Hospitality brands are losing out on customer loyalty without AI

In hospitality, you only get one chance to make a good impression. A single bad experience can turn a guest away for good. Roughly 62% of guests with complaints said unfriendly staff are the most frustrating part of their stay. Keeping guests happy is essential for a hospitality brand’s survival.

So how do you build guest experiences that work time and time again? It's simple. Design every interaction to earn customer loyalty.

However, guest loyalty is built on more than clean rooms, prompt flights, or tasty meals. It’s about creating memorable experiences, whether you’re running an airline, a restaurant, a cruise line, or a boutique hotel.

You’ll learn from real companies that prove you don’t have to choose between great service and efficiency.

Guest experience is at the heart of customer loyalty

People remember how you make them feel—even more than what you sell them. That’s especially true of hospitality spaces because so much of people’s lives are lived in them. From first dates to family gatherings, guests rely on the hospitality industry to provide necessary third places to make memories in. In hotels, the guest experience matters more than location or price.

Gen Z guests, in particular, care 2.5 times more about personalized service than baby boomers. This is true across hospitality, whether it’s a hotel, a café, or an airline.

This emphasis on emotional connection translates into a direct impact on a business's bottom line and long-term business viability. When guests feel genuinely cared for, understood, and valued, they become repeat customers and advocates for your brand.

Positive word-of-mouth, often amplified through social media, is a powerful marketing tool in the right guest’s hands. And it can help your hospitality business, attract new patrons who also want memorable experiences.

On a different note, a transactional or indifferent approach, even if your hospitality company offers a competitive price or a prime location, risks alienating guests and creating negative feelings. In an increasingly competitive landscape, you have to invest in training, technology, and thoughtfulness as part of your success strategy.

Beyond points and perks—building guest relationships

While points and perks—like free nights, upgrades, or meal vouchers—are common in loyalty programs, industry leaders know that lasting guest loyalty is formed by emotional connection, empowered staff, and proactive care.

1. Inventing new ways to make visits memorable

Top companies constantly seek unique moments that surprise and delight guests. Some hotel chains host “surprise and delight” programs, awarding guests with unexpected upgrades, personalized gifts, or late checkouts for anniversaries or birthdays. These thoughtfully crafted gestures, like a handwritten welcome note or a locally inspired amenity basket, make guests feel truly valued, building word-of-mouth and brand advocacy.

2. Empowering staff for creative problem-solving

Empowered staff can turn routine stays into unforgettable experiences. At Ritz-Carlton, team members are granted autonomy to go above and beyond for guests—whether that means arranging a child’s favorite breakfast or helping a family celebrate a lost teddy bear’s “adventure.”

At Hyatt Hotels, employees are encouraged to be themselves rather than stick to scripts, resulting in authentic interactions that resonate emotionally. This kind of empowerment boosts morale, fosters creativity, and helps resolve issues quickly and empathetically.

3. Monitoring guest needs before a complaint arises

Modern hospitality brands use technology and guest data to anticipate needs—reaching out before issues turn into complaints. For example, some hotels now send mid-stay check-in messages: “How is your stay so far? Is there anything we can do to make it better?”

If a guest rates their stay poorly, staff can immediately respond and fix the problem before departure, transforming potential detractors into fans. Some in-room platforms can even alert staff to problems such as uncomfortable room temperatures or repeated service requests before a guest reports them, enabling real-time “save the stay” interventions.

4. Modeling a guest-first mindset

Companies dedicated to guest care make sure leadership sets the tone. Hospitality leaders should emphasize the value of empathy over rigid policy. Managers should also regularly celebrate staff who display kindness, initiative, or creative service—including small acts like remembering a guest’s coffee order, or big ones like organizing a last-minute anniversary celebration.

By recognizing these behaviors and sharing stories, leaders help build a culture centered on service, not just transactions.

Why guest relationships matter

These actions together matter far more than points. A study found that emotionally engaged guests are 3.5 times more likely to recommend a brand and 2.5 times more likely to return. In practical terms, a warm welcome, a staff member remembering a guest’s preferences, or a proactive check-in during a stay all anchor powerful memories that drive loyalty.

When staff feel supported and trusted to use judgment, and when leadership rewards going the extra mile, you create an environment where extraordinary experiences—and loyalty—come naturally.

