AI as the invisible employee in hotel operations

Industry leaders warn that proactive adoption will determine whether hotels control or surrender the next wave of distribution

Artificial intelligence is rapidly moving to the center of hotel operations and distribution strategies, but industry leaders caution that its impact will depend on how proactively hotels embrace it. Speaking at the Hotel Industry Development Event in London, panelists warned that without urgency, third parties could once again dominate the landscape—much as online travel agencies did during the rise of internet-based distribution. Rather than viewing AI as a threat, experts argued it should function as an “invisible employee” focused on improving efficiency, personalization, and profitability. The consensus: AI will reshape the industry, and hotels must act now to remain in control of their data, distribution, and bottom line.

Key takeaways

• AI as strategic infrastructure: Industry leaders see AI not as a trend but as core operational infrastructure that should support decision-making, guest recognition, and revenue optimization across departments.
• Risk of repeating OTA history: Panelists warned that if hoteliers do not take the initiative, external platforms could dominate AI-driven distribution, repeating the loss of control experienced during the rise of online travel agencies.
• Data quality determines value: Effective AI depends on structured, accurate, and proprietary data. Poor data inputs will limit outcomes, reinforcing the principle of “garbage in, garbage out.”
• Open platforms enable flexibility: Experts emphasized the importance of open, interoperable systems to avoid past IT limitations and to ensure hotels can adapt AI tools to their own operational needs.
• AI as profit-focused support: AI was described as an “invisible employee” that continuously works to improve margins by organizing disparate data, supporting revenue management, and connecting PMS and CRM systems.
• Human roles will evolve, not disappear: While some roles may shift, panelists suggested AI will augment rather than replace human employees, helping bridge the gap between data insights and management decisions.
• Distribution and personalization opportunity: AI could enhance direct distribution, loyalty integration, and personalized guest experiences, potentially reducing commoditization and increasing transparency in fee structures.
• Urgency is critical: Leaders stressed that AI-driven distribution platforms are emerging quickly, and hotels must become “future-fit” to avoid underestimating the scale and speed of disruption.

Source: CoStar

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