As a leading provider of software platforms to the hospitality industry, Access can help provide a holistic overview of how AI can revolutionise your business without compromising on guest experience. This guide combines practical insights about AI implementation with real experiences from hospitality leaders.
What is AI in the hospitality industry?
The roundtable discussion highlighted an important reality: while other sectors have moved quickly to adopt AI, the hospitality industry has not had the same luck. As of January 2022, the UK hospitality sector had an AI adoption rate of just 11.9%, one of the lowest across industries. This reflects the sector's slower embrace of technology, though interest in AI-driven efficiency and personalisation is steadily rising.
AI in hospitality ranges from machine learning and natural language processing to automated systems that handle routine tasks. But as our industry partners emphasised, successful AI implementation depends on having the right foundations in place. This includes robust data management, seamless integration with existing systems and clear objectives for what AI should achieve.
The feedback from hospitality businesses shows that AI works best when it complements employees rather than replaces them. For example, AI-led systems can handle routine queries and bookings, while the team focus on creating memorable guest experiences. This balanced approach allows businesses to improve efficiency without losing the personal touch their guests value.
How is AI being used in the hospitality industry?
AI is increasingly being used in the hospitality industry to improve operational efficiency, enhance the guest experience and increase revenue. Our roundtable participants shared their experiences of implementing AI across their businesses, revealing both opportunities and practical challenges. While some areas, like chatbots and demand forecasting, have shown immediate benefits, others require careful consideration of the balance between automation and personal service.
In this section, we look in detail at how different business models are utilising AI to streamline and optimise various processes in their organisation.
Hotel operations
AI can help with hotel operations, specifically with bookings and check-ins. With AI-powered tools, hotels can automate and streamline these processes, making them more efficient and effective.
Let’s take the example of chatbots. Chatbots can assist customers with their bookings, answering questions about availability, pricing and amenities. They can also provide recommendations based on customer preferences, such as room type and location. This saves hotel team members time and resources, as the chatbots can handle a large number of enquiries simultaneously. Our roundtable discussions revealed mixed experiences with chatbots, with some customers not too keen while others were glad about less waiting time.
The ideal approach combines automated systems for routine tasks with human interaction because AI does have limitations on what it can do. An important insight from our discussions centred on understanding AI's limitations in personalised service. Take milestone events like weddings, bar mitzvahs or significant birthday celebrations—these moments demand human touch, empathy and attention to detail that only experienced hospitality professionals can provide. Where AI shines is in supporting these interactions by automating the background tasks, allowing team members to focus entirely on creating these memorable experiences.
In addition to this, AI can also improve the check-in process at hotels. With facial recognition technology, guests can check in without physical keys or ID cards. This not only saves time but also enhances security and eliminates the risk of lost or stolen keys. Guests can also use their mobile devices to check in, receive their room number and access code and bypass the front desk altogether. This creates a seamless check-in experience for guests, reducing wait times and improving overall satisfaction.
Another way AI can help with hotel operations is through resource optimisation. By analysing data such as energy consumption and resource expenditure, AI can help businesses optimise distribution and reduce costs. Saving on energy and resources is not just a cost-saving exercise. Environmental impacts are also important to customers, and reducing your impact is a demonstrable way of showing your concern for your wider community.
Marketing
AI can play a significant role in the hospitality industry's marketing efforts by enabling targeted and personalised communications and automating time-consuming data analytics tasks. Our roundtable participants highlighted both opportunities and limitations in AI marketing. While tools like Co-pilot and Gemini help with content creation and data analysis, the generic tone of AI-generated content remains a challenge, but this seems to be improving day by day.
AI algorithms can analyse a customer's previous interactions with a hospitality brand, such as their bookings, reviews, and any other preferences, and they can use this data to provide personalised recommendations for future bookings. For example, a hotel could use AI to recommend specific room types or amenities to guests based on their past behaviour.
Email marketing, for instance, is a task which can be automated and enhanced by natural language AI, resulting in timely and personalised emails to your guests. You can read more about how to free up time from this task in our guide to email marketing.
AI can also monitor social media platforms for mentions of a hospitality brand and analyse the sentiment of those mentions. This can help hotels respond to customer complaints or issues quickly and proactively and identify opportunities for engagement and marketing. The technology particularly excels at processing large volumes of customer feedback across multiple platforms, giving businesses a clear picture of their online reputation and areas for improvement
Revenue management
AI can be extremely helpful for the hospitality industry when it comes to revenue management. AI algorithms can help hotels adjust their prices in real-time based on demand and other factors, often known as dynamic pricing. By reviewing data from a variety of sources, such as booking patterns, competitor prices and even weather forecasts, AI can help hotels optimise their pricing strategies and maximise revenue. Our roundtable discussions with smaller operators highlighted how tools like Rotaready are helping businesses with demand forecasting, enabling them to compete more effectively in the market.
