CBRE on AI's impact on hotels

Technological advances are likely to significantly change the relationships between hotel brands, third-party management companies, hotel owners, and OTAs and metasearch platforms

AI is likely to lead to consolidation and increasing economies of scale. The larger a company, the greater its access to proprietary data, and in the case of higher-margin, asset-light hotel brands and OTAs, the greater its access to cash flow to purchase data and invest in technology, data scientists, and engineers.

Key takeaways

• Hotel brand families are likely to expand their portfolio of strategic partnerships to improve their access to data at scale. The financial and talent resources required will put many smaller companies at a disadvantage;
• Access to large-scale data will enable hotels to move from offering rooms at a fixed price to pricing based on the total revenue potential of each guest;
• Some online search engines may move more directly into "selling" lodging rather than advertising, and the race for market share between OTAs and the world's largest brands is likely to continue.

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