What Hoteliers Need to Do About AI
These past weeks, I had conversations with hospitality executives about the rapid rise of artificial intelligence (AI) and its impact on hotels. One thing is clear: AI isn’t just another technology upgrade, it’s actually a game-changer that’s reshaping how hotels operate and compete.
The most advanced AI systems are no longer just helping with simple tasks. They’re analysing data, predicting guest preferences, optimising pricing, and even automating entire operations. This shift is already transforming the industry, and hoteliers who embrace AI now will gain a competitive edge.
Some may think their hotels are insulated from AI disruption, but that’s a risky assumption. AI is already changing the way bookings, guest experiences, and hotel operations work, and the pace of change is only accelerating.
The reality? Most hotels are behind. While many are experimenting with AI, only a small percentage are using it in ways that truly transform their business. The hotels leading in AI aren’t just using new tools, they’re rethinking how their business runs.
So, what can hoteliers do to stay ahead? Here are four key steps.
1. Make AI Part of Your Business Strategy
AI isn’t just about automating tasks, it’s about changing the way hotels compete. The hotels that get this right are the ones that use AI to drive revenue, improve guest satisfaction, and streamline operations.
Key Questions to Ask:
- Where can AI make the biggest impact in our business?
- Are we using AI for real guest personalisation, or just basic automation?
- Are we staying ahead of competitors in AI adoption?
Where AI Is Making a Difference:
🏨 Personalised Guest Experiences – AI analyses guest preferences to offer tailored recommendations, room settings, and promotions.
🏨 Dynamic Pricing & Revenue Management – AI adjusts room rates in real time based on demand patterns, maximizing revenue.
🏨 Operational Efficiency – AI helps schedule housekeeping, manage energy usage, and optimise inventory.
🏨 Better Customer Service – AI chatbots and virtual assistants answer common guest questions instantly.
🚀 Action Step: Identify two or three AI-driven initiatives that align with your hotel’s long-term vision.
2. Get Leadership on Board
AI isn’t an IT project, it’s a business transformation. The hotels leading in AI adoption have leadership teams that actively engage, experiment, and invest in AI.
Key Questions for Leadership:
- Do we fully understand AI’s potential in hospitality?
- Are we making AI a priority, or just testing it in small ways?
- Do we have the right technology partners to help us scale AI effectively?
Industry Leaders in AI:
🏨 Marriott – Uses AI to predict demand and optimise pricing (along many others brand already implementing AI powered dynamic pricing)
🏨 Hilton – Uses AI-powered chatbots to enhance guest communication.
🏨 CitizenM – Implements AI-driven smart rooms that adjust based on guest preferences.
🎯 Action Step: Assign an AI champion within your leadership team to explore and drive AI adoption.
3. Balance AI Innovation with Privacy & Security
AI brings great opportunities, but it also raises concerns about data privacy, cybersecurity, and fairness. Hotels need to make sure their AI systems are transparent, secure, and compliant with regulations.
Key Considerations for AI Governance:
🔹 Data Privacy – Are we protecting guest data collected through AI systems?
🔹 Algorithm Fairness – Are AI-driven pricing models fair and unbiased?
🔹 Cybersecurity – Are we securing AI-driven systems from potential breaches?
🔹 Regulatory Compliance – Are we following GDPR, CCPA, and other data protection laws?
⚖️ Action Step: Set up a privacy and security framework to manage AI risks effectively.
4. Invest in AI Talent & Scalable Technology
AI won’t replace human hospitality, it will enhance it. But to make the most of AI, hotels need skilled teams and the right tools.
Key Investment Areas:
💡 Upskilling Staff – Train employees on how to use AI to improve service.
💡 Technology Partnerships – Work with AI providers who specialize in hospitality solutions.
💡 Scalable AI Systems – Ensure AI tools integrate with your property management system (PMS).
💼 Action Step: Assess your team’s AI skills and invest in training to maximize AI’s potential.
The Bottom Line: AI is Hospitality’s Next Big Shift
AI is already changing how hotels operate. Those who embrace it will unlock new efficiencies, enhance guest experiences, and increase revenue. The key is to act now.
What Hoteliers Should Do Next:
✅ Make AI part of your core business strategy.
✅ Get leadership involved and drive AI adoption from the top.
✅ Ensure AI is used responsibly, with a focus on privacy and security.
✅ Invest in AI skills and technology to stay ahead of competitors.
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