Hotels Grapple With AI’s Double-Sided Impact on Marketing
Photo Credit: A businesswoman checking in at hotel reception. Adobe Stock / stockbusters
Skift Take
Hotels face AI upheaval on both sides of the reservation desk. New studies show they can save money on paid search by switching to AI tools, but they also face a threat as AI booking agents ignore traditional brand ads.
Hotels are facing disruption on two fronts as artificial intelligence reshapes how they market to guests and how travelers make booking decisions.
Separate studies from tech vendor Cendyn and Florida Atlantic University found that while AI-powered marketing tools helped hotels cut customer acquisition costs, the rise of AI travel assistants threatens to bypass traditional brand marketing entirely.
Hotels using Google's AI-based Performance Max advertising tool recorded conversion rates more than three times higher than traditional methods, according to data covering 6,777 hotels worldwide that Cendyn published Tuesday.
Conversions jumped 262% so far this year compared with 2024, even as advertising costs rose 20% to 40%, Cendyn said.
AI-driven improvements may be valuable for hotel marketers wrestling with rising digital advertising expenses. The efficiency gain
