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AI in Hospitality: Transforming Service, Operational Efficiency, and Personalization

By Dr. Hicham Jaddoud, MBA Director of Hospitality, Little Creek Resort & Casino | May 2025

At its core, hospitality is all about service. In an industry where personalized experiences are paramount, Artificial Intelligence (AI) presents numerous opportunities to enhance operational efficiency and elevate customer service. Technological advancements and evolving consumer expectations drive the adoption of AI in hospitality.

This article explores how AI reshapes the industry by transforming service, improving operational efficiency, and enabling personalized experiences. Additionally, we will highlight real-world examples of AI applications in different industry segments.

This article is structured as follows: first, we will explore the role of AI in transforming service within the hospitality industry. Next, we will examine how AI enhances departmental operational efficiency. Finally, we will discuss the role of AI in personalizing the guest experience and increasing loyalty.

Importance of Service in the Age of AI

Service remains the foundation of the hospitality industry. By incorporating AI, the sector optimizes service delivery, streamlines daily operations, and enhances customer experience through real-time solutions. AI-driven innovations demonstrate the industry’s commitment to integrating technology into every stage of the guest journey. Wynn Las Vegas has equipped all hotel rooms with Amazon Echo, embedding AI-powered voice assistants. Guests can control room lighting, temperature, and entertainment using voice commands. Additionally, AI streamlines booking processes and optimizes room availability, ensuring seamless reservations while minimizing human errors.

AI can sort and analyze captured data to gain insight into preferences, behavior patterns, and trends. Another industry example is the Hilton Hotels. The company introduced "Connie," an AI-powered chatbot designed to answer guest inquiries, provide recommendations, and handle bookings 24/7. This innovation offers instant access to hotel information, reducing the reliance on front-desk staff and improving overall guest convenience.

Not all hotel elements are meant to be automated. Hospitality organizations must ask guests for feedback about what’s working, what’s not, and what they can do better. ARIA Resort & Casino has adopted AI-powered tools that allow guests to control in-room lighting, temperature, entertainment, and curtains via a touchscreen panel and mobile app. Some rooms also feature voice-assisted technology for hands-free controls. The system adjusts the environment by learning guest preferences and enhancing comfort and personalization.

Traditionally, the industry has been labor-intensive, relying on teams to perform repetitive tasks such as guest queries, room allocations, and inventory. AI can automate many repetitive tasks, freeing employees to focus on tailored service. For example, AI-powered kiosks and mobile apps allow guests to order food from restaurants, reducing wait times and errors. From the back-of-house standpoint, AI predicts peak times for room cleanings and assigns housekeeping staff accordingly, improving productivity and efficiency. Furthermore, AI analyzes customer data to segment guests based on preferences, travel history, and spending habits, allowing personalized promotions.

In the service industry, AI should enhance, not replace, human interactions, enriching guest experiences while retaining a personal touch. By leveraging AI, the hospitality industry redefines guest experiences, improves operational efficiency, and ensures a seamless, tech-enhanced stay.

The trend is clear. AI serves as an automation tool and a transformative force in improving service quality. The hospitality industry will always be human-led and tech-powered.

Operational Efficiency

Technology and AI significantly improve operational efficiency in hospitality. AI tools can be key in energy management and optimizing water usage. AI analyzes occupancy patterns and external weather conditions to adjust real-time heating and cooling, reducing unnecessary energy use. Also, AI identifies equipment inefficiencies and predicts potential failures in HVAC systems, elevators, and other electrical units, preventing energy overuse and costly repairs. One of the leading hospitality brands in this area is InterContinental Hotels Group. IHG integrates AI in HVAC and lighting to lower carbon footprints across its properties.

In most hospitality properties, AI-driven energy management systems can monitor and adjust lighting and ventilation based on the unit’s occupancy. This enables properties to reduce energy costs and align with environmentally friendly practices. Mainly in casinos, AI enables the property to enhance security by identifying suspicious behavior through surveillance systems. Automation in hospitality via AI, robotics, IoT, and mobile technologies is inevitable. It will augment and, in many cases, replace repetitive, mundane, and dangerous jobs. A few F&B companies have leveraged AI-powered kitchen robotics and machine learning (ML) to improve food preparation efficiency and reduce waste.

One of the most impactful applications of AI in hospitality is in pricing and forecasting. AI optimizes the industry through dynamic pricing models by analyzing various factors such as demand, consumer segment, availability, local events, and competition to recommend optimal pricing for different industry segments, including rooms, F&B, airlines, and events. These tools empower hotels to quote lower prices for guests booking months in advance. At the same time, last-minute bookings might be more expensive (or discounted if occupancy is low), or nightly rates for extended stays might be lower to encourage longer bookings.

