Hotels Embrace AI, but Few Report Major Gains From the Technology

Artificial intelligence is becoming increasingly common across the hotel industry, but new research suggests that widespread adoption has yet to translate into major operational improvements for most properties.

The findings come from the third edition of The State of Distribution 2026, a benchmark study produced by the NYU School of Professional Studies Jonathan M. Tisch Center of Hospitality in partnership with RateGain Travel Technologies and HEDNA. The research draws on information from more than 270 hotel brands and over 58,000 properties across 141 cities and 53 countries.

More than half of the hotels surveyed said they were already using or procuring generative AI. However, fewer than one in 10 reported that the technology had reduced their manual workload by more than 30%. For many hotels, AI is currently delivering incremental improvements rather than fundamentally changing how commercial teams operate.

The study also identified reporting as one of the industry's major areas of inefficiency. More than 80% of commercial teams continue to spend between one and two days each week preparing and analysing reports manually, while fewer than 30% have invested in dedicated reporting systems.

Data fragmentation remains another challenge. Although marketing, sales, distribution and revenue teams are working more closely together, disconnected systems and multiple technology vendors continue to complicate operations.

The report also found that online travel agencies remain a major source of bookings, generating nearly twice as many reservations as hotel-owned digital channels. At the same time, AI-driven searches are beginning to generate bookings, even though 55% of hotels have made little or no change to their distribution strategies.

The research suggests that hotels are moving toward greater technology investment, but converting those investments into measurable operational gains remains an ongoing challenge.

15-09-2026