The digital transformation of the hotel industry is not an option – it has become a necessity. Hoteliers today are facing staff shortages, rising costs and increased guest expectations. Artificial intelligence (AI), which was once a mere buzzword, has now become a powerful tool to boost profitability.
With more than 12 years’ experience automating and creating IT products for the hotel industry, I know first-hand that well-designed, digital processes and the targeted use of AI are able to increase occupancy rates and raise average checks while reducing the burden on hotel staff.
AI today isn’t about futuristic concepts. It’s about increasing revenue for hotels without increasing costs.
This article will show you how AI can be used to drive profit right now, without massive development teams or budgets of millions. All examples in this article are real and applicable: automating routine tasks or creating personalized upselling opportunities.
Routine Tasks Automation
Most hoteliers think of sales first when it comes to increasing their profits. But automation can be a simple first step to reducing costs.
AI can automate dozens daily tasks that people spend many hours and sometimes days doing.
- Answering frequently-asked questions (e.g. “When is check-in?” and “Is there parking?”)Smart chatbots can answer frequently asked questions (“When is check-in? Smart chatbots.
- Creating commercial offers, email campaigns, room and service descriptions—in just minutes.
- Filling in forms, requests and reports is as easy as pressing a button.
- Editing internal documents such as job descriptions and KPIs can save managers up to 70 percent of their time.
Automation is the basis. Your team can concentrate on creative work, personalized service and revenue generation when they are not doing “manual labor”.
How AI can help you sell more with Upsell 2.0
While automated upselling can save money, it is personalized that drives revenue growth. AI is a game changer for the guest experience, and profitability of hotels.
Basic offers such as late check-outs or room upgrades are effective, but quickly plateau. AI can generate tailored suggestions based upon the guest’s travel purpose, type, date of check-in, and even weather.
Examples:
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The perfect day for touristsCity map, tickets, and a morning walking route.
➝ +100–150$ to average check -
“Comfort After a Long Day” spa kitMusic, candles, bath-bombs, and oils are delivered to your room.
➝ Emotion + Convenience = Easy Sale -
Digital City Guide SubscriptionChatbot AI suggests hidden gems, local events and spots.
➝ Monetized through a full or daily stay subscription
AI isn’t only a generator of ideas. It can package those instantly and upload them to your website, booking system, or even social media. Even A/B-testing can be automated.
In my experience, AI-powered upsell tools have increased hotel revenue from additional services by 20–35% depending on season and guest category.
AI makes you more persuasive, but not aggressive. Its strength lies in timing, relevance and offering the correct product to the appropriate guest at the proper time.
Visual Content with AI – Great Photos Without Photographers
In the hospitality industry, visuals have become a currency. Photos are often what guests “buy with their eyeballs” and determine whether or not a hotel is booked. However, professional content can be costly and time consuming. What can smaller sites do?
Generative AI has the answer.
With tools like DALL·E or MidJourney, hotels can:
- Create realistic images of rooms, dishes, interiors and services without photoshoots
- Visualize new packages, seasonal offers and deals
- Try out marketing ideas at zero cost
The following is an example of how to useA hotel created photos of new dishes using AI (e.g. AI was used to create a “lightly-salted salmon salad with pureed eggplant”. Images were so lifelike that they were used for both the website as well as Instagram, resulting in a 17% conversion increase on the “Restaurant Page”.
Benefits:
- Speed: 1–2 minutes per image
- Flexibility: Adapt images to specific segments (romantics, business, ecotourism).
- Savings: No need for stylists or chefs, photographers or editors
AI is not a replacement for reality. It enhances it. It is essential for small hotels as every guest interaction can be a sale opportunity.
Analytics & Recommendations: AI as a Strategic Advisor
AI in hotels goes beyond automation and pretty pictures. The real power of AI is that it can be used as a source for insight, not just an instrument.
AI today can not only analyze current guest behavior but also predict what offers or services will perform best. Now, all hotel chains can benefit from the capabilities previously available only to those with enterprise BI.
The following is an example of how to useAutomated Upsell Audit
AI platforms can be used to review bookings and actions of guests in order to make suggestions.
- What services have underperformed in the last month?
- How to package them attractively
- Which guest segment is ignoring upsells—and how to fix it
The hotel can test hypotheses without risk with high precision.
AI-driven insights help you to:
- Conversion rates for upsells can be increased.
- Optimize pricing (e.g. early check-in, late check-out)
- Offer dynamic deals via chatbot according to booking type
AI becomes more than a tool—it’s part of the decision-making process. A strategist who is fueled by facts, not guesswork.
Bonus: Finding Hidden Patterns
For example, AI might reveal that guests booking via the mobile app are more likely to buy a transfer—If you want to know more about if You can purchase it before checking out. These insights are real growth drivers.
How to start: 5 steps to AI-driven profitability
AI is not expensive. Here are five practical steps that any hotel can take:
- Find the most time-consuming tasks: Focus on what takes up your staff’s time: manual reports, guest FAQs and content creation.
- Launch a Chatbot for Website & Socials: Bots of today are able to answer questions, provide service, increase bookings, or upsell.
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Create a virtual marketing department: Use AI to generate email, social posts, and package names.
ChatGPT is able to deliver dozens or variants within 5 minutes. - Use AI for visual content Generate food shots, interiors, promotions using tools like MidJourney or DALL·E.
- Connect Analytics & Test Hypotheses: You can use AI to generate specific recommendations and test growth ideas by using HADI and AIDA frameworks.
Pro Tip: Start with one department—marketing, front desk, or kitchen. Start small, and then expand. AI isn’t about doing everything at once—it’s about smart, step-by-step growth.
Iana Petrova
Expert in hospitality technology and business development
