Five Ways Hotels Can Simplify Booking and Boost Loyalty with AI's Help

Booking a hotel can feel like navigating a labyrinth of confusing options, hidden fees and inconsistent reviews. Travelers might spend days searching for the best deals across multiple platforms, leading to decision fatigue and anxiety. Even after booking, some may worry they could have secured a better rate had they waited. These issues reflect broader frustrations in the hotel booking process, where customers are often overwhelmed by too much information and not enough guidance. 

To combat these challenges, travel providers are turning to AI-powered tools that promise to save consumers time and money — something that travelers actively seek. According to “Beyond the Hype: The Rise of AI-Aided Trip Planning”, a recent report from loyalty solutions provider arrivia, nearly 60% of respondents said time-saving features and access to better deals were the top motivations for adopting AI in trip planning. And though 46% expressed interest in utilizing these technologies, just 33% of travelers have done so in the past, pointing to a significant yet underexplored market. Within this cohort, Gen Z leads in AI adoption, suggesting an opportunity for travel brands to engage this important segment. 

What specific AI tools can help hotels simplify the booking process and gain market share? Below are five ways hotels should use AI to meet evolving customer expectations.

1. Enable New Types of Discovery

Trip planning can often feel overwhelming, especially when it comes to sifting through numerous hotel and accommodation options. Fortunately, AI is transforming this experience by providing new, and smarter, ways to search for stays. 

For example, Marriott recently launched a pilot program utilizing natural language processing to assist loyalty members in finding their ideal vacation rental on the company’s “Homes & Villas” portal. Guests can search based on their desired experiences, allowing them to enter queries like, “Find me a two-bedroom apartment with a kitchen within four blocks of Central Park West in a dog-friendly building.” This engaging and relevant search approach adds an element of delight to the trip-planning process, making it more enjoyable for travelers.

2. Deliver Personalized and Streamline Guest Experiences 

In the arrivia survey, 90% of travelers expressed a desire for more personalized recommendations. AI enables hotels to deliver personalization at scale, but effective implementation requires quality data. Loyalty programs are the key to developing these capabilities. Using customer-supplied data alongside purchasing patterns and activity history, hoteliers can train AI models to provide tailored recommendations that cater to individual preferences, from personalized itineraries to timely, targeted offers — experiences that non-loyalty booking platforms struggle to replicate.   

AI-driven tools can also better anticipate guest preferences, such as room type, preferred amenities, or dining options. An AI-enabled virtual concierge, for example, enhances the guest journey by managing requests and recommending relevant activities, reducing the need for human intervention without sacrificing service quality. This kind of proactive engagement can significantly improve customer satisfaction and encourage repeat visits by making guests feel more valued and understood. 

3. Enhance Hotel Loyalty Programs

Top travel loyalty programs stand out by providing unparalleled value to their members. AI can further enhance this value by offering personalized, dynamic and flexible travel rewards that align with each guest's habits and desires. According to the arrivia report, just over half of respondents would like to use AI for alerts on exclusive deals and promotions within their loyalty programs, while 46% want instant support and updates during their travels.

For hotels, this could mean notifying members about changes in service availability or reminders regarding their dining reservations. By integrating AI into their loyalty programs, hotels can offer a more compelling value proposition that encourages repeat bookings, improves customer retention and creates brand advocates. 

AI can also be used to enhance loyalty programs in other ways, namely, to streamline the booking process by automatically applying points and benefits — something that 41% of consumers say would be helpful. Additionally, this would also reduce hotels’ points liability by leveraging AI to maximize a member’s travel rewards. 

4. Help Consumers Save While Enabling Upselling 

More than 50% of consumers are interested in AI-generated price alerts for post-booking price drops. While hotel price trackers aren’t new, AI can automate re-booking rooms at lower rates, saving guests valuable time. Hotels can also use their loyalty programs to engage customers by offering tailored rebates based on price alerts. While cash refunds are preferred by consumers, discounts on other travel services are particularly appealing to Gen Z. This presents an opportunity for hotels to test how rebates from price alerts can be used to automate upselling through personalized recommendations.

By strategically implementing AI-generated price alerts, hotels can turn potential dissatisfaction into a positive experience, increasing the likelihood that customers will choose to book directly with the hotel in the future rather than through third-party platforms. 

5. Instill Confidence Through Transparency

Despite recognizing AI's potential to improve travel planning, concerns about data privacy remain a significant barrier to widespread adoption. In the arrivia survey, only 36% of consumers felt comfortable allowing AI to access their personal data though frequent users reported higher levels of trust, emphasizing the need for clear communication about data usage and robust security measures.

For hoteliers, these findings underscore the importance of prioritizing privacy and transparency when implementing AI-backed tools. Those that do are more likely to win guest loyalty, while facilitating the adoption of new technologies in the future.

AI technology is revolutionizing the hospitality industry, offering hotels the tools to address long-standing consumer and industry frustrations. By embracing AI-driven innovation — particularly within their loyalty programs — hoteliers can unlock new personalization opportunities that elevate guest experiences, streamline operations and drive long-term success in an increasingly competitive marketplace. 

ABOUT THE AUTHOR 

Kevin Schneider is the Chief Innovation Officer of arrivia, a travel technology company offering loyalty, booking, and marketing solutions to top brands such as American Express, T-Mobile, USAA, Bank of America, Marriott Vacations, and Hilton Grand Vacations. His experience as a founder and former CEO of SOR Technology, Kevin leads the development of innovative strategies and technological advancements that enhance arrivia’s travel platform. His focus on delivering cutting-edge features ensures an improved customer experience, while his expertise in the travel industry drives the creation of solutions that exceed client expectations. Kevin fosters a culture of collaboration and innovation, supporting the strategic growth of arrivia’s offerings to millions of members and partners worldwide.