Artificial intelligence may already be reshaping global hospitality operations, but many Indian hotels continue to rely on slow manual processes across reservations, sales, guest communication, and operations — creating what Avi Arya, Founder, Internet Moguls, describes as a widening “intelligence lag” within the industry.
The observation comes from a special industry newsletter released by Arya after attending Web Summit Vancouver 2026, where he spent four days interacting with 77 technology companies focused on AI, automation, workflow intelligence, CRM, and operational efficiency.
According to Arya, the biggest concern was not the arrival of AI tools, but the hospitality sector’s slow pace in adopting technologies that are already commercially viable and increasingly affordable for independent hotels.
Hotels still dependent on manual systems
The newsletter argued that many hotels continue to operate with outdated systems despite guests themselves increasingly using AI-powered tools for travel research, price comparison, and decision-making.
Arya highlighted examples where hotel enquiry responses still average 47 minutes, while AI-powered systems demonstrated at Web Summit could respond within 30 seconds through automated voice interaction and lead qualification.
He wrote, “The gap between what technology has made available — and what your hotel has actually adopted. For most Indian hotels, that gap is now three years. And it is widening.”
The report identified several operational gaps where AI could improve hotel efficiency, including proposal generation, WhatsApp follow-ups, guest upselling, CRM segmentation, workflow monitoring, and staff training.
AI moving from trend to business necessity
Rather than presenting AI as a future concept, the newsletter framed automation as an immediate commercial requirement for hotels facing increasing competition and rising operational costs.
Arya estimated that a mid-sized 100-room hotel could potentially recover between INR2.25 crore and INR3.35 crore annually through faster enquiry responses, pre-arrival upselling, improved data utilisation, and operational efficiency.
The newsletter also pointed to a growing divide between hotels adopting AI-driven systems and those continuing with labour-intensive manual workflows.
Arya wrote, “The first group will respond faster, propose better, retain more, and operate leaner. Their cost per booking will fall. Their repeat rate will rise.”
He added that many hotels are still manually drafting proposals, responding slowly to leads, and underutilising years of guest data already stored within PMS and CRM systems.
Hospitality operators urged to adapt faster
The newsletter referenced multiple AI-focused companies showcased at Web Summit Vancouver, including platforms specialising in voice automation, proposal generation, workflow intelligence, behavioural marketing, and AI-powered guest targeting.
Arya concluded that AI adoption was no longer restricted to large hotel chains with enterprise budgets and had become increasingly accessible to independent and mid-market properties.
