AI is not just a buzzword for the future. It’s already changing how hotels communicate, operate and make decisions. From guest messages to revenue managementAI is now deeply ingrained in the daily operations of hotels all over the world.
What do hospitality leaders actually think about this shift in the industry?
Season 3 of The Experts revealed the answers to our questions. The Turndown Their take. Not only did they reveal areas where AI already has a major impact, but they also shared what they were experimenting with next, and why the human touch should not be lost in an increasingly automated environment.
AI isn’t a new concept, but its adoption is accelerating.
The AI travel and hotel market is expected to reach $2.6 billion by 2026. surpass $1.2 billion. Although the sudden increase in AI investment may appear new, AI has actually been operating in the background since years. It powers everything from revenue management systems to facial recognition.
AI is not new, but its accessibility, visibility and discussion have changed. Maxim TintTrevo’s founder and CEO, Michael Trevo, said, “We have been doing computer-vision verification for 10 years now, way before AI became cool.”
Maxim’s comment reveals a bigger truth: Many hotels are already using AI, but without calling it that. Forecasting engines AI that is not generative can be found in RMS platforms and call centers, such as biometric ID scanning, voice recognition, or the use of biometric ID at check-in.
Why is AI so new?
AI is now in the spotlight thanks to models like ChatGPT and generative AI. First time hoteliers are able to interact directly with AI, through chatbots, copy generators and other tools. intelligent guest messaging. The industry has been swept up in a wave of experimentation and curiosity.
Other forms of AI have also been accelerated by a stronger data infrastructure, increased system integrations and the increasing pressure to achieve more with less resources. The tools that used to be exclusive to enterprise chains have now been integrated into everyday platforms.
The hotel tech stack is evolving, and AI now has access to more structured data. Open APIs and cloud native design make it easier to integrate AI between departments.
Machine learning is now used to forecast labor, manage inventory, and recover service. Causal AI It helps to identify what drives performance, and not just what is correlated. Multimodal AI allows systems to combine text, voice and visual data, allowing them to reflect how guests interact.
Maxim says that AI is similar to Wi-Fi today in hotels. “Wi-Fi and Internet connection is an infrastructure tool, which every hotel needs.”
AI is not a futuristic investment, but an important and powerful tool for hotel operations.
AI for guest experience: faster, smoother but still human
AI has revolutionized guest experienceBut not as many people expected. Rather than replace staff, it is used to remove friction and surface guest preferences. This allows teams to focus their attention on moments that really matter.
From mobile check-ins to real-time messages and virtual concierge servicesAI helps automate repetitive tasks, and provides 24/7 service. What’s more, 58% of guests AI can improve their hotel stay and booking experiences.
Hoteliers agree that automation should not replace the human touch which makes a stay memorable.
“Routine tasks are best performed by machines”, says Diogo Vaz FerreiraClink Hostels, Head of Commercial. “Everything extraordinary should be delivered still by humans.” How can we remain authentic without losing touch with guests?
AI can help predict needs, improve personalization and increase response time, but a human touch will still be needed to create a truly unique moment.
“Use these instruments to reduce friction in the process,” says Bashar WaliThis Assembly and Practice Hospitality is founded by, the CEO and Founder of This Assembly. But don’t remove the humans. Instead, hire humans with more advanced skills who can connect with your guests using the art and not the science of human interaction.
This is especially important if you want to set your property apart from other properties. Some hotel brands are focused on speed and efficiency, while others place a high value on personality, warmth and high-touch services. It’s all about you and what your brand represents.
Maxim says that just because you have the ability to automate something, doesn’t necessarily mean you should. You need to know what you want for your business and brand, before you take AI blindly.
AI revenue management: from reactive to predictive
Data has been used for revenue management, but most systems relied on historical data. AI has helped hotels shift from reactive analysis into strategic foresight. Thanks to tools that can not only identify patterns, but also determine why they exist, AI has enabled them to go beyond the traditional hotel industry.
This is what causal AI promises. The traditional forecasting engines do not work the same way. causal models They are designed to identify underlying relationships between cause and effect that drive booking behaviors, such as price sensitivity or lead time.
Diogo says, “The revenue management in the future will be completely different.” Later, he says “Let the computer predict what’s predictable.” You can either predict the unpredictable or respond faster to it.
AI does not replace revenue managers; it empowers them by automating data analysis, making predictions and allowing revenue managers to focus on their strategy. It looks like better pricing, smarter distribution and improved alignment with marketing will increase revenue performance.
