HOTEL BUSINESS REVIEW
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The Art of Artifical Intellence in Hotels

By Heidi Yorke Associate Professor- CHE, The State University of New York at Delhi | January 2025

The integration of AI- Artificial intelligence is revolutionizing the Hospitality Industry.

AI is the performance of human tasks that is completed by computers or machines. “AI is a collective term for computer systems that can sense their environment, think, and in some cases learn, and take action in response to what they’re sensing and their objectives” (Gillham et.al, 2018 ). Business owners have adopted these advances because of the reliability and validity of the work AI is capable of accomplishing. A recent study by Gallup found that “nearly half of employees (45%) say that their productivity and efficiency in their role has improved because of AI”.

AI has the ability to accomplish tasks consistently, for longer durations and on demand. Key operational business objectives can achieve by AI in the areas of expenses, marketing, forecasting, customer service, human resources, accounting & etc. In addition, AI technological integrations are significantly shaping and supporting hospitality by reducing expenses and increasing guest satisfaction. New innovations allow for increased guest communication and more efficient allocation and execution of guest requests. Enhancements have been made to personalize experiences and interactions, while offering sensitivity to diverse environments.

In a response to labor shortages, the demand for expedient services, and the consumers desire to maintain connectivity, the hospitality industry is embracing AI. Hotels are an ideal platform to merge operational needs and guests’ expectations with the execution of AI. AI has become an integrated part of operations for many hotels. New technologies are allowing hotels to be more efficient with service components such as reservations, food delivery, maintenance, cleaning, baggage handling, concierge, and marketing. AI has the ability to assist with monotonous task that employees may have been unmotivated to perform. There are significant cost reductions of labor.

Another impact of AI is that it can effectively assist with guest inquiries in an extremely timely and accurate manner. Questions and information requested by guests can be provided in a very efficient, accurate and reliable way. AI reduces delay in solutions and call abandonment issues. Customization and personalization are easily accomplished by the use of AI. Artificial intelligence can personalize aspects of the guest stay by providing a unique and memorable experience.

AI resources are becoming increasingly simplistic in their set up and less intimidating for the user. This is a result of the guest entering the service and product arena already having technical knowledge. Consumers many have embraced AI in their homes and professional settings prior to their hotel stay. Modern platforms such as the cloud offer the operators an inexpensive and less labor-intensive means to host AI. However, what is the trajectory for hotels and what are direct impacts on employees and guest? What incremental changes will have expediential influences?

Hotel guests may feel threatened that AI is replacing the human element of the guest experience. A hallmark of the hospitality industry is the ability to have a personal connection with humans. By our own nature we crave interactions with others. Purchasing decisions are based upon trust in those relationships we have created. Historically hotels have exhausted many resources, innovation, and concentration on improving and distributing human personal attributes to the guest experience. Our perception of AI should be that it does not compete with human interactions but compliments it. AI has the ability to gather and store information so that humans can be empowered spending more time injecting ingenuity and creativity.

In some aspects of Hospitality, AI will replace real people. It will eliminate a myriad of physical contacts with humans. Technical engineers are developing “host” to act and appear as if humans do. AI designers and inventors should analyze and survey consumers to determine if they are more comfortable with the technology and its usefulness delivered though human like hosts. Tangible and intangible technical aspects of the guest stay may be better suited through non-human features. Hotels should be transparent and present it as a technical tool. It may be more advantageous and accepted by guest if the technical pieces of their stay were not housed in entities that resembled humans. There needs to be a balance of how we are representing human components and trying to replace physical attributes of a person.

As technologies develop and are deployed it is necessary that hoteliers educate guests on AI and how it can enhance their experience. Sharing “how” the technologies are used is important for guest to engage with the functionality of the services. Explaining “why”- the purpose of the technologies develops trust of the guest with the advancements. Trust then in turn provides the guest with a sense of control. Control equips the guest to feel safe in a unique environment- the ultimate goal of an establishment. Once this algorithm is defined, then consumers will adopt these changes as ethical and accept their use to optimize the guest stay. It would be advantageous for hotels to continuously observe and research ways to provide information to about AI to guests. Ten benefits that should be emphasized to the guest are:

