The UAE AI in the region's holiday home industry

AI is definitely a hot topic in the region’s holiday home industry, with applications ranging from virtual agents to AI-powered accounting systems. That said, the term “AI” is sometimes used loosely, so it’s important to differentiate between true AI and simple automation, an industry expert said.

“In our industry, innovations in guest management, operations, and smart lock systems are reshaping how we operate. The integration of multiple technologies, especially in managing distribution across Online Travel Agencies (OTAs), is also crucial. Compared to traditional hotels, I believe short-term rental tech has advanced significantly, giving property owners a competitive edge while providing guests with a seamless, tech-enabled experience,” said Vinayak Mahtani, CEO of bnbme holiday homes.

Excerpts from an interview:

Technology has been a game-changer for the holiday home industry, and we’ve embraced it long before AI became a buzzword. Pre-COVID, we began using AI to optimize nightly pricing. Our system analyzes factors like building demand, area demand, overall demand in Dubai, seasonality, and occupancy rates to predict the ideal rate for each property. This has dramatically improved our revenue management strategy. We also use AI in our reservations department to answer common guest inquiries—like whether a pool is available, if pets are allowed, and the ever-popular, “Can I get a discount?” The system continuously learns from our database to provide accurate, instant responses, enhancing efficiency and guest satisfaction.

We’ve automated almost all routine communication, from booking confirmations to pre-arrival, welcome, and post-stay messages. These templates are triggered at specific intervals, allowing our reservation agents to focus on more personalized tasks. This extra time lets us dig deeper into understanding our guests. For example, we’ll glance at their social media profiles to learn preferences—if someone is always seen with a coffee cup, we’ll stock the apartment with a variety of coffee options. This level of customization has significantly boosted customer satisfaction, offering them a tailored experience they didn’t even know they wanted.

We’ve integrated smart technology into our door locks and air conditioning systems. As part of Dubai Tourism’s initiative, we’re transitioning from traditional keys to code or app-based entry, which eliminates the hassle of lost keys and enhances security by giving us better control over who accesses the apartment. Our smart air conditioning system allows us to regulate energy usage by turning the AC off when the property is vacant and back on before guests arrive, promoting both comfort and energy efficiency.

Data is at the heart of our decision-making. We’ve built algorithms that analyze various factors to predict the optimal price for each property. But we don’t stop there—we also monitor competitor pricing and occupancy rates to ensure our strategies are always aligned with market trends. By constantly refining our pricing model through data, we can maintain high occupancy while maximizing revenue, ensuring we stay ahead of the competition.

Cybersecurity is a top priority for us. We’ve implemented comprehensive measures such as data encryption, secure cloud storage, and role-based access control with multi-factor authentication. We are fully compliant with data privacy laws like GDPR and CCPA, and we continually update our software and network security to stay ahead of potential threats. Our team is trained in cybersecurity best practices, and we have a robust incident response plan in place. Regular security audits and strict vendor management further ensure that guest data remains protected as we continue to integrate new technologies into our operations.