Emerging AI Trends in Hospitality Industry 2024 — ITFirms

Ryan Miller
8 min readApr 15, 2024


AI Trends in Hospitality Industry

Technology now plays a critical role in the hospitality industry due to the increasing need for digitization. In 2023, 69% of respondents to a survey said they would raise their tech budgets in order to integrate cutting-edge technologies for efficient operations. Simultaneously, Artificial Intelligence (AI), Internet of Things (IoT), Augmented Reality (AR), and Virtual Reality (VR) are all utilized in modern hotels.
Today, in this article, we will read & understand the top emerging artificial intelligence trends in the hospitality industry in 2024. We will also cover the AI basics and the benefits of integrating AI in the hospitality industry. Let us start with some basics first.

Artificial Intelligence Trends in the Market — Stats & Facts

  • Asia Pacific accounts for 42% of the total hospitality market, making it the largest market globally
  • As of 2023, hospitality sector is currently valued at $4.7 Trillion and is anticipated to touch $5.8 Trillion by 2027
  • South America & Africa will be the fastest growing regions from 2021 to 2026, growing at 16% and 20.1% CAGR
  • More than 34 hotel guests admitted frustration over outdated technology in rooms
  • Some of the top reasons to integrate tech in hospitality are improve customer experience, boost profits, and gain competitive advantage, respectively
  • In 2023, the USA total spend on hospitality was over $1.16 trillion

What is Artificial Intelligence (AI)?

Artificial Intelligence or AI is the ability of a machine or computer to perform tasks that commonly requiring problem solving abilities or human intelligence. The perfect feature of artificial intelligence would be its capacity for reasoning and action towards a certain objective.

Artificial intelligence has a wide range of applications in the healthcare sector, where it can be used to find treatments, recommend dosages for medications, and support operating room procedures. The technology has taken a speedy pace in the last few years and several AI apps have been launched in the market since 2022.

Top 10 AI Trends in the Hospitality Sector 2024

AI for Better Customer Experiences

AI studies what people like and the patterns they follow by using its magical powers. This enables companies to provide unique and interesting items, such as personalized room favors or unique entertainment that enhance the experience of each customer. But AI isn’t limited to that; it also contributes to the production of amazing virtual reality tours and interesting AI-generated art. When creativity and AI work together, they open up a world of fascinating new possibilities that will create lasting impressions and strengthen visitor relationships.

Hospitality Operations with Precise Automation

Consider precision automation to be the super hero of the hospitality industry-it streamlines everything incredibly! Imagine using self-service kiosks at hotels to check in quickly and skip the queue, or imagine using automation to book the ideal room without any problems. It functions behind the scenes like a helpful robot that manages resources and supplies while reducing errors.

Precision automation is starting to play a major role in helping hotels become ultra-efficient, save costs, and continue to provide the amenities that modern travelers require as technology advances even further.

AI Practices for Hotel Operations

Integrating sustainable AI practices is revolutionary in the hotel management industry. Hotels use AI to increase productivity while actively participating in ESG projects. By modifying lighting and temperature according to occupancy, AI-driven energy management lessens the hotel’s environmental effect. It also examines what eco-friendly amenities guests’ desire, ensuring that offerings are in line with sustainability principles.

Generative AI

The hotel sector is changing as a result of generative AI’s ability to provide guests with distinctive, customized experiences. It takes preferences and trends into account while analyzing large datasets. This extends beyond personalized eating selections and amenities for the hotel; generative AI customizes the experience to suit each person’s preferences.

The capacity to create content improves the overall visitor experience. Examples of this include personalized itineraries and virtual concierge services. Hotels have the opportunity to set new standards for customer pleasure and loyalty in the hospitality sector when they use generative AI, such as ChatGPT for hotels.

Machine Learning

In this era of “Machine Learning Everywhere,” the hospitality sector is changing dramatically. From reservation to post-stay interactions, every part of the visitor experience is customized through the use of embedded machine learning algorithms. At every touchpoint, tailored changes may be made thanks to this methodical examination of varied data, which allows it to dynamically react to changing preferences. By meeting individual demands, this thorough integration not only improves visitor happiness but also reimagines how hotels interact and serve their prospective clientele.

AI-Powered Customer Support

AI-powered customer care is revolutionizing consumer interactions by offering more efficient and customized assistance. Chatbots driven by AI can handle simple questions, freeing up human agents for more complicated ones. Human-like responses are made possible via natural language processing, which improves user experience. Furthermore, AI uses consumer data analysis to forecast demands and provide proactive support. As AI develops, its integration with customer service guarantees a smooth, effective, and fulfilling experience for customers, enabling companies to maximize resources and offer top-notch support.

Advance ChatBots

In the hotel sector, chatbots are revolutionizing visitor engagement with smooth, customized interactions. These AI-driven conversational interfaces are integrated into a variety of contact points, such as websites and mobile apps, and allow for real-time reservation and inquiry communication. By applying natural language processing, chatbots are able to comprehend visitor inquiries and raise the bar for the entire experience. By taking care of repetitive duties, they improve operational efficiency and free up staff time for more difficult problems. As technology advances, chatbots are becoming into vital resources for increasing sales and direct reservations.

Open-Source AI Partnerships

Collaborations centered on open source AI offer a dynamic model for encouraging group creativity in the tech sector. Developers, researchers, and organizations involved in open-source initiatives have become crucial in propelling advancement and quickening innovation as artificial intelligence advances. Through the exchange of code, algorithms, and research results, these partnerships build an ecosystem that cuts beyond corporate borders.
This group effort democratizes access to state-of-the-art tools and solutions while also quickening the development of AI technologies. A wide range of contributors can pool their knowledge through open source AI initiatives which results in the development of reliable and broadly applicable solutions that are advantageous to all.

