Artificial intelligence is here and you better start using it. That was a key message delivered by hoteliers during Destination AI 2025: The AI Conference for Hoteliers held in Washington, D.C. at the end of September. Hotel companies across every segment are experimenting with AI, testing it through use cases dealing with reducing operational costs, guest personalization, search and staffing.
As Matt Schwartz, chief technology and marketing officer at Sage Hospitality noted, most companies are being inundated with AI products and “many of us are living in the chaos.” In order to figure out what to prioritize, he suggested “sitting down and picking three to five core business problems you want to solve” and then finding the appropriate AI tools to try to solve them.
The Low-Hanging Fruit: Efficiency and Cost Savings
For hotel companies, the most immediate opportunity is clear: streamlining operations. Cynthia Czabala, vice president of AI and innovation at IHG Hotels & Resorts, called using AI for operational efficiencies “a no-brainer. We have to figure out how to leverage AI to enhance value…and decide which options we should focus on.” Repetitive, high-volume tasks—from answering routine questions to processing requests—are natural candidates for AI automation.
Josh Dow, vice president of hotel technology strategy and services at Wyndham Hotels & Resorts, pointed to call centers as one area where remarkable savings can be achieved through the use of AI. Thousands of calls every week are simply guests checking to confirm reservations, offering little value, but incurring significant costs. “It’s an easy barometer for us,” Dow said. “If AI can handle those calls, we reduce expenses and free up staff for higher-value interactions.”
While cost savings are critical, hotel leaders agree that another key aspect of using AI is enhancing the guest journey, from discovery and pre-stay through the stay and post-stay. Ray Boyle, Hyatt’s vice president of data, analytics, AI and strategic insights said, “The drivers of choice are in flux right now. How travelers plan, how they book, and how we service them–those are all outcomes we want to pursue. And we think that AI is an enabler, the rocket fuel needed to get us there.”
Wyndham’s Dow is most excited about the possibility of using AI to regain control of the booking path from OTAs. “I think it’s a channel that gives us more control, more first-party guest data, and (by increasing direct bookings), it will help us avoid the margin given up to the OTA business,” he said.
Part of the strategy is making sure hotel companies are prepared for the rise in AI-driven search. Half of search engine traffic will shift to AI by the end of 2026, according to Anil Aggarwal, chief executive officer of Milestone, a company whose platform drives online discovery and customer acquisition.
Matthew Wilson, vice president of analytics, data science and AI for Hilton, said AI search already drives four times higher conversion than Google results in some cases. However, hotel companies need to be aware that, according to Aggarwal and Wilson, the strategy involved with AI content generation is fundamentally different from traditional SEO tools, so hoteliers need to learn the language.
Streamlining Sales and Staffing
AI is also reshaping sales workflows. Boyle noted that Hyatt’s sales teams historically spent large portions of their time reviewing leads and crafting proposals. Now, generative AI can craft initial iterations of proposals, allowing staff to focus on high revenue value accounts.
Sage’s Schwartz said, “We are seeing actual impact in the area of talent acquisition. AI is helping us screen and select candidates for interviews.” David Todd, senior vice president and chief information and security officer for White Lodging, added that the efficiencies that AI creates “take pressure off us in terms of the current labor shortage.”
Building an AI-First Culture
Technology alone isn’t enough. Every executive emphasized the importance of culture, training, and governance. Choice Hotels launched a Data Discovery program in 2023 and is now building AI fluency across its workforce. “We created an AI show-and-tell so associates at all levels can see what these tools can do today,” noted Lindsay Liszewski, Choice vice president of business insights and analytic services.
Czabala echoed this approach, stressing the need to “encourage every associate to figure out how to put AI into their daily jobs,” while providing guardrails and guidance. Wyndham has created a governance board and highlights small wins to encourage innovation.
For Nitin Sood, vice president of product and digital innovation at Homes & Villas by Marriott Bonvoy, curiosity (among employees) is the essential ingredient: “AI makes it easier to go from idea to prototype. As long as people know what’s acceptable and where the guardrails are, individual curiosity drives progress.”
What’s Next: The Guest Journey Redefined
Hotel leaders believe AI will fundamentally change how people search, book, and experience travel. The guest journey is becoming more conversational, more personalized, and less transactional. As guests start turning first to conversational interfaces rather than traditional search engines, there will be a reimagining of how people plan and experience travel.
That said, the human essence of hospitality will always rise to the top. “AI will replace tasks, not jobs,” said Wilson. “After all, there’s nothing artificial about hospitality. We still want people talking to people.”
As Czabala summed it up: “We’re on the cusp of opportunities. The race is about which of us will unlock the most value AI can bring.”