Artificial intelligence (AI) refers to the performance of apparently intelligent tasks by machines. Artificial Intelligence is a concept that has existed since the 1950s. But what are the Uses of Artificial Intelligence in the hotel industry?
AI refers to computers or machines carrying out tasks that were generally thought to need a cognitive function to carry out. It is majorly related to concepts like automation and big data.
A recent report from Accenture estimated that AI-driven technologies could potentially double annual economic growth rates by 2035. This has been validated by a study by PwC estimating that artificial intelligence (AI) could add $15.7 trillion to the global economy by 2030. AI in the hospitality industry is rapidly transforming operations, enhancing personalized guest experiences, and optimizing pricing strategies with machine learning algorithms.
Despite the positive growth, AI also presents challenges such as job displacement. A report from the Organization for Economic Cooperation and Development (OECD) estimated that 14% of jobs across 21 countries are at high risk of automation. Another study by McKinsey Global Institute projected that up to 800 million jobs could be displaced by automation by 2030. However, AI-driven technologies are also creating new roles within the hospitality sector, particularly in AI-powered marketing campaigns and predictive maintenance solutions.
Hotel Tech Report recently surveyed 400 hotel guests for our annual State of Hotel Guest Technology Report 2025. Our research uncovered key insights about AI in hotels, including:
70% of guests find AI chatbots helpful for simple inquiries but prefer human interaction for complex requests.
The #1 reason guests prefer AI chatbots in hotels is for asking for the Wi-Fi password, followed by scheduling wake-up calls and checking hotel facility operating hours.
58% of guests believe AI technologies enhance their booking and stay experiences.
65% of travelers expect hotel technology to be more advanced than what they have at home.
Understanding the balance between AI-driven automation and human touch is crucial in the hospitality sector. Many guests appreciate AI-powered efficiencies in room service, dynamic pricing, and personalized recommendations. AI technologies allow hoteliers to track guest preferences, analyze market trends, and implement smarter pricing strategies to stay competitive.
Hoteliers who embrace artificial intelligence in the hotel industry will gain a competitive edge by enhancing personalized experiences, streamlining operations, and leveraging AI in marketing campaigns. As artificial general intelligence advances, the hospitality industry must integrate AI-driven innovations while maintaining a human-centric approach to service excellence.
AI in Travel and Hospitality: Transforming the Industry
One of the key areas where AI in the hospitality industry has made significant strides is guest experience management. Through artificial intelligence in hospitality, hotels can provide round-the-clock assistance to guests, addressing their queries, handling reservations, and even suggesting personalized recommendations based on guest preferences and guest data.
For example, a resort my company works with implemented a novel AI telephony system that reduced calls to front desk staff while enhancing the service level of answered calls. This innovative use of AI in the hotel industry not only improved customer satisfaction but also helped improve operational efficiency, allowing staff members to focus on more complex tasks.
Personalized Recommendations and Services
AI algorithms excel in analyzing large data sets, enabling hotels to offer highly personalized recommendations and services. By leveraging artificial intelligence in the hotel industry, hotels can gain deep insights into guest preferences, curating tailored experiences beyond simple accommodations. From recommending local attractions and restaurants to customizing in-room amenities, AI in hospitality empowers hotels to create memorable guest experiences that drive loyalty.
Streamlining Operations and Improving Efficiency
The benefits of AI technology in the hospitality sector extend beyond guest experience. I have seen AI in hospitality optimize operational efficiency by analyzing data from multiple sources, including guest feedback, staff performance metrics, and resource allocation. This data-driven approach allows hotels to streamline workflows, reduce costs, and allocate resources efficiently, leading to better business outcomes.
The Future of AI in Hospitality
As artificial intelligence AI continues to advance, hospitality marketing AI and chatbots and virtual assistants will further enhance guest interactions. The integration of AI in hotel industry operations will allow businesses to provide seamless experiences while boosting efficiency and customer engagement.
The adoption of artificial intelligence in the hospitality industry is no longer a luxury but a necessity, driving innovation in the hotel industry and setting new standards for guest satisfaction and business success.
