AI in Hospitality: Finding the Perfect Balance Between Technology and Human Touch

The hospitality industry stands at a crossroads. On one side, there’s the rush to adopt artificial intelligence and automation to stay competitive. On the other, there’s the basic principle that hospitality is fundamentally about human connection. For independent and smaller resort operators, this tension may feel particularly acute – you don’t have the resources of major chains, but you still need to meet evolving guest expectations.

You don’t need to choose between technology and personal service. While you may have heard people freaking out about AI taking jobs, AI taking over the world or AI as a replacement, the truth is that where artificial intelligence technology is right now, it’s not a replacement, it’s a tool.

A tool that can help employees and guests both get better and faster. For guests, it can mean better answers to questions or requests on demand. For employees, it can mean better project outcomes with more depth or certainty with less time spent researching and vetting.

Innovative resorts and tech savvy travelers are finding ways to use AI strategically, enhancing rather than replacing the human touch that makes hospitality special.
This month’s issue of Hospitality Innovation in Action explores how hospitality companies can implement AI realistically in ways that complement strengths while staying true to the human connections at the heart of hospitality.

Related: Welcome to Hospitality Innovation In Action: Putting Excellence in Motion

AI’s Real Value in Hospitality

Before diving into specific applications, it’s worth clearing up what AI really means for resorts. Beyond the buzzwords and robot fantasies, AI is simply a set of technologies that help you work smarter by analyzing data, automating repetitive tasks and personalizing experiences without manual effort. It’s a tool, not a replacement.

For independent resorts, the real opportunity isn’t replacing staff with robots – it’s using AI to handle behind-the-scenes complexity so your team can focus on creating memorable moments with guests. The technology should handle the mundane, redundant, time-consuming tasks so your staff can concentrate on what they do best – enhancing the guest experience.

No resort ever earned a five-star review because they had an excellent data entry team. Guests don’t rave about being rushed through check-in by staff prioritizing paperwork efficiency over personal attention.

When resorts make “efficiency” the primary goal for frontline staff, they’re treating hospitality professionals like factory workers, with guests becoming mere interruptions to their workflow. AI can handle the efficiency aspects, freeing your team to focus on what truly matters – creating genuine connections and memorable experiences that keep guests coming back.

Strategic Applications That Make Sense for Smaller Resorts

While the hospitality giants experiment with everything from robot room service to AI-powered facial recognition, independent resorts can focus on practical applications that deliver immediate value without breaking the bank:

Smart Guest Communications

Smaller resorts with limited staff can leverage AI-powered communication systems to ensure no guest message falls through the cracks. Modern platforms can:

• Automatically respond to common questions about amenities, check-in times, parking details, etc.
• Prioritize urgent requests for immediate staff attention
• Route inquiries to the right department without manual triaging
• Follow up with pre-stay and post-stay messaging that feels personal

According to NetSuite’s hospitality industry research, approximately 70% of guests find chatbots helpful for simple inquiries like check-in processes and Wi-Fi passwords.

The key is transparency. Guests don’t mind automated responses if they’re helpful and there’s an easy way to reach a real person when needed. Make sure your system offers a simple “I’d like to speak with someone” option that smoothly transitions to human assistance.

One of the best ways to figure out what responses to automate with smart chat options is to keep track of frequent questions incoming and in-house guests ask. Start by writing detailed, specific answers for each of those questions, and you’ve got the beginning of the data needed to feed a chatbot to do more, better.

Personalization That Feels Natural

One of the most powerful applications of AI is its ability to help your team deliver personalized experiences without requiring superhuman memory or endless hours of research.

Independent resorts are increasingly using CRM systems with AI capabilities to track guest preferences and previous interactions. When a returning family books again, these systems can automatically alert staff to past preferences – from pillow type to children’s favorite activities. This allows even new staff members to greet returning guests with personalized recommendations that make them feel recognized and valued.

Unfortunately, many companies think that auto-adding a recipient’s first name to an email is revolutionary personalization. It’s not – it’s fairly standard and often flawed depending on the data source. For example, if you’re depending on customer-provided data, make sure it’s coming from a legitimate registration. If it’s coming just from a form fill, someone can enter a bogus, funny (even expletive) word that then gets addressed in an email, screenshotted and used as an example of unchecked personalization.

