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Impact and Misconceptions of AI in Hospitality

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AI in Hospitality Hudini

By Prince Thampi, Founder and CEO of Hudini

AI in hospitality is here to stay, but which technologies will immediately impact the industry, and how do we overcome adoption hurdles?

Let’s be clear. Artificial intelligence in the hospitality industry is here to stay. All over the world AI-powered technology is being implemented in hotels in some form or other, and over the next decade AI will evolve to become even more sophisticated, driving a record transformation of the industry.

AI in hospitality globally was valued at USD 90 million in 2022 and is estimated to reach USD 8,120 million by 2033, with a compounded annual growth rate (CAGR) of 60%, according to research by WeMarket. Further to this, research by Colliers International estimates 73% of manual activities in the hospitality industry have the technical potential for automation.  

THE IMMEDIATE IMPACT OF AI

Today, AI fuels hotel technology across a spectrum of features and services already. Here, I’d like to spotlight three areas where I believe AI is poised for significant growth and impact in the industry.

  1. Revenue and cost

The strength of AI-driven analytics is the ability to analyse huge amounts of data with a speed and accuracy beyond human capabilities. This is valuable in many aspects of hotel operations, but especially critical in roster optimisation and dynamic pricing strategies. Previously, these used to rely on manual predictions based on historical trends. With data-driven analytics and algorithms, a multitude of variables such as past booking patterns, room occupancy rates, seasonal trends, competitor rates, and even local events can be computed in real-time, allowing hoteliers to make informed pricing and staffing decisions.

  • Conversational experiences

Hotels need to be accessible on the same channels as their guests. Chat-based conversations are expected by today’s travellers, and, quite frankly, this is an easy win for hoteliers. Automated and assisted conversations – including WhatsApp, WeChat, Siri, Alexa and Messenger – are the new norm within customer service. What’s more, multilingual AI assistants can bridge language gaps effortlessly by communicating with guests in their preferred language. In the future, we will see more advanced options, such as sentiment detection, emotive conversations, and human-bot cooperations be deployed in customer service. 

  • Assistive technology for staff

A digital assistant for hotel staff can help manage daily operations while, at the same time, increase efficiency and alleviate staff burnout. Automated tasks include data entry, digital communication across the property, unified guest communication across multiple channels, guest check-in, and ID registration. Furthermore, assistive tech can automate the verification of guest meal/entitlement plans in outlets, integrate the verification with point-of-sale systems, and present dashboards with a bird’s-eye view of operations and analytics to support decision making.

DEBUNKING MISCONCEPTIONS

Tech adoption accelerated during the global pandemic with the immediate need for contactless solutions. However, looking at other sectors such as retail, banking and e-commerce, it seems hospitality as an industry still lags when it comes to digital transformation. Some hoteliers may not fully understand how AI technology works or how it can benefit their business. This lack of understanding can lead to skepticism and hesitancy about investing in AI solutions. So, let’s look at some of those misconceptions.

AI is expensive
It is a common misconception among hoteliers that a huge investment is required to deliver results. The truth is that there are many cost-effective AI applications that start giving a return on investment within the first year. For example, at Hudini we have seen customers using chatbots in customer service operations save 15-30% man-hours per year, and savings of 60-70% man-hours per year with AI powered check in solutions.

AI is only for large hotel chains
No, size doesn’t matter. Independent and small hotels can also leverage the benefits of AI depending on how it is deployed. Face recognition, for example, can be implemented for compliance purposes and guest convenience regardless of the size of the hotel, and a digital concierge can upsell in any type of hotel based on existing guest data.

AI is impersonal
58% of guests feel that AI improves their hotel booking and stay experiences, according to Hotel Tech Report. Personalisation, made possible by AI-powered data handling, is key here. Also, future generations of guests, such as Millennials and Gen Z, prefer contactless self-service available round the clock. AI in customer service, such as chatbots, automated social media messaging, and push notifications can reply instantly to inquiries 24/7.

AI will replace the hotel staff
No, AI will never replace all the staff human staff and the work they do. In fact, one hotel in Japan tried operating with 100% robot staff, and it failed. Instead, AI increases staff productivity by handling manual and repetitive work, for example check-ins, standard guest queries, and wake-up calls. 70% of guests find chatbots helpful for simple inquiries but prefer human interaction for more complex requests, according to Hotel Tech Report.

