AI is transforming hotels through personalisation, automation, and predictive analytics, enhancing guest experiences and operational efficiency while addressing ethical challenges for a competitive, tech-driven future.
Artificial intelligence (AI) is set to revolutionise guest experiences and operational efficiencies in the hotel sector, marking a significant shift in how hotels interact with customers and manage services. As hotels and related hospitality businesses increasingly adopt AI technologies, they are enhancing service quality through automation and personalisation – essential for maintaining a competitive edge in a rapidly evolving marketplace. Notable applications that have proven effective include AI-driven chatbots for guest inquiries, predictive analytics for tailored recommendations and Internet of Things (IoT) integration for smart room functionalities, all of which create a more engaging and personalised experience for guests.
One of the most impactful trends for hoteliers on the horizon is hyper-personalisation, where AI analyses individual guest data to craft unique experiences based on personal preferences. This can range from adjusting room conditions to suggesting dining options based on previous choices, fostering a sense of comfort and belonging for guests. AI also is transforming back-of-house operations. Predictive maintenance through AI and IoT enables hotel engineering teams to proactively manage equipment, minimising out-of-order rooms and enhancing overall guest satisfaction.
However, the adoption of AI in the hotel sector also raises critical ethical and practical challenges, including concerns over algorithmic bias, data privacy and potential job displacement due to automation. As organisations worldwide, including hotels, leverage AI for personalisation, they must navigate complex data regulations and ensure transparency to maintain guest trust. Addressing these issues will be essential for the continued integration of AI into the hotel sector. A key strategy for hoteliers will be to create an inclusive environment that values technological advancement, ethical responsibility and the uniqueness of service delivered by staff.
Blue Mountains International Hotel Management School (BMIHMS) continues to conduct research and provide guidance on AI applications in the hotel sector. The future of AI is set to redefine how hotels operate and engage with guests, presenting exciting opportunities to increase loyalty and competitiveness. However, significant challenges will need to be managed thoughtfully and strategically.
AUTHOR
Associate Professor Simon Pawson
Associate Dean – BMIHMS