Automation is everywhere, and the hospitality industry is already feeling its effects. This article stemmed from a recent discussion by the HSMAI Revenue Advisory Board.
The participants agreed that the question is not whether technology will continue to advance, but what will happen to hospitality as that happens.
A phrase shared during the conversation summarized the core of the discussion:
“We will only realize it when we have already gone too far.”
A recent Harvard Business Review article posed the issue clearly. Efficiency can be scaled, but human connection is what creates differentiation.
As one of the participants pointed out, the moments when human interaction becomes most important are also those in which revenue and loyalty are most at stake, such as in recovering from service failures, in the relationship with high-value guests, and in bookings made well in advance.
It is precisely in these situations that automation can create risks, rather than enhance the experience. One pattern emerged during the discussion: routine questions can be automated. Anything that reduces friction and simplifies the guest's journey can also be automated.
However, the touchpoints that truly build the experience, influence loyalty, strengthen pricing power, and encourage return visits must remain human.
A call made after check-out at a leisure resort made an impact because it was perceived as an intentional initiative. That same expectation probably wouldn't exist at a budget hotel. Context and guest expectations make all the difference.
The category and positioning of the hotels shaped much of the debate.
Some participants believe that human contact could become a luxury differentiator, while automation frees up teams to focus on higher-value interactions.
Others questioned whether loyalty will continue to be as important in a scenario defined by efficiency and rising labor costs.
Examples of hotels considered autonomous also highlighted the gap between promise and practice. A fully automated hotel is rarely truly autonomous.
One of the most relevant questions arose at the end of the discussion:
If technology takes over most transactions and efficiency becomes a basic requirement, what will actually create pricing power?
Will it be efficiency, personalization, brand strength, or human hospitality?
Initial opinions differed, but the group agreed that the traveler's intention adds another layer to the discussion.
A business traveler arriving at a hotel at midnight is likely looking for speed. A leisure guest may value connection and relationship more. The same brand can cater to both needs, provided it understands its target audience. The final part of the conversation focused on segmentation.
Traditional models no longer fully reflect current behavioral patterns. Without precise signals, the possibilities for personalization remain limited.
Several participants highlighted the importance of first-party data and guest engagement, including pre-arrival behavior, direct bookings, and what customers choose to accept or ignore.
Others pointed out that even the best segmentation doesn't produce results when the technology isn't working properly. Any difficulty during the process can quickly undermine trust.
The conversation ended with more questions than answers, which seems appropriate for the current state of the industry.
Automation is advancing rapidly. Human hospitality remains important. It is precisely in the tension between these two elements that business strategy begins to take shape.
Questions for the teams
As hotels adopt more automation in reservations, communication, and operations, at what points should organizations intentionally preserve human interaction for its ability to generate more revenue, strengthen loyalty, and extend guest value over time?
- What should be the level of involvement of business leaders in building the guest experience, considering that this experience influences pricing power, repeat business, and long-term revenue growth?
- In what situations has human hospitality already directly influenced revenue performance, whether through higher average rates, new stays, additional consumption, or greater loyalty?
- When evaluating new technology investments, how should organizations balance cost reduction with the revenue potential generated by better experiences and stronger relationships?
- If artificial intelligence takes over most transactions and operational efficiency becomes a basic requirement, what will create pricing power for hotel brands in the future?
- Will it be efficiency, data-driven personalization, brand strength, or genuine human hospitality?
