PHOENIX—As artificial intelligence rapidly changes how travelers search, book and experience hotels, hospitality executives say the technology is becoming much more than a productivity tool. AI is beginning to reshape distribution, forecasting, labor planning, guest personalization and even hotel development decisions, according to C-Suite panelists at the Lodging Conference last week.
While the industry is still in the early stages of AI adoption, the technology is already influencing both consumer behavior and operational decision-making in ways that could redefine hospitality over the next decade. For many operators, the biggest shift may occur before a guest ever arrives at a hotel, agreed panelists Joe Berger, president and CEO, BRE Hotels & Resorts; Ayesha Molino, COO of MGM Resorts International; Keith Pierce, co-CEO, Sonesta International Hotels; Ryan Rivett, president and CEO, My Place Hotels; and Jeff Wagoner, president and CEO of Outrigger Hospitality Group. The session was moderated by American Hotel and Lodging Association President and CEO Rosanna Maietta.
The Distribution Landscape
While hospitality has traditionally relied on search engines, online travel agencies and brand websites to drive bookings, executives believe AI-powered search platforms could fundamentally alter that path.
"The consumer is just going to Copilot or they're just going to ChatGPT and they're going to the destination," said Pierce. Rather than navigating multiple websites, travelers are increasingly describing what they want and allowing AI platforms to curate recommendations.
Pierce characterized AI as a potential distribution disruptor, arguing that it could alter how hotels think about marketing, brand visibility and customer acquisition. "The paradigm shift now is that the consumer is just going to Copilot or they're just going to ChatGPT," he said, noting that hotels may need to rethink how they represent their brands online as AI systems become a primary source of travel information.
Rivett sees the change as an opportunity for hotels to move beyond basic amenities and toward storytelling. "AI is allowing us, like never before, to be able to turn a transaction that is buying a hotel room for a night into a conversation, into a relational narrative," Rivett said. Instead of relying on bullet-point descriptions, hotels can better communicate what makes a property unique and why it matches a traveler's specific preferences.
According to Rivett, AI-powered search creates opportunities for hotels to build stronger relationships with guests before they arrive by emphasizing experiences, location advantages and traveler sentiment rather than simply listing features.
As customer expectations grow, executives said technology will become a critical tool for creating individualized experiences at scale while preserving hospitality's human element. "Ultimately, what will continue to matter more than anything else is how that experience is delivered by our frontline employee to our guest," said Molino.
Operational Efficiency
Behind the scenes, hotel companies are already deploying AI across a range of operational functions. Pierce said Sonesta is using AI applications at both the property and enterprise level, including housekeeping, scheduling, analytics and legal functions. He noted that the industry often associates AI with consumer-facing tools such as ChatGPT, Claude and Copilot, but the more immediate impact may come from specialized applications built for individual business functions.
"There are going to be applications that are going to be specific to all different types of disciplines," he said.
MGM Resorts is applying AI through call centers, concierge functions, forecasting models and operational planning. The company sees particular value in using AI to better predict guest behavior and optimize staffing, amenities and operating hours around expected demand. Molino said AI is improving its forecasting tools, and through that comprehensive forecasting process, the brand is able to better satisfy the customer needs and expectations.
As group business continues to grow — it's the foundation of MGM's business in Las Vegas so the brand is using AI to forecast what those groups are going to do on property. "What kind of ancillary experiences will they be looking for based on their history on premise? And how do we respond to that?" Molino said. "It could be as simple as opening the gym two hours earlier or keeping it open two hours later or making sure that you have an additional breakfast venue open. Things like that are going to become increasingly expected, also increasingly possible through the deployment of these tools."
While panelists were bullish on AI's long-term value, they cautioned that technology alone will not solve the industry's biggest challenges.
Rising labor costs, inflationary pressure, insurance increases, construction costs and interest-rate uncertainty continue to weigh on hotel profitability. Wagoner said operators remain under pressure as wages and operating expenses continue to rise.
"The average starting wage is $32 an hour" in Waikiki, Wagoner said, highlighting the labor challenges facing resort operators, especially in constrained markets like Hawaii.
Even so, Wagoner believes AI can help offset some of those pressures. He cited the company's contact center operations, where AI now handles many service-related inquiries that previously required human intervention. "The majority of those calls now we're able to tackle with AI," Wagoner said.
Executives also acknowledged that adoption risks remain. Hospitality has historically been slow to embrace new technologies, and organizations must balance innovation with maintaining the high-touch service guests expect. Pierce admitted he underestimated how quickly AI would advance within the industry. "It is moving faster than I expected," he said.