TLDR: A recent report by PYMNTS Intelligence reveals that 52% of hospitality customers expect generative AI to be part of their customer interactions, including check-in processes, highlighting a rapid shift in consumer expectations for digital service in the travel and hospitality sectors.
A new report from PYMNTS Intelligence, titled ‘At Your Service: Generative AI Arrives in Travel and Hospitality,’ indicates a significant shift in consumer expectations within the hospitality sector. Published on August 26, 2025, the study reveals that a striking 52% of hotel guests and hospitality customers now anticipate the integration of generative artificial intelligence (AI) into their customer interactions, such as support and engagement. This expectation underscores the rapid pace at which digital service preferences are evolving.
The report highlights that even as the travel industry navigated post-holiday recovery and economic uncertainties, both airlines and hotels were actively exploring the potential of generative AI. Early experiments detailed in the study show AI being piloted across various aspects of travel. Airlines, for instance, are leveraging AI to manage passenger communications more effectively, with examples like United Airlines introducing an AI-powered text update system for real-time weather delay information, aiming to reduce passenger frustration and free up staff for strategic tasks. Hotels, on the other hand, are focusing on personalizing marketing efforts and enhancing guest support.
Beyond check-in, consumer willingness to engage with AI extends to other services. The report notes that 56% of travelers would readily use generative AI for restaurant recommendations, envisioning AI as a digital concierge for dining, accommodations, and activities. This suggests a growing acceptance of AI’s role in streamlining and enriching the overall travel experience.
However, the rapid adoption of AI is not without its challenges and risks. The report points out a concerning rise in AI-driven travel scams, with Booking.com reporting a staggering 900% surge in such incidents over the past 18 months. These scams often involve sophisticated phishing emails and fraudulent listings, forcing companies to balance the benefits of efficiency and personalization against the potential for alienating customers or exposing them to fraud. The competitive landscape is also intensifying, with hotels accelerating investments in AI to enhance guest experiences and differentiate themselves.
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Despite these hurdles, the overarching trend indicates that AI is becoming a cornerstone of innovation in hospitality. Hotels, resorts, and travel businesses are leveraging AI to deliver hyper-personalized guest experiences, improve operational efficiency, and elevate their digital presence, particularly through mobile applications. The future of AI in hospitality is seen not just in automation but also in personalizing guest interactions through chatbots and virtual assistants, offering real-time assistance and seamless services. The adoption of AI in the hospitality industry is projected to grow by 60% annually from 2023 to 2033, with AI-powered analytics playing a critical role in personalizing services and enabling data-driven marketing campaigns.
