From Explorationto ExecutionHospitality shiftsFrom Explorationto Execution Hospitality’s Adoption EraHospitality's Adoption Era In 2025, Canary Technologies mapped the industry’s outlook on AI with our report, Navigating AI: Emerging Trends in Hospitality.This year, we set out to explain how AI trends across hospitality have changed. In 2025, Canary Technologies mapped the industry's outlook on Al with our report, Navigating Al: Emerging Trends in Hospitality Our findings reveal a clear shift: hospitality is now in its AI adoption era.Our findings reveal a clear shift: hospitality is now in its Al adoption era. The Imminent Impact of AIMore and more hoteliers say they’re seeing AI’sThe Imminent Impact of Al Adoption is Under WayThe majority of hoteliers are already using AI and manyAdoption is Under Way impact now, up 10 ppt from 2025.71%impact now, up 10 ppt from 2025. more plan to ramp usage this year.more plan to ramp usage this year. 51% Now or WithinNext YearNow or WithinNext Year We Asked, Hoteliers RespondedWe Asked, Hoteliers Responded We surveyed 404 hospitality IT decision makers to understand the evolving role of technology solutions, and AI in particular, inhotel operations.We surveyed 404 hospitality IT decision makers to understand the evolving role of technology solutions, and Al in particular, inhotel operations. Table of ContentsTable of Contents Rising Tech & AI BudgetsRising Tech &Al Budgets Hoteliers’ Perceptions of AIHoteliers' Perceptionsof Al in HospitalityNavigating the AIin Hospitality 4Road AheadRoad Ahead Rising Tech & AI BudgetsRising Tech & Al Budgets IT SpendingContinues to ClimbIT SpendingContinues to Climb Changes to IT Budget in the Next 12 MonthsChanges to IT Budget in the Next 12 Months The hospitality industry is pouring resources into IT.Nearly all hoteliers plan to increase their IT budgetsin the next year, with 67% expecting at least a 10%bump in the next 12 months. Only 4% of respondentshave plans to decrease IT budgets.The hospitality industry is pouring resources into IT.Nearly all hoteliers plan to increase their IT budgetsin the next year, with 67% expecting at least a 10%bump in the next 12 months. Only 4% of respondentshave plans to decrease IT budgets. Strategic IT budgets are vital for hotels to keep pace with rapid technologicaladvancements. Now that technologyis core to hotel operations and theguest experience, continuedinvestment is essential to meet thedigital expectations of moderntravelers.to keep pace with rapid technologicaladvancements. Now that technologyis core to hotel operations and theguest experience, continuedinvestment is essential to meet thedigital expectations of moderntravelers Priorities Driving IT InvestmentHoteliers report four main business priorities that drive their tech investments: improving the guest experience (52%), increasingPriorities Driving IT Investment efficiencies (52%), increasing revenue (51%) and reducing costs (45%).Hoteliers report four main business priorities that drive their tech investments: improving the guest experience (52%), increasingefficiencies (52%), increasing revenue (51%) and reducing costs (45%) Key Takeaway:Hoteliers see advancingKey Takeaway: technology as a way to supporttheir core business priorities andmeet ever-evolving guestexpectations. By growing theirinvestment in IT, hoteliers aresignaling they want to appeal tomodern travelers whilemanaging rising costs.technology as a way to supporttheir core business priorities andmeet ever-evolving guestexpectations. By growing theirinvestment in IT, hoteliers aresignaling they want to appeal tomodern travelers whilemanaging rising costs IT Investment Priorities by ClassA segment-based breakdown illuminates how IT investment priorities differ by class. The data reveals that economy and luxury hotelsIT Investment Priorities by Class prioritize increasing revenue the most, while upscale hotels focus on improving the guest experience.A segment-based breakdown illuminates how IT investment priorities differ by class. The data reveals that economy and luxury hotelsprioritize increasing revenue the most, while upscale hotels focus on improving the guest experience. Key Takeaway:Economy hotels protect their margins,Key Takeaway: while luxury properties rely on staff forthe guest experience and IT to driveprofitability. In contrast, mid-marketproperties elevate the guest stay byinvesting in automation andpersonalization technology. This allowsmidscale and upscale hotels tocompete for the best guest experience,even without the budget of a luxuryclass property.while luxury properties rely on staff forthe guest experience and IT to driveprofitability. In contrast, mid-marketproperties elevate the guest stay byinvesting in automation andpersonalization technology. This allowsmidscale and upscale hotels tocompete for the best guest experience,even without the budget of a luxuryclass property. AI and the Hotel IT BudgetAI is now a core