The following is a guest post from Alan Young, vice president of hospitality strategy at Infor. Opinions are the author’s own.

A new year always brings speculation about what lies in store for the hospitality industry. Based on current industry news, tech adoption and digitalization, it is clear that 2025 will be the year of data. But what does that mean? And what exactly does the industry need to do to harness the vast amounts of data that we have at our fingertips?

First, some context. In 2025, there will continue to be an increase in global travel, but the growth won’t be as steep as in 2023 and 2024. This will create an increased need for the industry to provide a combined business-leisure experience and more self-serve amenities. 

These trends will require hotels to allocate more resources to technological innovation. Data management and foundational technologies will be the pillars of successful hotel operations. As data becomes the primary driver for our industry in 2025, the hospitality industry must deploy it in four critical areas: automating operations, human resource management, globalization and overtourism challenges.

Automating operations

Investment in platforms that use AI and machine learning to optimize operations should be at the top of a hotelier’s list for 2025. AI can help scrutinize cloud sprawl and identify unnecessary and redundant cloud services — helping cut non-essential licenses and contracts to improve cost-efficiency.  

AI can also elevate the guest experience by enabling natural and engaging customer interactions and self-service amenities. It can also alleviate time-consuming, manual tasks such as making reservations, checking in guests and assigning rooms. Many of these tasks make it difficult for employees to engage in quality communication with guests or effectively manage revenue. By deploying AI technology, staff can spend more time delivering more personalized interactions with guests.

Human resource management

Automation can enhance — not replace — human interaction. It allows staff to focus on meaningful guest experiences by leveraging email, SMS and other communication options to deliver a better return on investment.

AI can also address talent acquisition and retention, which continue to be tremendous challenges in the industry. Not only does AI automation free the worker from routine tasks, but it can also improve their on-the-job experience by reducing stress and empowering them to focus on problem solving, thus improving their work-life balance. 

Globalization

The evolution of globalization has brought new challenges. When operating across borders, hotels face barriers such as political uncertainty, cultural differences and difficult financing. To navigate these challenges, the industry needs to implement technology that can respond to unique market needs.

Deploying integrated supply chain management capabilities can provide insight into material management for hotel production and the provisions of goods and services. Quite simply, these capabilities can ensure materials are delivered at the right time in the right amounts, thus contributing to a strong bottom line.

Using a customer relationship management strategy can also address cultural differences to fully understand each guest's experience requirements. A CRM can align all systems and approaches to be customer-centric on the global and local levels. This same tactic can be applied to strategic marketing tools to tailor the guest experience to regional and cultural preferences and demands.

Overtourism 

According to UN Tourism, international tourist arrivals in the Americas and Europe reached 97% of 2019 levels in the first half of 2024. Overtourism is not a new problem in the hospitality industry, as visitor numbers have been rising steadily for years, but what has changed is the backlash from residents, which has become increasingly loud.

The key to addressing this challenge lies in developing better measurement techniques and adopting targeted strategies to manage visitor flows. Technology can help redistribute tourism across regions and seasons, as well as promote alternative, less-congested destinations. Amsterdam, for example, manages city tourist flows with data analytics, monitoring real-time data on visitors and using it for marketing to re-direct promotions to less traveled destinations. 

Going forward, AI will become as ubiquitous as the internet, and hoteliers will need to understand, manage and optimize data to thrive. By leveraging operational or analytical data, the hospitality industry can move forward in non-traditional ways that will improve the customer experience.