While the hotel industry falls behind other sectors in adopting AI solutions, property management software provider Hostaway has found that the number of short-term rental (STR) property managers and owners using AI tools has more than doubled in just six months.

AI use among property managers and owners has climbed 63% since November 2023 - a pivotal shift in the industry's approach to modern technological solutions.

Property managers are deploying AI for dynamic pricing (41%), enhancing guest experiences (30%), and improving marketing strategies (29%). The most widely used AI tools include both the paid and free versions of ChatGPT.

While 31% of respondents have not observed a reduction in costs due to AI implementation, 35% reported substantial time savings, equivalent to four additional workdays per year. This figure increases to 47% among those managing more than 26 properties.

Despite the advantages it brings, 65% of participants expressed concerns about AI's ability to foster genuine human connections, and 54% were sceptical about AI handling complex guest issues.

Overall, 75% of property managers and owners are optimistic about AI, with 61% recognising it as bringing a competitive edge in the travel and tourism marketplace, particularly to hotels.

Hotels and STRs can reap the same benefits from using AI. The availability of the technology can be a key point of differentiation between whether a traveller chooses to book a hotel room or an STR.