Experts say hyper-personalization is the biggest trend in customer service. While it has been widely recognized in the competitive travel and hospitality industry, it has yet to reach the level of adoption seen in other consumer-focused sectors.
But what exactly is hyper-personalization?
It refers to creating highly tailored, data-driven experiences designed to engage individual users. This is achieved by combining data, automation, and analytics, with the most effective results occurring when these elements work together. Unlike standard personalization, which relies on past interactions and data, hyper-personalization uses real-time information to adjust experiences as they happen.
In short, hyper-personalization means making things extra special for customers by using smart technology. How AI is reshaping the hospitality industry.
Customer expectations in AI-driven hospitality
Travelers today seek seamless and intuitive experiences, with many expecting AI-driven services to anticipate their needs. According to a recent survey by McKinsey & Company, 71 percent of consumers expect companies to deliver personalized interactions, and 76 percent become frustrated when this does not happen.
In the hospitality sector, guests appreciate AI-powered chatbots for quick assistance, automated room preferences, and tailored recommendations based on previous stays. A study by Oracle Hospitality and Skift found that 77 percent of travelers prefer hotels that use AI to enhance their experience, from digital check-ins to customized itineraries.
The Philippine hospitality sector’s readiness
The Philippine Hotel Owners Association (PHOA) has been spearheading efforts to integrate personalized services into the hospitality industry.
As the country’s largest private sector investor in tourism, PHOA represents 65 member companies that own 200 hotels, with a total of 40,000 rooms nationwide. In late 2023, the organization launched initiatives aimed at enhancing guest experiences through advanced personalization strategies.
This year, the Philippines is also set to host key hospitality events, including the 8th Philippine Hospitality Summit this month and the 8th Hospitality Philippines Conference in September.
These gatherings serve as platforms for industry professionals to discuss trends, share strategies, and explore growth opportunities. The summit alone will bring together over 500 delegates and 100 speakers from across the hospitality and tourism industry, including hotel executives, government officials, real estate firms, eco-tourism advocates, technology providers, and branding experts.
As for the government support, early this year in January, tourism leaders from PHOA met with Department of Tourism (DOT) Secretary Christina Garcia Frasco to review 2024 tourism data and outline strategies for strengthening the country’s hospitality sector.
Frasco highlighted record-breaking achievements, including P760 billion in international visitor receipts and the recovery of key source markets. She emphasized the shift toward sustainable, high-value tourism and reaffirmed PHOA’s role as a key partner in achieving these goals.
PHOA officials provided updates on hotel investments aligned with the Philippine Hotel Industry Strategic Action Plan (PHISAP) 2024-2028. They also expressed their support for the Philippine Tourism and Hotel Investment Summit 2025, a collaborative initiative with the DOT.
Discussions covered infrastructure improvements, investment-friendly policies, capacity-building programs, and marketing strategies to boost the Philippines’ presence in the global tourism market.
As the hospitality industry embraces AI-driven personalization, the Philippines is positioning itself to enhance guest experiences, drive investments, and elevate its standing in international tourism. However, industry leaders must balance technological innovation with authentic human interactions to ensure that AI-driven personalization meets evolving customer expectations.
