Hotels Struggle with AI Strategy, While Independents See Fast Returns

Artificial intelligence is moving quickly through the hospitality industry, reshaping how hotels operate, market, and communicate with guests. The technology promises to take over repetitive processes, giving staff more time to deliver the human touch that travelers still value most.

Two new studies, H2c’s AI & Automation in Hospitality: Navigating Today’s Challenges, Shaping Tomorrow’s Gains and TakeUp’s AI Hospitality Revolution 2025, paint a detailed picture of how large hotel groups and independent properties are adapting to the AI era. Together, the reports gather insights from more than 370 hoteliers worldwide, covering luxury chains, mid-market brands, and small independent hotels.

𝐁𝐢𝐠 𝐂𝐡𝐚𝐢𝐧𝐬 𝐓𝐚𝐥𝐤 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲 𝐛𝐮𝐭 𝐒𝐭𝐫𝐮𝐠𝐠𝐥𝐞 𝐭𝐨 𝐄𝐱𝐞𝐜𝐮𝐭𝐞

H2c’s global survey of 171 hotel chains representing more than 11,000 properties found that AI adoption is well underway: 78% of chains already use AI in some form, and 89% plan to expand applications over the next two years.

Chatbots lead current usage at 42%, while customer data management tops the list of planned investments at 50%. Yet for all the optimism, there’s a clear gap between enthusiasm and execution.

While hoteliers rated their trust in AI at 6.6 out of 10, their actual reliance on it averaged only 4.7, revealing a lack of concrete strategy. Only 7% of hotel chains say they have a company-wide AI roadmap.

The main barriers are familiar to anyone in digital transformation:

• 62% cite a lack of expertise

• 51% say strategy is unclear

• 45% struggle with system integration

• 39% face budget constraints

Other obstacles include resistance to change (31%), data security worries (30%), and uncertainty over return on investment (27%).

“AI adoption in hospitality is accelerating, but most hotel chains are still experimenting,” said Michaela Papenhoff, managing director of H2c. “Bridging the trust-reliance gap will require more investment in staff skills, better integration, and a focus on use cases that deliver measurable value.”

𝐈𝐧𝐝𝐞𝐩𝐞𝐧𝐝𝐞𝐧𝐭𝐬 𝐌𝐨𝐯𝐞 𝐅𝐚𝐬𝐭𝐞𝐫 — 𝐚𝐧𝐝 𝐑𝐞𝐚𝐩 𝐭𝐡𝐞 𝐑𝐞𝐰𝐚𝐫𝐝𝐬

While the big brands debate frameworks, smaller hotels are already seeing results. TakeUp’s study of 200 independent property owners found that 74.5% report positive results from using AI.

Most of these hotels have only been experimenting with the technology for between six months and two years, but many are already seeing financial gains.

• 16.7% said automated guest communication delivers the most value

• 13.8% cited marketing campaign optimization

• 12.1% pointed to dynamic pricing and revenue management

Nearly one in five independents said time savings and efficiency were their biggest wins, followed by cost reduction (13.1%) and gaining a competitive edge (10%).

The numbers back up their confidence:

• 25.5% saw revenues rise between 6% and 10%

• 35% reported jumps of 11% to 20% after implementing AI

“Independent property owners aren’t just dipping their toes into AI anymore, they’re diving in and using it to win,” said TakeUp CEO Bobby Marhamat. “The fact that 74% say AI has met or exceeded expectations disproves the old myth that small hotels can’t keep up with technology.”

Nearly 70% of independents surveyed view AI as essential to staying competitive, and 39% see it as a significant competitive advantage.

𝐄𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐜𝐲, 𝐄𝐱𝐩𝐞𝐫𝐢𝐞𝐧𝐜𝐞, 𝐚𝐧𝐝 𝐭𝐡𝐞 𝐇𝐮𝐦𝐚𝐧 𝐓𝐨𝐮𝐜𝐡

Despite their size differences, both groups share the same goals: reducing repetitive work, improving efficiency, and enhancing guest experiences.