This new outlook revenue marketingAI is used to improve the price of products, but also to better target and convert segments with personalized campaigns.
“We discussed AI a lot at HSMAI in this year,” says Lori KielSVP of Revenue Management, Pyramid Global Hospitality “You’ve been using it for years—you just didn’t know it. Now, using tools such as ChatGPT you can test it out, see its value and trust it. So when your RMS partner tells you it’s AI-powered, you go, ‘Oh… I get it now. This system probably can calculate these trends more accurately than me.”
AI in guest marketing: 24/7 engagement with consistency & scale
Many hotels have struggled with marketing for years. Time constraints, small teams, increasing guest expectations and departmental silos make it difficult to provide consistent, personalized outreach. AI is changing this.
Hoteliers no longer have to rely on generic promotional campaigns. They can reach the correct guest with the appropriate message at the right moment throughout the guest journey.
Google’s Performance Max for Travel Goals (PMax) uses AI, for instance, to optimize targeting, copy and creative across Google’s full advertising eco-system. Combining CRM and intelligence platformsHotels can send personalized emails based upon booking behavior, intention, or predicted demand.
AI chatbots also have become a standard in hotel marketing. This bridges the gap between promotions and guest interactions.
“Recently we implemented AI chatbots in our website,” states Diego de Ponga, CEO at Port Hotels. You can talk to an AI agent now, driven by a bot. This type of technology makes our guests’ experience better and our employees more efficient.
Consistency is more important than speed.
Diogo: “At last, we have a higher customer satisfaction rating than before.” “Not because the AI answers better than people—but because it answers faster and more completely. It can adapt to a guest’s voice tone, something a human may not be able to do on bad days.
Generative AI also finds its place in the background, helping teams create copy for campaigns, brainstorm ideas, and produce visuals and emails. It used to take weeks, but now it only takes minutes.
AI in Operations: The Back-Office Revolution
AI tools for the public are often the focus, but many of the most transformative use cases happen behind-the-scenes. In an labor-constrained industryAI quietly transforms hotel operations by automating administrative tasks and optimizing inventory. It also helps teams to do more work with less resources.
“There are a lot of tasks that will be made obsolete by AI in the next three years—repetitive, administrative tasks,” says Diego. “This is going to be the next revolution for our industry.” In hospitality, we do so many things in the back office—and that’s where AI is going to have the biggest impact.”
AI is now being used by companies to automate reporting and routine tasks, such as recommending staffing levels in response to predicted demand, flagging potential overages of supply orders, or identifying possible shortages. Multimodal AI, It can also be used to enhance training and onboarding by offering a more adaptable and engaging way to upgrade staff quickly.
AI streamlines the check-in process at the front desk. AI is increasingly handling tasks like payment authentication and identity verification, which reduces waiting times and minimizes mistakes.
AI adoption challenges
AI is here to stay and has the potential to transform our lives, but its adoption comes with many challenges. Adopting AI is not only a technological upgrade, but also a cultural change, as it requires a way to navigate the uncertainty of what these tools will mean for humans.
Maxim said, “I talked to a team of five-star hotels and they said that all this was great but it requires a change in how these hotels will operate. The front desk getting used this idea of things happening digitally is like going from a wheel to a driverless car.”
Job displacement is the greatest fear of many. Diego points out that the real danger is not AI, but the inaction of the industry.
Diego says, “AI is changing the way we live, so if you can manage AI to your advantage, you won’t be replaced.” “But, if you only do tasks that a computer can do very easily, then you will definitely be replaced.”
Other people worry about technology overload, and how to implement tools when the existing systems are already fragmented. Lori says that revenue managers are often faced with a challenge when they base their decisions solely on data. “Even for us, it’s like—wait a minute—I’m still trying to figure out how to integrate the technology I have before I bring something new on.”
Education, communication and cross-functional cooperation are crucial to AI readiness. If done correctly, AI adoption can enhance staff roles, with a focus on tasks that require creativity and empathy.
Cloudbeds
Cloudbeds is a leading platform that redefines the concept of PMS in the hospitality industry. It serves more than ten thousand properties in 150 countries around the world. Built from the ground up to be masterfully unified and scalable, the award-winning Cloudbeds Platform brings together built-in and integrated solutions that modernize hotel operations & finance, distribution & marketing, guest experience, and revenue & analytics. Cloudbeds was founded in 2012. It has won numerous awards, including the World Travel Awards’ World’s Best Hotel PMS Solutions Provider in 2022, as well as recognition in Deloitte Technology Fast 500 for 2024.