Do you want your brand attached to an email that says “Hi, None Of Your Business – ready for your vacation?”

The goal isn’t to show the guest you know their first name; the goal is to use what you know to make experiences better, more customized, and more special to the guest.

Operational Intelligence: Beyond the Front Desk

Behind the scenes, AI can significantly transform resort operations by analyzing patterns and predicting needs before they occur:

• Smart energy management that adjusts automatically based on occupancy
• Inventory and food waste reduction through predictive analytics
• Automated scheduling that optimizes staffing based on demand patterns
• Predictive maintenance to prevent disruptions to the guest experience

According to research from HospitalityNet, eco-focused hotel properties implementing AI-driven smart building systems reported approximately 30% reduction in energy costs. Similarly, Hilton hotels using AI-based food waste tracking technology (Winnow) saw a 21% reduction in food waste during their Green Ramadan 2024 initiative. These measurable improvements directly impact the bottom line while supporting sustainability goals.

These operational applications often deliver the highest ROI because they work quietly in the background, reducing costs and improving service consistency without requiring guests to adapt to new technologies. For smaller resorts with tight margins, these efficiency gains can make the difference between struggling and thriving.

Travelers Are Using AI to Plan Trips, Use That To Your Marketing Advantage

A growing number of travelers are using AI to help research destinations, plan itineraries, find accommodations and manage bookings. According to Madden Media’s 2024 AI Travel Planning report, 19% of travelers used AI to plan their most recent trip, and 34% said they are likely to use it for their next one. That number jumps higher among Millennials and Gen Z, who expect personalization and convenience at every step of the travel process.

Tools like ChatGPT, Booking.com’s AI Smart Filter and Google Gemini are being used for tasks like comparing hotels, identifying top-rated resorts with specific amenities and figuring out the best time to book. Some travelers now rely on AI to plan their entire trips, asking prompts like, “What’s the best boutique resort near Sedona with yoga, hiking trails and rooms under $350 a night?” or “how far in advance should I book my weeklong April vacation to the Florida Keys?”

If your resort’s content isn’t optimized to be found by these tools – or if your listings are vague or outdated – you’re already behind.

How Resorts Can Get Found in AI-Driven Travel Search

Independent resorts don’t need to spend big to compete. But you do need to make sure your content and listings are working for you. Here are a few ways to do that:

Keep your listings updated across platforms.

AI systems pull data from online travel agencies, review sites and your own website. If your property description still says “great amenities” and “family-friendly,” that doesn’t tell an AI tool, or a traveler, much of anything. Be specific. Spell out what makes your resort unique.

Use structured data on your site.

Schema markup makes your content machine-readable, which helps it get indexed properly by AI-driven tools. According to hotel tech firm Mews, structured data helps booking engines and AI platforms understand your resort’s details, things like amenities, location and room types, more clearly and accurately.

Make your website mobile-friendly and fast.

AI takes into account the speed and usability of your site. A slow site or one that’s not mobile-optimized can lead to lower rankings or reduced visibility in AI-powered travel planning tools.

Focus on review content.

AI platforms increasingly rely on aggregated sentiment to make recommendations. That means your TripAdvisor, Google and OTA reviews matter not just to humans but to machines too. Encouraging positive reviews and addressing negative ones quickly can shape how AI interprets your guest experience.
List on platforms that already use AI.

Booking.com, Expedia and Airbnb are investing heavily in AI-based search and personalization. According to Booking Holdings’ 2024 Q3 earnings report, the company’s AI tools now help filter over 100 million listings based on user preferences, past behavior and real-time availability. If you’re not listed on these platforms — or if your listing is thin — you’re missing a key entry point.

Match how travelers talk.

Use natural language in your descriptions. A guest looking for a “romantic escape with mountain views and wine tastings nearby” won’t find you if your copy only says “luxury resort near trails.”

Add multimedia that machines can read.

Descriptive captions, alt text and filenames on images help AI understand your visual content. Video tours with narration and transcripts can also boost visibility, especially as tools like Google’s Multisearch continue to evolve.

