The U.S. hospitality industry is forecasted to reach nearly $250 billion in 2025, and climb to $313.87 billion by 2030, according to Mordor Intelligence. As one of the economy’s most innovative and responsive industries, hospitality is both a key driver and a reflection of changing consumer behavior, workforce shifts, and technological adoption.
This article explores how digital convenience and human connection—often seen as opposing forces—are actually working together to meet evolving consumer expectations.
Summary: 5 Key Stats for 2025
- 96% of hoteliers are investing in contactless technology this year.
- 77% of guests prefer using automated messaging or chatbots for quick communication.
- 33% of restaurant owners say automation saves significant time on ordering.
- 90%+ of cruise lines use data analytics to personalize the guest experience.
- 82% of consumers say tech, like contactless tools or chatbots, doesn’t harm the human touch.
Tech-Forward Hospitality
In 2025, it’s not just food and beverage trends that modern hospitality operators need to factor into their business operations. Between contactless options, mobile-friendly features, AI, and big data hyper-personalization, technology has become one of the major sources driving consumer preferences.
As guest preferences evolve to encompass both convenience and personalization, forward-thinking hospitality businesses are embracing digital tools that streamline the guest experience, without sacrificing the human touch.
Contactless and Mobile-Friendly Tech: Adoption by Sector
The contactless movement was once limited to early adopters in populated urban areas. But what was seen as a novelty became the mainstream during the COVID-19 pandemic. Since then, contactless services have become a normal, and even essential, part of everyday life. In evidence of this trend, QR codes scanned so far in 2025 (globally) are 433% above 2021 levels, and the U.S. leads activity with a 38.31% share of total scans.
And now, some consumers are abandoning their wallets altogether: According to some surveys, around 95% of individuals who’ve made at least one mobile contactless payment say they’ve left their wallet at home at least once, relying on just their phone to make payments instead.
As consumers grow more comfortable with contactless tech, they’re discovering the improved speed, security, and reliability it can provide. And as these technologies become more familiar and trustworthy in consumer’s eyes, the hospitality industry is responding by experimenting further into contactless offerings—with new applications such as digital keys, mobile controls, and more.
This table highlights some of the developing mobile and contactless technologies across hospitality sectors:
Contactless/Mobile-Friendly Technology by Sector
| Sector | Contactless/Mobile-Friendly Tech | Adoption Statistics (2025) |
|---|---|---|
| Hotels | Mobile check-in, digital keys, and in-app food service ordering | 62% of hotels are moving to fully-contactless experiences. |
| Restaurants | Online menus, QR payment, and mobile ordering | Almost 42% of limited-service restaurant operators invested in contactless and mobile payment technology in 2024, and this trend is expected to continue in 2025. |
| Cruises | Digital check-in, digital boarding passes, wearables (wristband and medallions) for ordering and keyless room entry, and mobile apps for reservations and excursions | All major American cruise lines continue improving wearable technologies to include automated payments, efficient boarding, and more. |
| Events | Mobile wallets, RFID wristbands for food/beverage purchases, digital tickets, NFC for tap entry, virtual queuing, mobile apps for maps and online ordering | 83% of event attendees believe phones can improve event experiences, though only about 28% of organizers believed tech-enabled events are important. |
(Sources: Hotels, restaurants, events)
In spaces like hotels and cruises, the majority of operators are rapidly advancing mobile offerings. In terms of mobile ordering and contactless payment, restaurants are advancing a bit faster. Event spaces, in contrast, are slower to respond to customer demand. A remarkable indicator of how far behind event spaces may be: 40% of event operators say basic offerings like Wi-Fi are their top focus.
