As the world embraces eco-consciousness, the demand for environmentally friendly hotel options has soared, with searches for “sustainable travel” increasing by a staggering 191% since 2020. To meet demand and reduce their carbon footprint, hoteliers are turning to cutting-edge technologies like Artificial Intelligence (AI) to better manage energy consumption, water conservation, and waste consumption.

These pioneering solutions offer real-world benefits, significantly reducing hospitality’s environmental impact. However, they also introduce significant cybersecurity risks.  

In this week’s feature of the VENZA Echo, we’re examining this trade-off—the balance of “sustainability” vs. “susceptibility,” exploring the most popular AI-driven eco solutions and assessing their associated risks to hoteliers.

AI-Powered Sustainability

Green initiatives are nothing new for hoteliers. Major hotel chains like Hilton have implemented global environmental impact reduction strategies for years (such as their LightStay program launched in 2009.) Likewise, new green technologies, like occupancy sensors to reduce AC usage, are common in most guest rooms.

AI solutions in the sustainability arena aren’t introducing entirely new operations; instead, their transformative power lies in their ability to improve them by analyzing and processing data on an unprecedented scale. Trained algorithms, using vast amounts of data, can identify patterns and make predictions, reducing waste and offering a more environmentally efficient operation.

Groundbreaking green AI solutions are already becoming adopted in hotels worldwide, with significant applications in the following areas:

*Energy Management

As HVAC systems are 50% of a property’s total energy expenditures, eco-conscious hoteliers have long sought sustainable solutions in this area.

AI-driven energy management systems integrate with existing occupancy sensors to optimize heating, ventilation, and air conditioning (HVAC) systems based on real-time occupancy and weather conditions.  These so-called “smart systems” learn from historical data to predict peak usage times and adjust settings, ensuring minimal energy waste.

Hotel brands are increasingly embracing these tools to monitor and manage energy use. For example, Hilton recently announced they have cut energy and water consumption by 20% using AI-powered management tools—a cost savings of over USD 1 billion.

Choice Hotels International has recently come aboard, implementing cloud-based artificial intelligence technology to track and manage energy consumption across more than 6,000 franchises in the U.S.

*Water Conservation

Hotels are known for high water use, consuming up to 21,537 gallons daily. The true number may be even higher due to undetected leaks that may be unnoticed, further increasing consumption and waste.

AI has significantly improved water management in hotels detecting water flow anomalies like leaks in real time, leading to greater conservation and reduced utility costs.

A notable example is the Atlantis Casino Resort, which recently installed a smart water management system. Within a year, the resort saw a clear return on its investment. The property not only reduced water consumption but also identified and prevented what could have been a catastrophic water leak.

*Food Waste Reduction

Food waste can be a significant concern for hospitality, affecting both the environment and operational costs. AI-powered solutions are making substantial strides in addressing this issue, providing hotels and restaurants with tools to minimize waste and enhance efficiency.

InterContinental Hotels Group (IHG) has taken significant action in this area. By using a combination of cameras, smart scales, and AI-powered smart meter technology in their kitchens, IHG hotels have achieved remarkable results. Overall, they saw a 30% decline in food waste, with some individual locations experiencing reductions of over 50%.

AI systems work by monitoring food usage in real time, tracking what is being prepared, served, and discarded. The data collected is analyzed to identify patterns and pinpoint areas where waste can be reduced. For instance, if certain dishes are consistently left unfinished, portion sizes can be adjusted, or recipes can be modified to better match guest preferences. Additionally, AI can predict demand more accurately, helping to optimize inventory and reduce over-ordering.

Sustainability and Vulnerability

Despite the significant environmental benefits that AI-powered solutions can bring, they are not without risks. Innovative technologies, while transformative, can introduce vulnerabilities that hoteliers should address to ensure environmental and data security.

*IoT Vulnerabilities

AI-powered solutions often rely on a network of Internet of Things (IoT) devices to gather and transmit data. These devices, which include smart thermostats, water management systems, and occupancy sensors, present significant security vulnerabilities. Hackers can exploit these vulnerabilities to gain access to the hotel’s network.

Take the following as an example. In 2017, an undisclosed U.S. casino experienced a devastating data breach. The cause of the hack? A fish tank in the casino’s aquarium. Because its smart sensors tracking temperature and cleanliness were connected to the casino’s network, hackers were able to successfully steal over 10 GB of data.

Even more recently, an 18-year-old hacked a highly renowned game publisher using just a cellphone and the smart TV in his hotel room.

*Data Privacy Concerns

The effectiveness of AI in sustainability efforts is largely dependent on its ability to analyze vast amounts of data. This data often includes sensitive information about guests and their behaviors, such as energy usage patterns, water consumption, and even preferences for room temperature or lighting.

As hotels collect and process this data, they must navigate complex data privacy regulations to ensure compliance and protect guest privacy. For instance, data privacy laws like the General Data Protection Regulation (GDPR) in Europe and the California Privacy Rights Act (CPRA) in the U.S. require businesses to implement strict data protection measures. These regulations require clear opt-in and opt-out mechanisms for data collection, ensuring that guests have control over their personal information. Hotels must obtain explicit consent from guests before collecting their data and provide easy ways for them to withdraw consent if they choose.

If your hotel employs a third-party AI solution, knowing exactly how and what data it collects is crucial to maintaining the privacy of your guests. Transparency is key. For example, if an AI system uses occupancy sensors to optimize energy usage, guests should be informed about what data is being collected and how it will be used to enhance their stay.

Failing to do so may result in hefty penalties. Even if it was unintentional, the CPRA could authorize fines of up to USD 7,500 for each violation.

Conclusion:

The integration of AI in hospitality’s green initiatives is a double-edged sword. It provides powerful tools for enhancing sustainability but also introduces new challenges that must be carefully managed. By addressing these risks head-on, hotels can continue to innovate responsibly, offering eco-friendly experiences that guests can trust.

Feeling overwhelmed? Don’t be. VENZA is here to help. As hospitality data protection experts, our Security Team skillfully navigates hoteliers through the complexities of managing risks associated with new technologies like AI. In partnership with us, your company can get started in as little as one month.

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