On the F&B side, AI-powered tools enable restaurants to adjust pricing in real-time based on market conditions (e.g., surge pricing for special events such as Valentine’s Day or New Year’s Eve due to higher demand, or time-based discounts for late-night dinners, senior citizens, or students). These tools predict inventory needs and reduce waste by using AI to analyze dining trends and recommend recipes based on stock.

Within the hospitality industry, automation also offers a solution by streamlining back-of-the-house processes, such as accounting, payroll, purchasing, and audit. This reduces human error and frees up property-level staff to focus on enhancing guest experiences. BOH automation can improve the speed and accuracy of administrative functions and tedious work when fully implemented. With an emphasis on operational efficiency, AI tools automate repetitive tasks in several hospitality properties (e.g., inventory management, budgeting process, and forecasting). By automating repetitive financial tasks like budgeting and auditing, hospitality firms can save time, increase accuracy, and comply with industry regulations.

Technology paves the way for centralized operations by providing a constant stream of accurate data that can be rolled up across all departments. Machine learning and automation tools reduce manual errors and streamline financial processes in administrative departments like finance, HR, IT, and marketing. In addition, AI’s predictive analytics have taken the hospitality sector to the next level by analyzing consumer historical data and predicting consumer behavior and external factors, enabling organizations to plan and make proactive decisions.

One of AI’s key advantages in hospitality is its ability to centralize operations by providing a continuous stream of accurate data across all departments. This data-driven approach enhances decision-making, optimizes resource allocation, and improves efficiency.

Technology and AI should not be used to remove people from operational and administrative functions. Instead, they should enhance the inter-departmental interactions and collaboration.

Personalized Guest Experience Through AI

Hospitality organizations, including hotels, restaurants, cruise lines, golf courses, and casinos, are leveraging AI to personalize the customer experience at every stage of the guest journey. From AI-powered check-in systems to chatbots on hotel websites and social media platforms, AI is enhancing service by responding instantly to guest requests for extra pillows, towels, bathroom amenities, in-room dining, or valet service.

Beyond immediate guest interactions, AI is also used to analyze and interpret customer feedback. AI-powered platforms like TrustYou shift through online reviews to extract valuable insights, enabling hospitality organizations to refine their services and create more personalized offerings. To further enhance the guest experience, Wyndham Hotels & Resorts has implemented an AI-driven messaging system that allows guests to text the hotel with inquiries throughout their stay and receive prompt responses from AI.

AI also plays a significant role in service customization, allowing hotels and restaurants to tailor experiences before guests arrive. In most luxury and casino resorts, AI tools can analyze guest data to create guest-centric promotional campaigns and offer personalized packages. Subsequently, as part of its Predictive Hospitality initiative, The Ritz-Carlton utilizes AI-powered analytics, loyalty programs, and customer relationship management (CRM) systems to analyze guest preferences. This allows the brand to deliver highly personalized offers and recommendations, enhancing the overall guest experience.

A study by the University of Las Vegas found that hospitality firms leveraging AI to personalize consumer experiences outperform those that do not. The research revealed that AI-powered personalization drives operational excellence and increases revenue by up to 10%.

Consumers are increasingly embracing technology in their interactions with hospitality services. For instance, Tribal-owned resorts and casinos are adopting Elastic’s Search AI platform to optimize operations and enhance customer experience. By integrating advanced search and AI capabilities, these enterprises improve consumer analytics, program management, fraud detection, and customer support, ensuring competitiveness in a rapidly evolving industry.

Similarly, Caesars Entertainment utilizes AI-powered dynamic pricing to adjust real-time data and gaming promotions, maximizing revenue and guest satisfaction. In line with service personalization, Hard Rock Casino has implemented facial recognition AI for security and VIP customer recognition, enhancing safety and service.

While AI enables data-driven decision-making, organizations must balance technological advancements with the human touch that defines exceptional guest experiences.

Conclusion

Professionals who do not educate themselves about AI risk falling behind. AI has proven to be a transformative force in all business arenas, revolutionizing operations, enhancing guest experiences, and driving efficiency. As AI tools evolve and the demand for personalization grows, organizations will increasingly leverage technology to improve service quality and operational performance.

Despite technological advancements, the human element remains irreplaceable. The success of future hospitality still relies on professionals who can interpret data, understand the nuances of customer behavior, and craft innovative strategies that resonate with the market. The synergy between AI-driven insights and human intuition is the key to sustained success in the hospitality industry.

