Hotels are using AI to recommend room rates, not set them

What It Says

According to RoomPriceGenie’s 2026 State of Revenue Management Report, which surveyed 450 hoteliers across North America, Europe, and Asia-Pacific, artificial intelligence has become a staple for pricing strategy, yet human oversight remains dominant.

Key statistics from the report include:

53% of hoteliers use AI to generate room rate recommendations.
16% of those users employ AI extensively in their workflows.
35% are currently piloting or evaluating AI pricing tools.
77% express confidence in AI-driven pricing suggestions.
Only 10% of respondents trust AI enough to let it make final pricing decisions autonomously.

Why It Matters

For years, the hospitality tech sector has championed fully automated dynamic pricing. However, these findings reveal a significant trust gap. While hoteliers value machine learning for processing complex datasets and generating baseline recommendations, they are hesitant to hand over complete control. This "human-in-the-loop" approach highlights a demand for software that acts as a co-pilot rather than an autopilot, ensuring local market nuances and brand strategies are not lost to pure algorithmic calculation.

Useful Signals

The Trust Gap: Despite 77% of hoteliers trusting AI recommendations, only 10% permit automated execution, signaling that revenue managers still want veto power over algorithms.
High Adoption Runway: With 35% of properties currently piloting or considering AI tools, there is a massive active pipeline for revenue management system (RMS) vendors.
Market Penetration: Only 11% of surveyed hoteliers have no plans to use AI, indicating that algorithmic pricing is no longer an emerging trend but an industry standard.

STR Tech Report Take

The short-term rental (STR) industry has historically leaned heavily on fully automated dynamic pricing tools like Wheelhouse, PriceLabs, and Beyond. However, as the STR market professionalizes and aligns closer with boutique hotel operations, operators are demanding more granular control.

STR technology vendors should take note of this hotel-side data. Instead of building "black-box" algorithms that automatically push rates to OTAs, developers should focus on explainable AI (XAI). Features that explain why a rate was recommended and allow operators to easily adjust, override, or set guardrails will win over larger property management companies who manage complex portfolios and cannot risk algorithmic errors.

Original Source

PhocusWire: Hotels are using AI to recommend room rates, not set them