AI cannot be integrated into the existing software
Yes and no. AI might not integrate into the existing software unless vendors upgrade their products, but it can definitely run alongside. A good middleware solution can feed data from these systems as well as data captured from user experiences into clean data sets. AI models can leverage this data to create personalised experiences for guests and automation for staff – without having to upgrade or replace the existing systems in a hotel’s tech stack. Even though a hotel may have a multi-vendor landscape of 10-30 different systems, it is still possible for middleware technology to connect with these systems, to create a common façade, reducing the complexity to a handful of business services, scalable and secure.

In conclusion, the benefits of integrating artificial intelligence in hotel management and operations far outweigh the hesitations. The technology is here to stay. My advice to hoteliers and owners: you’d better get onboard.

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Hospitality

WHERE HIGH STANDARDS MEET GREAT TASTE

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man sitting on chair

Interview with Jaime Castañeda, Chief Executive Officer, Ninety Nine SB Investment L.L.C. | 99 Sushi

You’ve built a career across some of the region’s most respected hospitality groups. Looking back, which early leadership lesson still shapes how you run Ninety Nine SB Investment today?

One of the earliest and most enduring lessons I learned is that every single day counts. Leadership is not about long-term vision alone; it is about daily execution. A team must clearly understand the direction in which the company is moving. That direction must be explicit, consistent, and visible in the decisions we make every day.

I strongly believe that at the end of each day, a leader should be able to say that something meaningful has been achieved, something that moves the company forward. Procrastination is dangerous in leadership. Equally risky is delegating responsibilities that a leader must personally confront. There are moments that require direct accountability.

Leading by example remains fundamental to how I operate. Engagement with Heads of Department is not optional; it is essential. When leadership is visible, aligned, and decisive, it cascades naturally throughout every department and ultimately shapes the culture of the entire organization. That culture of clarity, accountability, and momentum continues to define Ninety Nine SB Investment today.

As CEO, where do you personally spend most of your time today — operations, brand strategy, or future growth planning?

While brand strategy and future growth are constant priorities, I dedicate significant time to operations. Operations drive cash flow, and cash flow sustains independence. I often say that cash is the oxygen of the company. Without it, nothing else survives.

Despite my role as CEO, I remain closely involved in daily operational oversight alongside our General Managers and Heads of Department. This ensures that teams have the resources, structure, and support required to generate strong performance while maintaining the standards that define us.

Ninety Nine SB Investment grows organically. We do not rely on external funding or debt to expand. Our growth is driven by profitability, discipline, and reinvestment. That model requires operational precision and constant vigilance. Brand vision is critical, but operational excellence is what enables that vision to materialize sustainably.

From Les Roches to leading a globally recognised Japanese fine-dining brand, was this always the trajectory, or did hospitality surprise you along the way?

My original ambition was to become a General Manager of a hotel. After graduating from Les Roches, that was the clear path in my mind. By the age of 30, I had already joined the executive committee of a hotel, and I realized that the trajectory I had envisioned might unfold differently, and perhaps faster than expected.

After working within hotel environments, including a period with Meraas Holding, I was presented with the opportunity to bring 99 Sushi Bar & Restaurant to the region. At that time, I could not have imagined that I would one day be leading a Japanese fine-dining brand with international recognition.

Hospitality absolutely surprised me. The industry is dynamic, unpredictable, and full of unexpected doors. What began as a structured hotel career evolved into brand building, entrepreneurship, and international expansion. That unpredictability is, in many ways, what makes hospitality so compelling.

99 Sushi Bar & Restaurant has retained its MICHELIN Star for three consecutive years. What non-negotiables ensure that level of consistency across markets?

Consistency at the level required to retain a MICHELIN Star demands absolute clarity of concept and unwavering discipline. At 99 Sushi Bar & Restaurant, two elements are completely non-negotiable: immaculate service and premium ingredients.

The concept is clearly defined and protected. From sourcing to preparation to presentation, every detail must align with our identity. Ingredient quality is paramount; we work exclusively with top-tier suppliers to ensure excellence without compromise.

Equally important is service. Precision, discretion, timing, and genuine attentiveness distinguish exceptional service from standard hospitality. Guests must feel guided yet unintruded upon, respected yet warmly engaged.

