Runnr.ai, a conversational guest engagement automated messaging startup, announced the successful raise of €1 million in funding led by Arches Capital, with participation from Golden Egg Check, angel investors Roland Zeller (ex-GetYourGuide), Marnix van der Ploeg (ex-Booking.com), and hotel entrepreneur Hans Pieters.
The technology startup, that was one of the 10 finalists of the 2023 FutureTravel Summit Pitch Competition, developed software that allows hotels to automate communication with guests, which results in more engagement, operational time savings, and additional turnover through upselling. Runnr.ai says is the first company in the hospitality industry to completely exchange common ‘legacy’ chatbot technology for generative AI, therefore ensuring the highest possible quality in conversations.
The funding will be used for product development and expanding its activities in the Netherlands to the entire Benelux, the UK, and Germany in 2024. From 2025, this expansion will continue to include all of Europe, followed by the remaining continents. Runnr.ai’s goal is to become the international market leader in automated customer service in hospitality.
“Our technology creates a unique combination of service, efficiency, and commerce. Something that’s needed more than ever in the hospitality industry due to the staff shortages and the rise of generative AI,” commented Michiel de Vor, CEO of Runnr.ai.
While the expectations of hotel guests in terms of service, speed and personalization continue to increase, the ongoing staff shortage – affecting 97% of hotels – poses a major challenge to comply. While the use of smart technology to boost efficiency has become the norm in many industries, the hospitality industry is falling behind. A mere 11% are using technology in guest communication. Runnr.ai, founded by Michiel de Vor, Maarten Fugers, and Steven Oliemans who have worked at a.o. Booking.com, Tripaneer, and Catawiki aspire to create change and set the new standard.
Runnr.ai developed an AI tool that allows hotels to proactively communicate with guests automatically via WhatsApp. Its technology completely replaces preset flows and older chatbot technology with generative, self-learning artificial intelligence. Because of this, guests enjoy the highest possible quality in conversations, getting the most fitting answer to their questions or requests within seconds, leading to increased satisfaction, from the moment of booking their room until the moment they check out. Automatic translations of messages for both customers and the reception into their native language provide additional convenience. By now, Runnr.ai has proven the effects: more than 50% of guests actively use Runnr.ai’s messaging, and 90%+ say that the communication has improved the quality of their stay.
Frank Appeldoorn, Managing Partner of Arches Capital, said: “The best evidence for us is customer feedback. It was clear that they deliver value on every front with a compelling ROI for hotels, reducing staff workload and most importantly improving the guest experience. Michiel, Maarten and Steven understand the hotel needs and wishes as the best, are data-driven and full of ambition. We look forward to supporting them in their growth.”
Besides leading to happier customers, Runnr.ai’s technology results in substantial time and cost savings for the hotel. Up to 95% of the questions and requests from guests that would normally have to be handled by employees, are now answered automatically. The innovative way of messaging can also generate up to €65 extra profit per month, per room, through upselling. These extra items, such as breakfast, restaurant reservations, late check-out, and room upgrades are added instantly to the bill because of a direct integration with the current Hotel Property Management Systems (PMS), streamlining all activities.
Since its founding in November 2022, Runnr.ai has generated more than 100 hotels using its customer engagement technology, answering more than 60,000 unique questions from guests every month.
Read the orginal article: https://www.eu-startups.com/2024/01/utrecht-based-runnr-ai-gets-e1-million-to-expand-its-generative-ai-tool-for-guest-communication-in-hospitality/