Hyper Personalization

Hyper-personalization becomes a potent trend in the quest to improve visitor experiences. AI uses enormous datasets to obtain profound understanding of personal preferences, actions, and interaction patterns. This makes it possible for hotels to hyper-personalize services, such as customized in-room amenities and leisure suggestions. By incorporating AI data, hospitality facilities are able to anticipate and surpass visitor expectations, resulting in a level of customization that goes beyond traditional norms.

AI-driven Autonomous Operations

An important step toward improving responsiveness and efficiency in the hospitality industry is the implementation of autonomous AI-driven operations. Numerous operational facets, such as resource allocation, inventory management, and maintenance scheduling, are automatically optimized by use of sophisticated AI algorithms. This helps to save costs and maximize the use of resources while also streamlining daily operations. By adopting self-governing AI-powered operations, hotels are putting themselves at the forefront of technological advancement and guaranteeing a smooth and cutting-edge management strategy for their facilities.

Top 7 Benefits of AI Technology in Hospitality

1. Improved Predicting

Accurate and timely forecasting might be the difference between success and failure in the fast-paced world of today. Artificial Intelligence possesses the capability to swiftly assess large volumes of client data and offer valuable insights into revenue prospects that could have been overlooked in the past.
What’s possibly even more significant is that AI can forecast market patterns, which gives companies a strategic planning advantage. Businesses can boost their bottom line by using forecasting’s accuracy to make better informed decisions and allocate resources more wisely.

2. Lower Expenses

The emergence of AI presents new cost-cutting potential for the hospitality industry. Labor costs can be reduced by automating repetitive and routine work. Additionally, operators can avoid persistent workforce shortages by utilising AI.
Additionally, it enables more accurate and efficient decision-making supported by actual data insights. In the end, operators can cut down on needless expenses by not depending on conjecture.

3. Enhanced Productivity

Businesses may automate jobs and streamline administrative and operational procedures with AI. Better resource management and a notable boost in production are made possible by this.
Furthermore, there is less possibility of human error when less manual handling is necessary. Particularly when working with client data or updating and uploading spreadsheets-both of which are error-prone tasks.

4. Better Marketing Campaigns

Artificial Intelligence or AI can collect large visitor data sets, competitor insights, and market trends to build better marketing campaigns for their hotels. The technology can help in building better pricing strategies and highly targeted marketed campaigns. Apart from this, the technology can be used to build personalized marketing messages, optimize pricing strategies, and detect profitable market parts, thereby maximizing the profitability and driving business growth upwards.

5. Enhanced Customer Experience

One of the most important aspects of retaining customers in the long term is boosting the customer experience. The use of latest tech and AI in hotel industry is the key to competitive advantage here. The technology can offer a tailored, personalized experience to visitors using their behaviors, patterns, and personal preferences.
You can also gather and analyze the user feedbacks to offer a better experience using AI, thereby nurturing long term customer relationships.

6. Better Revenue Management

In the hotel sector, artificial intelligence (AI) has the potential to significantly improve revenue management and marketing campaigns. Large amounts of consumer data, industry trends, and competition insights can all be analyzed by AI algorithms to create focused marketing campaigns and pricing plans.
Professionals in the hospitality sector may tailor marketing messages; spot lucrative market niches, and instantly improve pricing methods by utilizing AI in hotels. Students with an interest in hospitality can learn about revenue management tactics and AI-driven marketing strategies to boost company expansion and profitability.

7. Better Safety and Security

AI technologies may potentially improve safety and security protocols in the hotel sector. Surveillance systems with AI capabilities are able to identify and notify personnel about possible security risks, like illegal entry or questionable activities. Furthermore, facial recognition technology can expedite the check-in procedures and improve passenger identification. Students majoring in hospitality can investigate how artificial intelligence (AI) can be used to reduce risks, guarantee visitor safety, and create secure settings in hotels and resorts.

Concluding Thought — Artificial Intelligence Trends

So, this was all about the emerging AI trends in hospitality industry. We covered the top AI trends and the benefits of integrating the AI tech in the hospitality industry. By using these AI trends, hospitality businesses can access deep customer insights, sentiments, and preferences to make better decisions.
However, building AI apps for your business can be an expensive & time taking affair. Thus, it is essential to hire reliable and well experienced AI development companies for the task. You can check the list of top AI companies here. The list is prepared after thorough research and considerations.

Top FAQs — AI Trends in Hospitality Industry

What are the challenges of AI in the hospitality industry?

While there are many benefits of leveraging AI for hospitality business, there are certain challenges the new tech brings to the table. Some of the most common challenges of AI include technological limitations, system failure, high implementation costs, privacy issues, and difficult adaption among staff.

What is the cost to build an Artificial intelligence application?

Some of the top artificial intelligence trends that are shaping the hospitality businesses today are voice assistants, AI-based chatbots, predictive tech, facial recognition, and precision automation. AI companies are focusing on increasing the usability of the tech and more benefits are expected in the future.

What is the time required to build an Artificial Intelligence app?

Integrating the latest tech and AI in the hospitality industry has several benefits including higher productivity, precise automation, better marketing campaigns, enhanced customer experience, and streamlined operations.

Originally published at https://www.itfirms.co on April 15, 2024.