Skip to content
‹ Back to IndustriesHospitality

65% of North American hotels reported staffing shortages in 2025 as AI moves into ops

A BCG and NYU SPS analysis says 65% of North American hotels reported staffing shortages in 2025. Labor costs rose 11.2% year over year. The report says hotel discovery is shifting to AI assistants, pushing operators to build machine-readable content and integrated data.

This story was produced through MarketScale. See how Hospitality teams put it to work with Executive Thought Leadership.

By MarketScale Newsroom · HospitalityHotelsHotel OperationsArtificial Intelligence
Share
Listen to the audio brief

Key facts, context, and what it means.

AUDIO
0:00—
65% of North American hotels reported staffing shortages in 2025 as AI moves into ops

Key takeaways

01

If AI assistants surface only a short list of hotels, content and rate shopping shifts from “best page” SEO to “best answer” data hygiene across channels.

02

The biggest blocker to scaling AI in hotels is still plumbing: nearly half of hoteliers report difficulty accessing critical business information, according to Hotel Management.

03

Operational AI claims can be tested quickly: housekeeping cycle time and food waste are already instrumented at many brands, so baselines and reporting cadence can be set in the statement of work before deploying.

Free workspace

Turn your Hospitality expertise into content.

Record interviews, organize footage, and write with AI on a free trial of the MarketScale platform for qualifying companies. No demo required, no credit card.

Try it Free

A new analysis from BCG and NYU School of Professional Studies (NYU SPS) confronts hotel operators with a stark statistic: 65% of North American hotels said they faced staffing shortages in 2025, and labor costs rose 11.2% year over year, according to a PR Newswire release on the report.

That context matters because the report’s core claim is not theoretical. It frames AI as a near-term operations tool in a labor-constrained business where labor costs make up about half of gross operating margins, also per PR Newswire.

From “search and scroll” to “ask and book” changes what distribution teams optimize for

BCG’s report, “AI-First Hotels: Faster to Build, Leaner to Operate, and Richer in Customer Experience,” says hotel discovery is moving to AI-powered digital assistants that filter choices down to a short list of recommended properties (Boston Consulting Group). PR Newswire’s writeup of the same analysis calls this the “ask and book” era and says hotels will compete to appear on that shortlist by improving digital presence and connecting data more effectively.

For revenue and distribution teams, the operational implication is that visibility work expands beyond OTA content hygiene and brand.com SEO. The report’s stated priorities include machine-readable, high-trust content that answers traveler questions consistently across platforms, plus “distribution readiness” for AI-driven environments where prominence is increasingly linked to new fee and placement models (PR Newswire).

The shift to AI-mediated booking does not automatically change today’s distribution costs. According to PR Newswire, OTA commissions remain 15% to 30%, and the analysis also points to new fee and placement models tied to prominence and relevance. For operators, that raises procurement questions: what costs vary per booking, what is fixed platform spend, and how attribution will be determined.

Early ops wins are being reported in housekeeping and kitchens, but data plumbing is the gate

PR Newswire and Hotel Management cite examples of room cleaning and preparation times reduced by 20% through AI-synchronized housekeeping schedules aligned with checkouts and staff availability. Both also cite AI-enabled waste-tracking tools that provide real-time kitchen analytics and produced roughly 50% reductions in food waste within eight months.

These are the kinds of claims that can be tested quickly. Housekeeping cycle time, room readiness at peak check-in windows, and kitchen waste as a percent of covers are already instrumented at many brands. The harder part is integration across systems that were procured one workflow at a time.

Hotel Management reports that many hotel companies still run on fragmented technology systems with limited integration, and that nearly half of hoteliers report trouble getting access to critical business information.

Booking engines are adding “refundability at checkout,” a test case for AI-era retailing

One near-term example of hospitality software moving toward retail-style offers is the go-live of “Refund Protect” inside the Aven Hospitality Booking Engine, announced by Hospitality Technology. Aven Hospitality (formerly Sabre Hospitality Solutions) partnered with Protect Group so hotels can sell an upgrade to a refundable stay during checkout, while activating and managing the feature through Protect Group’s Onboarding Platform, according to Hospitality Technology.

Why it connects to the BCG-NYU thesis: once AI assistants steer travelers to fewer options, conversion depends more on how cleanly a property can present and transact the offer set. Refundability is a high-friction decision for guests and a high-stakes one for revenue management, so any “add-on” product that can be activated without rewriting policies becomes a practical lever for commercial teams to test.

Where this lands in 2026 planning for hotel ops, IT, and commercial leaders

  • Write AI readiness into 2026 integration backlogs: inventory where guest profile, PMS, CRS, housekeeping, and F&B data is duplicated or manually reconciled, since Hotel Management reports nearly half of hoteliers struggle to access critical information.
  • Treat “algorithmic relevance” as a cost line: ask distribution and marketing vendors how new fee and placement models would be measured and governed alongside existing 15% to 30% OTA commissions, using the framing reported by PR Newswire.
  • Pilot AI with two metrics that move P&L fast: room cleaning and preparation time, which the analysis says can be reduced by 20%, and food waste, which it says can drop by roughly 50% within eight months. Set baselines and reporting cadence in the statement of work before deploying.
  • If selling refundability, confirm operational ownership: for Refund Protect in the Aven Hospitality Booking Engine, clarify who owns configuration, accounting treatment, guest communications, and exception handling, even if activation is positioned as tech-led (Hospitality Technology).

