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How Can Automation and AI Applications Help With Labor Shortages in Hotels?

By Bendegul Okumus Associate Professor, UCF Rosen College & Hospitality Mgmt. | March 2025

The hospitality industry faces a critical labor shortage that affects operations, service quality, and overall customer satisfaction. This growing challenge arises from a complex combination of economic, demographic, and social changes. Addressing this urgent issue is essential for stimulating the sector and ensuring the high standards of service that characterize the hospitality experience.

Immigrants constitute over 20% of the U.S. restaurant and food service workforce. The National Restaurant Association and the Restaurant Law Center are closely monitoring upcoming changes to immigration policies to keep the industry informed and prepared. The US government has stepped up immigration restrictions, prompting restaurateurs to take specific measures in anticipation of possible inspections and raids. The National Restaurant Association emphasizes the importance of recognizing potential risks, conducting regular inspections, educating staff, appropriately handling inspections, and preparing for possible workforce reductions as essential steps to take.

Automation has transformed the hospitality and tourism industry with solutions like self-check-in kiosks and digital concierge services taking over routine tasks. This allows employees to focus on more complex, personalized duties. Additionally, automation enhances back-end operations through systems like inventory management, which tracks supplies automatically, and scheduling tools that optimize workforce allocation. Overall, automation can reduce administrative burdens and improve operational efficiency.

Artificial intelligence (AI) applications can present solutions for addressing labor shortages in our industry. By streamlining operations and automating repetitive tasks, AI has the potential to improve employee productivity significantly. AI applications can enhance service delivery while optimizing resource utilization and supporting the existing workforce.

AI and Automation for Hotels

Many hotels are currently facing staffing challenges that threaten their operational effectiveness. The dual issues of complex recruitment efforts and soaring turnover rates have made it increasingly difficult to fill open positions and maintain a reliable workforce . This relentless cycle of hiring and training not only inflates operational costs but also disrupts business continuity, ultimately compromising the quality of service offered to guests. According to a survey by the American Hotel & Lodging Association (AHLA) , many hotels across the United States are grappling with severe staffing shortages, particularly in housekeeping roles, which remain critically understaffed. Addressing these issues is essential for restoring service excellence in the hospitality industry.

Hotel automation can leverage technology to reduce the need for human involvement in routine tasks and processes, aiming to enhance productivity and cut costs. This approach boosts operational efficiency and improves guest service speed and consistency. Hotels enrich the guest experience by offering contactless options while lowering labor and operational expenses. Additionally, automation can lead to increased revenue, higher occupancy rates, and improved profitability. It minimizes manual errors and enhances data management.

The Staff-to-Room Ratio varies across different countries. In less developed nations, the ratio can be as high as 2.5 full-time staff members for each available room. In contrast, developing countries may have a lower ratio, typically around 2:1, with India approaching 1.75:1. Interestingly, in developed countries, this ratio can drop below 1:1, indicating fewer staff members per room in places like the United States, Canada, Australia, and the United Kingdom.

Examples of hotel automation include streamlining reservations, check-in, housekeeping, and maintenance with management software, automated messaging (such as emails and SMS), and offering self-service options like mobile check-in, mobile control of HVAC systems and concierge services, promotional emails and tools for managing online reputation, room pricing effectively and facilitating contactless payment methods, reconciliation, real-time management of inventory distribution, trend analysis, and customized reporting. To implement these systems successfully, hotels should identify inefficient tasks ripe for automation, explore technological solutions to streamline workflows, weigh the costs against the benefits, and ensure staff are adequately trained while supporting guests throughout the process.

Hotels can adopt AI apps to enhance operational efficiency and tackle staffing challenges. For instance, virtual agents like Annette™ can manage up to 60% of the calls typically handled by front desk personnel, leading to a remarkable 87% reduction in call center service volume. This advanced AI technology not only converts inquiries into reservations but also addresses frequently asked questions across multiple languages, significantly alleviating the workload for hotel staff.

In addition, AI excels at managing booking changes and cancellations while providing personalized services. By analyzing customer data, AI can suggest tailored room options and amenities based on guest preferences. Furthermore, these systems streamline online check-in and check-out processes, automate upselling and cross-selling opportunities, and handle customer complaints and satisfaction surveys. This technology empowers hotel staff to concentrate on delivering exceptional guest experiences.

