AI Streamlines Hotel Booking but Risks Reducing Upsell Revenue for Hotels, Study Shows Chains Have Advantage
💻 AI is transforming hotel bookings, enhancing speed but reducing hotel profitability. Distribution costs range from 15-25%, with upselling central to revenue. While AI simplifies booking to a request and 2-3 options, it may miss upgrades. NPS Prism indicates this tech isn't fully mature. Choice Hotels saw a 17% upsell revenue rise with Oracle’s Nor1. Akia found early check-in/late checkout generated 90% of $370K upsell revenue. Hilton collaborates with Google and ChatGPT, yet independents risk losing visibility and upsells.
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