Featured companies

Your experts belong here

Every story in MarketScale Hospitality starts with a company putting its general managers, operations leads, and brand teams on the record. Buyers are already reading this topic. The only question is whose experts they find.

Owners and operators buy from people who understand the property, and your teams prove it in their own words.

Book DemoSee how it works15 minutes, straight to a calendar.

About the author

MarketScale Newsroom
MarketScale NewsroomEditorial Team, MarketScale

The MarketScale Newsroom reports on the companies, technologies, and trends shaping 16 B2B industries. It turns primary sources and expert commentary into clear, useful coverage for the people doing the work.

B2B Weekly

The week in Hospitality, and sixteen other industries, every Monday.

Ten stories, one-line takes, five minutes. Free.

Hospitality: are you visible to AI?

Before they reach out, Hospitality buyers ask AI engines which vendors to trust. Explore how your experts, customers, and partners can become useful content for buyers and AI search.

Free Trial

You just read one Hospitality expert. Your company is full of them.

This article was produced through MarketScale. The same platform turns your general managers, operations leads, and brand teams into the articles, video, and social content Hospitality buyers are searching for. Start a free trial and see it with your own people. For qualifying companies, no credit card, no demo required.

NPS +73 · 1,000+ creators · 38+ countries

What your free trial includes

Hands-on access to the MarketScale platform
Media requests to your crowd, remote recording, AI writing tools
No demo required. No credit card.
For qualifying companies. Company confirmation required.

More Hospitality Insights

Airbnb bars hosts from assigning checkout chores starting November 20

Airbnb bars hosts from assigning checkout chores starting November 20

For reservations made on or after November 20, Airbnb hosts cannot require guests to strip beds, wash dishes, run laundry or take trash off the property. Guests can still be asked to leave dishes in the sink, gather towels and sort trash and recycling indoors. Cleaning fees are not being abolished. Hosts are divided, with some threatening to leave the platform or raise prices.

  • 01Removing unpaid guest chores shifts turnover labor to paid cleaners, favoring scaled operators with staff and vendor contracts over single-property owners.
  • 02Airbnb's new checkout standard (no stripping beds, washing dishes, laundry, or trash removal) moves short-term rentals toward the hotel model hotels now compete hardest on.

Oct 23, 2026

Extended-stay manager Sandpiper adds Hampton Inn and three more brands in 90 days

Extended-stay manager Sandpiper adds Hampton Inn and three more brands in 90 days

Richmond, Virginia, extended-stay manager Sandpiper Hospitality will add more than a dozen hotels within 90 days, with strong momentum in the Southwest and Midwest. Four brands are new to it: Homewood Suites, Hampton Inn, Fairfield Inn & Suites and Holiday Inn Express. Owners with mixed-brand portfolios gain another manager to consider.

  • 01Sandpiper adds Hampton Inn and Holiday Inn Express, widening its brand mix.
  • 02If the 16-brand count was taken before the additions, the four newcomers would take Sandpiper to 20 brands.

Oct 21, 2026

An open-source hotel PMS connector keeps AI booking changes off by default

An open-source hotel PMS connector keeps AI booking changes off by default

An open-source MCP server built by Miquel Gelabert Cifre connects AI assistants to a hotel PMS through nine read-only tools. Booking changes stay off by default. Enabled writes preview first and commit only after explicit confirmation, a pattern hotel IT leaders can ask any AI vendor for.

  • 01A preview that changes nothing until someone says yes turns an eager AI assistant's guess about a reservation into a decision a person can veto.
  • 02For hotel groups running more than one PMS, a translation layer built on hotel concepts keeps the assistant's tools the same while only the adapter underneath changes; the second adapter so far is read-only and lacks availability and KPIs.
  • 03The switch that enables AI booking changes is a governance decision: which role holds it belongs in the deployment plan before any assistant gets write access.

Oct 18, 2026

Explore More Hospitality Insights

Read more expert perspectives from across Hospitality.

Browse Hospitality Hub

About the Expert

MarketScale Newsroom
MarketScale Newsroom

Editorial Team

MarketScale

The MarketScale Newsroom reports on the companies, technologies, and trends shaping 16 B2B industries. It turns primary sources and expert commentary into clear, useful coverage for the people doing the work.

For B2B teams

Your experts could be publishing here

Stories like this one run on content MarketScale captures from real practitioners. See how your team's expertise becomes coverage in Hospitality and beyond.

Book a Demo

Or call us. No forms required. We pick up. 214-945-2512