AI Use Expanding in Hospitality

AI Transforming the Hospitality Industry

Artificial intelligence (AI) is rapidly becoming a cornerstone of the hospitality industry, helping staff deliver better guest experiences while streamlining operational tasks. Recent research highlights the growing adoption of AI among global hotel chains and independent properties, though challenges related to strategy, skills, and integration persist.

Two comprehensive 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"—provide insights into how AI is being implemented across the sector. These studies, which include data from over 370 hoteliers worldwide, reveal distinct approaches between large hotel groups and smaller independent operators.

AI Adoption by Hotel Chains

According to h2c’s global study, which surveyed 171 hotel chains representing over 11,000 properties, 78% of chains are currently using AI, with 89% planning to expand its use in the next 12 to 24 months. Chatbots are the most commonly adopted AI application, used by 42% of chains, while customer data management is the top area for planned investment, with 50% of chains focusing on it.

Despite the growing interest, there is a gap between trust in AI and its actual implementation. Hoteliers rate their trust in AI at 6.6 out of 10, but the average use of AI stands at just 4.7. Only 7% of hotel chains report having a comprehensive, company-wide AI strategy. Michaela Papenhoff, managing director of h2c, notes that while AI adoption is accelerating, most chains are still in the experimental phase. She emphasizes the need for greater investment in staff skills, better integration, clear ROI measurement, and a focus on use cases that deliver tangible value.

Challenges in AI Adoption for Chains

Hotel chains face several barriers to AI adoption, including organizational resistance to change (31%), data security and privacy concerns (30%), uncertainty about return on investment (27%), and issues with data quality and accessibility (26%). These challenges highlight the need for a more strategic approach to AI implementation.

AI Adoption by Independent Properties

Independent properties, on the other hand, are demonstrating greater agility in AI adoption. A TakeUp poll of 200 independent property owners and managers found that 74.5% of properties using AI report positive results. Most have been using AI for six months to two years and are already seeing measurable returns. Guest communication is the top area for AI adoption at 13.4%, followed by marketing and advertising at 12.1%, and social media management at 11.2%.

The financial impact of AI adoption is significant. Among properties reporting gains, 25.5% experienced revenue increases between 6% and 10%, while another 35% reported increases between 11% and 20%. Bobby Marhamat, CEO of TakeUp, highlights that independent property owners are actively embracing AI to enhance their businesses, with 74% reporting that AI meets or exceeds their expectations. Nearly 70% consider AI essential for staying competitive, and 39% see it as a major competitive advantage.

Common Motivations Across the Industry

Despite differences in scale, both hotel chains and independent properties share common motivations for adopting AI: reducing repetitive tasks, increasing efficiency, and enhancing guest experiences. For chains, the most valuable AI applications are business intelligence (78%), chatbots (77%), and digital marketing (72%). Independents prioritize automated guest communications (16.7%), marketing campaign optimization (13.8%), dynamic pricing optimization (12.1%), and energy cost reduction (12.1%).

Staff acceptance of AI is generally positive, with 78% of staff being somewhat or very comfortable with AI tools, according to the TakeUp survey. h2c’s respondents indicated that AI allows teams to focus on more strategic or guest-facing tasks, highlighting the technology’s potential to transform the industry.

The Importance of Personal Touch

Maintaining a personal touch remains crucial in the hospitality industry. Half of chains (62% of large chains) and 74% of independents consider it critical. However, traveler trends are driving the continued expansion of AI adoption. Over 60% of independents in the TakeUp study reported that guests appreciate or enjoy AI-powered features, and travelers are becoming increasingly comfortable with AI.

Phocuswright research shows that over half of U.S. travelers (51%) now use generative AI, up from 39% in 2024 and 22% in 2023. Adoption is also growing in other markets, with 41% of travelers in the U.K. using generative AI, up from 36% in 2024 and 14% in 2023. Travelers in France (39%) and Germany (38%) are also increasingly at ease with AI in everyday applications.

Future of AI in Hospitality

The next challenge for large hotel chains is moving from pilot programs to enterprise-wide integration, with growing interest in robotic process automation, proactive AI agents, and digital identity verification. For independents, expansion plans focus on intelligent energy management, more guest communication automation, and advanced marketing tools. Both studies suggest that early AI adopters in the hospitality space can gain a competitive advantage, making it essential for both global hotel groups and family-run inns to develop effective AI strategies.

As AI continues to evolve, it is poised to play an even more significant role in the hospitality industry, enhancing guest experiences and driving operational efficiency. Developing a strategic approach to AI adoption will be key for companies looking to stay ahead in this rapidly changing landscape.