How Is AI Transforming the Hospitality Industry in 2025?

I’m thrilled to sit down with Katarina Railko, a leading expert in hospitality technology with a wealth of experience in travel and tourism. Katarina has honed her expertise in the industry and is a prominent voice in entertainment and events, often sharing her insights at major expos and conferences. Today, we’re diving into the transformative role of artificial intelligence in hotels, exploring how it’s reshaping operations, enhancing guest experiences, driving revenue, and striking a balance with the human touch that remains at the heart of hospitality.

How do you see AI transforming the hospitality industry today compared to just a couple of years ago?

I think the shift has been incredible. Two years ago, AI was more of a buzzword in hospitality—lots of talk, but limited real-world application. Now, in 2025, it’s embedded in everyday operations. Hotels are using AI for everything from pricing strategies to guest services. The big change is how companies have organized their data over the past 18 months, creating platforms that make AI actionable for personalization and efficiency. It’s no longer just a concept; it’s a tool driving real results across the board.

What specific parts of hotel operations are feeling the biggest impact from AI right now?

Revenue management and guest services are at the forefront. AI is optimizing pricing in real time, helping hotels adjust rates based on demand, competition, and even guest behavior. On the operations side, it’s automating repetitive tasks like check-ins and service requests, which frees up staff for more meaningful interactions. Smart building management is another area—AI is cutting energy costs by adjusting lighting and temperature based on occupancy. These are practical, measurable changes happening daily.

Can you share an example of how a hotel is using AI in a practical way in their day-to-day work?

Absolutely. I’ve seen mid-sized hotel chains implement AI-driven chatbots integrated into their apps. These bots handle routine guest inquiries—like room service orders or checkout times—instantly, 24/7. One property I came across reduced guest wait times for basic requests by over 50% in just a few months. It’s not flashy, but it’s a game-changer for both efficiency and guest satisfaction, showing how AI can make a tangible difference on the ground.

What are some of the standout benefits you’ve noticed with AI in hotels?

The benefits are wide-ranging. On the financial side, AI boosts revenue by fine-tuning pricing and pushing direct bookings, which cuts reliance on costly third-party platforms. It also slashes costs—think energy savings through smart systems or better staff scheduling using predictive analytics. Then there’s efficiency; automating check-ins or confirmations saves hours of manual work. Beyond numbers, AI provides deep insights into guest preferences through real-time data, helping hotels tailor experiences in ways that weren’t possible before.

How is AI specifically helping hotels improve the guest experience during a stay?

AI is making stays more seamless and personal. It connects smart devices in rooms so guests can control lighting or temperature with a voice command or app. More impressively, it predicts needs—say, suggesting a late checkout based on a guest’s travel history. It also speeds up service requests by routing them instantly to the right team, cutting response times significantly. When done right, guests feel understood and cared for without even realizing it’s tech behind the curtain.

Are there any challenges or limitations with AI in guest interactions that hotels should watch out for?

Definitely. While AI is powerful, it’s not flawless. Voice systems, for instance, can struggle with complex or nuanced requests—think a guest asking for a specific dietary meal with multiple adjustments. There’s also a trust factor; some guests feel uneasy relying on tech for personal needs. That’s why a hybrid approach works best—AI handles the routine stuff, but humans step in for anything requiring empathy or creativity. Ignoring these gaps can frustrate guests instead of delighting them.

I’ve heard AI is helping hotels regain control from online travel agencies. Can you explain how that’s happening?

For years, online travel agencies have dominated bookings, taking a huge cut of revenue and owning guest data. AI is flipping that script by powering tools that help hotels drive direct bookings and personalize the entire journey—from discovery to checkout. New platforms use AI to capture guest intent and behavior, ensuring hotels retain that valuable data. It’s about owning every interaction, so hotels can build loyalty directly rather than losing it to intermediaries.

What do hotels need to do to stand out in AI-driven search tools and platforms?

Hotels must adapt how they present information. AI search tools don’t care about catchy phrases; they prioritize clear, structured data. Instead of vague terms like ‘family-friendly,’ hotels need to list specifics—connecting rooms, kids’ menus, or cribs. Visibility now depends on making amenities machine-readable and verifiable. It’s a shift from traditional marketing to a data-driven mindset, and hotels that don’t adjust risk getting buried in search results as AI platforms grow.

How do you balance the efficiency of AI with the human touch that’s so core to hospitality?

Hospitality is, at its heart, about people connecting with people. AI can’t replicate that warmth, especially in high-touch moments like a heartfelt welcome or solving a unique problem. The balance comes from using AI to handle repetitive tasks—data entry, scheduling, basic queries—so staff can focus on face-to-face engagement. When staff are freed up to chat with guests in the lobby or personalize an experience, it builds loyalty. It’s about tech empowering humans, not replacing them.

What’s your forecast for the future of AI in hospitality over the next few years?

I see AI becoming even more integrated, almost invisible, in how it shapes guest experiences and operations. We’ll likely see smarter personalization—systems that anticipate needs before a guest even asks. Revenue strategies will get sharper as AI refines pricing and distribution in real time. But the key will be training staff to work alongside AI, ensuring the human element isn’t lost. I believe the hotels that thrive will be those that use AI as a partner to elevate service, not as a shortcut to cut corners. The next few years will show us who gets that balance right.

Subscribe to our weekly news digest.

Join now and become a part of our fast-growing community.

Invalid Email Address
Thanks for Subscribing!
We'll be sending you our best soon!
Something went wrong, please try again later