A new report highlights the low prevalence of formal AI strategies in SA hotels. (Image source: 123RF, created via GenAI)
While artificial intelligence (AI) adoption has become widespread, with local enterprises leveraging AI tools, it remains in early stages across South African hotels.
This is according to the inaugural Hospitality Asset Management Company (HAMAC) South African hoteliers report, which delves intothe current landscape and outlook of SA’s hospitality industry.
The survey was conducted by HAMAC, in association with Tourism Update. It is based on responses from hospitality executives and managers across the country, with a focus on quantitative information on a range of topics relevant to hospitality operations and strategy.
Based on the report findings, most hoteliers are leaning into innovation, with just over 77% actively exploring new technologies to streamline operations. Only around 23% are not currently pursuing tech solutions.
On the AI front, the report highlights that just over 64% of hoteliers say they have an AI strategy in place, while more than a third (36%) report they do not.
This, notes the report, signals a “significant gap” between industry interest and practical implementation. “Many hoteliers report lacking the resources to understand, develop, or drive an AI policy, which contributes directly to the low prevalence of formal AI strategies in the sector.
“Where resources are available, they tend to be partial or uneven, limiting operators’ ability to implement AI initiatives consistently. As a result, interest in AI is not yet translating into operational practice, leaving the industry in the early stages of adoption and highlighting the need for strengthened skills and internal capacity to support meaningful progress.”
Anton Gillis, CEO of HAMAC, adds: “The findings confirm what many hoteliers experience daily: recovery on paper is not the same as recovery in practice. The challenges facing the sector are largely systemic rather than strategic. Without meaningful intervention, these pressures will continue to erode resilience and limit growth.”
Struggling to gain traction
In a similar vein, the report shows that AI adoption in revenue management remains limited.
Only around 38% of hoteliers report using AI-driven tools in this area, while a majority − just over 62% − are not yet leveraging them, it states.
“This gap reflects both capability and confidence challenges: many operators lack the technical capacity, data infrastructure, or specialised skills required to implement AI revenue systems effectively.
“Others note uncertainty around ROI or prioritise more immediate operational pressures over advanced optimisation tools. As a result, AI’s potential to refine forecasting, pricing and demand management remains largely untapped, highlighting a significant opportunity for future growth as technological readiness improves sector-wide.”
From property management system (PMS) upgrades and automation tools, to energy management and guest-facing systems, for example, technology is being used to reduce manual workload, improve accuracy and enhance the guest experience.
For the sector, this is an indication it is increasingly focused on efficiency, automation and smarter resource management, particularly as labour pressures, rising costs and operational complexity intensify, according to the report.
“Whether through PMS upgrades, energy management systems, automation tools, or guest-facing technologies, hotels are seeking ways to reduce manual workload, improve accuracy and enhance the guest experience.
“The data suggests that technology is no longer viewed as a long-term aspiration but as a practical necessity for maintaining competitiveness and mitigating mounting operational pressures.”