When guests feel known and valued, they’ll not only come back—they’ll tell their friends about the special way you made them feel. That’s the kind of loyalty perks alone can’t buy.

Airlines: Taking flight with high-touch service and tech

Airlines know travelers often feel stressed. Great brands stand out by making every trip smoother and kinder.

• Emirates invests heavily in comfort even in economy class, such as better seats and menu choices. But the airline shines most in “the little things,” where primary needs never go unmet, whether it’s a child’s birthday cupcake or a tailored meal for someone with allergies.

• Delta Air Lines uses AI to send travelers flight updates and recommends easier rebooking options via their app during delays—a win for both guest happiness and staff workload.

• Alaska Airlines’ AI-powered chatbots help passengers check the weather, track bags, or check-in, all while freeing human agents to help with complex, emotional cases.

• Breeze Airways has a digital-first, people-centered approach to customer service that has yielded impressive results across the board. By leveraging conversational and collaborative AI from Gladly, Breeze was able to prioritize time-sensitive requests and resolve routine questions, achieving a 40% year-over-year customer growth rate without increasing guest interactions.

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Hotels: Anticipate, personalize, and amaze

Top hotels transform data into delight. Here’s how:

• Ritz-Carlton uses a system that tracks guest preferences—like favorite snacks or side of the bed—across their whole chain. If you order chamomile tea in New York, it’ll also be waiting for you in Paris. This personal care is why loyal guests can be worth up to $57,000 in their lifetime.

• Hilton’s reservation system asks returning guests for things like pillow type or room location. They use AI to remember and suggest even more personal upgrades or amenities. This makes guests feel known before they even arrive.

• Marriott’s Bonvoy program rewards guests with exclusive events, points, and member-only rates. Their AI pricing engine automatically adjusts rates based on demand and guest data, ensuring direct-booking guests feel rewarded and valued, while maximizing efficiency.

• First Group Hotels launched a more personalized loyalty program, 76% of bookings now come from loyalty members and direct online booking rates have jumped by 83% in one year, showing how genuine connection boosts business.

Restaurants: Loyalty, technology, and good taste in CX

It’s not just hotels that win with guest care. Restaurants combine technology and warmth for loyalty that lasts.

• A local restaurant might use a reservation system to remember regulars’ favorite tables or dishes. Imagine returning for your birthday, and the chef brings out your favorite dessert with a candle—no need to remind anyone.

• Big chains like Starbucks use their app to suggest drinks based on past orders, making each visit feel customized. Thanks to its loyalty program and digital ordering, Starbucks keeps customers coming back again and again.

• AI in restaurant groups: Some upscale restaurants use AI to predict diner preferences, adjust music and lighting, and recommend dishes to match dietary needs, all for a smoother, friendlier experience.

How companies use AI for friendlier, loyalty-driving service

AI is changing the way hospitality companies connect with guests, making every experience easier, faster, and more personal. From hotels and airlines to restaurants and cruise lines, businesses are using smart technology to solve problems and create moments that make people feel special. With AI, service is no longer just about fixing issues, it’s about understanding and delighting guests at every step, building loyalty that lasts.

Personalized booking and communications

AI allows hotels, airlines, and travel brands to get to know their guests like never before. By gathering information from previous stays, food choices, seat preferences, and even travel habits, AI can suggest options that feel tailor-made. For example:

• Airlines: When a frequent flyer logs in to book a trip, the AI system might recommend their usual flight times or favorite seats, and even remind them of past meal choices for pre-selection.

• Boutique hotels: Smaller hotels use AI-powered booking engines to greet loyal guests by name, remember their birthday, and offer special upgrades or local experiences based on past feedback. A guest who always books spa treatments may get a discount offer at the perfect moment before their visit.

• Restaurants: Reservation apps can suggest favorite tables, menu items, or even send reminders for a guest’s anniversary dinner, making every visit feel thoughtful and unique.

24/7 help and fast responses

Chatbots and virtual assistants handle simple, repetitive questions at any hour—think “What’s the WiFi password?” or “What’s the baggage allowance?” This means faster, around-the-clock answers for guests, and more time for staff to focus on complex or emotional needs.