Restaurants are Leading the Contactless Movement
The restaurant industry is a leader in the contactless movement, but there are significant differences in how it’s implemented. Here’s a closer look at how contactless tech adoption has varied across restaurant segments:
Contactless Offerings Across Restaurant Segments
| Restaurant Type | % Adopted Contactless Tech | Most Prominent Type of Contactless Tech |
|---|---|---|
| Quick-Service Restaurants | 92% | Mobile ordering and payment (87%) |
| Casual Dining | 84% | QR codes (79%) |
| Fine Dining | 67% | Reservations (N/A) |
| Cafes and Bakeries | 81% | Mobile ordering (76%) |
(Source: Pratham Business Suite)
These findings show that different restaurant segments benefit from tailored contactless tech solutions. For example, while quick-service restaurants and bakeries are ramping up mobile ordering and delivery services, casual dining spots may find the most benefit with QR code menus that help them manage front-of-house understaffing.
Clearly, when adopting these technologies, operators must carefully consider which offerings are worth the investment for their specific business.
Smart Investing: Choosing the Right Tech for Your Business
The whole point of contactless technology is to improve consumer experience. Avoid the temptation to select technologies just because they have flashy features or name recognition. Thoughtful tech selection and implementation is much more likely to improve the experience of both consumers and staff.
Here are a few things to keep in mind:
- Make a list of your exact needs, using customer surveys and market research to inform your list.
- Determine your non-negotiables.
- Explore available technologies and compare their features–don’t be afraid to ask generative AI tools, like ChatGPT, for help here!
- Establish a budget, schedule a demo, and prepare detailed questions.
- Reference your research, non-negotiables, and budget to make an informed decision based on exactly what you need.
AI & Automation: From Chatbots to Biometrics
Invisible transactions are gaining traction with consumers, with 64% embracing biometric authentication like fingerprints or Face ID. And the hospitality industry is responding.
Here’s a look at how this looks across sectors:
AI and Automation Adoption Across Hospitality Sectors
| Sector | AI and Automation Tech | Adoption Statistics |
|---|---|---|
| Hotels | Virtual concierges | Around 89% are using AI for customer service, and 64% are using AI for housekeeping scheduling (reducing room turnover time by 41%). |
| Restaurants | Voice-activated kiosks for more accurate ordering, demand forecasting, smarter scheduling | 75% of restaurants see value in AI and automation, with over 30% finding services like kiosks help reduce ordering time. |
| Cruises | Biometric boarding, virtual assistants | Biometrics are cutting-edge in the cruise industry. In Feb. 2025, Royal Caribbean offered their first biometric debarkation, reducing clearance times by 30%. |
| Events | Automated check-in, biometric entry, AI-integrated NFC tags | About 47% of venues consider biometrics a top priority, and around 37% are already using biometrics for staff and media. |
(Sources: Hotels, restaurants, cruises, events)
While 79% have either already adopted or are actively considering using AI to support business operations and marketing, only about 33% of restaurant owners report that automation tools like self-service kiosks, mobile apps, and kitchen display systems significantly boost productivity and reduce ordering time.
Still, most restaurant owners are optimistic about the broader role of AI and automation in the industry, expecting these technologies to enhance core functions, like inventory management, payment processing, and marketing.
The most commonly anticipated benefits include:
Restaurant Operators Views on AI and Automation Benefits
| Does AI/Automation Improve: | % Who Agree |
|---|---|
| Marketing and Promotions | 77% |
| Inventory Management | 77% |
| Payments | 76% |
| Menu Optimization | 76% |
| Staff Management | 75% |
(Source: 2025 Square Future of Restaurants Report)
While there may be a difference between the perceived value and actual results—as is the case in hospitality hiring—these statistics indicate that many players in the hospitality industry see the potential value in these technologies.
Big Data and the Personalized Guest Experience
Beyond convenience and automation, personalization is becoming a defining pillar of modern hospitality. Fifty-eight percent of brands say personalization is one of their top priorities in 2025 (see graph on page 32). In many cases, this personalization is done by using CRM and machine learning technologies to track preferences, predict behaviors, and offer personalized recommendations using customer relationship management (CRM) tools.