For large chains, business intelligence (78%), chatbots (77%), and digital marketing (72%) are top priorities. Independents focus on tools that directly affect revenue and guest engagement, automation in communication (16.7%), marketing optimization (13.8%), and dynamic pricing (12.1%).

Encouragingly, hotel employees are adapting well. TakeUp’s survey found that 78% of staff are comfortable with AI tools, while two-thirds of H2c respondents said AI helps them focus on more strategic or guest-facing work.

“I believe people have very special skills, but they often don’t have the time to use them,” one small-chain executive told H2c. “With AI, we’re finally giving that time back.”

Still, both studies note that the “human touch” remains irreplaceable. Over 60% of large chains and nearly three-quarters of independents said maintaining personal connections with guests remains critical.

𝐀 𝐂𝐚𝐫𝐢𝐛𝐛𝐞𝐚𝐧 𝐕𝐢𝐞𝐰: 𝐒𝐦𝐚𝐥𝐥 𝐇𝐨𝐭𝐞𝐥𝐬, 𝐁𝐢𝐠 𝐏𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥

Across the Caribbean, where many islands depend heavily on tourism but struggle with high operating costs and seasonal staffing shortages, AI represents an opportunity to even the playing field.

Small and mid-sized resorts often face the same challenges highlighted by global independents, limited manpower, expensive utilities, and inconsistent occupancy. In this context, AI-driven tools could offer real relief. Automated guest messaging can reduce front-desk workload, energy-management systems can cut power costs, and predictive analytics can help hotels adjust rates based on flight arrivals or regional events.

For islands like St. Maarten, St. Lucia, and Barbados, where tourism drives the economy, embracing AI could also help build resilience against external shocks. Hurricanes, supply-chain issues, or global market fluctuations can quickly ripple through small island economies. Smart forecasting and data-driven marketing can help hotels react faster, filling rooms in off-season months or targeting travelers from regions less affected by disruption.

Caribbean hotel associations are already taking note. Several are exploring regional AI training partnerships to help smaller properties access tools once reserved for major chains. Industry leaders say that if AI can cut operational costs by even 10% while improving guest engagement, it could transform the financial outlook of family-owned resorts that are the backbone of Caribbean hospitality.

𝐓𝐫𝐚𝐯𝐞𝐥𝐞𝐫𝐬 𝐀𝐫𝐞 𝐑𝐞𝐚𝐝𝐲 𝐟𝐨𝐫 𝐀𝐈, 𝐓𝐨𝐨

AI isn’t just changing hotel operations, it’s reshaping traveler behavior. Phocuswright’s Chat, Plan, Book: GenAI Goes Mainstream report found that 51% of U.S. travelers now use generative AI tools such as ChatGPT and Google Gemini, up from 39% in 2024 and 22% in 2023.

Usage is growing elsewhere too: 41% of travelers in the U.K., 39% in France, and 38% in Germany say they’ve used AI in their travel planning. Among younger generations, adoption is even higher: around 60% of millennials and Gen Z travelers use AI to plan trips, compared with just 33% of Gen X and Baby Boomers.

Among U.S. travelers who use AI:

• 33% rely on it for trip planning and in-destination support

• 85% trust AI to help them find hotels

• Up to one-third say they would let AI book travel for them if the service were available

That growing trust is already attracting major tech players. AI-powered answer engine Perplexity has partnered with Selfbook and Tripadvisor, allowing travelers to search and book hotels directly through its platform. “We’re introducing answer modes in Perplexity to make the core search product even better for travel and other verticals,” said Aravind Srinivas, the company’s CEO.

𝐈𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐢𝐨𝐧

For hotel chains, the next step is moving from pilot projects to full-scale integration. Many are exploring robotic process automation, digital identity verification, and proactive AI agents that can anticipate guest needs.

Independent hotels, including those in the Caribbean, are focusing on smart energy systems, dynamic marketing, and multilingual guest communications that reach travelers across the Americas and Europe.

Both studies agree on one point: early adopters are gaining a lasting advantage. Whether it’s a 500-room resort in Miami or a 20-room inn in St. Maarten, success will depend on building a clear, data-driven AI strategy before competitors do.

In a region where every booking counts, that could mean the difference between staying afloat and standing out.

‍