Hotels in AI pilot see labor gains, lower overtime costs

According to hospitality technology company Actabl, hotels across the U.S. are seeing “measurable results” using the company’s AI Insights for Hotel Effectiveness hotel labor-management platform. Embedded in the workflows managers already use to run their hotels, AI Insights surfaces issues and recommends action before costs hit the P&L, helping operators make better decisions for owners and the associates running their properties. Since its launch at HITEC in June, more than 100 hotels across eight management companies are using it as part of the beta program.

Hotel wage rates rose 2.9 percent in the first quarter 2026, according to HotelData.com, putting margins under pressure before any scheduling decisions are made. By the time an overtime trend or a scheduling overage shows up in a report, the cost has already hit the bottom line. Existing systems show managers what happened, but they leave it to the manager to figure out what matters and what to do about it. The new platform aims to bridge that gap.

How it Works

Each morning, the Hotel Effectiveness Daily Labor Check-In identifies what needs attention, explains why and recommends next steps. Since its launch in June, Daily Labor Check-In completions at beta properties are running 23 percent above pre-launch levels. Overtime share of hours has fallen 13 percent on average across beta properties, while overtime at those same companies’ non-beta properties has risen or remained flat. At one property, overtime spend fell by approximately 75 percent in June and July, while overtime rose across the rest of that management company's portfolio.

"What impressed us most about AI Insights is its ability to transform data into action,” said Ting Hu, vice president of business applications at Concord Hospitality, said in a statement. “The platform helps our general managers and above-property leaders quickly understand where attention is needed and provides practical recommendations to address labor risks before they become costly problems. It has become an effective coaching tool for driving labor discipline across the pilot hotels."

One housekeeping director at a beta property described how AI Insights identified unused labor hours and prompted her to redirect them into deep cleaning, something she wouldn't have done on her own, and something that can help improve the condition of the property and the guest experience. “It’s really awesome to see in real time,” she said.

"There’s no shortage of labor data in this industry. The problem is knowing which number to act on, and when,” said Taylor Jones, senior director of product at Actabl. “AI Insights surfaces the right issue at the right moment, so managers can make faster decisions before costs escalate.”