Artificial Intelligence is playing a progressively key role in hospitality management, mainly because of its ability to carry out generally human functions at any time of the day.
This potentially means that hotel owners can save significant money, get rid of human error, and provide superior service.
In particular, customer service is an essential part of the travel industry. With artificial intelligence in the travel and hospitality industry, the possibilities for improving this aspect are almost limitless, ranging from increased customization to tailored recommendations.
One of the important customer service challenges for hotels is responding to customer queries quickly and artificial intelligence now provides an additional option for handling this problem.
Artificial intelligence (AI) is revolutionizing the hospitality industry by automating repetitive tasks like booking, contactless check-ins, and room service, allowing staff to focus on personalized guest service. AI in hotels enhances customer service with AI-driven chatbots and virtual assistants that help guests make reservations, answer questions, and provide personalized recommendations powered by AI.
Additionally, AI technologies improve housekeeping room assignments and predict maintenance needs using machine learning, sensors, and AI robots to monitor and control temperature, lighting, and security in guest rooms. AI-driven dynamic pricing and pricing strategies help hoteliers optimize revenue management by analyzing market trends and guest preferences. The integration of AI in the hospitality sector allows for more efficient marketing campaigns, creating highly targeted promotions based on personalized guest data.
AI technology also enhances operational efficiency by forecasting demand, managing inventory, and optimizing logistics. AI in the hotel industry ensures seamless guest experiences by offering personalized experiences through AI-powered services. Furthermore, artificial intelligence in healthcare is improving medical applications, while AI websites and artificial intelligence apps are making AI more accessible to businesses and consumers.
Understanding how AI works and the difference between AI vs. machine learning is crucial for leveraging these innovations effectively. The future of artificial intelligence and artificial general intelligence will continue to transform industries, making AI-driven solutions an integral part of the modern hospitality sector.
These 3 points show how beneficial artificial intelligence can be when used in the hospitality industry, listed in more detail below-
An example of artificial intelligence in the hospitality sector is the use of AI technologies, including AI-driven robots, to deliver in-person customer service. AI in hotels is transforming guest interactions, providing seamless and efficient services that enhance personalized experiences.
Although there are plenty of hotels adopting AI robots, ‘Connie,’ the Hilton Hotel’s very own AI-powered concierge, is the best example. This advanced application of artificial intelligence in the hotel industry demonstrates how AI to human interactions can improve the hospitality industry.
The robot is able to provide tourist information to customers who interact with it, leveraging machine learning and market trends to personalize service. By interacting with the AI concierge, customers can ask queries related to hotel services, facilities, hours of operation, and even receive personalized recommendations.
AI-driven dynamic pricing strategies are also being adopted in the hospitality sector, helping hotels optimize revenue by analyzing market trends. Furthermore, AI technologies are enhancing marketing campaigns by targeting personalized guest preferences. Beyond hospitality, artificial intelligence in healthcare is similarly revolutionizing patient care and operational efficiency, showing the widespread impact of AI across industries.
AI in Travel and Hospitality: Transforming the Industry
AI in travel and hospitality is revolutionizing how businesses improve operational efficiency and enhance guest experiences. Hospitality firms are leveraging artificial intelligence in the hotel industry to bolster profitability and streamline operations. By integrating AI algorithms into their systems, hotels can optimize revenue management, dynamic pricing, and cost management strategies.
In the hospitality sector, AI is being used for staff augmentation, automation, and sustainability initiatives, reducing waste while enhancing the bottom line. The future of AI in hospitality is not only about automation but also about personalizing guest experiences through chatbots and virtual assistants that offer real-time assistance and seamless room service.
Key Takeaways
✅ The adoption of AI in the hospitality industry is expected to grow by 60% annually from 2023 to 2033.
✅ AI-powered analytics allow hotels to personalize services based on guest data and preferences.
✅ AI plays a critical role in hospitality marketing artificial intelligence, enabling data-driven marketing campaigns for improved customer engagement.