Here’s a look at personalization technologies that are dominating hotels, restaurants, and cruises this year:
Hyper-Personalization Tech Adoption Across Sectors
| Sector | Hyper-personalization Tech | Adoption Statistics |
|---|---|---|
| Hotels | Personalized activity recommendations, demand pricing, personalized loyalty programs | 71% of hoteliers want to provide greater personalization, but only 15% believe they are effective, highlighting room for growth in 2025. |
| Restaurants | Personalized menus based on dietary preferences | About 70% of restaurants send customers personalized offerings, such as discounts on usual orders or providing birthday deals. |
| Cruises | Smart cabins, personalized itineraries, recommendations based on previous choices | More than 90% of cruises are using data-driven analytics for personalization. |
(Sources: Hotels, restaurants, cruises)
These tools are blending guest-facing personalization with back-end optimization—like predictive staffing and inventory control—shifting staff into more dynamic, rewarding roles. Instead of manually inputting guest data or offering one-size-fits-all service, employees are engaging in more meaningful, tailored interactions.
However, adoption doesn’t always equal success. As with most new technologies, adoption tends to follow a predictable curve. Early adopters experiment, while the majority waits to see proof of concept. In hospitality, that gap is likely even more pronounced due to legacy systems, training needs, and the complexity of customer data privacy. As shown above, 71% of hotels aspire to offer more personalization, but only 15% feel they’re doing it well. There’s clearly room for growth in bridging the gap between intention and execution.
Love it or hate it, Chesky’s vision captures a broader industry shift toward hyper-personalization as a path to deeper emotional connection.
Spotlight on Hotels: Guest Expectations in 2025
Technological conveniences are becoming commonplace across all touchstones of modern life. It’s no surprise that hotel guests are expecting those technologies when they reserve a hotel room, too. Here’s a look at what technologies guests are most interested in:
Top Technology Preferences Among Hotel Guests in 2025
| Preference | % of Skift and Oracle Survey Respondents Who Agree |
|---|---|
| I am interested in using automated messaging or chatbots for customer service | 77% |
| I’m more likely to stay in a hotel with self-service technologies | 73% |
| I prefer contactless payment | 49% |
| My top demand is connecting with my streaming/gaming accounts | 45% |
| I want voice-activated room controls | 43% |
| I prefer an entirely self-service experience | 38% |
(Source: Skift + Oracle Hospitality 2025 Report)
Interestingly, while hotel guests clearly want the option to use self-service technologies, the majority still want to interact with staff. This suggests that though routine functions—like checking in or requesting a service—may incorporate automation technologies, staff still play a vital role in the guest experience. In some cases, this may free staff time from more monotonous tasks, providing greater opportunities for highly-personalized and interactive services.
The vast majority of hoteliers are responding to these demands—both to meet consumer preferences and to mitigate ongoing staffing shortages across the industry:
Technology Strategies Among Hoteliers
| Strategy | % Who Agree |
|---|---|
| I’m investing in contactless technology in 2025 | 96% |
| New technology is our top strategy to address labor shortages | 65% |
| Our top priority is reducing/eliminating front desk services | 54% |
(Source: Skift + Oracle Hospitality 2025 Report)
While hoteliers are enthusiastic about tech adoption, they must carefully balance cost-saving measures with the clear demand that guests have for human-centered hospitality and customer service.
The Experience Economy: Wellness, Micro-Events, and Lifestyle Offerings
In 2025, travelers, especially Gen Z, are prioritizing authentic, unique, and immersive experiences over traditional luxury amenities. In fact, according to some surveys, the number of Gen Z travelers seeking experiences may be upwards of 80%.
These shifting expectations are reflected across several developing preferences:
Traveler Expectations from the Experience Economy
| Experience | What it might include | Preference statistics |
|---|---|---|
| Cultural events | Festivals, learning crafts from local artisans, and participating in regional traditions | 52% of travelers say authentic cultural immersion is their key motivator. |
| Wellness experiences | Yoga retreats, cold plunges, organic furnishings, or digital detoxes | 61% of the Gen Z generation prioritize wellness experiences in their travel plans. |
| Work and leisure (bleisure) | Co-working spaces, guided tours, food and wine tours, workshops, or bike rentals | 80% of business travelers are blending business with leisure. |
| Niche, unique experiences | Brewery bookclubs, cowboy core events, or even emotional support llamas | 80% of Gen Z travelers prioritize the experience. |
(Sources: cultural immersion, wellness experiences, work and leisure, uniqueness)
A Unique Experience That Charms Travelers
Completely unique experiences often provide exceptional value. Take Portland International Airport (PDX), for example, which introduced emotional support llamas in its terminals in 2024. The response? Travelers were not just amused but deeply moved—some even to tears, according to NPR. Thoughtful, surprising, and yes, even a little outrageous, these kinds of experiences leave lasting emotional imprints that extend far beyond a luxury lounge or fast-track security line.
