Marriott invests $1.1bn in IT, replacing managers with algorithms

The rollout of AI‑based management systems could be a key driver of operational efficiency in the hotel sector, according to a new Bernstein report. Analysts predict that a shift to “hyper-personalisation” will allow major chains such as Marriott International and IHG to boost margins notably by optimising direct sales and implementing attribute‑based inventory (ABS).

One of the main financial aims of AI transformation is to reduce dependence on online travel agencies (OTAs). With aggregator commissions running 15–30%, deploying proprietary AI agents enables hotels to retain up to 95% of booking revenue. Marriott has already invested more than $1.1 billion in 2026 in cloud infrastructure and an “agent network” that bypasses intermediaries’ interfaces and handles customer requests in their native languages.

Given that labour makes up roughly 45% of a hotel’s operating costs, automating routine tasks — from pillow selection to cleaning coordination — is viewed as a primary lever for lifting EBITDA. Experts estimate that hotels using AI for dynamic pricing and demand forecasting are already recording total revenue gains of about 17% versus competitors relying on traditional models.

Moving to systems that capture detailed attributes for each room (floor, noise level, and amenities) allows hotels to apply extra charges for specific features. Bernstein notes that this “digital shelf” model turns a standard room inventory into a flexible set of high-value assets. Over the long term, this should support steady RevPAR growth (revenue per available room) even amid stagnant travel volumes.