Recognition from the Michelin Guide is never treated as a guarantee. It is a responsibility. Maintaining a star requires constant vigilance, continuous training, and humility. The moment complacency enters, standards decline. For us, excellence must be protected daily.

KO by 99 introduces a more contemporary, accessible side of the brand. What gap were you aiming to fill with this concept?

KO by 99 was created to express a different dimension of the brand. It was not about filling a gap in the market, but about expanding what 99 represents.

While 99 Sushi Bar & Restaurant is rooted in fine dining, KO by 99 allows us to showcase a more contemporary, lifestyle-driven approach. It is more accessible in tone and pricing, but it does not compromise on quality. It offers a space where guests can socialize, enjoy cocktails, and engage in a vibrant atmosphere beyond a traditional seated dining experience.

We wanted to demonstrate that 99 is not solely a destination for formal fine dining. It can also be a place to connect, to celebrate, and to extend the evening beyond the meal itself. KO by 99 embodies that energy — refined, yet relaxed; sophisticated, yet approachable.

Today’s diners value experience as much as cuisine. How has guest expectation evolved in fine dining over the last five years?

The UAE market has matured significantly. Guests today are highly informed and experienced. Years of exposure to world-class restaurants have shaped a clientele that understands quality and demands more than just exceptional food.

Fine dining is no longer defined by cuisine alone. It is a 360-degree experience. Music, design, lighting, spatial flow, and atmosphere all play critical roles. Illumination, in particular, is often underestimated. Lighting can transform a meal into an immersive experience or diminish it entirely.

Guests also expect continuity. If they choose 99 for dinner, they want the experience to extend beyond the final course. A digestif at the bar, a curated cocktail, carefully selected music – these moments must carry the same level of refinement as the dining experience itself. Today’s diner seeks immersion. Excellence must be holistic.

Having operated across the Middle East and Europe, how do hospitality expectations differ between regions?

At the high-end level, excellence is universal. Guests in Europe and the GCC both expect precision, quality, and professionalism. However, cultural nuances are significant. In the GCC, respect, privacy, and discretion carry particular weight. There is a strong emphasis on generosity, formality in certain contexts, and cultural sensitivity. Service must adapt fluidly to those expectations without appearing forced or overly rigid.

In Europe, service may sometimes feel more relaxed or informal, even within fine dining. In the Middle East, attentiveness and structured hospitality are often more pronounced. Understanding these nuances is essential. True luxury hospitality is not about imposing a single model of service; it is about interpreting excellence through the lens of cultural awareness.

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Hospitality

HOW CHEF DHIMAS SHAPES MODERN ASIAN FINE DINING

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chef on one side and the other side with ramen

Interview with Chef Dhimas, Head Chef – Pre-opening (Papafuku, Velvet Social &

Your career spans luxury resorts, high‑volume kitchens, and fine‑dining concepts across the world. Which early experience most shaped your culinary philosophy today?

The experience that shaped me most was working in my early years within disciplined luxury resort kitchens where precision was everything. In those environments, you learn quickly that consistency is not optional – it is the foundation of credibility. When you are cooking for guests who have travelled across the world, expectations are high and there is no room for ego.

At the same time, growing up in Indonesia surrounded by bold Southeast Asian flavours gave me a deep emotional connection to food. Food was never just about presentation; it was about memory, warmth, and generosity. That contrast between strict classical techniques and deeply rooted Asian flavours shaped my approach today.

I believe great cuisine must balance discipline and soul. Technique builds structure, but flavour tells the story. Whether I am working on an elevated Asian fine-dining plate or a more accessible concept, that philosophy remains the same: respect ingredients, respect the guest, and respect the craft.

Pre‑opening kitchens are high‑pressure environments. Beyond menu development, what does your role truly involve during a launch?

Menu creation is actually the smallest visible part of a pre-opening role. Pre-opening is about building culture before the first guest walks through the door. It involves recruitment, training, supplier alignment, cost engineering, kitchen layout planning, workflow efficiency, tastings, standard operating procedures, and creating systems that allow creativity to survive under pressure.

You are not just designing dishes; you are designing an ecosystem. At Papafuku, Velvet Social, and The Office Restaurant, my responsibility is to ensure that each kitchen operates with clarity from day one. That means mentoring young chefs, setting standards for hygiene and discipline, aligning with procurement teams, and constantly testing recipes to ensure scalability without compromising quality.

