Embracing vs resisting: Challenges for hospitality managers in adopting AI

Embracing vs resisting: Challenges for hospitality managers in adopting AI

Vietnam's hospitality industry faces a choice: embrace AI for innovation or resist and risk losing out. The key lies in balancing tech advancements with cultural sensitivity, said RMIT academics and industry insiders.

A balancing act

AI has the potential to transform Vietnam’s hospitality industry by enhancing service quality and customer experiences with solutions such as chatbots, personalised recommendations, and automated workflows. However, managerial resistance to AI adoption, especially among small- and medium-sized enterprises (SMEs) with limited resources and low AI awareness, remains a significant hurdle.

According to Dr Nuno F. Ribeiro, Senior Lecturer of Tourism and Hospitality Management at RMIT University, cultural factors complicate this resistance.

“Vietnam’s hospitality industry is deeply rooted in traditional management practices that prioritise human-centric service delivery and interpersonal relationships, often viewing AI as impersonal and disruptive to the sector’s core values,” he says, adding that the hierarchical nature of decision-making in many organisations fosters a cautious approach to innovation and change.

Hotel staff hands key card to guest Vietnam’s hospitality industry is deeply rooted in traditional management practices. (Photo: Pexels)

Adding to this complexity is the quest for authenticity by modern tourists, who increasingly seek unique, culturally immersive experiences that stand in contrast to the standardised, technologically mediated nature of mass tourism.

“For many visitors, Vietnam’s appeal lies in its vibrant traditions, local charm, and human connection, which can sometimes feel at odds with AI-driven solutions that automate or homogenise services,” Dr Ribeiro states.

“This tension highlights the challenge of integrating AI in a way that complements, rather than undermines, the authenticity of Vietnam’s tourism offerings.”

Opportunities abound

At the same time, Vietnam’s young and tech-savvy population, which boasts one of the highest rates of technological adoption in the region, presents a significant opportunity for the hospitality industry.

Associate Professor Agnis Stibe from the Business Innovation department at The Business School of RMIT Vietnam says, “This demographic’s familiarity with and openness to technology underscores the potential for AI to be adopted in ways that align with the country’s service culture.”

Associate Professor Stibe also cites recent discoveries that demographic factors such as age and education play crucial roles in AI adoption. Specifically, older individuals often transition more smoothly from acceptance to intention due to their broader life experiences and established intuition.

“Therefore, fostering a culture of knowledge sharing among employees can enhance service quality and customer satisfaction, particularly among older staff who may feel more confident in using AI,” he said.

Studies also indicate that AI system quality can moderate the relationship between knowledge sharing and employee service quality, with higher-quality AI systems enhancing the effectiveness of knowledge sharing processes.

This highlights the potential of AI to not only support operational efficiency but also foster collaboration and learning among employees to better serve customers’ evolving needs.

AI applications in Vietnam’s hospitality industry

To explore what AI applications are being implemented or explored in Vietnam’s hospitality sector, RMIT academics talked with several business leaders.

Mr Alvaro Moreno, a seasoned hotelier and co-founder of SODA Hotel Management Platform, highlights that while AI adoption is still in its early stages in Vietnam, its potential impact will grow significantly in the coming years.

According to Mr Moreno, the biggest benefits of AI so far have been in improving efficiency for general business tasks, such as translations, copywriting, and graphic design, which have reduced reliance on third parties and saved both time and money.

For guest-facing services, he emphasises that the level of digitalisation within a hotel is key: "If a hotel has a high level of digitalisation across operations and touchpoints, AI adds value with chatbots for reservations and guest communication."

Mr Moreno also identifies significant challenges: "The challenge isn’t applying AI but understanding it. Resistance to AI comes from human factors like understanding, interest, and the ability to implement it. Hotel tech must be both employee and guest-centric."

Person browses hotel booking site AI can enhance service quality and customer experiences with solutions such as chatbots, personalised recommendations, and automated workflows. (Photo: ktasimar – stock.adobe.com)

Mr Mario Mendis, General Manager of Fusion Resort & Villas Da Nang, shares a practical perspective on how AI is already transforming operations in Vietnam’s hospitality sector. He explains: "In our marketing department, we’ve optimised operations by consolidating multiple roles into one or two employees, streamlining workflows without compromising efficiency. Similarly, in guest services, AI-powered 24-hour instant response systems have significantly enhanced service speed and guest satisfaction."

Looking ahead, Mr Mendis envisions the integration of advanced robotics with emotional intelligence as the next transformative step: "This could revolutionise frontline service areas such as reception, restaurants, and housekeeping. It would not only improve efficiency but also elevate the guest experience through more personalised and responsive interactions."

Mr John Gardner, CEO and Founding Partner of hotel consultancy company Optimum Hospitality, finds that Vietnam’s tech-savvy population provides a strong foundation for AI adoption. However, he acknowledges hurdles in implementation: "Setting up AI chatbots and automated workflows will be the biggest hurdle due to a shortage of people able to create and implement them. Once done, though, it’s just a matter of updating as AI functions become mainstream."

He also highlights the importance of balancing AI implementation with cultural considerations, particularly for older domestic tourists and inbound travellers who may not be as familiar with AI-driven services. He predicts that AI will soon revolutionise global reservation distribution structures and stresses the need for the industry to adapt quickly.

Mr Gardner notes, "We are just learning the full potential capabilities of AI in our industry, and there will be so many new functions AI will be able to perform that we probably haven’t even thought of yet."

Taking the first steps

Despite several challenges, the potential for AI to enhance operational efficiency and personalisation cannot be ignored.

Dr Ribeiro stresses the important of implementing culturally sensitive strategies, such as targeted education, pilot programs, and government-backed incentives.

“With such strategies, Vietnam’s hospitality industry can overcome resistance, improve service quality, preserve authenticity, increase international tourism revisit rates, and remain competitive in an increasingly AI-driven global market,” he said.

To navigate the challenges of adopting AI, managers should prioritise an approach that respects the sector's human-centric values while integrating technology.

“Targeted education programs should not only demystify AI but also empower employees across all age groups, especially those with higher educational backgrounds, to translate their understanding into practical applications,” Associate Professor Stibe said.

Additionally, pilot programs can serve as low-risk opportunities to test AI solutions, allowing for gradual integration that aligns with the industry’s values.

With AI, hospitality managers can create a competitive edge in the global market. They can preserve the authenticity that attracts tourists while elevating service standards, ensuring that both older and younger employees are engaged and capable of championing AI technologies.

Masthead and thumbnail image: pressmaster – stock.adobe.com 

25 February 2025
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