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Shaping the future for SMEs in Hospitality: What lessons can be learned from the EU and tech leaders like Open AI and Booking.com?

At Hotelschool The Hague, we constantly seek to connect the classroom with the cutting edge of the hospitality industry. Recently, our professor Alexander Lennart Schmidt joined a high-level panel discussion hosted by the EU Commission in collaboration with OpenAI and Booking.com, exploring the impact of artificial intelligence (AI) adoption for hospitality SMEs.

The panel aimed to unpack the challenges and solutions in scaling AI for SMEs, asking: “How can we ensure that AI adoption among SMEs grows and accelerates digital transformation across Europe?” This conversation was particularly relevant for hospitality, where the majority of businesses are small or medium-sized enterprises.

This invitation-only event brought together industry leaders, policymakers, and AI experts, to discuss both the opportunities and challenges of integrating AI in the hospitality sector.

AI adoption in hospitality SMEs: unique challenges

Most hospitality businesses are SMEs, and their barriers to AI adoption differ from those of larger corporations. During the panel, several key obstacles were highlighted. Alexander shares his highlights:

“Barriers are more cultural than just technical,” he explained. "AI adoption is often slowed by low digital skills, uncertain Return on Investment, and limited leadership engagement.”

Fear of risk remains a major inhibitor. Many SMEs hesitate to adopt AI due to fear of risk and lack of peer examples, even though proven use cases exist across guest and employee journeys.

Skills and culture are key to adoption

Panelists emphasised that solutions must blend technology with people and culture.
Upskilling and reskilling staff, building a culture of innovation, and demystifying AI through hands-on demonstrations can speed adoption. Incentives for experimentation—like hospitality schools as “AI innovation labs” or regulatory sandboxes—can provide safe spaces to explore.

Partnerships accelerate implementation

Clear partnerships between technology providers and SMEs, as well as best-practice sharing networks, are vital. SMEs need low-risk models such as “AI as a Service” or pilot trial approaches that lower entry barriers and prove efficiency.

At Hotelschool The Hague, the research project AI Agents for Efficient and Sustainable Hospitality Workforce exemplify this approach, showing how practical AI solutions can enhance operational efficiency while remaining sustainable.

Hospitality must look beyond efficiency

The discussion also highlighted that AI in hospitality is not just about cost reduction or task automation. It’s about reimagining value creation: from AI-driven travel assistants and personalised guest services to dynamic pricing and robotic collaboration on shifts.

“The next generation of hospitality will integrate digital experiences seamlessly,” Alexander noted, “combining human creativity with AI efficiency.”

Connecting insights to education and the future

By participating in panels like this, Hotelschool The Hague ensures that expert insights and real-world experimentation feed directly into education and research.
Our students benefit from up-to-date knowledge and hands-on approaches to AI, preparing them to lead in a rapidly evolving industry.

Alexander Lennart Schmidt’s participation reflects our commitment to bridging research, industry, and education. helping hospitality leaders and future professionals navigate the AI-driven transformation ahead.

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About Alexander

Dr Alexander Lennart Schmidt is Professor of Technological Innovation in Hospitality at Hotelschool The Hague. His research focuses on the intersection of digital technologies, such as robotics, AI, and business model innovation.