In Brief: Hotel industry leaders at HITEC discussed how artificial intelligence is set to democratize hotel distribution and shift the industry’s focus back to improving guest experiences, while also driving operational efficiency and prompting changes in workforce roles.
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Hotel Leaders at HITEC See AI Transforming Distribution, Operations, and Service – Image Credit Unsplash+
AI’s Impact on Hotel Distribution and Brand Value
The role of artificial intelligence in the hotel industry was a central topic at the Hospitality Financial and Technology Professionals’ annual HITEC event. Industry experts highlighted that AI may fundamentally alter how hotels distribute rooms and interact with guests. Floor Bleeker, a consultant at In2 Consulting and former chief technology officer at Accor, argued that AI could reduce the importance of hotel brands as distribution intermediaries. According to Bleeker, if AI enables more direct distribution, hotels may no longer need to rely on brand loyalty programs to attract owners and guests.
Bleeker suggested that brands will need to adapt by focusing on delivering better guest experiences and more efficient operations, rather than depending solely on their established distribution networks.
Guest Experience and Loyalty Programs
Panelists agreed that while loyalty programs will remain relevant, they must evolve alongside AI advancements. Keryn McNamara, chief information officer of Aimbridge Hospitality, said AI can make guest experiences more personalized and frictionless by removing intermediaries and bringing guests closer to their preferences.
Scott Strickland, chief commercial officer of Wyndham Hotels & Resorts, described AI as a potential new booking channel. He noted that while guests currently use generative AI to research hotels, they still book directly if they are loyalty members. In the future, AI tools could integrate loyalty information to further streamline the booking process.
Strickland also predicted that AI-powered voice technology will soon allow guests to book rooms through conversational interfaces, with early adoption expected within the next year.
Business Fundamentals and the Evolving Guest Experience
Despite technological changes, panelists emphasized that the core of the hotel business—providing a place for people to stay—remains unchanged. Lennert de Jong, CEO of Another Star, pointed out that the guest experience has seen little improvement over the past 25 years, and he believes AI could finally drive overdue enhancements.
The panelists attributed the timing of AI’s growing impact to advances in technology and the opening of legacy platforms. Strickland noted that AI is accelerating innovation and making it easier to develop new solutions. Bleeker added that rising operational costs are increasing pressure on hotels to innovate and improve efficiency, especially in back-office functions.
Operational Efficiency and Workforce Changes
AI is already being used in some hotel companies to improve labor productivity and forecasting. McNamara explained that AI tools are not replacing staff but are helping employees use their time more effectively and make better business decisions.
The discussion acknowledged concerns about job displacement but characterized the changes as an evolution rather than outright elimination of jobs. The panelists recommended that hotel companies empower their workforce, particularly digital natives, to engage with AI tools within defined boundaries to maintain service standards.
Strickland observed that the challenge lies in expanding the scope of AI tools to address a wider range of operational needs, as not all platforms are suitable for every problem.
Human Element Remains Central
Despite the rise of technologies like chatbots and self-check-in, experts agreed that people will continue to play a crucial role in hospitality. McNamara emphasized that even as technology enhances efficiency and service, the fundamental nature of hospitality—caring for guests away from home—will remain unchanged. She suggested that AI offers an opportunity for the industry to refocus on customer service.
Conclusion
Industry leaders at HITEC concluded that artificial intelligence will democratize hotel distribution, drive operational efficiencies, and shift the industry’s focus back to guest experience. While AI is expected to change some workforce roles and processes, the human aspect of hospitality is expected to endure, with technology serving as a tool to enhance rather than replace personal service.
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