Industry Brief

Hotels still stuck on manual work despite increased AI adoption

The latest State of Distribution report from NYU, RateGain and HEDNA suggests that midsize chains are best positioned to benefit from AI., CredSpark is a powerful, interactive content platform that helps organizations maximize the potential

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STR Tech Report Research Desk
Oct 1st, 2026
2 min read

Source

PhocusWire

What It Says

Despite rising artificial intelligence (AI) adoption across the hospitality sector, lodging operators remain heavily burdened by manual processes.

According to a study by hospitality consultancy H2c, 69% of hotels still rely on staff to manually input guest preference data. Only 19% leverage AI-driven extraction tools to capture this information from guest interactions.

Furthermore, "The State of Distribution 2026" report—jointly published by New York University (NYU SPS), RateGain, and HEDNA—reveals that over 80% of commercial hospitality teams spend one to two days every week manually generating and analyzing reports.

Why It Matters

For short-term rental (STR) operators and technology vendors, this gap highlights a critical friction point in hospitality operations. While high-level AI tools are frequently marketed, basic data entry and reporting workflows remain unautomated.

STR property management systems (PMS) and unified hospitality platforms that can successfully automate these administrative bottlenecks have a significant opportunity to capture market share from legacy systems that still require heavy manual intervention.

Useful Signals

  • 69% of hotels still manually log guest preferences, indicating a massive market for automated guest relationship management (CRM) tools.
  • Only 19% of properties utilize automated, AI-driven extraction for guest profiling.
  • Over 80% of commercial teams lose 20% to 40% of their workweek (1–2 days) simply compiling and analyzing reports.

STR Tech Report Take

The hospitality industry is experiencing an "automation paradox." While executive teams are eager to discuss generative AI and advanced guest-facing chatbots, the foundational back-office infrastructure remains surprisingly analog.

STR operators should prioritize software vendors that focus on "invisible automation"—such as automated guest profiling, automated financial reporting, and cross-channel data synchronization. Technology vendors who solve these unglamorous, time-consuming administrative tasks will deliver much higher immediate ROI to operators than those offering superficial AI features.

Original Source

PhocusWire: Hotels still stuck on manual work despite increased AI adoption

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