AI in Hotels: Chains vs. Independents

AI Adoption in Hospitality: A Tale of Two Strategies

Artificial intelligence is transforming the hospitality industry, enabling staff to deliver personalized guest experiences while automating operational tasks. Recent research comparing global hotel chains and independent properties indicates growing AI adoption, but challenges persist regarding strategy, skills, and integration.

Two studies, one by h2c and Cloudbeds, titled “AI & Automation in Hospitality: Navigating Today’s Challenges, Shaping Tomorrow’s Gains,” and another by TakeUp, called “AI Hospitality Revolution 2025,” reveal differing approaches to AI between large hotel groups and independent operators. Together, the studies include insights from over 370 hoteliers worldwide, including luxury chains, mid-market brands, and small, independent hotels.

Hotel Chains and AI

According to h2c’s global study, which incorporated feedback from 171 hotel chains representing more than 11,000 properties, 78% of chains are already leveraging AI, and 89% plan to broaden its use within the next 12 to 24 months. Currently, chatbots are the most common application (42%), while customer data management is the leading area for planned investment (50%).

Interestingly, the level of trust in AI among hoteliers is higher than their actual reliance on it. Hoteliers rated their trust in AI at 6.6 out of 10, but their actual reliance averaged only 4.7, highlighting the absence of a well-defined AI strategy. Only 7% of hotel chains report having a comprehensive, company-wide AI strategy.

Significant obstacles hinder AI adoption for hotel chains, including organizational resistance to change (31%), data security and privacy concerns (30%), ROI and investment uncertainties (27%), and data quality and accessibility problems (26%).

Michaela Papenhoff, managing director of h2c, noted that while AI adoption in hospitality is increasing, most hotel chains are still in the experimental phase. She suggests that closing the gap between trust and reliance requires increased investment in staff skills, improved integration, clear ROI measurement, and a focus on valuable use cases.

Independent Hotels and AI

While large brands proceed cautiously, smaller operators demonstrate remarkable agility in adopting AI. TakeUp’s survey of 200 independent property owners and managers revealed that 74.5% of properties using AI report favorable outcomes. Most (66%) have been using AI for six months to two years and are already seeing measurable returns. Guest communication is the most popular adoption area (13.4%), followed by marketing and advertising (12.1%) and social media management (11.2%).

The revenue impacts of AI adoption are significant. Among properties reporting gains, 25.5% experienced revenue increases between 6% and 10%, while 35% reported increases between 11% and 20%.

Bobby Marhamat, CEO of TakeUp, stated that independent property owners are fully embracing AI to gain a competitive edge. The fact that 74% of owners report AI has met or exceeded expectations disproves the notion that smaller properties cannot succeed with AI.

Nearly 70% of those surveyed consider AI essential for staying competitive, and 39% view it as a significant competitive advantage. Both studies emphasize similar motivations, such as reducing repetitive tasks, increasing efficiency, and improving guest experiences. For chains, business intelligence (78%), chatbots (77%), and digital marketing (72%) are the most valuable applications. For independents, automated guest communications (16.7%), marketing campaign optimization (13.8%), dynamic pricing optimization (12.1%), and energy cost reduction (12.1%) are top priorities.

In both groups, staff acceptance of AI is favorable. TakeUp’s survey showed that 78% of staff are somewhat or very comfortable with AI tools. Additionally, two-thirds of h2c’s respondents indicated that AI allows teams to concentrate on more strategic or guest-facing tasks. A small chain executive in the h2c study mentioned that AI frees up time for people to use their unique skills.

Maintaining a personal touch remains essential for both groups. Half of chains (62% of large chains) and 74% of independents believe that preserving a personal touch is critical. A chain executive in the h2c study emphasized that the human touch is crucial in hospitality and that humans will continue to add the most value, even as tasks evolve.

Traveler trends will continue to drive AI adoption. Over 60% of independents responding to the TakeUp study indicated that guests appreciate or enjoy AI-powered features. Travelers are increasingly comfortable with AI. Research indicates that more than half of travelers now use generative AI.

There are numerous AI applications in the travel sector, and tech companies see growth opportunities. For example, Perplexity partnered with Selfbook and TripAdvisor to enable AI users to book hotels. For major hotel chains, the next step involves moving from pilot programs to enterprise-wide integration, with rising interest in robotic process automation, proactive AI agents, and digital identity verification. Independents plan to expand intelligent energy management, automate guest communication, and use advanced marketing tools.

Both studies suggest that early AI adopters in hospitality can gain a competitive edge. The key for global hotel groups and family-run inns alike is developing an AI strategy that benefits the business before competitors do.