Business Update15 Sept 2026, 06:50 pm
Hotels Use AI, But Few See Real Impact: RateGain Report
AI Summary
A new report by RateGain, NYU SPS, and HEDNA reveals that while over 50% of hotels are adopting AI, less than 10% are experiencing significant reductions in manual work. The 'State of Distribution 2026' report, based on data from over 58,000 hotel properties, highlights a gap between AI adoption and tangible impact. Key challenges include trust, data privacy, and governance concerns, leading hotels to focus on optimizing existing systems rather than expanding platforms. The report also notes that despite direct booking tools, OTAs continue to dominate bookings, and AI-originated searches are growing faster than hotel distribution strategies can adapt.
Key Highlights
- Over 50% of hotels use AI, but under 10% see significant impact.
- Trust, data privacy, and governance limit AI autonomy in hotels.
- Hotels prioritize optimizing existing systems over new platform expansion.
- OTAs still generate nearly twice the bookings of direct hotel channels.
- AI search is driving bookings faster than hotel strategies adapt.
Price Impact
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