
Jennifer Hill, Senior Vice President, Commercial Strategy, Kalibri, HSMAI Revenue Optimization Advisory Board Member
Automation is everywhere, and hospitality is feeling it. This piece comes from a recent discussion by the revenue advisory board.
The participants agreed that the question isn’t whether technology will expand, but what happens to hospitality when it does. One line from the conversation hit the center of the issue: “We won’t know until we’ve gone too far.”
A recent Harvard Business Review article framed it clearly: efficiency scales, but human connection differentiates. As one discussion participant pointed out, the moments when human interaction matters most are also the moments when revenue and loyalty are most at stake: service recovery. high value guests, long lead bookings. These are the places where automation creates risk, not relief.
Across the group, a pattern surfaced. Routine questions? Automate them. Anything that removes friction for the guest? Automate that too. But experiential touchpoints — the ones that shape loyalty, pricing power, and return behavior — stay human. A callback after checkout at a leisure resort landed because it felt intentional. Nobody expected it at an economy hotel, and expectations matter.
Chain scale framed much of the debate. Some expect the “human touch” to become a luxury, with automation freeing staff to focus on higher value interactions. Others questioned whether loyalty even holds the same weight in a world defined by efficiency and rising labor costs. The examples of “autonomous hotels” underscored the gap between promise and practice. Fully automated rarely means fully autonomous.
Still, one of the sharper questions came late in the discussion: if technology handles most transactions, and efficiency becomes table stakes, what will actually create pricing power? Will it be efficiency, personalization, brand strength, or human hospitality? Initial answers split, but the group agreed that traveler intent adds another layer. A business traveler arriving at midnight wants speed. A leisure guest wants connection. The same brand can deliver both if it knows who it’s talking to.
The last thread focused on segmentation. Traditional models aren’t holding up against today’s patterns, and without accurate signals, personalization is limited. Several pointed to the value of first-party data and engagement — prearrival behavior, direct booking behavior, and what guests opt into or ignore. Others noted that even the best segmentation doesn’t matter if the technology doesn’t work. Friction kills trust fast.
The conversation ended with more questions than answers, which seems right for where the industry is. Automation is accelerating. Human hospitality still matters. The tension between them is where commercial strategy now lives.
Recommended Reading
- In an Automated World, Human Hospitality Is a Competitive Advantage
- Human Hospitality as a Competitive Advantage (quick video overview of above article)
- How to Redesign Work for the Age of AI
- Designing AI That Makes Us Better Humans (podcast)
- Horst Schulze (Ritz-Carlton) on Service Excellence and Leadership
- AI-Powered Concierge Solutions Are Shaping the Future of Hotel Guest Engagement
Questions for Teams
- As hotels adopt more automation across booking, messaging, and operations, where should hospitality organizations intentionally preserve human interaction because it drives higher revenue, stronger loyalty, or greater lifetime value?
- How much influence should commercial leaders have in shaping the guest experience if that experienceultimately drivespricing power, repeat business, and long-term revenue growth?
- Where have you seen human hospitality directly influence revenue performance, whether through higher ADR, repeat stays, ancillary spending, or stronger guest loyalty?
- When evaluatingnew technologyinvestments, how should organizations balance cost efficiency with the potential revenue upside of better guest experiences and stronger loyalty?
- If AI eventually handles most transactions and operational efficiency becomes table stakes, what will create pricing power for hotel brands in the future? Is it efficiency, data-driven personalization, brand strength, or authentic human hospitality?