✅ Smart rooms, AI-powered energy management, and waste reduction strategies are helping hotels become more sustainable.
✅ AI in the hotel industry is enhancing security measures, guest verification, and automated check-ins.
AI in Hospitality Explained
The market for AI technology in hospitality was valued at $90 million in 2023 and is projected to exceed $8 billion by 2033. This rapid growth is fueled by machine learning and the integration of AI across front desk, housekeeping, and back-office operations.
Leading hospitality brands are already implementing AI-powered solutions:
Marriott Bonvoy uses AI-powered search to personalize search experiences for luxury home rentals.
Universal Orlando Resort has introduced facial recognition AI technology for seamless, contactless entry.
InnVest Hotels employs AI-enhanced hotel delivery robots for efficient room service.
Radisson Hotel Group leverages AI-driven immersive sales experiences to help event planners visualize venues in real time.
Beyond guest-facing applications, AI is driving hospitality marketing AI, business intelligence, and sustainability initiatives. Research shows that 60% of hotels and 70% of travel agencies plan to leverage AI to stay competitive.
As artificial intelligence AI continues to evolve, its impact on the hotel industry will only deepen, redefining how businesses personalize guest experiences, optimize marketing campaigns, and enhance operational efficiency.
Another excellent way to use AI within the hospitality sector is for front-facing customer services, such as direct messaging and online chat services responding to simple queries or requests.
AI chatbots can be used on social media platforms to answer queries around the clock and get almost instantaneous responses.
This is essential to hotels as it provides instantaneous response times which are almost impossible with human-to-human interaction.
Uses of Artificial Intelligence is also great within the hospitality sector; it can be used for data analysis by quickly sorting through huge amounts of data and developing important conclusions about current or potential customers.
The ‘Dorchester Collection hotel chain’ is one such example of a hotel that has used AI data analysis to sort through data collected via online reviews or surveys.
The Uses of Artificial Intelligence has been able to do an analysis of the information to draw conclusions about overall performance.
AI is also great within the hospitality sector; it can be used for data analysis by quickly sorting through huge amounts of data and developing important conclusions about current or potential customers.
The ‘Dorchester Collection hotel chain’ is one such example of a hotel that has used AI data analysis to sort through data collected via online reviews or surveys.
The Uses of Artificial Intelligence has been able to do an analysis of the information to draw conclusions about overall performance.
Last year, a tech company known as Avvio launched the world’s first direct booking engine powered by machine learning, Allora.
Uses of Artificial Intelligence brings insights from users’ interactions together and determines the way to optimize their experience by finding the best hotel or online experiences.
By personalizing search results, the engine increases the chances of interaction, thus taking personalization to a whole new level.
Artificial intelligence has the capability of analyzing big amounts of data in a short amount of time.
By streamlining the data analysis process, an activity operator can better utilize that data to make decisions regarding their business strategy.
The challenge of analyzing data will be simplified by technology that is intelligent enough to make strategic choices about guest characteristics and behavior.
The list of the features and benefits that the company’s chatbot is recently capable of providing are-
- Assistance with existing reservations
- Answering general queries about property policies
Answering queries regarding transport, data changes, arrival or departure times, and payment.
Every technology comes with some disadvantages or issues to keep in mind. All you need is support from an expert company that can help you in the adoption process and after the deployment. Any company can provide you AI services but you need a company that can provide you support services even after the completion of the project. Here are two things you will have to keep in mind about AI:
Even though AI has made tremendous progress in the past few years, the field is pretty much in its early stages.
AI’s decisions are based on human input, it is possible to feed incorrect data hence, causing inappropriate decisions.
While this can get better with time as the technology develops, it’s clear that at this point AI can’t be trusted with making key decisions.
Even though AI in hospitality and AI in travel and hospitality have made tremendous progress in recent years, the field is still evolving. The integration of AI in the hospitality sector has enhanced guest experiences, revenue management, and operational efficiency, but it remains in its early stages.