AI and Automation for Restaurants

The National Restaurant Association (NRA) has unveiled its highly anticipated State of the Industry Report, showcasing the remarkable resilience of the restaurant and food service sector. A dynamic combination of opportunity and cautious optimism is set to propel growth in the industry, which is projected to reach new heights by 2025. According to the NRA report, consumers are eager to savor dining experiences, and the food service industry is forecasted to achieve a staggering $1.5 trillion in sales by 2025.

Most consumers are willing to dine out more frequently if their financial circumstances permit, highlighting a strong appetite for restaurant visits. Job opportunities are also flourishing. The industry is on track to create an additional 200,000 positions, bringing total employment to an impressive 15.9 million by the end of 2025. This growth signals recovery and reflects the sector’s critical economic role.

A striking 64% of full-service diners and 47% of limited-service patrons affirm that the quality of their dining experience far outweighs the price of the meal. This shift emphasizes the importance of delivering exceptional service and unforgettable moments. Value still remains a top priority, and to attract a broader customer base, nearly half (47%) of restaurant operators are set to introduce enticing discounts, deals, and value promotions. This strategic approach underscores the commitment to offering customers compelling reasons to dine out.

Enhancing in-person dining is essential for restaurateurs. The report indicates that 90% of fine dining operators and 87% of casual dining leaders prioritize elevating the in-house dining experience over increasing off-premises sales. This reflects a clear understanding that creating memorable on-site experiences is vital for long-term success. These insights all point to a vibrant future for the restaurant and food service industry, driven by consumer demand, job growth, and an unwavering dedication to exceptional dining experiences.

However, the restaurant industry is experiencing notable staffing shortages, negatively impacting service quality and operational efficiency. Several strategies have been identified to address this challenge, including streamlining menus, cross-training staff to perform multiple roles, and reducing capacity and operating hours. In response to ongoing labor shortages, restaurant managers increasingly focus on employee-centric approaches to enhance retention and improve workforce stability.

The industry is also experiencing a significant transformation by integrating AI and robotics, enhancing operational efficiency while minimizing reliance on large workforces. Automated self-ordering kiosks and AI-driven robotic servers facilitate customer transactions and delivery tasks, allowing human staff to concentrate on food preparation and delivering high-quality customer support.

Moreover, voice recognition technology powered by AI is becoming increasingly popular. This advancement enables customers to place orders seamlessly through kiosks, mobile applications, or drive-throughs, reducing manual data entry and faster service times. AI also plays a vital role in enhancing customer engagement by analyzing user data to deliver personalized recommendations and targeted promotions. Its utility in restaurants extends to supply chain management, where machine learning algorithms help forecast demand, optimize inventory orders, and minimize food waste.

AI and Automation for Airlines

The airline industry also faces workforce challenges, particularly in aviation mechanics and ground handling staff. The existing shortages can result in overworked employees, increased fatigue, and potential safety issues. To combat these shortages effectively, it is crucial to prioritize employee development and well-being, embrace technological innovations, and enhance the recruitment process. Furthermore, establishing job placements with major airlines can create valuable partnerships between the workforce and the industry, helping to address the shortage of mechanics more effectively.

Automation in aviation includes integrating technology to perform tasks with minimal human intervention. This strategy significantly enhances air travel safety, efficiency, and accuracy while promoting environmentally sustainable practices among airlines. For instance, ground automation has introduced Self-Service Kiosks , enabling travelers to independently check in and print their boarding passes, effectively reducing wait times at the airport. Additionally, Chatbots are available to assist passengers by answering queries, facilitating booking changes, and aiding in flight rebooking. Baggage Handling Systems streamline the sorting and tracking of luggage, which helps ensure timely returns of lost bags to their owners, and Robots are increasingly used for in-flight meal preparations.

Customer Service Automation features tools such as Automated Reticketing, which quickly identifies alternate flights for passengers during disruptions like delays or cancellations. Automated Communication systems keep travelers informed with real-time updates via mobile alerts, text messages, or emails concerning flight statuses. Reporting and Compliance Automation compiles essential data to generate reports, helping airlines adhere to safety and legal standards.

Automation also plays a vital role in process improvement; airlines can identify and address bottlenecks that necessitate excessive manual effort by analyzing operations. Customer Experience Analytics enables airlines to gain insights into their services, facilitating enhancements that improve the overall travel experience for passengers. Aviation automation optimizes operational efficiency and enriches the travel experience for all stakeholders involved.

Airlines can utilize AI apps to address workforce challenges in aircraft maintenance, repair, and overhaul (MRO). Generative AI tools serve as virtual consultants, assisting technicians in troubleshooting by drawing insights from maintenance manuals and repair records. These tools also enhance efficiency by streamlining report documentation and automating the generation of work and purchase orders, which allows technicians to dedicate more time to hands-on tasks.

