1 in 5 consumers use AI to decide where to eat or stay
While Yelp and TripAdvisor remain effective platforms for figuring out where to eat out or take a vacation, artificial intelligence (AI) tools like ChatGPT are becoming a critical part of the discovery process, according to research from Reputation and Nielsen.
Based in San Ramon, Calif., where it offers reputation management software, Reputation commissioned Nielsen to survey more than 750 consumers in the U.S. who had visited a hospitality venue in the last six months to produce its report, AI, the Economy, and Reviews Are Defining the Next Era of Hospitality.
Reputation’s report shows 20 per cent of U.S. consumers now use AI tools like ChatGPT to research restaurants and bars. This still puts AI search tools behind social media platforms such as TikTok, which was cited by 26 per cent. Review sites like Yelp were also higher at 24 per cent.
Google, meanwhile, holds steady as the most-used tool to search venues at 56 per cent, though it’s worth noting it has also introduced AI overviews and an AI mode to compete with the likes of ChatGPT.
Overall, 55 per cent of consumers trust AI-generated review summaries, and 16 per cent trust them more than individual reviews. However the report also found that trust is higher with younger adults at 86 per cent, compared to 31 per cent of older guests.
AI isn’t just a resource to get at reviews, Reputation’s report found. It can also be a mechanism for soliciting them. Nearly half of those surveyed (47 per cent) said they would be likely to leave a review if prompted by AI in the right tone and moment.
“Many of AI’s biggest impacts lie outside of actual visits to
restaurants and bars. But our research shows there are many
ways it can also improve guests’ experiences while inside a
venue,” the report’s authors wrote, citing faster payments and reduced wait times. “There is a long tail of other potential benefits, like the ability to get order updates, obtain nutritional or dietary information, split bills and resolve issues. If AI strategies start with these end-goals in mind, staff can spend more time on delivering
memorable experiences and guests are likely to leave venues
more satisfied.”
360 Magazine Insight
Reputation’s research shows that AI may be addressing an unrecognized point of friction in many early stages of the customer journey: having to scroll through a long list of reviews.
Make no mistake: having lots of reviews was one of the top factors driving revisits, according to nearly a quarter of those surveyed, falling just under having a high star rating. AI’s ability to do the sifting on a consumer’s behalf simply provides a short cut that many consumers probably desire so they can focus on actually getting to a venue they like.
Beyond the AI findings, there was a lot of valuable data in this ungated 11-page report about the role going out to eat and drink plays in everyday life. For instance, 72 per cent called going out to eat the treat they most look forward to, and 62 per cent said it’s the main way they socialize with family and friends.
It’s a good reminder that these experiences set the tone for many other brand interactions that consumers will have over the course of an average day. Reputation complements this data with in-depth advice and recommendations to not only get reviews, but enhance experiences so those reviews will be positive ones.
