We’ve seen this before. The internet, OTAs, online review management—those who moved early reaped the rewards. They weren’t necessarily the best, they were just ready when the shift happened. AI is the same. In hospitality, we don’t yet know how or when AI will transform operations, guest experiences, or revenue strategies (some changes are happening already). But history tells us one thing the ones who wait pay it in lost revenue.
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The early adopters of AI in hospitality will make mistakes. They’ll invest in tools that don’t deliver, experiment with processes that don’t quite fit. But by the time AI in hotels becomes mainstream, they’ll have the experience, the data, and the tech adapt easily— the late adopters will scramble to catch up, wasting time and money hiring consultants and agencies who know they’re desperate and charge accordingly. Ripping out old incompatible systems etc.
What should hotels do now?
AI is driven by data. Without clean and accessible data, even the most powerful AI models will fail to deliver results. The real work isn’t just about picking the right AI tools—it’s about building a strong IT exchange foundation that allows you to plug in AI when the time is right.
Tips for small hotels:
— Invest in a solid PMS, CRS, and CRM setup that integrates smoothly.
— Ensure your systems communicate (not just the above three)—data should flow seamlessly between them.
— Have API access to these systems. Don’t just rely on vendors to do API work—understand how APIs work and how they can be used.
— Get development resources—even a freelancer or a small development partner—who can help you build things and automate processes using APIs.
For Groups & Larger Hotels:
— Build a data lake environment, so you can easily query and analyze it.
— Ensure data is clean and structured—bad data leads to bad outcomes. Invest in data cleaning and structuring. Avoid just a central copy of databases (even though it is a start).
Those who prepare, get lucky
Look back at the early days of online bookings. The hotels that had websites and booking engines before the industry shifted to digital weren’t necessarily getting the all the online reservations, but by the time the mainstream caught on, they knew how to operate efficiently online. Meanwhile, those who had ignored the shift had to rush to adapt—often relying on expensive consultants or simply reply on OTAs that took control of their distribution (hint, the shift to mobile was a repeat of that, and AI is well on the way to being the same).
Will AI revolutionize guest loyalty with amazing personalization? Will it automate marketing and revenue management to near perfection? Will it streamline guest interactions and operations? Will it free up back-office resources so people can spend more time with guests? We don’t know yet. But we do know that it is inevitable. Technology that makes life easier, reduces effort and increases quality of life gets rapid adoption – this is one of those.
Remember that today, a lot of hotels are considering digital keys, yet smartphones became mainstream about 2015.
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About me: I’m a fractional CMO for large travel technology companies helping turn them into industry leaders. I’m also the co-founder of 10minutes.news a hotel news media that is unsensational, factual and keeps hoteliers updated on the industry.
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