Are hotel managers becoming obsolete in the age of AI?

With the hospitality industry embracing algorithmic management (AM)—a type of intelligent system that delegates managerial functions to algorithmic and automated programs—frontline hotel managers find themselves caught in an increasingly complex web of technology and human interaction.

The study, by Brana Jianu (University of Surrey), Mark Ashton (University of Surrey) and Peter Lugosi (Oxford Brookes University), published in the International Journal of Hospitality Management, investigated this technological shift and found that there are already signs that the very foundations of managerial roles may need to be redefined to survive the coming age of AI.

In hotels, AM can help with housekeeping schedules based on room occupancy, cleaning needs, and staff availability, ensuring efficient resource allocation, analyzing workload demands, and allocating staff to different departments and tasks, optimizing efficiency, and minimizing costs.

Brana Jianu, postgraduate research student and lead author of the study at the University of Surrey, said, “Algorithmic management is transforming how hotels operate, from scheduling shifts to assigning tasks, with algorithms making decisions previously reserved for human managers.

“This seismic shift in the hospitality sector calls into question not only the future of frontline management but also the overall employee experience within hotels. As these systems become more entrenched, the risk of dehumanization and alienation among workers rises—creating a pressing need for effective solutions.”

The study involving 22 hotel managers and academic hospitality experts was conducted to explore the impact of AM on managerial roles. Through a series of open-ended questions, experts shared their insights on how AM could enhance or hinder collaboration, creativity, control, competition and employee development within hotels.

The responses were then collated, analyzed, and refined over several rounds of discussion, allowing researchers to gauge consensus on the emerging challenges and opportunities.

Jianu said, “Managers must evolve from controllers to coaches, fostering an environment where employees feel empowered and valued.”

“This transformation is not just about embracing technology; it’s about humanizing the workplace and ensuring that staff remain at the heart of hospitality.”

To help managers navigate the complexities of AM, the research highlights several key strategies. First, maintaining transparent communication about algorithmic decision-making processes is crucial to preserving trust among staff. By openly discussing how AM systems operate, managers can mitigate feelings of alienation and foster a more collaborative environment.

Second, coaching and emotional intelligence are vital skills that managers must develop to support their teams effectively. This involves understanding employee concerns and addressing the dehumanizing effects of algorithmic oversight.

Lastly, embracing creativity while adhering to standardized processes is essential to maintaining a competitive edge in the hospitality industry.