AI is no longer just a buzzword in hospitality – it’s transforming how hotels operate, engage guests, and drive revenue.

NB: This is an interview with Amit Popat of Cloudbeds, one of our Expert Partners

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While many are familiar with predictive and generative AI, two emerging forms – causal AI and multimodal AI – are now taking center stage. Amit, Head of Machine Learning at Cloudbeds, recently shared insights on how these innovations are unlocking real value for hoteliers.

From Predictions to Influence: What Is Causal AI?

Predictive AI tells you what might happen. For example, it may forecast a 60% occupancy next month. Helpful? Yes. But what if you want to change that outcome?

This is where causal AI steps in. It helps you understand why something is happening and what you can do to influence it. Instead of just saying “drop your rate,” causal AI considers the bigger picture: your marketing efforts, competitor pricing, seasonality, and more. It might suggest a smaller rate change combined with a targeted campaign – helping you boost occupancy without sacrificing rate integrity.

Causal AI connects the dots across departments – revenue, marketing, operations – breaking down silos and helping teams work toward shared business goals instead of isolated KPIs.

What About Multimodal AI?

Imagine a guest notes “celebrating our anniversary” in their booking. That detail can easily be missed. Multimodal AI reads and understands unstructured data like special requests, images, even PDFs and videos, and turns it into actionable insight.

It could:

  • Trigger an upsell email for a romance package
  • Notify housekeeping to add a special touch
  • Alert front desk for a personalized welcome
  • Ensure all communication aligns with your brand voice

This type of AI doesn’t just search for keywords – it understands context and responds accordingly. And when paired with causal AI, it also learns which of these touches lead to better guest satisfaction and more repeat bookings.

Putting It Into Practice at Your Hotel

Amit and his team are building these capabilities into Cloudbeds Intelligence, a platform designed to unify hotel data and make AI work with your existing systems. Whether you use Cloudbeds’ own tools or third-party solutions, the goal is the same: connect your tech stack and turn data into action.

With Cloudbeds’ open API and integrated ecosystem, all key data – from your PMS, booking engine, CRM, and marketing platforms – is pooled into one central hub. That’s what enables powerful, AI-driven recommendations that are specific to your property and your goals.

Why This Matters Now

As staffing challenges continue and guest expectations rise, AI isn’t about replacing people – it’s about helping your team focus on what matters. It ensures no guest detail is missed, and every revenue opportunity is captured.

Causal and multimodal AI are more than just tech trends. They’re tools to help hoteliers deliver smarter operations, personalized guest experiences, and more profitable stays.

It’s not about the AI – it’s about what it helps you do better.

Read more article from Cloudbeds