Breaking Through Hospitality’s Resistance to Tech Change

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Over the past decade, technology has transformed the hospitality industry, delivering measurable performance gains across operations and guest experiences. Hotels adopting cloud-native platforms, AI-driven personalization, mobile-first guest interfaces and integrated management systems consistently report tangible results. According to a recent report from Starfleet Research, 82% of hoteliers using integrated, cloud-based platforms have improved staff productivity, while those using dynamic pricing engines saw boosted RevPAR by as much as 16% compared to peers.

Despite these results, adoption remains somewhat stagnant. Only 24% of properties report full core system integration, and nearly one-third still manually price rooms or adjust rates just once a week. By remaining tethered to outdated processes and disconnected systems, many hotels will not only see slowed operations but also fall behind more agile competitors. In today’s market, where guest expectations are shifting faster than ever, delaying technology investment is more than a missed opportunity – it's a growing liability and growth left on the table. Hotels that embrace integration, automation and real-time intelligence are not only future-proofing operations, they are building resilience, unlocking revenue and creating the kind of guest experiences that foster true relationships and loyalty.

The Cost of Standing Still

In my experience, the biggest shift in recent years has been the guest expectation of digital-first interactions at every stage of the lodging journey. Guests no longer see mobile check-in, personalized offers or dynamic pricing as “nice to have,” but as the new baseline expectation. A recent analysis of the travel and hospitality sector shows that many customers now expect digital-first interactions across the full lodging journey. However, many hotels are not meeting those expectations. In fact, nearly 80% of American travelers encountered at least one travel-related issue in the first half of 2023, a clear sign that service gaps remain as guest expectations grow more digital-first.

With these expectations known, too many hotels are falling short. In conversations across the industry, I’ve seen this divide firsthand. Some operators still rely on outdated property management systems, weekly pricing updates, or manual check-in processes, leading to slower service, frustrated staff and missed revenue opportunities. Others, however, are embracing integrated, AI-driven platforms and seeing tangible results. Marriott International, for instance, has woven predictive analytics into its Bonvoy loyalty program and revenue management systems, boosting guest satisfaction by 12% and repeat bookings by 20%. Hilton’s “Connie” AI concierge and The Cosmopolitan of Las Vegas’s “Rose” chatbot have redefined real-time engagement by delivering personalized recommendations and on-demand assistance. Even smaller groups using CRM systems integrated with AI are beginning to offer hyper-personalized stays, tailoring promotions, room preferences and upsell opportunities based on guest behavior. The difference between those leading with data and those clinging to legacy systems is striking. One group is accelerating ahead, while the other is slowly losing relevance.

Technology adoption is not a far-off vision–it is already reshaping the leaders in our industry today. The hotels investing in connected, data-driven systems are proving that modernization doesn’t diminish the human touch; it amplifies it. Those who continue to wait are not simply standing still–they are falling behind.

Why Resistance Persists

Resistance to change in the hospitality industry, specifically in regards to technology, stems from several factors:

• ‍The human touch versus tech skepticism: In a service-led industry, many leaders worry that technology will erode the personal connection that defines hospitality.‍
• Cost and disruption fears: System overhauls can be expensive and risky, especially for smaller properties operating on thin margins.‍
• Legacy inertia and a “we have always done it this way” mindset: It feels easier to replicate existing workflows than to reimagine processes from scratch.‍
• Leadership and skills gaps: Even when teams see the need, many properties lack the strategic vision or internal expertise to execute at scale.

Consider dynamic pricing as one example. After the pandemic, hotel groups that had adopted algorithmic pricing and integrated guest data bounced back faster in occupancy cycles than those who didn’t. This is because they had systems in place to help them meet shifting demands in a time of change for the industry. These systems helped them battle uncertainty and make the most of the “new normal” faster. Properties that kept static weekly or manual pricing found themselves undercut during periods of high demand, missing valuable revenue opportunities. Similarly, hotels that delayed mobile key or contactless check-in features recorded lower guest satisfaction scores compared to those that implemented them quickly. Resistance is not just philosophical. It directly impacts competitiveness and guest loyalty.

Building an AI-first, Fully Integrated Mindset

To move from resistance to momentum, hospitality leaders must begin treating technology as a strategic enabler rather than a line item on the balance sheet. Unified, cloud-based platforms are a crucial first step, reducing silos, improving data accuracy and giving hotels the agility to respond more quickly to guest needs and market shifts. Beyond the back end, AI-driven personalization allows properties to move past generic offers and instead deliver tailored recommendations that resonate with individual guests, fostering loyalty.

Recent research from McKinsey highlights how the travel industry is reimagining the guest journey through predictive insights and personalization at scale. Since 2013, time spent on digital devices has grown by 70%, accelerating the shift toward digital-first interactions and raising the bar for hospitality experiences. Real-time pricing and demand management further elevate performance by allowing hoteliers to adjust rates dynamically and capture revenue that static models leave behind. Importantly, modernization is not about replacing staff but about empowering them. By automating repetitive tasks, employees are freed to the higher-value, human aspects of service, such as anticipating guest needs, offering personalized recommendations and creating memorable in-person experiences.

From “copy-paste” to Transformation: Practical Steps

To close the gap between rising guest expectations and current operations, hotels need more than just new tools–they need a roadmap. Change doesn’t happen overnight, but by taking a structured approach, properties can make progress step by step.‍

• ‍Annual technology audits: Review your organization’s  full stack yearly to identify duplication, gaps and outdated tools.‍
• Develop strong change management and training programs: Educate your teams on how to remain nimble and agile to better adjust to shifting tech. Many transformations fail due to poor adoption, not flawed technology.‍
• Secure executive buy-in and articulate a clear vision: Leaders must frame technology as an investment in guest experience, not just a back-end upgrade.‍
• Deploy iteratively: Pilot modules, gather feedback, and scale gradually while maintaining service continuity.

Hotels that take this phased and people-centric approach are more likely to see positive ROI, avoid resistance, and sustain momentum.

A Digital-first Future for Hospitality

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Hospitality has always evolved around guest expectations. Today, those expectations are overwhelmingly digital. Guests increasingly want seamless booking, tailored offers, contactless check-in and intelligent recommendations, and are prepared to make purchasing decisions based on who can offer these features to them. The industry is entering a new era where AI and real-time decision-making reshape how people plan, stay and share their experiences.

Hotels that embrace this shift will lead in efficiency, loyalty, and profitability. Those that cling to “the way things have always been done” – legacy systems–risk being outpaced in operations, service, and guest perception. The path forward is clear: technology and hospitality must work hand in hand to deliver the next era of growth.