Moreover, AI-driven reliability engineering tools can analyze maintenance records to identify failure patterns and automate routine maintenance activities, improving operational efficiency. AI can significantly enhance workforce planning for travel and logistics companies by analyzing data to forecast staffing needs and optimize resource allocation accurately. As a result, airlines can adopt AI-powered solutions to effectively handle a surge in inquiries without necessitating additional personnel.

Technological innovations are significantly transforming organizational expectations and creating new opportunities. Many businesses invest heavily in artificial intelligence projects, but only 1 percent see themselves as advanced. McKinsey&Company’s recent research shows that the main obstacle to progress is not a lack of employee skills. Instead, it is a lack of leadership providing timely guidance and direction. Many global companies have moved beyond the experimental phase and are now integrating AI and Automation into their core operations to solve labor shortages and other business-related issues.

The 2024 Cloud and AI Business Survey of more than 1,000 business and technology leaders identified a subset called “Top Performers.” This group, comprising just 12% of respondents, stands out for effectively leveraging AI and cloud technologies. The survey findings indicate that Top Performers are twice as likely to realize value from their initiatives than their peers. Notably, 63% of this group are increasing their cloud budgets to utilize GenAI capabilities.

Additionally, 72% are fully committed to modernizing their cloud data infrastructure, with an impressive 98% claiming to have strong data architecture and governance essential for utilizing GenAI effectively. Moreover, 75% of these high achievers have successfully integrated GenAI across the software development life cycle. Lastly, 39% are re-evaluating their partnerships with cloud service providers (CSPs) by considering the sustainability impacts of carbon emissions.

We are witnessing remarkable advancements in computer vision, language processing, and complex strategy games. Automation—the integration of machines into various tasks—is set to transform nearly every profession. It is crucial to recognize that, with current technology, only about 5 out of every 100 jobs can be entirely replaced by machines.

However, the impact of automation will be felt widely, as research shows that around 30 out of every 100 tasks across 60 diverse occupations are ripe for machine performance. This paradigm shift means every sector worker must evolve and embrace collaboration with advanced technologies. The future of work is not merely about replacement but adaptation and partnership, leading to a substantial redefinition of many job roles. Navigating this changing landscape will require a proactive approach, making it essential for individuals and organizations alike to prepare for a future where technology and human skills merge in unprecedented ways.

Dr. Okumus

Dr. Bendegul Okumus has an undergraduate degree in Nutrition and Home Economics, Master's and PhD degrees in Food Hygiene and Technology, and a second Master's degree in Hospitality and Tourism Management. She worked for the Florida Department of Health in Orange County WIC program, which is a federally funded nutrition program for Women, Infants, and Children. Dr. Okumus also has work experience in the hospitality industry, particularly in food preparation, food services, and event management areas. Her primary teaching areas include Nutrition Concepts and Issues in Food Services, Sanitation in the Food Service Industry and Health and Wellness in Hospitality and Tourism. Her research focuses on food safety, eating behavior and eating habits, food and culinary tourism, food waste and health & wellness in hospitality and tourism. Dr. Okumus has worked in multidisciplinary research teams, secured and completed research grants. She has authored/co-authored numerous academic journal articles, conference presentations, book and book chapters. List of her recent publications and citations can be seen at GoogleScholar.

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If any provision(s) of this Agreement is held by a court of competent jurisdiction to be contrary to law, then such provision(s) shall be construed, as nearly as possible, to reflect the intentions of the parties with the other provisions remaining in full force and effect. HotelExecutive's failure to exercise or enforce any right or provision of this Agreement shall not constitute a waiver of such right or provision unless acknowledged and agreed to by HotelExecutive in writing. The section titles in this Agreement are solely used for the convenience of the parties and have no legal or contractual significance. This Agreement may be assigned in whole or in part by HotelExecutive. This Agreement may not be assigned in any manner by you without the express, prior written permission of HotelExecutive.

Any and all disputes or controversies of any kind, including but not limited to any performance, duty, obligation or liability arising under or related to this Agreement which are not first resolved informally, shall be determined by binding arbitration in San Francisco, California, in accordance with the rules of the American Arbitration Association. The final award in any such arbitration proceeding shall be subject to entry as a judgment by any court or competent jurisdiction, provided that such judgment does not conflict with the terms and provisions hereof. The jurisdiction of the arbiter (or arbiters) with respect to legal matters shall be limited only by the statutory and common law of the State of California and the United States.