• Airlines: If a flight is delayed or canceled, an airline with AI can quickly inform guests, suggest rebooking options, or connect them with a human agent for special cases.

• Hotels: Accommodation brands let guests request extra towels, book amenities, or report maintenance issues instantly—no waiting for the front desk. Staff receive notifications to follow up on urgent, nuanced concerns, making sure no guest feels ignored.

Smart rooms and environments

AI systems help create “smart” guest rooms and public spaces that adapt automatically to guest preferences.

• Hotels: Imagine walking into a hotel room where the temperature, lighting, and even the TV channels are set just the way you like them, because the system remembers your choices from last time. Need a wake-up call or want to order room service? Guests can use an AI-powered voice assistant or app—no need for the phone or standing in line.

• Cruise lines: On luxury cruise ships, wearable devices and mobile apps let guests customize everything from climate control to entertainment playlists, so their cabin always feels personal. Even common areas adjust music and lighting depending on typical guest flows and moods at different times of day.

Proactive service, not just problem solving

AI can detect when a guest’s experience might be going off-track—even before the guest says a word. Here’s how:

• Social media monitoring: If a hotel guest complains about a noisy room or bad meal on social media, AI can flag the issue and instantly alert staff to offer a solution before the guest checks out.

• Flight disruptions: When a missed connection is detected, some airlines automatically send alternate travel options or meal vouchers while travelers are still at the gate—often preventing frustration from boiling over.

• In-property feedback: If a luxury resort sees via its guest app that someone gave a low mid-stay rating, staff can reach out personally, offer a room change, or send a special treat to turn the experience around.

These proactive touches turn small problems into big loyalty wins—showing guests they’re truly seen and valued. In every case, AI helps hospitality companies move from a reactive, “wait for the complaint” model to a proactive, anticipate and care approach. When guests feel noticed, understood, and supported—even before asking for help—they’re not just satisfied: they become raving fans who return and spread the word.

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Brand efficiency and guest experience go hand in hand

For a long time, many leaders believed that offering great service meant higher costs, while saving money meant cutting corners on guest care. Today, the most successful hospitality brands prove this isn’t true. In fact, efficiency and guest experience work together to drive loyalty, profits, and staff satisfaction.

Saving time and money

When hotels, airlines, and restaurants use technology to automate simple, routine tasks—like checking guests in, processing reservations, or answering frequently asked questions—everyone wins.

• Hotels: Mobile check-in and digital room keys let guests skip the line and head straight to their rooms. This speeds up the arrival process, reduces front desk workload, and lowers staffing costs, freeing the team for more meaningful, high-value interactions.

• Restaurants: Online booking systems and AI-powered reservation management minimize wait times and help staff focus on service, not paperwork. Some chains even use self-serve kiosks or QR code menus to streamline orders, letting servers spend more time recommending dishes or celebrating special occasions.

• Airlines: Automated bag check and digital boarding passes simplify the busy airport experience. Staff are then available to help with complex or unique travel needs, giving a human touch where it matters most.

Higher profits, lower churn

Poor service isn’t just a minor annoyance—it’s incredibly expensive. According to industry reports, bad customer experiences cost companies $3.7 trillion every year due to lost business, negative reviews, and guest churn. On the other hand, happy guests are likely to stay longer, return more often, and tell their friends and family about their positive experiences.

• Hotels: A hotel that quickly resolves a mid-stay issue or proactively offers an upgrade can transform a potential detractor into a loyal guest—protecting revenue and turning complaints into valuable feedback for improvement.

• Restaurants: Guests who feel recognized and appreciated spend up to 67% more than new guests, and are far more likely to refer others, boosting lifetime value for the brand.

Better jobs for staff

AI and automation don’t replace human staff—they empower them. When more work is handled by technology, team members can focus on what only people can do: building relationships, showing empathy, and solving unique guest challenges.

• Hotels and airlines: Instead of being tied up with endless paperwork or repetitive questions, staff can notice when a guest looks tired, offer a special amenity, or help with a tricky travel problem.

• Restaurants: Servers spend less time punching in orders and more time making guests feel at home, from remembering special occasions to recommending favorite dishes.

By embracing smart efficiency—not just cost-cutting—hospitality brands create environments where guests enjoy smoother, more personal experiences, teams feel more fulfilled, and the business thrives. It’s not an either/or, it’s a win-win for everyone involved.