Looking ahead, AI will continue to shape the future of hospitality, streamlining services and optimizing human resources. AI is also transforming the hiring processes by simplifying job description creation, reducing biases in candidate selection, and identifying top talent.

Future industry research should explore the role of AI and automation in recruitment, employee onboarding, training, and professional development. As AI continues to integrate into various aspects of hospitality, its potential to enhance workforce management and service delivery will be a key area for further exploration.

Dr. Jaddoud, MBA

Dr. Hicham Jaddoud is a Director of Hospitality Operations at Little Creek Resort & Casino in Washington. He has been in the Hospitality and Gaming industry for over 18 years. Dr. Jaddoud earned a Doctoral Degree in Business Management from Georgia State University. He is an Associate Professor of Hospitality Revenue Management at the University of Southern California and serves as the host of Cornell's Hospitality Symposium. Dr. Jaddoud has published several articles on revenue management, hospitality training, and the economic impact of the hospitality industry. He is a Board Member of the Georgia State University Robinson College of Business DBA Leadership Board. Extended Biography & Contact Information

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You hereby authorize HotelExecutive's Internet Payment Service Provider to charge your credit card to pay for your membership to HotelExecutive. You further authorize HotelExecutive's Internet Payment Service Provider to charge your credit card for any and all purchases of products, services in association with HotelExecutive. You agree to be personally liable for all charges incurred by you in association with your access or other use of any content provided by HotelExecutive or any third party in association with HotelExecutive. You acknowledge and agree that your liability for all such charges shall continue after termination of your access or any type of membership arrangement with HotelExecutive.

In the event that you have chosen to have your membership automatically rebilled, unless and until you notify HotelExecutive that you wish to cancel or terminate your membership to HotelExecutive, you hereby agree and authorize HotelExecutive's Internet Payment Service Provider to automatically renew your membership to HotelExecutive on a continuing basis and to charge your credit card (or other payment means you have selected) to pay for the ongoing cost of your membership. You hereby further authorize HotelExecutive's Internet Payment Service Provider to charge your credit card (or other approved payment means you have selected) for any and all purchases of products, services and entertainment provided to in, at, through or in association with HotelExecutive.

13. PRIVACY POLICY

The following is the Privacy Policy for HotelExecutive

We can be reached via telephone, email, or online at our contact page. When you visit our site we do not log any information regarding your domain or email address. Information Sharing: We do not share user information with any third parties other than via press release distribution as described below.

Hotel Newswire is a newswire service that distributes press releases on behalf of our users. If you decide to submit a press release for distribution through our system we will transmit your entire press release including any personal information therein contained to our media contacts and online distribution points including search engines. This is the only redistribution of your information that we engage in. Your submission of press releases through our system indicates consent with this policy. The information we collect during your registration process is used to notify users about updates to our service and inform users of any special events hosted by Hotel Newswire. This information is not shared with other organizations for commercial or non-commercial purposes.

Cookies: Our system requires the use of cookies to enable the user to log back into our website to access information from the newswire, without having to log in each time using the required username and password.

If you do not want to receive email from us in the future, please let us know by following instructions included in our communication with you. Users who supply us with telephone numbers online may receive telephone contact from us regarding their account, or informing them of new products and services available on the HotelExecutive website. If you do not wish to receive such telephone calls, please edit your account and remove your phone number from your account profile. This can be done from your user account menu.

Ad Servers: We do not partner with or have any relationship with any ad server companies. From time to time, we may use customer information for new uses not previously disclosed in our privacy notice. If our information practices change at any time, we will post the policy changes to our website to notify you of these changes and provide you with the ability to opt out of these new uses. If you are concerned about how your information is used, you should check back at our website periodically.

Upon request we provide site visitors with access to all information (including proprietary information) that we maintain about them. Users can access this information by logging in to their account.

Security: We always use industry-standard encryption technologies while transferring and receiving user data exchanged with our site. We have appropriate security measures in place in our physical facilities to protect against the loss, misuse, or alteration of information that we have collected from you on our site. We do not store credit card information in our systems.

If you feel that this site is not following its stated information policy, you may contact us.

Nicholas Tsabourakis
Florence Quinn
Wendy Hansen
Jacqueline Voronov
Robert Gilbert
Susan Sanders
Samantha Markiewicz
Dr. Hicham Jaddoud, MBA
Julia Kadish
Julie Cheetham
Nadav Solomon
Scott Rosenberg
Nicholas Tsabourakis
David Wiborg
Coming up in March 1970...