Hotels Enter the ‘Ask and Book’ Era as AI Redefines Competition and Cost Structures

Management consultants highlight how artificial intelligence is transforming hotel discovery, pricing power, and operational efficiency

The global hotel industry is undergoing a major transformation as artificial intelligence begins to influence not just how travelers book rooms, but how hotels compete and operate. A new joint report by the NYU School of Professional Studies Jonathan M. Tisch Center of Hospitality and Boston Consulting Group (BCG) reveals that hotels are moving from a traditional “search and scroll” model to what experts are calling the “ask and book” era.

According to the analysis, 37% of travelers are already using AI-powered tools embedded in online travel platforms to plan and book trips. Instead of browsing multiple listings, travelers now rely on AI assistants to shortlist recommendations. This shift means hotels must focus less on webpage visibility and more on algorithmic relevance.

“AI is changing how hotels are discovered, chosen, and booked and it’s also changing how hotels run day to day,” said Tom McCaleb, Managing Director and Partner at BCG and coauthor of the report.

The study highlights mounting operational pressures as well. In North America, 65% of hotels reported staffing shortages in 2025, while labor costs increased by 11.2% year over year. Consultants note that AI tools are already improving efficiency, including faster housekeeping coordination and significant food waste reduction.

However, the report warns that many hotels still lack integrated data systems and AI-skilled talent. For management consulting firms advising hospitality clients, the message is clear: AI adoption is no longer a future strategy, it is now central to staying competitive.