Building unbreakable loyalty across hospitality sectors

Turning first-time visitors into lifelong guests isn't luck—it's the result of intentional strategy and daily action. Whether you run a hotel, restaurant, airline, cruise, or any type of guest-facing business, these steps will help you build loyalty that lasts.

Unite your guest data

To offer truly personal service, you need to really know your guests. This means collecting and connecting information from everywhere, like bookings, purchases, feedback, and even past complaints or compliments.

• Hotels: Big resorts and boutique inns alike use centralized systems to track guest preferences, from room types to birthdays. By integrating all this data—even in a small business—you can anticipate needs and treat every guest as a “VIP.”

• Airlines: Carriers bring together booking data and frequent flyer profiles, so returning travelers are offered their favorite seats or meals as soon as they log in.

• Restaurants: Chains and independents use loyalty apps and reservation tools to spot regulars, remember allergies, and recommend favorite dishes, turning every meal into a personal event.

Train and empower staff

Great technology is important, but your people make all the difference. Don’t just hand employees scripts or checklists. Instead, teach them how to spot guests’ unspoken needs, react with empathy, and use their creativity to “wow” people.

• Hotels: At some hotel chains, staff members have the freedom (and budget) to make things right—like buying flowers for an anniversary or arranging a surprise for a child who lost a toy.

• Restaurants: Waiters who feel trusted can fix a slow order with a free appetizer or birthday treat—without needing manager approval.

• Airlines: Agents who are empowered can reroute a delayed traveler, offer lounge access, or simply notice when a parent traveling with children needs extra help.

Be everywhere your guests are

Guests reach out in many ways. Social media, email, live chat, calls—even text messages. The best brands have tools and teams that “listen” everywhere, responding quickly and personally.

• Hotels: Using omnichannel platforms, hotel brands can respond to guest questions on Instagram, WhatsApp, or direct chat on their website—all in one system, making it easy to track and resolve requests.

• Airlines: When a flight is delayed, airlines can offer help via mobile app notifications, social media, live chat, and texting, ensuring no traveler is left wondering what comes next.

• Restaurants: Many use automated text reminders, online chat for reservations, and social listening to thank guests for positive reviews or respond to negative ones.

Automate the routine

Let AI and automation handle repetitive and time-consuming tasks, such as checking in, changing bookings, sending confirmations, or answering FAQs. This frees up human staff to focus on moments that require empathy, judgment, and the human touch. AI makes guest-facing team members more available to guests in order to deliver real care.

• Hotels: Mobile check-in lets guests arrive at any hour, skip the line, and unlock rooms from their phone.

• Restaurants: Online reservation and ordering systems let hosts and servers devote more attention to diners on the floor, creating memorable tableside moments.

• Airlines: Automated systems update passengers about gate changes, rebook missed connections, and handle luggage tracking—so staff can help with trickier travel problems.

Get feedback and act on it

Listening to guest feedback is vital, but don’t just tally up complaints. Look at the full picture. Repeat visits, positive comments, and stories of staff going above and beyond. Use this information to learn, celebrate wins, and fix issues before they become patterns.

• Hotels: Hotels brands send mid-stay surveys, allowing guests to share concerns before checkout. Quick responses turn potential bad reviews into loyal repeat visits.

• Restaurants: Reservation and loyalty platforms nudge guests to leave feedback, which managers use daily in staff briefings, celebrating great service and correcting problems in real time.

• Airlines: Major carriers monitor satisfaction surveys and online reviews to spot trends—sometimes even reaching out to apologize and offer credits to guests who had a poor experience.

By connecting guest data, empowering teams, keeping communication open across every channel, automating the routine, and acting on real feedback, hospitality brands can create loyalty that endures for years—no matter what the world throws their way.

The future of guest loyalty is personalized and powered by AI

Hospitality isn’t just hotels or airlines or restaurants—it’s every company that wants to turn guests into repeat fans. By combining people-first values with clever AI tools, you can offer faster, more personal, and more memorable service. You don’t have to choose between efficiency or empathy. With the right strategy, you can achieve both.

Remember, guests never forget how you made them feel. Let technology make your teams stronger, not replace them—and your guests will return, bringing friends and family along for the journey.

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