Hotels Expect AI to Transform Hospitality in 2024

A majority of hotel professionals believe artificial intelligence will significantly impact the hospitality industry this year, according to a new report from Canary Technologies. The survey of 327 hoteliers revealed that 61% expect AI’s influence to be felt within the next 12 months, while 39% believe it will take two or more years.

The report indicates strong financial commitment to AI adoption. Among respondents who foresee AI’s immediate impact, 42% plan to allocate 10-25% of their IT budgets toward AI-powered solutions. Across the entire group, 36% plan to invest at this level, while 16% are budgeting 25-50% of their tech resources for AI.

Larger properties are leading the charge: two-thirds of hotels with 150 or more rooms plan to invest at least 10% of their IT budgets in AI. Notably, 26% of hotels with more than 500 rooms are dedicating half of their budgets to these technologies.

AI’s potential to enhance guest engagement, communications, and revenue optimization is fueling the interest. Nearly 89% of respondents anticipate AI will have a moderate to high impact on pre-booking engagement, while 83% expect improvements in guest communications and revenue management.

Some hoteliers remain cautious. Kabit Bhagat, president of Kamla Hotels, said concerns about cost, risk, and operational value persist. Meanwhile, Sonesta International’s commercial chief, Garine Ferijian-Mayo, emphasized the industry’s need to better understand AI’s performance potential.

With innovations like Tesla-powered Otonomous aparthotel in Las Vegas on the horizon, AI adoption in hospitality appears poised for rapid growth.

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Hotels Expect AI to Transform Hospitality in 2024

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