AI Use Expanding in Hospitality
Source: phocuswire.com
AI Adoption in Hotels
Artificial intelligence is becoming more prevalent in the hospitality sector, helping staff provide a better guest experience while automating operational tasks. New research analyzing global hotel chains and independent properties indicates that AI implementation is growing, although obstacles concerning strategy, skills, and integration persist.
Two studies, one by h2c and Cloudbeds, titled “AI & Automation in Hospitality: Navigating Today’s Challenges, Shaping Tomorrow’s Gains,” and the other by TakeUp, called “AI Hospitality Revolution 2025,” illustrate the varying approaches to AI between large hotel groups and independent operators. Together, they include insights from over 370 hoteliers worldwide, including luxury chains, mid-market brands, and smaller independent hotels.
AI Implementation by Hotel Chains
According to h2c’s global study, which gathered data from 171 hotel chains representing over 11,000 properties, 78% of chains are currently using AI, and 89% intend to broaden its use in the next 12 to 24 months. Chatbots are the most common application at 42%, while customer data management is the leading area for planned investment at 50%. There is a gap between how much hotels trust AI and how much they depend on it. Hoteliers rated their trust in AI at 6.6 out of 10, but actual use averaged only 4.7, indicating a lack of formal AI adoption strategies. Only 7% of hotel chains report having a comprehensive, company-wide AI strategy.
There are significant barriers to AI adoption for hotel chains, including organizational resistance to change at 31%, data security and privacy concerns at 30%, ROI and investment uncertainty at 27%, and data quality and accessibility problems at 26%. Michaela Papenhoff, managing director of h2c, noted that while AI adoption in hospitality is accelerating, most hotel chains are still experimenting. She believes closing the trust-reliance gap will require more investment in staff skills, better integration, clear ROI measurement, and a focus on use cases that provide tangible value.
AI Implementation by Independent Properties
While larger brands are more cautious, smaller operators demonstrate greater agility in AI adoption. A TakeUp poll of 200 independent property owners and managers revealed that 74.5% of properties using AI report positive results, and most (66%) have been using AI for six months to two years, already seeing measurable returns. Guest communication is the top adoption area at 13.4%, followed by marketing and advertising at 12.1%, and social media management at 11.2%.
The financial effects of AI adoption are 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, stated that independent property owners are actively embracing AI to improve their businesses. The fact that 74% of owners report AI meeting or exceeding expectations disproves the idea that smaller properties cannot succeed with AI. Nearly 70% of those surveyed consider AI essential for staying competitive, and 39% see it as a major competitive advantage.
Despite differences in scale, both studies highlight common motivations: reducing repetitive tasks, increasing efficiency, and enhancing guest experiences. For chains, business intelligence (78%), chatbots (77%), and digital marketing (72%) are the most valuable applications. For independents, the top priorities are 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 concentrate on more strategic or guest-facing tasks.
Maintaining a personal touch remains crucial in hospitality for both groups. Half of chains (62% of large chains) and 74% of independents consider it critical. However, traveler trends will drive the continued expansion of AI adoption. Over 60% of independents in the TakeUp study reported that guests appreciate or enjoy AI-powered features. Travelers are becoming increasingly comfortable with AI. Phocuswright research indicates 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. Younger generations are more likely to use GenAI for travel planning, while GenX and Baby Boomers generally lag behind.
When searching for hotels, 85% of U.S. travelers trust AI. A quarter to a third of travelers surveyed across four markets expressed interest in booking travel through a GenAI engine or having an AI assistant book for them if available. There are numerous AI applications in the travel industry, and technology companies are pursuing growth opportunities. Perplexity, an AI-powered answer engine, has partnered with Selfbook and TripAdvisor to enable AI users to book hotels. Perplexity plans to introduce benefits for Pro users, such as discounts on hotel bookings made natively through their platform.
The next challenge for large hotel chains is moving from pilot programs to enterprise integration, with increasing 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. Developing an effective AI strategy will be essential for both global hotel groups and family-run inns to succeed before their competitors.