Why Decision Velocity Is the Only Metric That Matters in the AI Era
Hapi CEO Jeff Bzdawka argues the industry skipped AI readiness in its rush for AI differentiation. MIT research shows 95% of generative AI initiatives fail to achieve their objectives, and RateGain's 2026 State of Distribution report shows only 10% of hospitality AI efforts deliver intended value. Bzdawka defines Decision Velocity through three interdependent variables: time to answer, confidence in the answer, and distance to action. A hotel is a collection of distinct businesses—lodging, F&B, spas, events and retail—often stacking 10 to 20 specialized systems and relying on overnight batch processing, leaving data fractured. He advocates decoupling the data layer from core transactional s…
Impact and considerations
For hotel groups and corporate travel buyers, data architecture determines whether AI and automation can deliver, directly affecting OTA settlement reliability, front-desk efficiency and revenue opportunity windows.
Key points
- MIT research shows 95% of generative AI initiatives fail to achieve their objectives, and RateGain's 2026 State of Distribution report shows only 10% of hospitality AI efforts deliver intended value.
- Bzdawka defines Decision Velocity through three interdependent variables: time to answer, confidence in the answer, and distance to action; all three must function together.
- A hotel is a collection of distinct businesses—lodging, F&B, spas, event spaces and retail—often stacking 10 to 20 specialized systems, each built for a specific operational need rather than real-time enterprise data sharing.
- Hospitality technology remains heavily reliant on legacy batch processing: transactional data is shipped above-property, computed overnight and pushed back down, so AI deployed on this architecture only spotlights the underlying chaos.
- He advocates decoupling the data layer from core transactional systems, extracting raw data via APIs and normalized reporting pipelines into unified cloud environments—a 'lakehouse as a service' model for mid-sized chains.
- VCC settlement case: one major hotel chain suffered a 30% VCC transaction failure rate from manual delays; after deploying an automated pipeline for real-time VCC validation and posting, the failure rate fell to under 1%.
- That workflow shift also eliminated back-office administrative overhead, repaired relationships with OTA partners and spared front-desk staff from uncomfortable guest confrontations.
Sources and time
- Primary source
- Hospitality Technology
- Other sources
- 0
- First source publication
- 30 Sept 2026, 00:06
- Page published
- 30 Sept 2026, 00:47
- Last updated
- 30 Sept 2026, 00:06
- Original links
- Hospitality Technology:Why Decision Velocity Is the Only Metric That Matters in the AI Era (opens in a new tab)Primary source · en · Published 30 Sept 2026, 00:06