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Artificial intelligence
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Case Study
Artificial intelligence (AI) is transforming hospitality, particularly in spa and wellness operations. In 2024, Lotte New York Palace introduced the world’s first fully automated AI massage, allowing guests to customize their experience via tablet and access services outside typical hours. AI is also used to support human therapists, as seen at Sensei Lanai, where sensors help tailor treatments and reduce administrative tasks. However, challenges remain: machine malfunctions or system failures could disrupt service or pose safety risks, especially if guests cannot stop the AI massage without human intervention. Balancing innovation with safety and personal touch is essential.
- Subjects:
- Hotel, Travel and Tourism
- Keywords:
- Health resorts -- Management Massage therapy Self-care Health Artificial intelligence
- Resource Type:
- Case Study
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Case Study
Effective inventory management is crucial for restaurant profitability and efficiency. A new AI-powered solution, developed by PAR Technology and NomadGo, streamlines inventory processes by allowing staff to scan items with mobile devices, speeding up counts by up to 10 times and achieving 99% accuracy. This integration with PAR’s back-office system provides real-time insights, reduces manual labor, and helps optimize purchasing decisions. However, challenges remain, including potential human error during scanning, risks from over-reliance on technology, and compatibility issues for restaurants not using PAR’s platform, which may require costly software transitions and ongoing monitoring to ensure accuracy.
- Subjects:
- Food and Beverage
- Keywords:
- Inventory control Restaurant management Artificial intelligence
- Resource Type:
- Case Study
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Case Study
Over the past decade, service industries have adopted AI chatbots to improve customer service, but reliability concerns remain. In 2022, Air Canada’s chatbot incorrectly promised Jake Moffatt a bereavement fare refund, which was later denied, leading to a court case. The British Columbia Civil Resolution Tribunal ruled Air Canada liable, ordering compensation to Moffatt. This case highlights that companies are responsible for information provided by their chatbots and must ensure accuracy. While chatbots handle basic inquiries well, their effectiveness drops with complex issues. Travellers are advised to consult human agents for nuanced or sensitive matters until chatbot reliability improves.
- Subjects:
- Hotel, Travel and Tourism
- Keywords:
- Airlines -- Customer services Chatbots -- Reliability Artificial intelligence
- Resource Type:
- Case Study
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Case Study
In an effort to reduce labor costs, McDonald’s invested in AI-driven voice ordering for drive-thru service, starting with the acquisition of Apprente in 2019 and later partnering with IBM. Despite initial benefits and expanded trials at 100 US locations, the technology struggled with accuracy, accent interpretation, and integration with existing systems. Viral videos of incorrect orders and billing errors led to widespread criticism, prompting McDonald’s to shut down its AI drive-thru operations and end its partnership with IBM. However, McDonald’s remains optimistic about the future of voice ordering and will continue exploring automated solutions for drive-thru service.
- Subjects:
- Food and Beverage
- Keywords:
- McDonald's Corporation Fast food restaurants -- Management Drive-in restaurants -- Technological innovations Artificial intelligence
- Resource Type:
- Case Study
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Case Study
Marriott UK, Ireland, and Nordics partnered with Winnow to implement AI food waste reduction technology in 53 hotels, achieving a 25% reduction in food waste within six months. Winnow’s system uses computer vision and weighing scales to identify discarded food, assign costs, and generate real-time data and detailed reports. These insights help chefs and managers adjust menus and portion sizes, saving up to 8% on food purchasing. Staff receive coaching to maximize ingredient use and promote zero waste. However, the technology cannot yet process mixed food types, requiring manual separation by staff until further improvements are made.
- Subjects:
- Hotel, Travel and Tourism and Food and Beverage
- Keywords:
- Cost control Restaurant management Hotels -- Environmental aspects Restaurants -- Environmental aspects Food waste Artificial intelligence
- Resource Type:
- Case Study
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Case Study
Airlines have traditionally used metrics like NPS and SCAT to assess customer service, but these often miss the complexities of customer feedback. With Large Language Models (LLMs), AI can analyze vast amounts of customer interactions from various channels, uncovering specific concerns and trends that generic categories overlook. AI enables more nuanced categorization and real-time monitoring at service touchpoints, helping airlines respond proactively. However, survey responses tend to be polarized, risking skewed AI-driven insights. To address this, airlines should supplement AI analytics with targeted outreach to gather more balanced and representative customer feedback for accurate decision-making.
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Case Study
Visual aids play a crucial role in restaurant sales, with 38% of customers influenced by menu photos. In April 2025, DoorDash launched AI-powered tools to help merchants optimize online menus, including an AI camera for better food photos and an item description generator for enticing menu text. These features, available via DoorDash’s Business Manager App, enhance images and streamline menu updates, boosting sales and saving managers time. However, concerns arise over authenticity, as AI enhancements may create unrealistic expectations. If the actual food quality doesn’t match the polished images and descriptions, customer dissatisfaction and reputational risks may result.
- Subjects:
- Food and Beverage
- Keywords:
- Restaurants -- Menus Restaurants -- Marketing Artificial intelligence
- Resource Type:
- Case Study
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Case Study
Scheduled to open in July 2025, Otonomus Hotel is the first AI-powered hotel in the U.S., offering 550 rooms with advanced technology for personalized guest experiences. The AI system tailors services by learning guest preferences from booking to checkout, even integrating social media data (with consent) to anticipate needs. Guests benefit from intuitive room allocation, proactive service suggestions, and ongoing profile refinement for future stays. However, the hotel faces challenges around privacy, as extensive data collection and social media access may make guests uncomfortable. Addressing these concerns transparently is crucial for guest trust and acceptance of this innovative concept.
- Subjects:
- Hotel, Travel and Tourism
- Keywords:
- Hospitality industry -- Information technology Hotel management Artificial intelligence
- Resource Type:
- Case Study
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Case Study
OTG Management, operating over 350 restaurants and retail stores in 11 airports across the U.S. and Canada, has turned to automation to address ongoing recruitment challenges. In 2023, the company adopted Dayforce Recruitment software, which uses AI-powered chatbots and Natural Language Processing to pre-screen candidates, score video interviews, and review resumes, aiming to reduce human bias and streamline hiring. This technology allows recruiters to focus more on personal interactions with candidates. However, challenges remain, as the AI overlooks non-verbal cues like tone and gestures, and may miss ideal candidates due to limitations in processing new or unfamiliar data.
- Subjects:
- Hotel, Travel and Tourism
- Keywords:
- Employees -- Recruiting Artificial intelligence
- Resource Type:
- Case Study
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Case Study
AI is transforming internal communications by enabling faster content creation, personalized messaging, and real-time translation, boosting productivity and engagement. However, challenges remain around content accuracy, potential bias, and data security, as organizations must ensure that AI-generated communications are reliable and sensitive information is protected from privacy and cybersecurity risks.
- Keywords:
- Computer security Employees -- Effect of technological innovations on Data protection Artificial intelligence
- Resource Type:
- Case Study