques. Technology in Society, 65, p.101528.
8