Clever, unique approaches can be highly effective—often at a fraction of the cost of traditional luxury experiences.
Tension Points & Tradeoffs
While the hospitality industry continues rapidly evolving in 2025, there are some internal frictions. Many businesses are grappling with the tradeoffs between seemingly opposing consumer demands.
Technology vs. Human Connection
According to Oracle, automation is often misconstrued as a replacement for human connection, leaving many hospitality leaders fearing it. However, properly implemented automation can take over mundane tasks, increasing staff time for direct services and customer engagement. When things are going right, many customers are happy without interactions, but when they run into issues, people need each other.
This tension is sometimes referred to as the “contactless perception gap,” which we can see here in the restaurant sector:
Concern vs Experience of Tech
| % of restaurant operators worried tech will harm the human experience | % of diners who say technology actually harms the human experience |
|---|---|
| 47% | 18% |
Before implementing contactless technologies, nearly half of restaurant operators worried that their customers would have a less personalized, hospitable experience. But customers disagreed. When done well, 82% of customers believe that these technologies do not harm the human experience.
However, when restaurants go entirely contactless–with no personal interaction–they do suffer from poor customer experience. This reveals just how important it is to implement technologies thoughtfully.
Overall, restaurants fare best when they use technologies for ordering and payment, while increasing staff interactions for more personal and thoughtful interactions, such as recommendations, hospitality, and quality control.
The booming growth of both technologies and the experience economy showcase how technology is enabling efficiencies that enable more creative, interactive, and innovative offerings.
AI & Biometrics: Apprehension, Ethics, and the Fear of the Unknown
While many hospitality businesses are leaning into—or plan on using—AI and biometrics, many consumers (and operators) are not so sure. In fact, many express concern, hesitation, or even outright discomfort with these technologies—especially when it comes to privacy and control.
Biometrics—facial recognition, fingerprint scanning, and other forms of identity verification—offers major benefits for efficiency. But, it perfectly illustrates the tension between convenience and intrusiveness.
These worries aren’t unfounded. With notable exceptions—like the Illinois Biometric Information Privacy Act (BIPA) or California’s CPRA expansion—ethical and legal protections for biometric data are developing far slower than the technologies themselves. Without transparency or consent, consumers may feel their identities are being traded for efficiency. And in the current moment, it’s often up to the operators themselves to uphold consumer privacy.
Furthermore, when it comes to AI, a perception gap persists. According to a 2025 Gallup poll:
Most Americans Don’t Know How Much They Rely on AI
| % of Americans who say they use AI at least weekly | % who actually use AI at least weekly |
|---|---|
| 36% | 99% |
Gallup noted that many commonly used tools—like streaming services, weather apps, navigation tools, and social media platforms—rely heavily on AI. These findings suggest that at least some of the fear may stem more from the fear of the unknown and popular narratives than from real-world experiences.
What Story Are Hospitality Trends Telling Us?
When done well, the hospitality industry is harnessing technology not to replace the human experience, but to deepen and enhance it. Still, the path forward comes with challenges—from training and adoption to balancing innovation with guest expectations and privacy.
For current or hopeful hospitality leaders, attending Auguste Escoffier School of Culinary Arts’s Hospitality & Restaurant Operations Management program or one of its Food Entrepreneurship programs can help you develop essential business skills and keep abreast of rapidly-developing industry trends. To learn more about these programs, get in touch with our Admissions Department.
