Artificial intelligence (AI) use in hospitality - statistics & facts
Artificial intelligence (AI) has been the term on everyone’s lips in recent years, but does it live up to the hype in reality? Travel and mobility investors seem to think so. Between 2018 and 2024, the majority of tech investments in the global travel and mobility sectors were made in artificial intelligence (AI) and machine learning (ML), making up a 65 percent share. This interest in AI extends to the hospitality industry, where hotel companies are increasingly using artificial intelligence to improve efficiency and the guest experience. A 2023 survey showed that AI was the area in which hotel chains globally expected to have the most innovations arising in the next two years. Meanwhile, a Statista survey in collaboration with Booking.com showed that in Europe, 11 percent of accommodation businesses already used AI as of late 2023, and even more plan to use it in the following six months
Meanwhile, front-of-house applications of AI include bookings, contactless check-in, and AI chatbots. One example of this is Hilton Worldwide’s robot AI developed by IBM, “Connie”, which acts as a concierge, helping guests with local tourism suggestions, information on hotel amenities, and more. These types of AI also gather deeper insights into guest opinions and behavior, allowing for a more data-driven approach to customer satisfaction.
Given its relative newness, consumers seem supportive of the integration of AI in the hospitality industry. However, with the possible loss of a human touch in front-of-house operations, there may be some pushback down the road. Finding the balance between efficiency and customer satisfaction will be the next step for the hospitality industry.
How is AI used by hotel companies?
Artificial intelligence is already being used both behind the scenes and front-of-house in hotels across the world. One such back-office use is revenue management, where AI uses algorithms to streamline pricing strategies and forecast demand. A 2023 survey also noted that hotel companies intended to use AI to predict property operations like maintenance, material management, building repairs, and sustainability levels.Meanwhile, front-of-house applications of AI include bookings, contactless check-in, and AI chatbots. One example of this is Hilton Worldwide’s robot AI developed by IBM, “Connie”, which acts as a concierge, helping guests with local tourism suggestions, information on hotel amenities, and more. These types of AI also gather deeper insights into guest opinions and behavior, allowing for a more data-driven approach to customer satisfaction.
Consumer attitudes towards AI in hospitality
When looking at a ranking of the most interesting artificial intelligence related products among U.S. consumers, AI-powered flight and hotel recommendations ranked highly on the list, showing that generative AI is an appealing prospect for consumers planning trips. Speaking of which, during a 2024 survey, around 60 percent of North American leisure travelers under 45 said they used AI for travel inspiration and planning. Unsurprisingly, younger generations had a more favorable view of using AI technology. When asked if they supported brands that used artificial intelligence to offer customer service support, almost 70 percent of U.S. Millennials did, versus just under 35 percent of Baby Boomers.Given its relative newness, consumers seem supportive of the integration of AI in the hospitality industry. However, with the possible loss of a human touch in front-of-house operations, there may be some pushback down the road. Finding the balance between efficiency and customer satisfaction will be the next step for the hospitality industry.
