AI, Productivity, OTAs and New Business Models: 4 Key Trends Shaping the Future of Hospitality
How many articles that you've read recently begin with something like:hospitality is changing faster than ever. It’s a common intro because it’s a recurring theme (and because it’s one of ChatGPT’s favorite phrases) – but that doesn’t make it any less true.
Of course, change is always happening within our industry. Some of it is easy to predict and see with our own eyes, but sometimes we need to take a few steps back and enlist the help of some real hospitality visionaries to look at the bigger picture. That’s exactly what we did in the 2025 Hospitality Outlook: Key Trends and Expert Predictions, which is the subject of episode 13 of Matt Talks.
Watch the video to see Mews CEO, Matt Welle, unpack some of the report’s key findings, specifically the four key trends that will likely shape the next year in hospitality, from the rise of AI-driven personalization to the growing diversification of hotel offerings. If you prefer the written word, read on here for some of the highlights.
1. AI Will Revolutionize Guest Experience and Solve Long-Standing Industry Problems
Artificial intelligence (AI) is rapidly becoming one of the most important tools in hospitality. The potential for AI to improve both guest experiences and operational efficiency is vast, and the industry is beginning to scratch away at the surface.
For years, hotel operations have been hindered by legacy systems that were not designed to meet the evolving needs of guests. Front desk staff often spend more time entering data into systems than engaging with customers, and guest profiles are scattered across multiple disjointed platforms. AI offers a solution by enabling hotels to gather and analyze massive amounts of guest data in real time, allowing for personalized experiences and predictive service delivery.
For example, AI tools can aggregate data such as guest preferences, previous complaints and special requests, creating a more holistic profile that staff can use to enhance experiences. At Mews, this technology has already been implemented with the "Smart Tips" feature, which displays relevant guest information to hotel staff at the point of check-in, ensuring a seamless and personalized experience from the moment guests arrive.
But AI’s potential doesn’t stop at personalization. AI-powered chatbots and predictive systems are also revolutionizing the way guests interact with hotels. AI tools can anticipate what a guest may need based on historical data – whether it's a specific pillow type or a preferred dining option – allowing the hotel to prepare in advance. As AI continues to evolve, it will increasingly support human staff in delivering exceptional service while automating routine tasks.
2. Staff Productivity Will See a Major Boost with Modern Tech
One of hospitality’s most significant challenges is staff productivity. Historically, hotel operations have seen little improvement in productivity, particularly when compared to other industries. The lack of automation and reliance on outdated systems has created inefficiencies, especially in areas like front desk operations and housekeeping.
The post-pandemic hospitality industry has faced a staffing shortage, making it even more urgent for hotels to find ways to improve productivity without compromising service. The key to solving this issue lies in adopting modern cloud-based systems and leveraging AI-driven automation.
Cloud-based platforms can drastically improve hotel productivity by integrating various operational systems and allowing staff to access the tools they need more quickly. For example, automated check-in kiosks, mobile check-in apps and AI-driven chatbots reduce the amount of time staff spend on administrative tasks, allowing them to focus more on delivering a personalized guest experience.
By eliminating the need for data entry and routine tasks, employees can return to what they love about hospitality – connecting with guests and creating memorable experiences. However, hotels must also rethink how they attract new talent. The traditional concept of hotel work, which often involves long hours at a front desk or housekeeping with minimal technology, is no longer appealing to younger generations. The focus must shift to making the job experience enjoyable, leveraging technology to streamline workflows and allowing staff to focus on delivering exceptional service.
3. A Shift Away from OTAs Toward Direct Bookings
For years, OTAs like Booking.com and Expedia have dominated the hotel booking landscape, capturing a significant portion of the market. However, AI-driven innovations are shifting this dynamic, with hotels now able to reclaim some of their direct booking power.
