Hospitality is believed to be an industry where human connection is the primary differentiator, so replacing humans with robots, AI and automation is considered by some as contrary to the very nature of our industry.

Here is my take.

The classic philosophy in hospitality is that guests require services provided by super nice, smiling, well-trained humans. I believe this philosophy is greatly exaggerated, especially today. A great example of why guests do not care about human-provided services comes from the vacation rental sector.

Today, 20% of roomnights are consumed at vacation rentals/ short-term rentals: houses, villas, condos and apartments. From booking online to the actual stay, the whole experience is completely HUMANLESS! These same travelers who have experienced this humanless hospitality are prepared to do so at traditional accommodation types such as hotels, resorts, casinos, motels, etc.

There are three extremely important issues plaguing the industry today that are, inevitably, leading the industry to adopt more technology at the expense of humans: a) never-ending labor shortages, b) unsustainable labor costs and c) need to provide adequate services to the exceedingly tech-savvy and DIY (do-it-yourself) customers.

In my view, only through accelerated investments in technology - cloud, mobility, AI, robotics, IoT and other next gen technology applications and innovations - can the hospitality industry solve the three major industry issues outlined above.

The goal here is simple: do more with fewer employees by using technology and reduce the property’s staffing needs by a significant percentage.

In the near future, thanks to AI, robotization and automation, hoteliers will operate on average with 50% lower staffing levels vs 2019: 75% for budget, economy, extended stay and mid scale and 25%- 35% for 5-star luxury hotels and resorts.

100% humanless hotels like the Otonomus Hotel in Las Vegas or Omena Hotel in Helsinki or semi-humanless hotels will flourish in this technology-rich future.

Max Starkov
Hospitality & Online Travel Tech Consultant & Strategist

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