Hospitality is losing power to tech companies due to the rise of AI

Research from Hotelschool The Hague shows that the hospitality sector is structurally lagging behind in Artificial Intelligence (AI) applications: only one in ten Dutch hospitality businesses currently uses AI on a regular basis. This is a "code red" for the sector, as the economic value is rapidly shifting to external tech intermediaries.

From Brands to “Sleeping Utilities”

The report warns of a future in which hotels degrade into “sleeping utilities” —simple, interchangeable bed suppliers for the algorithms of tech giants. While AI-using companies in the broader economy are already responsible for half of total revenue, this is only a quarter in the hospitality sector. As hotel owners hesitate, external platforms are arming themselves with algorithms to take over the entire guest relationship.

Some striking future perspectives mentioned in the Hotelschool The Hague report are:

  • The efficiency trap: By 2028, 80% of hotels will have implemented AI assistants, but this comes at a cost 0% extra market share Efficiency has simply become the new price of market entry; it's a hygiene factor instead of a competitive advantage.
  • The human premium: The paradox of 2030 is that more technology actually demands more hospitality. Authenticity emerges as the only true competitive advantage. Whether it's a boutique hotel or a large chain, offering a demonstrable human connection is no longer reserved for "ultimate luxury"; it's the only way to remain visible in a world full of AI-generated experiences. “slop” (marketing noise).
  • Five scenarios for the sector: The report outlines extremes ranging from the Nightmare of No Slack (in which staff are chased down to the second by algorithms) to the Worker-Empowering Path (in which AI acts as a 'co-pilot' that removes the administrative burden and returns hospitality to the employee).

Call for digital sovereignty

The report isn't just another technological prediction, but a strategic roadmap to inform hospitality leaders on how to prepare for a future in the AI ​​era. "The question is whether we let technology overtake us, or whether we take back control through digital sovereignty," the study states. The report advises industry leaders to explicitly reinvest AI gains in "High-Touch" hospitality to remain relevant to the discerning guest of the future.

Developments in AI are moving at a rapid pace. It's therefore understandable that smaller companies, in particular, don't have (or don't take) enough time to closely monitor all these developments. Many prefer to wait and see which platforms become dominant and deliver the best quality. However, the added value, including for recreational businesses, is considerable. So, it would be a shame to completely ignore this development. Our advice:

  • follow AI developments in the recreation sector on Pretwerk.nl and make use of the most accessible resources now; the low-hanging fruit
  • Get guidance from a marketing agency that is on top of developments, such as Rescue Online Marketing, Tenzer of Booking Experts (all knowledge partners of Pretwerk.nl)
Explanation Pretwerk.nl

More information: Hotelschool The Hague | The AI ​​Power Gap: Hospitality Lags Behind as Value Shifts to Tech Giants

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