Notwithstanding the foregoing, any and all disputes, which the parties cannot informally resolve, regarding the scope of issues or matter with the jurisdiction of the arbitrator, shall be resolved by a separate dispute resolution process whereby HotelExecutive, in its sole discretion shall elect the dispute to be resolved by either (1) a court of competent jurisdiction in the State of California or (2) a panel of three new arbitrators.

This Agreement shall be governed by and construed in accordance with the laws of the State of California notwithstanding any conflict of laws provisions. You and HotelExecutive agree that the venue for all legal disputes, controversies, actions of any kind arising under or related to this Agreement shall be San Francisco, California. You and HotelExecutive further agree that in case of any litigation regarding this Agreement, you irrevocably and unconditionally (i) consent to submit to the exclusive jurisdiction of the state and federal courts in the County of San Francisco, California for any litigation or dispute arising out of or relating to this Agreement, (ii) agree not to commence any litigation arising out of or relating to this Agreement except in the California Courts, (iii) agree not to plead or claim that such litigation brought therein has been brought in an inconvenient forum, and (iv) agree the California Courts represent the exclusive jurisdiction for all litigation relating to this Agreement.

11. MEMBERSHIP FEES

Hotel Business Review Subscriptions

If you choose to purchase a subscription, member subscription payments can be made in U.S. Dollars, as well as a variety of international currencies. Membership terms are Annual Recurring, and Monthly Recurring. The Annual Recurring subscription is an annual commitment and subscribers will be charged each consecutive billing cycle. Annual Recurring subscriptions can be cancelled after the first billing cycle and within 30-days of the billing date for a full refund. Monthly Recurring subscriptions are ongoing and subscribers will be charged each consecutive monthly billing cycle. Monthly Recurring subscriptions can be cancelled after the first month and within 7 days of the monthly billing cycle for a full refund.

12. PAYMENT AUTHORIZATION

Payment for the services provided to you in, at, through or in association with HotelExecutive may be made by automatic credit card, debit card, direct debit, bankwire or Paypal and other approved payment means offered in, at, through or in association with HotelExecutive, and you hereby authorize HotelExecutive and its agents to transact such payments on your behalf.

You hereby authorize HotelExecutive's Internet Payment Service Provider to charge your credit card to pay for your membership to HotelExecutive. You further authorize HotelExecutive's Internet Payment Service Provider to charge your credit card for any and all purchases of products, services in association with HotelExecutive. You agree to be personally liable for all charges incurred by you in association with your access or other use of any content provided by HotelExecutive or any third party in association with HotelExecutive. You acknowledge and agree that your liability for all such charges shall continue after termination of your access or any type of membership arrangement with HotelExecutive.

In the event that you have chosen to have your membership automatically rebilled, unless and until you notify HotelExecutive that you wish to cancel or terminate your membership to HotelExecutive, you hereby agree and authorize HotelExecutive's Internet Payment Service Provider to automatically renew your membership to HotelExecutive on a continuing basis and to charge your credit card (or other payment means you have selected) to pay for the ongoing cost of your membership. You hereby further authorize HotelExecutive's Internet Payment Service Provider to charge your credit card (or other approved payment means you have selected) for any and all purchases of products, services and entertainment provided to in, at, through or in association with HotelExecutive.

13. PRIVACY POLICY

The following is the Privacy Policy for HotelExecutive

We can be reached via telephone, email, or online at our contact page. When you visit our site we do not log any information regarding your domain or email address. Information Sharing: We do not share user information with any third parties other than via press release distribution as described below.

Hotel Newswire is a newswire service that distributes press releases on behalf of our users. If you decide to submit a press release for distribution through our system we will transmit your entire press release including any personal information therein contained to our media contacts and online distribution points including search engines. This is the only redistribution of your information that we engage in. Your submission of press releases through our system indicates consent with this policy. The information we collect during your registration process is used to notify users about updates to our service and inform users of any special events hosted by Hotel Newswire. This information is not shared with other organizations for commercial or non-commercial purposes.

Cookies: Our system requires the use of cookies to enable the user to log back into our website to access information from the newswire, without having to log in each time using the required username and password.

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.

Ahmed Mahmoud
Hazel Hagans
Valerie Bolton
Justin Taillon
Fred Realbuto
Philip  Ballard
Amy Stein Simonds
Greg Poirier
Mert Cura
Jeff Brainard
Merrick Dresnin
Matthew Engel
Roger Allen
Coming up in March 1970...