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The Great Hotel Software Hustle

Hotel Software Companies Drive the Great Industry Hustle

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Hotel Software Companies Drive the Great Industry Hustle

by Robert Van Pash (Editor)
August 24, 2026
in Hotel Technology
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The Great Hotel Software Hustle

The Great Hotel Software Hustle

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THE NEWS:
Analysis: AI is being over‑hyped in hotel software, with vendors slapping the letters “AI” onto legacy products dating back to 1995, reflecting a broader trend of inflated marketing in an industry that has long accumulated acronyms like PMS, CRS and RMS.

DETAILS:

  • Since the 1970s hotels have added software acronyms such as Property Management System (PMS), Central Reservation System (CRS) and Revenue Management System (RMS).
  • Each new wave of technology was launched with a sales pitch claiming it would fix everything and generate more profits.
  • Hotels are notoriously slow to adopt change, often buying software as reluctantly as people get new appliances.
  • The article likens the overuse of “AI” in marketing to the A and I keys on vendors’ keyboards becoming loose.
  • WHY IT MATTERS:
    Because hotels adopt new technology slowly, the current AI hype may lead operators to invest in solutions that deliver limited immediate benefit, risking wasted spend and delayed real improvements.

    FAQ

    How have hotels historically labeled their software systems?
    Since the 1970s hotels have been adding software acronyms such as Property Management System (PMS), Central Reservation System (CRS) and Revenue Management System (RMS), each reflecting successive technology waves promoted as profit‑boosting solutions for the industry.

    What is the article’s main criticism of AI branding in hotel tech?
    The article says AI has been added to the hotel software alphabet soup, with vendors attaching the letters “AI” to any product that runs on electricity, even to systems originally built in 1995, likening the overuse to the A and I keys on marketers’ keyboards becoming loose.

    Why might the AI hype not translate into rapid hotel adoption?
    Hotels are notoriously slow to adopt change, so despite aggressive AI marketing, the pace of adoption could remain sluggish, potentially leading operators to invest in technology that delivers limited immediate benefit.

    Read Original Article.

    Tags: hotel-technology
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