Opening multiple venues simultaneously requires emotional resilience. There are long days, shifting timelines, and constant problem-solving. But if the foundation is strong: the right team, the right systems, the right mindset, service becomes an execution of preparation rather than a reaction to chaos.

Each of your venues has its own identity. How do you ensure every menu communicates a unique story without overlap?

For me, a menu must feel like a reflection of the venue’s identity, not just a collection of dishes. At Papafuku, the approach is bold, modern Asian with an edge, refined yet playful. The menu leans into vibrant flavours, dynamic plating, and a social dining, designed to feel exciting, expressive, and layered.

Velvet Social, on the other hand, carries a more elevated, atmospheric personality. The dishes are more crafted to complement the mood and experience.

The Office Restaurant is structured differently as well. It requires comfort, accessibility, and familiarity while maintaining quality and creativity.

To keep these identities distinct, I begin by asking: What emotion should the guest feel here? Is it nostalgia? Excitement? Intimacy? Celebration? From there, flavour profiles, plating style, portioning, and even ingredient sourcing evolve accordingly. The discipline lies in ensuring there is no overlap in personality. Each venue should feel like stepping into a different chapter, not a repetition of the same idea.

You’ve cooked for royalty, global icons, and large‑scale banquets. How have these experiences influenced your leadership style and composure in the kitchen?

Cooking for royalty and high-profile guests teaches you that pressure is part of the profession, but panic should never be. When preparing for a banquet of several hundred guests or a private dinner for dignitaries, there is no second chance. Every plate must be identical. Every timing must align. That environment trains you to stay calm under scrutiny.

The biggest lesson I learned is that the kitchen mirrors its leader. If the head chef loses composure, the team follows. If the leader remains steady, the team feels secure. Today, regardless of whether we are serving a celebrity, a corporate group, or a family celebrating a birthday, I treat each service with the same respect. True professionalism is consistency under all circumstances.

What is one common misconception about chefs that you feel needs to be corrected?

The biggest misconception is that chefs are driven by ego or personal creativity alone. In reality, great chefs are service-driven. Our work exists for the guest. Creativity is important, but it must be functional. A beautiful dish that disrupts service flow or confuses the guest is not successful.

Another misconception is that leadership in the kitchen means being aggressive. Modern kitchens require emotional intelligence. Mentorship, communication, and psychological safety create stronger teams than fear ever could. The industry has evolved. Today, strength in the kitchen is defined by discipline, empathy, and accountability.

You’re known for mentoring young chefs. What is the first lesson you instil in your team when they join your kitchen?

The first lesson I instil is humility. No matter how talented you are, there is always more to learn. Technique can be taught. Attitude cannot. I encourage my teams to understand that repetition builds mastery. Cutting vegetables perfectly every day may seem simple, but that consistency defines professionalism. Small details compound into excellence.

I also emphasise ownership. Every dish leaving the pass represents the entire team. When young chefs begin to take pride not only in their station but in the overall success of service, they grow much faster.

Quick Questions

One word that best describes your cooking philosophy?
Balance.

What’s the biggest challenge when opening multiple venues simultaneously?
Maintaining consistency across different concepts while building separate team identities at the same time. It requires clarity of vision and strong delegation.

One ingredient you can’t live without in the kitchen?
Soy sauce. It is foundational in many Asian cuisines, and its depth, saltiness, and umami can transform even the simplest preparation into something memorable.

A cuisine outside Asia that inspires you most?
French cuisine. Its structure, sauces, and classical techniques provide a strong backbone that complements Asian flavours beautifully.

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Hospitality

Share the Sweetness This Eid with Al Hallab’s Premium Gifting Boxes

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As Eid approaches, if you’re looking to swap the usual gift hamper for something elevated, Al Hallab has just the thing. The beloved Lebanese dining destination has unveiled its Premium Eid Gifting Boxes, a luxe way to say “Eid Mubarak” to friends, family, or even valued clients.

Beautifully packaged and designed to impress, each box features a generous selection of premium mixed baklava and traditional maamoul, made using time-honoured recipes and high-quality ingredients. 

Perfect for home visits or as a thoughtful gesture for loved ones, these elegant boxes blend heritage flavours with elevated presentation, ticking all the boxes for stylish Eid gifting.

Available across Al Hallab locations in Dubai, these limited-edition Eid boxes are set to become a go-to for anyone looking to gift something meaningful and delicious this festive season.

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