Last week, the SabeeApp team attended the annual ITB convention in Berlin, gaining insights into the latest hospitality industry trends and reconnecting with partners.
The buzz around AI at ITB this year was undeniable. One theme echoed through conversations and presentations: “Who doesn’t implement AI into their business will be left behind.” AI is no longer a futuristic concept; it’s already here, transforming the hospitality industry at an accelerated pace. Hotels that embrace this shift will gain a competitive edge, while those that resist may struggle to keep up.
Consumer Expectations: AI is the New Normal
During ITB, it became evident that consumer behaviour is evolving in tandem with AI adoption. Technologies like ChatGPT, Alexa, and voice assistants have become integral to daily life. Travellers now expect the same level of convenience from hotels. If AI-powered experiences can streamline personal interactions and provide instant responses at home, why shouldn’t hotels leverage them to enhance guest satisfaction?
Champa Magesh, Managing Director at Access Hospitality, aptly put it: “The adoption of AI is going to take a shorter time than we imagine. The difference is that AI already has B2C capability - most of us already have an app on our phones. If you’re running a hotel, your guests are already using AI tools. The only one who isn’t is you. Do we really have that choice?”
The Challenges of AI Adoption in Hospitality
Despite its potential, AI implementation faces significant roadblocks. The hospitality industry’s technology ecosystem is highly fragmented, with numerous Property Management Systems, Channel Managers, Revenue Management Systems, and other operational tools creating integration challenges. Many hoteliers are reluctant to change, sticking with outdated legacy systems out of familiarity.
For AI to function effectively, structured data is crucial. Without organised and centralised data, AI cannot provide meaningful insights. The solution? Several approaches can help overcome this challenge:
- Centralised Vector Databases: These allow AI models like ChatGPT, Gemini, or others to seamlessly interact with a hotel’s operations, creating personalised and efficient guest experiences.
- Open APIs and Middleware Solutions: Platforms that connect disparate systems without requiring full replacements can help unify data and enhance AI compatibility.
- Cloud-Based PMS and Tech Stacks: Moving operations to a unified cloud infrastructure reduces silos and enables real-time AI-driven decision-making.
- AI-Powered Data Cleaning and Structuring Tools: These can help transform unstructured data into actionable insights, even when systems remain fragmented.
Key Benefits of AI in Hospitality
AI’s potential in hospitality extends far beyond simple automation. Here’s how it’s already making an impact:
- Hyper-Personalisation: AI can enhance guest experiences through tailored recommendations. Imagine suggesting a spa treatment to a guest who usually booked a massage but didn’t this time. AI can proactively connect these dots, ensuring an intuitive and personalised stay.
- Operational Efficiency: AI-driven analytics help hotels stay ahead of potential issues before they escalate. For example, predictive maintenance can monitor HVAC systems and detect early signs of failure, like an air conditioning unit showing irregular energy consumption, so maintenance teams can fix it before guests even notice a problem.
- Conversational AI & Guest Engagement: AI-driven chat and phone systems allow for seamless guest interactions. “40% of phone calls go unanswered, and it just speaks about how busy front desk people are,” noted Dhiraj Singh, VP of Sales at Canary Technologies. Conversational AI ensures guests receive timely assistance while enabling staff to focus on in-person interactions. Additionally, by integrating conversational AI with existing systems, hotels can enable AI to ask about booking intent, check availability in the PMS, and even facilitate direct bookings over the phone. This prevents direct booking losses and ensures guests receive a seamless experience without unnecessary friction.
- Innovative Feedback Mechanisms: While traditional surveys remain a valuable tool, AI-powered post-stay conversations offer a more dynamic approach to gathering guest feedback. Instead of relying solely on static 5- or 10-question forms, AI can adapt in real-time, asking relevant follow-up questions based on guest responses. This allows hotels to capture deeper insights and understand guest experiences in a more personalised and meaningful way.
Addressing Concerns: Data, Privacy, and Security
While AI offers remarkable opportunities, concerns around data security and privacy are legitimate, and businesses must carefully manage their guest data. The legal and regulatory environment for AI and privacy is currently in a state of constant change. Frameworks such as the General Data Protection Regulation (GDPR) significantly influence how organisations should approach data protection and ensure regulatory compliance in their use of AI technologies.
Some AI models, like ChatGPT and other LLMs, process a lot of data externally, which can raise concerns about transparency and control over proprietary guest information. To mitigate risks, businesses can explore self-hosted AI solutions or privacy-first AI frameworks.
Open-source AI models like Deepseek or Facebook’s LLama 3 provide alternatives that offer enhanced privacy protection and customisation options. However, these require higher operational costs and in-house expertise to maintain effectively.
AI solutions can greatly enhance your business, but we recommend reviewing their data policies carefully or consulting a professional to ensure effective and secure implementation.
The Role of the EU Digital Identity Wallet
One innovation poised to impact the industry is the EU Digital Identity Wallet, set to roll out by December 2026. This digital wallet will enable individuals to control what personal information they share, offering a decentralised, privacy-preserving solution. Unlike physical IDs, which expose unnecessary details, this system allows for selective disclosure, for example, proving driving eligibility without revealing an address.
This technology is essential in an AI-driven world, combating deepfake threats and ensuring secure digital verification. Hospitality businesses must prepare for these regulatory shifts as they integrate AI into their operations.
AI and the Future of Hospitality
AI’s integration into hospitality isn’t just a trend. It’s a necessity. As Klaus Kohlmayr, Chief Evangelist & Development Officer at IDeaS, noted: “The way we interact with technology is going to fundamentally change in the next few years. We are at the curve of excitement, but the curve of realisation is coming soon.”
Sarah Fults, VP of Distribution at MGM Resorts International, emphasised that hoteliers are finally upgrading their tech stacks and moving to the cloud, though not all have made the leap yet. AI provides an opportunity to bridge the gap between fragmented systems, creating a more harmonised and intelligent hospitality ecosystem.
This democratisation of technology means AI is no longer exclusive to large hotel chains. “The technology is becoming more accessible, making it affordable for hotels of any size to leverage AI with the same capabilities,” Kohlmayr added.
How Hoteliers Can Prepare for AI
To futureproof hotel operations, industry leaders offer clear advice:
- Educate yourself: Stay informed about AI developments. Absorb, learn, and experiment with different AI applications.
- Develop a strategy: AI will evolve every six months. Implement AI with a clear roadmap rather than chasing trends blindly.
- Think about your data: Data is the backbone of AI. Even if data currently sits in multiple systems, collaborate with partners to harmonise it while ensuring compliance with privacy regulations.
- Embrace AI as the norm: AI adoption will soon be as standard as using email. The sooner hotels integrate AI thoughtfully, the more competitive they will remain.
Final Thoughts
AI in hospitality isn’t just about automation; it’s about enhancing guest experiences, optimising operations, and preparing for a tech-driven future. The industry must navigate challenges like fragmented systems and privacy concerns, but those who embrace AI with a structured, forward-thinking approach will lead the next era of hospitality.
After attending ITB Berlin and hearing from industry leaders, one thing became crystal clear: AI is no longer a nice to have. Hotels that hesitate will find themselves playing catch-up, while those that adapt now will set new industry standards. As we walked through the conference halls, it was evident that AI isn’t just a buzzword; it’s shaping the future of hospitality in real time.
AI isn’t coming; it’s already here. The question is no longer ‘Should we use AI?’ but ‘How can we use it to create better experiences for our guests and streamline operations?’ At SabeeApp, we are always looking ahead, and we’re exploring how AI can be implemented in the most meaningful way to support hoteliers. Stay tuned!