Personalization Doesn’t Mean Creepy

Back on your own channels — email, SMS, retargeting — AI shines when it makes things feel personal without being invasive. It can help you recognize that a repeat guest who booked a couple’s massage last time might want a private cabana this time, or that a family that stayed in July now has interest in a fall escape.
Travelers are no longer just typing in search boxes. They’re asking AI to plan trips for them. If your resort’s online presence isn’t built to play well with those systems, you’ll be skipped – not because you’re not good, but because you’re not visible.

Getting found in the new AI-powered travel funnel means showing up early, with clean data, clear offerings and content that speaks the guest’s language. When you do that, you’re not just marketing smarter – you’re making it easier for the right guests to discover you in the first place.

Related: Marketing Fundamentals That Impact Guest Experience

Balancing Automation with the Human Touch

While these applications demonstrate AI’s potential, the most critical factor is knowing where to draw the line. Here are principles that successful independent resorts follow when implementing AI:

Automate the Routine, Humanize the Memorable

The best strategy is to use AI for repetitive, data-heavy tasks while reserving human interaction for moments that matter. Check-in paperwork, routine room assignments, and standard email responses are ideal for automation. In contrast, welcome greetings, special occasion celebrations and problem resolution should remain primarily human-driven, with AI providing support rather than replacement.

Make Technology Invisible Where Possible

Guests don’t need to know that AI is working behind the scenes to ensure their room is at the perfect temperature or that housekeeping arrives right after they leave for breakfast. The most elegant implementations of AI enhance the guest experience without drawing attention to the technology itself.

Train Your Team to Work Alongside AI

Success requires staff who understand how to leverage AI tools effectively. Make training a priority, and frame AI as an assistant that handles routine tasks so the team can focus on higher-value interactions. When staff see AI as an ally rather than a threat, they become more engaged with both the technology and the guests.
To train your team, there’s a variety of options, from supporting them enrolling in Cornell’s AI In hospitality program or taking classes on Skillshare or Section, both offering a variety of remote AI training programs.

Start Small, Learn & Expand

Don’t try to transform your entire operation overnight. Begin with a single application in one department, gather feedback from both staff and guests, and refine your approach before expanding. This measured approach minimizes risk while building internal expertise.

Getting Started Without Breaking the Bank

One of the biggest misconceptions about AI is that it requires massive investment. For independent resorts, there are several affordable entry points:

• Many property management systems now include AI features at no additional cost
• Cloud-based messaging platforms offer pay-as-you-go pricing that scales with your needs
• Specialized vendors provide solutions tailored to independent properties and smaller brands
• Some technology providers offer revenue-sharing models where you only pay for measurable results

Many smaller resorts have started with simple AI chatbots on their websites. These systems could typically handle 50-60% of pre-booking questions 24/7, leading to measurable increases in direct bookings while freeing up the front desk to provide more attentive service to on-property guests.

Get Creative

Many companies who release AI tools and features did not develop their own AI models, they are simply using an existing model to run the Generative AI side with custom apps and agents to make it do what you want it to do.

If you have a challenge or opportunity, you can truly consider if there’s a way AI can help and if you work with a person or company who has an understanding of APIs and low to no code app building, you may be able to craft some truly unique, customized and effective solutions without a heavy tech investment.

The Future is Balanced

As we look ahead, the most successful resorts won’t be those that adopt the most technology or those that resist change entirely. The winners will be properties that thoughtfully integrate AI to handle routine tasks while emphasizing and elevating human connections.

Your resort’s unique personality, culture and personal touch remain your greatest competitive advantages. AI should enhance these strengths, not replace them. When implemented wisely, technology fades into the background while the warmth of your hospitality shines brighter than ever.

By starting small, focusing on applications with clear benefits, and always keeping the guest experience at the center of your decisions, you can harness AI’s power while maintaining the personal touches that make your property special.

In the end, the goal isn’t to become a high-tech resort – it’s to use technology to become an even more hospitable one.

Kelley Ellert is the owner of Waterwheel Marketing, a marketing consultancy that develops and implements marketing solutions for hospitality businesses of all sizes. Find her on LinkedIn @kelley-ellert or at WaterwheelMarketing.com.