US Accommodation and Food Services Sector NAICS 72

Sep 13, 2025 - Psychological Barriers to AI Adoption

• Artificial Intelligence is transforming hospitality, with AI-powered robots supporting services, smart technologies enhancing operational efficiency, and predictive analytics forecasting demand, according to Hospitality Net. But while AI’s technological capabilities continue to expand, ultimately its success will depend on how it’s perceived and experienced by guests and employees, HN warns. Indeed, barriers to AI adoption in hospitality are less about trust in its technical capability and more about psychology, with people judging AI not only on what it does, but also on how it makes them feel. Understanding the psychological responses of guests and employees is important as they affect people’s willingness to accept and engage with the technology, according to HN. To deploy AI successfully, hospitality leaders should “humanize” the AI interface by mixing AI and human touchpoints to counteract its perceived lack of empathy and ensure it empowers rather than controls interactions, per HN.
• Consumer confidence fell sharply in June, according to the Conference Board’s Consumer Confidence Index, which declined by 5.4 points in June to 93, giving up much of May’s gains. Meanwhile, the CB’s Expectations Index fell to 69.0, remaining below the recession-signaling threshold of 80. Declines in confidence were observed across all age, income, and political groups, according to the June report. While consumers’ spending plans showed mixed signals, service sector intentions weakened broadly, with dining out being an exception. Despite the recent slip in consumer confidence, travelers are still planning trips and hotel stays this summer, Hotel Dive reports citing a Bank of America’s Summer Travel Trends Survey, which found 70% of respondents said they plan on vacationing this summer – a 3% increase from 2024. While more Americans may travel this summer, they’ll do so on tighter budgets, according to the Deloitte 2025 Summer Travel Survey.

• International travel to the US is trending downward, according to preliminary data from the Department of Commerce, US Customs and Border Protection, and other organizations that track inbound US travel. Total international visits to the US fell approximately 14% in March compared to the same period last year. Moreover, traffic from the highest-value inbound travel markets declined significantly. March saw a 26% year-over-year decline in overnight land trips by Canadians and air travel to the US from Canada fell 14% YoY. Travel from Western Europe declined for the first time since 2021, with a 17% drop in March visits to America. Travel from Asia fell for the second consecutive month in March and remains 25% below 2019 levels, while visits from South America fell 10% following a flat February. Florida was the top destination for international visitors in March, per the US Travel Association.
• Accommodation & Food Services was one of four of the 16 industries tracked by the Institute for Supply Management’s Services Purchasing Managers’ Index (PMI) that reported contraction in August due to a decline in business activity and the impact of tariffs. Producer prices for accommodations fell nearly 1% in August compared to a year ago after rising 2% in the previous August-versus-August annual comparison, according to the latest US Bureau of Labor Statistics data. Employment by accommodation and food services grew 0.9% year over year in August, down slightly from its high in June, while sector wages increased 3.4% YoY in July to $19.54 per hour, BLS data show. Rising payrolls are a pain point for the sector, which must contend with rising minimum wages in many US states and competition for workers.