Since artificial intelligence AI relies on data-driven insights and AI algorithms, incorrect or biased guest data can lead to inaccurate decision-making. This highlights the importance of machine learning improvements and careful market trends analysis to ensure AI technology continues to evolve.
As AI in the hospitality industry advances, businesses will leverage AI for hospitality marketing AI, chatbots and virtual assistants, personalized guest experiences, and AI-powered room service. While AI is not yet fully autonomous in making critical decisions, the future of AI in hospitality will undoubtedly drive smarter marketing campaigns and improve operational efficiency across the hotel industry.
This is one of the most critical concerns that all businesses looking to take advantage of AI will encounter.
Data collected by the computers or machines during interactions with users can be potentially used for other purposes; consequently, the risk of data privacy violation is involved.
This means that hotels may face some problems with getting more customers to use their AI-based tools.
AI definitely has a scope in the hospitality industry i.e., From assisting hotel personnel with answering guests’ queries to providing personalized recommendations via dedicated search engines.
Although, in order for technology to become the new best friend for both hoteliers and travelers. There is a need to resolve some significant challenges. With increasingly countries working on data privacy and other AI-related laws.
It’s reasonable to put forward that the hospitality industry will have to follow plenty of regulations.
The key to the success of hoteliers here is to show that they cater to the individual side of the hospitality industry. And successfully accelerate the customer experience.
And if all these requirements are fulfilled. It’s all right to assume that AI will soon begin changing the way hotels are run.
It’s time to make a decision! and Develop an AI-Based App for Your Hotel Industry. Looking for a reliable team of app developers to transform your hospitality business? We have the experts for you.
Our team of AI specialists will help you adopt the technology and leverage it in the best possible way. Get in touch with us today to get started on this digital journey of transformation together.
Will AI replace hospitality?
No, artificial intelligence (AI) will not replace the human touch in the hospitality industry. However, AI-driven solutions, such as chatbots, AI robots, and virtual assistants, can enhance efficiency by automating repetitive tasks and streamlining guest services. AI in hotels is designed to complement human staff by improving personalized service, room service management, and dynamic pricing strategies.
How big is AI in the hospitality market?
Artificial intelligence in the hospitality market has experienced exponential growth. In 2023, it was valued at $90 million and continues to expand at an annual growth rate of 60%. AI technologies are expected to drive the market beyond $8 billion annually by 2033, with AI-powered applications transforming guest preferences, marketing campaigns, and pricing strategies in the hospitality sector.
What is the downside of AI in the hospitality industry?
One of the challenges of artificial intelligence in hotel industry operations is the potential loss of personal connections with guests. AI-driven automation, while enhancing efficiency, may make some travelers feel disconnected. However, hotels can overcome this by combining AI technologies with skilled human staff to ensure personalized guest experiences, handle complex service requests, and provide value-added services. AI-powered predictive maintenance and machine learning insights also help optimize operations without compromising the guest experience.
What is the best AI for the hospitality industry?
Among the most impactful AI-driven innovations in the hospitality industry are AI-powered chatbots and virtual assistants. These AI technologies provide quick responses to guest inquiries, assist with bookings, and deliver personalized recommendations. Additionally, AI-driven dynamic pricing tools use machine learning to analyze market trends and adjust pricing strategies accordingly, ensuring hotels remain competitive.
How is Hilton using AI?
Hilton has been a pioneer in AI technology adoption. One of its most well-known AI-driven innovations is its robot concierge, Connie. Powered by AI, Connie is stationed at Hilton front desks to assist guests by providing information about hotel services, offering personalized recommendations for local attractions and restaurants, and even helping with reservations. Hilton also uses AI-driven solutions for room service automation, guest preference analysis, and marketing campaigns to enhance overall customer experiences.
Artificial intelligence continues to redefine the hospitality sector, from AI websites and artificial intelligence apps to AI in healthcare and beyond. Understanding how AI works, the role of artificial general intelligence, and the distinction between AI vs machine learning will be key for the industry’s future growth.