Feedback obtained about their response to an service or product is used to better their experience. Several channels for communicating such as phone texting & chats, apps and computers ensure the customer has access to be transparent about their satisfaction or disappointment.
Allows hotels to quickly analyze demands and trends in the market equipping them to offer optimal pricing at all times. AI gathers data and analytics about market conditions and demand so that best prices can be offered to consumers. This continuous alignment allows the guest to predict and anticipate price modifications.
Guest loyalty programs can use specific data to extend increased personalized benefits and tailored features to frequent customers. Upgrade & access to amenities can be honored according to interest and previous purchasing tendencies.
Connection to customized settings & personal features in guest rooms. Voice controlled features in guest rooms equip guest with the ability to alter room dynamics swiftly.
Addresses sustainable sensitivity issues that may of be concern of the guest. Smart room features minimize water & energy consumption. These cost savings are then transferred to guests.
Guests can have immediate responses to requests and complaints. There is 24-hour assistance for area inquiries and attention to customer communications. Relevance an prioritization is easily done to accelerate a resolution or response.
Provides communication for many languages. A global approach empowers the properties and guest to easily communicate and reduce barriers.
Develops a consumer profile so offerings, products and services are streamlined and directly appointed to the guests. There is a reduction in the quantity of promotions. Instead, there are quality offerings tailored to the guest.
Expedited automated check in and concierge services. Contactless confirmation and admittance into the hotel reduces steps so that the guest can directly enjoy the amenities of the hotel. AI provides automated responses to guest inquires, recommendations and complex request in an efficient and quick manner.
Automated tools for a cleaner environment. Areas can be cleaned quicker and more often as scheduled or by guest needs. Guest will encounter less safety and cleanliness issues

Each property can assess at which touchpoints with the guest are most appropriate to provide education to the guest about the benefits of the new technologies. An informative encounter can be created in which there is an exchange of AI services or features and acceptance of it. These moments can be prearrival, over the duration of their stay or post departure. Times to inform guest of AI assistance and use can be when individuals are navigating the website, observing social media, processing payments, confirmations, mailings and incentives.

It is at these intersections and interceptions that hotels can capture guests’ attention and highlight how and why AI is providing enhancements and improvements. It can be explained or demonstrated to ensure clarity and understandings. AI modeling, sampling or observations by guest can be informative and relieve technology anxieties and apprehensions.

Consideration should be given to the fact that consumers in hotels desire services more efficiently and effectively. The introduction of AI in hotels is to support the positive guest experience not to replace it. Technologies allow hotels and guests increased capability of perfecting the elements of a hotel stay. AI is not an attempt to replace the human element of a hotel stay but to perform the technical and systematic fundamentals of the stay. With new effectiveness, humans can offer more attention and awareness to each individual guest.

Guest and hotels simultaneously can adopt and accept these new mechanisms to liberate time and space for human connections to flourish. There will be equal distribution and allocation of genuine care and attention to detail for each and every guest. AI has the potential to make incremental changes in hospitality that will have expediential results in the customers experience.

Prof. Yorke

Heidi Yorke is an Associate Professor in the School of Business and Hospitality Management where she leads young aspiring professionals in the Hospitality Industry. Her expertise spanned over fifteen years managing award winning Hilton, IHG & Choice Hotels. Ms. Yorke's dedication to branded properties included locations from the west to the east coast. Ms. Yorke has designed and executed experiential learning courses and project-based learning. She led the development of a Hospitality Management online Degree Program and new courses in Leadership & Rooms Division Management. Her students have been called upon from organizations to develop business plans, ordering guides, SWOT analysis, marketing plans, customer service trainings and execution of over 5,000 meals for Albany Medical. As an Associate Professor and Certified Hospitality Educator, she has taught over fifteen university level courses in multiple areas including Business Management, Leadership, Human Resources, Revenue Management, Training and Development.

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If you do not want to receive email from us in the future, please let us know by following instructions included in our communication with you. Users who supply us with telephone numbers online may receive telephone contact from us regarding their account, or informing them of new products and services available on the HotelExecutive website. If you do not wish to receive such telephone calls, please edit your account and remove your phone number from your account profile. This can be done from your user account menu.

Ad Servers: We do not partner with or have any relationship with any ad server companies. From time to time, we may use customer information for new uses not previously disclosed in our privacy notice. If our information practices change at any time, we will post the policy changes to our website to notify you of these changes and provide you with the ability to opt out of these new uses. If you are concerned about how your information is used, you should check back at our website periodically.

Upon request we provide site visitors with access to all information (including proprietary information) that we maintain about them. Users can access this information by logging in to their account.

Security: We always use industry-standard encryption technologies while transferring and receiving user data exchanged with our site. We have appropriate security measures in place in our physical facilities to protect against the loss, misuse, or alteration of information that we have collected from you on our site. We do not store credit card information in our systems.

If you feel that this site is not following its stated information policy, you may contact us.