The rise of AI chat tools, like ChatGPT and Claude, is changing the way travelers search for accommodations. Instead of turning to OTAs first, guests are increasingly asking AI systems to help them plan their travel. These tools can filter through thousands of options and surface personalized hotel recommendations based on criteria like location, price, and amenities. As a result, hotels are seeing more direct traffic, bypassing OTAs in favor of branded, user-friendly websites.
But there’s a catch: many hotel websites remain outdated, difficult to navigate and lack the information travelers need to make booking decisions. To capitalize on the AI-driven shift, hotels must invest in improving their digital presence. AI tools will help surface the most relevant content for guests, such as detailed descriptions of facilities (gyms, family-friendly amenities, etc.) and local attractions, but hotels will need to keep their websites updated, intuitive and engaging to fully benefit.
Loyalty programs will also play a key role in shifting business away from OTAs. Traditionally, hotel loyalty programs have focused on points for stays, but there’s an emerging trend toward non-traditional loyalty programs, such as partnerships with credit card companies. These programs offer incentives for direct bookings, making it easier for guests to commit to a specific hotel brand.
4. Diversification of Hotel Offerings: The Rise of Extended and Hybrid Stays
Another significant trend gaining momentum is the diversification of hotel portfolios. With the rise of hybrid and long-term travelers such as digital nomads, extended-stay guests and bleisure travelers, traditional hotel models are evolving.
The pandemic accelerated this trend, with many travelers seeking longer stays and more flexible accommodation options. Major hotel chains are already making significant moves into the extended stay market. For example, Hilton acquired Graduate Hotels to tap into a younger generation of travelers, while Hyatt expanded with the Apple Leisure Group acquisition. Accor, too, has been investing heavily in the extended stay and aparthotel categories.
Hotels are increasingly offering more versatile accommodation options, such as rooms with kitchenettes, coworking spaces and wellness facilities. These amenities cater to the needs of long-term and hybrid travelers who require more than just a place to sleep. The shift is evident in hotel concepts like The Social Hub, a European brand that blends student housing with short stays, offering a flexible, community-driven experience that appeals to a variety of demographics.
For hotels to succeed in this space, however, technology will be key. Managing reservations for stays ranging from one night to several months requires sophisticated systems that can handle different types of billing and guest expectations. Hotels will need to ensure they can provide the same level of personalized service across varying lengths of stay.
Conclusion
The hospitality industry is undergoing a transformation, driven by technology, evolving guest expectations and new business models. AI is paving the way for personalized, data-driven guest experiences while modern cloud-based systems are improving staff productivity and efficiency. Hotels are also increasingly moving away from OTAs, reclaiming their direct booking channels and diversifying their portfolios to meet the needs of a broader range of travelers.
To remain competitive, hotel operators must embrace these changes, invest in new technology and rethink traditional business models. The future of hospitality lies in leveraging the power of AI, adapting to the demands of modern travelers and creating experiences that go beyond the conventional hotel stay.
Want to find out how to best prepare your business for success? 2025 Hospitality Outlook: Key Trends and Expert Predictions includes insights from industry leaders from the likes of Skift, BWH Hotels, Stripe and Wyndham Hotels & Resorts.
About Mews
Mews is the leading platform for the new era of hospitality. Powering over 5,500 customers across more than 85 countries, Mews Hospitality Cloud is designed to streamline operations for modern hoteliers, transform the guest experience and create more profitable businesses. Customers include BWH Hotels, Strawberry, The Social Hub and Airelles Collection. Mews was named Best PMS (2024) and listed among the Best Places to Work in Hotel Tech (2021, 2022, 2024) by Hotel Tech Report, as well as World's Best Hotel PMS Provider (2023) and World's Best Independent Hotel PMS Provider (2022, 2023, 2024) by World Travel Tech Awards. Mews won the Top 250 Golden Scaler Award in 2024, given to the fastest growing company in the Netherlands, and most recently, was awarded the Tech Hero 2024 Award at CIODAY. Mews has raised $335 million from investors including Goldman Sachs Alternatives, Kinnevik and Revaia to transform hospitality.