While dynamic pricing responds to factors in the outside world, AI can also adjust quickly to factors inside a hospitality business to maximise revenue. AI can help hotels optimise inventory by predicting demand patterns and suggesting the optimal mix of room types and amenities to offer at any given time. This can help hotels maximise occupancy and revenue while minimising waste.
A key insight from our industry partners was the importance of integrating different data sources to make better business decisions. With AI, hotels can manage their distribution channels more efficiently by analysing data from multiple sources, including online travel agencies, direct bookings and social media platforms. This can help hotels identify the most effective channels for reaching their target audiences and enhance their distribution strategies accordingly.
AI can automate the reporting process by collecting and analysing data from multiple sources, such as booking systems, customer reviews and social media platforms. This can save hotels time and resources, allowing them to focus on other revenue-generating activities.
Guest experience
The hospitality industry is all about providing the best guest experience possible. And with the rise of AI, hotels and other hospitality businesses have powerful new tools to help them achieve this goal. This shift towards AI-driven guest experiences isn't just a trend—86% of global hotel chains are now prioritising AI investments over other innovations, recognising its potential to transform every aspect of the guest journey.
This transformation can start before the guest has even set foot over the threshold of the business. With virtual tours, guests can get a detailed view of a hotel room or suite before booking. This can help guests make more informed decisions about where to stay and what type of room to book. Virtual tours can also help hotels showcase their properties in a more engaging and immersive way, which can lead to more bookings and better guest satisfaction.
AI can also be integrated into room features such as lighting, temperature control and entertainment systems, allowing hotels to provide guests with a more comfortable and convenient stay. For example, guests could use voice commands to adjust the lighting or temperature in their rooms, or to order room service for the ultimate 'smart room' experience.
Add these features to the use of chatbots and automated room check-in mentioned above, and hotels can provide guests with a more seamless and enjoyable experience. Ultimately, this can lead to higher guest satisfaction, more repeat bookings and increased revenue for hotels and other hospitality businesses.
With these features in place, guests are sure to leave positive feedback and reviews, which, AI can be used to study. Currently, 48% of businesses leverage AI for guest feedback, enabling them to analyse reviews and respond to customer needs more effectively.
HR and labour
The hospitality industry has long been known for its high employee turnover rates and recruitment challenges. However, with AI and its various applications, the industry can now leverage this technology to streamline HR processes and manage employment issues more effectively. According to recent data, 33% of businesses have adopted AI for recruitment and streamlining the hiring process by identifying top talent.
This brings us to the first step in the recruitment process—CV screening. This can be a time-consuming process, especially for large hotel chains or restaurants with multiple locations. AI recruitment tools can help automate the process, making it quicker and more efficient. These tools use machine learning algorithms to scan CVs and identify the most suitable candidates based on specific job requirements. This not only saves time but also helps to eliminate human bias from the recruitment process.
Predictive analytics tools are transforming how hospitality businesses handle scheduling and demand forecasting. By analysing historical data, these systems help create schedules that balance employee availability with business needs. This information can then be used to adjust team member levels, inventory and pricing strategies to optimise revenue and customer satisfaction.
Data analytics
The hospitality industry generates a vast amount of data daily, from guest bookings and interactions to restaurant and bar sales. By using AI and machine learning algorithms, businesses can extract meaningful insights from this data and make data-driven decisions. However, the real value emerges when businesses connect different data sources meaningfully—connecting booking systems, customer feedback and operational data to create actionable insights.
A business that can anticipate its customers' preferences and fulfil them almost before the customer has realised they've had them will be sure to create a memorable experience. A recent study revealed a strong connection between personalisation and overall customer satisfaction, with 61% of consumers willing to spend more with companies that provide a tailored experience. This is where AI can help, by personalising and tailoring the customer experience by analysing spending patterns and preferences.
The key to successful AI implementation lies in having clear objectives for what the data should achieve. Whether it's improving guest satisfaction, optimising pricing or streamlining operations, businesses need specific goals to make their data work effectively. By using AI, businesses can automate tedious tasks and free up employees to focus on providing excellent customer experiences.
What are the benefits of AI in the hospitality industry?
AI can be a powerful tool for the hospitality industry, helping to streamline HR processes, manage operations and improve customer service. From CV screening to predictive analytics for scheduling and demand forecasting, AI can help businesses operate more efficiently, reduce staffing costs and provide a better experience for customers.
The insights shared in our roundtable by hospitality leaders reinforced a clear message: successful AI implementation starts with getting the basics right. This means having solid data foundations, clear integration between systems and specific objectives for what AI should achieve. While some businesses are already seeing benefits from tools like chatbots and demand forecasting, others are discovering opportunities in areas like site selection and customer service.
To dive deeper into how AI is transforming hospitality and discover practical implementation strategies, explore our Tech Trends Guide 2025. From elevating guest experiences to optimising operational efficiency, our comprehensive guide brings together insights from industry leaders, tech experts and sector specialists. You'll find valuable perspectives on everything from AI integration and marketing trends to sustainability and team building. Download the guide today to help set your 2025 strategy with confidence.