AI & Automation: The U.S. Hotel Industry’s Response to Labor Shortage Crisis
The U.S. hotel industry is currently experiencing a technological transformation. This change is driven by operators investing heavily in AI-powered solutions and automation to address the persistent labor shortages. It’s projected that hotels will employ about 2.17 million people this year, a significant drop from the 2.37 million employed in 2019.
With over 71% of hotels reporting unfilled positions, and an annual turnover exceeding 70% in frontline roles, the industry is facing some serious challenges. To combat these, properties are implementing various strategies:
- Mobile check-ins
- AI concierges
- Robotic room service systems
Moreover, they are offering enhanced benefits such as signing bonuses, expanded mental health coverage, and flexible scheduling.
The industry’s pivot toward technology-enabled operations represents a fundamental shift in hospitality service delivery. Hotel brands are seeking to maintain service standards despite workforce constraints. This shift is further complicated by major hotel chains’ aggressive expansion plans, which continue to intensify hiring challenges in an already tight labor market.
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Source: https://www.mondaq.com/unitedstates/hotels-hospitality/1676280/travel-leisure-september-2025-update