The term "digitalization" is often overused and sometimes misapplied, especially in industries that have already widely embraced digital transformation. Generally, digitalization refers to converting analog data and processes into digital formats. However, in sectors like hospitality, where most daily operations are already digitally based, the traditional concept of digitalization seems limited and, at times, even misleading.

True, we believe we are (and in part, are) a slow-moving industry in terms of innovation, but the fact remains that most data generated and used in the sector—such as OTA statistics, booking engines, ad campaigns, and customer relationship management platforms (like CRMs or marketing automation systems)—is already digital. This means we are no longer in the analog-to-digital conversion phase but a subsequent phase where the primary challenge is optimizing remaining analog processes, such as those linked to operational management, and strategically integrating new technologies.

Moreover, I think the term "digitalization" brings symbolic implications that can be problematic, primarily when associated with concepts of robotics or forced automation, in contexts like travel, where human contact and personalized attention are crucial elements of the guest experience, "digitalization" risks evoking a cold and impersonal image of service, suggesting a future where machines and artificial intelligence might replace human staff. Although this scenario is technically feasible in some cases, it risks alienating both customers (and our human employees) and devaluing the perceived experience rather than enhancing it.

Semantically, we cannot ignore that "digitalis" is also the name of a botanical genus that, in high doses, can become toxic, even lethal! This botanical metaphor is particularly fitting: "Digitalization," if poorly managed or implemented without an adequate strategy, can be harmful to internal organization and the guest experience.

For these reasons, I believe that "process optimization" is a more appropriate and less loaded term. "Optimization" conveys a sense of continuous improvement without imposing radical or forced transformations. It does not imply a complete dehumanization of operations but instead suggests a balance between technology and human intervention.

With that said, over the past decade, technology has permeated every aspect of hotel management, pushing establishments to review their operational processes radically. From reservation management to maintenance, the goal has been to increase efficiency, reduce physical resource use like paper, and improve service quality. This was not just a strategic choice but a necessity, accelerated by unforeseen events like the COVID-19 pandemic and economic crises. One area particularly impacted by this transformation has been operations, often seen as secondary compared to sectors like marketing or sales but representing the true beating heart of the guest experience.

But what happens when the workforce is scarce, and human resources are increasingly difficult to find? One of the most severe effects of the pandemic on hospitality has been precisely the labor shortage. Extended lockdowns and economic uncertainty led many workers in the sector to seek alternatives in areas perceived as more stable and less exposed to tourism's volatility. The post-pandemic period has seen a 25% loss of workers in the sector, and this percentage continues to grow in many regions worldwide. This workforce hemorrhage has devastated many hotels and restaurants, which have had to cope with rising demand (revenge travel) with a reduced operational team. Some hotels, for instance, have had to cut back on daily cleaning services or extend check-in and check-out times due to a shortage of qualified staff. Data show that while hospitality job postings have increased by 23%, employment has only grown by 12%, creating a strain on the entire ecosystem. Furthermore, prestigious institutions like the Ecole Hôtelière de Lausanne are witnessing a worrying drop in graduates pursuing tourism careers, with many choosing professional paths focused on luxury brand management or the finance sector.

Service quality is inevitably one of the aspects most affected by labor shortages. Guests expect high service standards, especially after prolonged restrictions and uncertainties. However, quality suffers when hotels are forced to operate with a reduced team. During a recent stay at a hotel in Rimini, for example, I noticed that my room had not been cleaned until four in the afternoon despite having been occupied the previous evening. Speaking with the staff, I discovered that a single attendant was responsible for cleaning four floors of the hotel. This situation, which would have been unacceptable under normal conditions, has become almost the norm in many establishments due to a lack of resources.

Technology emerges as the most promising solution to tackle these challenges in this context. However, merely implementing technological tools without a strategic approach is not enough. The clumsy examples of complete automation (such as the Japanese Hen-na Hotel with its android receptionists), which entirely replaced human staff with artificial ones, demonstrate that the total elimination of the human factor can lead to adverse outcomes, alienating guests rather than enhancing their experience.

The "Human-in-the-Loop" model, which combines artificial intelligence (and robotics, and automation in general) with human intervention, can help bridge the gap between supply and demand, improving efficiency without sacrificing service quality. The "Human-in-the-Loop" (HITL) concept developed in the mid-20th century when the interaction between humans and machines began to be studied in fields such as cybernetics. However, the term began to spread more concretely with the development of artificial intelligence and automated systems. In essence, the "loop" refers to humans acting as supervisors: they monitor, correct, and intervene in automated processes to ensure everything works correctly and upholds quality, safety, and ethical standards. It is a concept that emphasizes the importance of human involvement even in the most advanced technologies, but with a reversed paradigm: the machine acts, and the human corrects.

One of the most significant HITL developments is conversational and predictive reporting, emerging as a revolutionary tool in managing resources and operational processes in the hospitality sector. This technology enables operators to interact with data naturally, using everyday language to ask direct questions and receive immediate responses, eliminating the need to interpret complex technical reports or go through intermediate analysis stages. The power of these systems lies in their ability to combine AI algorithms with extensive data analysis and, increasingly, small data analysis—those granular and specific data points that often provide a more detailed and contextual understanding of daily operations. Conversational reporting enables data monitoring and predictive tools that allow hoteliers to make proactive and informed decisions.

Another area of application highlighting its strategic utility is predictive maintenance. Using machine learning algorithms and historical analysis, these systems can suggest technical interventions before breakdowns or malfunctions occur, minimizing downtime and enhancing overall operational efficiency. This way, hotel establishments can anticipate technical issues, avoiding disruptions that could compromise the guest experience while optimizing technical staff schedules.

The future of hotel management is clearly oriented toward predictive automation, an increasingly indispensable approach as the volume of generated data grows exponentially, requiring faster and more efficient processing. While still functional, traditional spreadsheet analyses or Business Intelligence tools are no longer sufficient to handle the complexity and speed of data evolution. In this context, AI is no longer viewed simply as a support tool but as an actual "artificial colleague" to whom every department can turn for real-time responses on a wide range of operational issues.

This predictive capability extends beyond human or technical resource management to market trend analysis and customer needs. Imagine a system that, by analyzing historical data and integrating external information like local event schedules, can predict a peak in bookings for a certain period and suggest hiring temporary staff to meet growing demand. Or a system capable of detecting recurring technical issues, such as room lighting anomalies, and proposing a preventive intervention before the problem becomes apparent to guests. Adopting these technologies enhances operational efficiency and allows for a more personalized and proactive guest experience, minimizing problems and anticipating their needs.

Contrary to the fears of many, AI (and automation in general) does not represent a threat to employment in hospitality. If well implemented, digitalization should never mean the complete dehumanization of processes. On the contrary, the ultimate goal of technology in hospitality is to improve operational efficiency without sacrificing human interaction.

So don't worry: the future of hospitality will keep humans at the center of an advanced digital ecosystem where technology supports—not replaces—human resources.

In other words, always human, yet "in the loop"...

2. Some concerning data: in the European hospitality sector, there are 1.2 million job vacancies, a significant shortage that affects service quality (European Union Labor Report). In the United States, about 25% of workers who left the sector after the pandemic have no intention of returning, preferring fields perceived as more stable (US Job Market Report). Job openings in the U.S. hospitality industry have increased by 23% compared to pre-pandemic levels, while employment has only grown by 12%, highlighting a persistent gap (U.S. Bureau of Labor Statistics). Among graduates from the École Hôtelière de Lausanne, over 50% choose careers outside hospitality, such as luxury retail and consulting (École Hôtelière de Lausanne).