More than 50% of hotels use AI, but under 10% see real impact: Report

More than half of hotels now use or are procuring generative AI globally, a sign of how quickly technology has become a part of everyday work. Yet fewer than one in ten say it has reduced their manual work by more than 30%, as per a new report.

The NYU School of Professional Studies (NYU SPS) Jonathan M. Tisch Center of Hospitality, in collaboration with RateGain Travel Technologies, and HEDNA (Hotel Electronic Distribution Network Association) have released the State of Distribution Report 2026, that draws insights from over 58,000 hotel properties and finds AI adoption running ahead of real impact.

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As per the findings of the report, most hotels are seeing small gains rather than a change in how their teams operate. Hotels are increasingly willing to use AI for assistance, but remain cautious about allowing it to make decisions or act independently. As a result, hotels are investing more in improving the systems they already have rather than simply adding new platforms. The market is evolving from systems of record that capture transactions and data to systems of work that help commercial teams interpret signals, coordinate decisions, and act with greater confidence. AI-originated search now contributes a measurable share of reservations, while 55% of hotels report no or only a minor change to their distribution strategy, according to the report.

“Buying AI is easy. Getting value from it is not, and this report shows most of the industry is still stuck between the two. The advantage will not go to the hotels with the most tools. It will go to the ones that turn their technology into better decisions and give their teams their time back. That shift has not happened yet, and it is the single biggest opportunity in front of the industry,” said Bhanu Chopra, founder and MD, RateGain. Reporting remains hospitality’s most persistent inefficiency, and the clearest opportunity for AI-led automation. According to the report, more than than 80% of commercial teams still spend one to two days a week producing and analyzing reports manually, and fewer than 30% have invested in dedicated reporting tools. Hotels have tools for direct bookings, but OTAs still win demand, as per the findings. Core direct-booking infrastructure is nearly universal across the industry, yet OTAs generate close to twice the bookings of hotel-owned digital channels.

The 2026 survey examines hotel commercial operations for the period from December 1, 2024, to November 30, 2025. Respondents represented four core commercial disciplines: revenue management, marketing, distribution, and sales. The analysis also compares independent hotels, mid-sized hotel chains, and large hotel chains to understand how technology adoption, operating models, and commercial challenges vary by organizational scale.

Vanja Bogicevic, clinical associate professor and director of HI Hub Exchange, NYU School of Professional Studies, Jonathan M. Tisch Center of Hospitality said AI is reshaping how travelers discover hotels, how commercial teams work, and how pricing and demand decisions are made.

“This year, we expanded the research to examine these emerging realities, including zero-click search, AI governance, behavioral pricing, data privacy, and regulatory oversight. Together, these new benchmarks show where hotel commercial strategy is heading and where operating models have yet to catch up,” she added.

HEDNA president Lisa Murphy said this report is not just ‘data.’

“it is our mission in action and a benchmark for where the industry must go next. Three years of this research show that commercial teams are becoming more connected and technology investment is growing, yet fragmented systems and manual work remain deeply embedded,” she added.