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    Home » AI shocks against South Africa's hospitality sector – Tourism News Africa

    AI shocks against South Africa's hospitality sector – Tourism News Africa

    overthebordersBy overthebordersMay 28, 2025 Tourism Industry No Comments4 Mins Read
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    Micros Hospitality Tech Connect 2025 unlocks the future. Industry leaders will grasp the rapid disruption of AI and opportunities across the value chain

    South Africa's hospitality and restaurant sector is at the pinnacle of the technological revolution. Artificial intelligence (AI) and cloud technology are not just buzzwords, but fundamentally redefine success across operations, guest engagement, service delivery and commercial models.

    Speaking at Micros Hospitality Tech Connect 2025, Micros Managing Director Reginald Sibeko is frank.

    The conference, held from April 7th to 8th, brought together hospitality executives, operations heads and technology leaders from around the country. Vendors such as Broadvision Technologies, Iveri, Mobipaid, Sasaai, Electronic, Profitroom and Oracle have shown cutting-edge solutions that are already reshaping global and local industry dynamics.

    The urgency is clear as South Africa is scheduled to hold the G20 summit in November 2025. “Now is the time to move from consciousness to action,” Sibeko said. “The future is not waiting.”

    AI as opportunity and confusion

    One of the most impressive demonstrations of the power of AI came from tourism in South Africa. Chief Operating Officer Daryl Erasmus is eagerly waiting for South Africa – come and find your joy. Holiday couples walk along the walls, fly and travel from the beach to bushland. “It's AI on the side,” Erasmus said. “It takes only a small portion of the traditional method and will be delivered at a record time.”

    This example illustrates both the great opportunities and existential challenges AI poses. “The response from participants was both a sense of excitement and an alarm. The AI ​​hasn't come. It's here. It's fast,” Sibeko says. “But rather than fearing AI, the hospitality industry should embrace it as the most powerful partner that businesses have ever had.

    Real technology, real impact

    Recent data cited by Sibeko shows that companies using AI are already cutting operational costs by up to 37%. Agent AI – a system that allows decision-making and act independently – reconstructs knowledge-intensive roles, integrates previously siloed departments, and drives new levels of accuracy, speed and personalization.

    Some of the key AI-driven solutions that emerge in hospitality to increase operational efficiency and improve guest experience include:

    Cloud enablement: Consolidate platforms and reduce service costs while delivering scale, agility and speed to the market. Direct Booking Engine: Profitroom's platform is used by over 3,500 hotels worldwide, but it accepts in-person guest negotiations and personalized offers, achieving 70% higher ADR than third-party platforms. Contactless check-in and access: A must-have for the platform economy where guests expect seamless, touch-free interaction. Dynamic Rate Management: AI-powered revenue management systems offer real-time pricing, upselling, and inventory optimization. Ultra-personalization: AI leverages ERP, CRM, and guest data to coordinate offers, schedules and services in real time. Integrated Payment: Support for global and local payment methods, from QR codes to encryption, meets the growing expectations for convenience.

    Micros also featured its latest acquisition, Spaguru. The platform offers integrated booking scheduling, point of sale (POS), employee management, and marketing for spas, salons and wellness providers.

    Ecosystem Effects

    A recurring theme was the need for ecological thinking. There is no single vendor to hold all the answers. Success offers an unparalleled guest experience from building strategic partners, from transport to wellness, excursions and dining.

    The loyalty and vouching solutions of the electronic line are integrated into both POS systems and digital markets such as MTN MOMO and Nedbank Avo.

    “The lack of investment in innovation increases the risk of long-term losses,” Sibeko said. “This underscores the importance of Micros' role as a convener of industry players at this conference. Our approach focuses on driving sector value by forming an ecosystem of future-ready solutions with a wide range of industry partners.”

    So how should the hospitality sector respond to the AI ​​revolution? Sibeko lays out a clear three-stage roadmap.

    Migrate to the Cloud: Unlock the computing power, agility and data foundation required by AI. Appoint an interdisciplinary AI leadership team: Appoint leaders focused solely on understanding and maneuvering AI transformation. Build a trusted partner ecosystem: Not only will you enable AI, but you will work with your solution provider, and through it will drive business growth.

    Goodbye from the click – Reinvent the guest journey

    “AI is evolving faster than any of the conversions we've seen,” Sibeko says. “It's redefineing competitiveness. From discovery to starting to the front desk, every touchpoint needs to be rethinked.”

    AI doesn't just support hospitality. That's at the heart of it. And, as is the case, people need to shift their roles from operator to orchestrator. Now is the time to adapt, adopt and accelerate.

    The shock is real. Chance, more.

    For industry-related news, click here.



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