The hospitality sector cannot afford to overlook AI

The hospitality industry has long been considered cautious when it comes to adopting new technology. In some periods that caution has been understandable, but hesitation around artificial intelligence now risks limiting progress across the sector.

Recent research suggests there is a widening gap between what hoteliers say they believe about AI and how they actually use it. According to h2c GmbH Global Study: AI and Automation in Hospitality, produced with Profitroom, 78% of hotel chains are already using some form of AI or automation and 89% plan to expand those efforts. Yet only 8% have a formal strategy guiding how the technology should be integrated into their business.

There is also a trust reliance gap. Hoteliers rated their trust in AI at 6.6 out of 10, but their reliance scored only 4.7. This reflects an industry that recognises potential but lacks clarity on how to use AI at scale.

Guest behaviour is changing faster than the sector’s response. Between September 2023 and January 2024, AI driven transactions increased by 600% according to data from Zscaler. Research from YouGov shows that 42% of travellers already use AI enabled tools to plan getaways. Many people now ask AI to recommend destinations or search for hotels based on preferences rather than typing into a traditional search engine. That shift should concern any operator who relies on visibility to drive direct bookings.

At the moment many hotels appear to be experimenting without a clear objective. Common barriers include a lack of expertise, pressure on resources and uncertainty about how to measure return on investment. When implementation is fragmented, results tend to be fragmented too.

Despite those challenges there are areas where AI is already adding value. The h2c GmbH study found that business intelligence tools scored highly for perceived benefit, followed by chatbots and digital marketing applications. Guest facing automation is starting to gain traction, particularly around upselling and personalised booking journeys. When handled well, this can improve conversion and help guests feel understood throughout the booking process.

It is important to recognise that AI is not there to replace people. Hospitality is built on service and human connection. In practice, the technology often works best when it removes repetitive tasks and frees staff to do what they do best. A system that handles basic enquiries or routine data analysis does not eliminate roles, it allows teams to spend more time with guests.

Independent and boutique hotels often face the greatest pressure on resources and many tell me they do not know where to start. The most effective approach is to begin with a defined problem rather than a technology trend. For example, if a team struggles to respond to enquiries promptly or lacks the ability to personalise offers at scale, AI may be able to support those specific issues. Without a strategy it is easy to trial tools that ultimately sit unused.

The risk for the sector is not that AI will transform everything overnight. It is that it will quietly shape guest expectations while hotels fail to adapt. Consumers are already making decisions differently and competitors in other industries are raising the bar for digital experiences. If we continue to view AI as optional, we may find ourselves reacting too late.

We do not need to chase every new development, nor should we adopt technology for its own sake. What we do need is a clearer sense of direction and a willingness to learn. A thoughtful approach to AI can improve efficiency, support teams and deliver better guest experiences. In an environment where margins are tight, those gains matter.

Hospitality has always been resilient but resilience requires evolution. The sooner we approach AI with intention rather than curiosity, the better positioned the sector will be to meet the expectations of travellers who have already embraced it.

Contributed by Profitroom