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Sponsored content: With occupancy back at pre-pandemic levels and inbound visits rising, there are now clear signs that the UK’s hospitality industry has recovered, and faces significant opportunities – particularly among operators with urban portfolios. But making the most of this demand is a daunting prospect, with many pointing to emerging technologies as a way to ease the pressure.
Hotel occupancy returned to pre-pandemic levels earlier this year. International Passenger Survey (IPS) figures, recently released by the Office of National Statistics, have revealed that there were an estimated 42.6 million inbound visits to the UK throughout 2024. Collectively, these visitors spent £32.5 billion and stayed for an impressive total of 293 million nights.
Cities are, unsurprisingly, occupancy hotspots. London experienced its highest ever average daily rate (ADR) and revenue per available room (RevPAR) on record, according to data from CoStar. Edinburgh also fared well throughout 2024, at 84.2 per cent occupancy and with ADR up 10.3 per cent. Similarly, Cardiff also hit record ADR and RevPAR figures, and Manchester experienced strong spikes in demand.
But whilst occupancy rates are improving, staffing shortages have not. According to UKHospitality, there are around 132,000 vacancies across the sector, 48 per cent above pre-pandemic levels. This has left hospitality teams contending with chronic burnout. Hospitality Action has reported that 62 per cent of junior employees now consider it ‘part of their job’. Half of all managers have also reported experiencing their own forms of burnout. The leading cause, cited by 57 per cent of respondents in a recent survey, was understaffing, followed by excessive workloads and a poor work-life balance.
Guest Expectations are Evolving
Meeting rising demand, with stretched teams, poses multifaceted challenges for hospitality businesses. But compounding the issue is a series of rapidly evolving guest expectations. These shifts are forcing operators to adapt to new communication channels and increasingly diverse demographics.
As reported by the Zendesk Customer Experience Trends Report 2025, the margin for error is getting narrower. For instance, 73 per cent of consumers now report that they’ll switch to a competitor following negative experiences. Just over half, with even higher expectations, say they’ll make a switch after just one. Some 56 per cent of them won’t complain or provide feedback, they’ll simply quietly switch to a competitor. Two negative experiences can also lead to complete brand abandonment, too.
In other words, the consequences for mistakes in hospitality have never been more severe – and the room for error has gotten considerably smaller. Whilst demand is rising, competition is likely to be fiercer than ever before, forcing operators to innovate and consider new and ambitious solutions in how they manage guest communications, their front desks, and the overall experience they provide.
Preferences are also shifting. Ofcom has reported that nearly eight in ten UK adults now use WhatsApp, and that roughly two thirds of them report that it’s their primary online communication channel. This means it’s no longer a ‘nice to have’, but a necessary feature of a modern operation.
AI Solutions and the Promise of Automation
An obvious area of interest for operators is emerging technology, particularly AI. The prospect of automating routine tasks, thereby freeing staff to focus on high-value guest interactions, is a tantalising one – but lingering concerns around personalisation, brand consistency, and accuracy still stand in the way of adoption.
A new contender in this space, DreamDesk, hopes to overcome these concerns. Launched in partnership with Lamington Group, it’s an AI reception platform that aims to provide a fully automated front desk solution. According to its developers, it accurately covers phone, email, web chat, and even WhatsApp, integrating them into a single, PMS-friendly interface. It can automate up to 90 per cent of guest communications, covering more than 35 languages and dialects. The company has reported that operators have experienced a 60% reduction in front desk workload, with 100 per cent of calls answered.
‘Built for Hospitality, by Hospitality’
It’s a pre-existing background in the hospitality industry that, according to co-founder Vieri Balboni, makes DreamDesk an ideal solution for operators. Balboni has firsthand, onsite experience within the sector, while fellow co-founder Robert Godwin is CEO of the Lamington Group and the driving force behind room2 hometels. It’s their combined experience and operational insight that, according to Balboni, has proven so integral to the technology’s design and implementation.
He said, “Coming from a hospitality background ourselves, we understand the challenges and pressures modern teams are facing. We’ve crafted a solution that simultaneously alleviates staffing pressures whilst delivering the exact tone and values of every operator – whether it’s serviced apartments, boutique hotels, or a larger chain with broader scalability needs”.
Trialling DreamDesk at room2 hometels
One of the first operators to deploy DreamDesk has been room2 hometels, the world’s first hometel brand and a part of the Lamington Group. It’s since reported that staff workloads have been reduced, calls have been addressed, and that guest feedback has been positive.
Robert Godwin, CEO at the Lamington Group and co-founder of DreamDesk, saw room2 as a perfect opportunity to prove the technology. He said, “room2 has always been a brand focused on new, innovative approaches. That made it an ideal proving ground for DreamDesk’s AI solution. He added, “we’ve seen firsthand how it can support hospitality teams in providing a much more personal, but manageable, service and we’re excited to see it scale more widely”.
The Opportunity for Prepared Operators
With rising demand, the hospitality industry is facing considerable opportunities for growth. Especially in an urban environment, with cities acting as the driving force for reservations. Capitalising on this growth, whilst contending with an historic staff shortage, will likely require innovation, new technology, and competitiveness.
AI solutions like DreamDesk are looking to provide a practical way to maintain standards without adding to headcount. With the technology becoming increasingly reliable and adaptive, it’s likely to become a recognisable feature in a growing number of urban brands.
For operators who want to explore how the technology could work in their own properties, DreamDesk’s team offers free sessions highlighting how it works in practice. You can receive a personal demo here.
