In an era where technology is rapidly advancing, the hospitality industry is experiencing a profound shift.

The hospitality sector, traditionally reliant on human touch, is now merging the art of hospitality with the science of big data.

This transformation was on display at the recent Hospitality Sales and Marketing Association International's (HSMAI) Commercial Strategy Week held in Toronto. As they convened, these professionals provided invaluable perspectives on the future of revenue management and commercial strategy, discussing the convergence of traditional hospitality values and cutting-edge data-driven methodologies, illustrating the industry's determination to adapt and thrive in an era where technology plays an increasingly pivotal role.

Several key issues surfaced as priorities for hospitality industry leaders as they face today's technological developments head on. Below are a few of the key takeaways on what industry experts have to say on the emerging trends in hospitality sales, marketing and revenue optimization.

Artificial Intelligence and Marketing

Artificial Intelligence is dominating conversations, with industry experts nearly unanimous in their belief: AI is not here to replace the human element in marketing; it is here to enhance it. By sifting through vast amounts of data faster than any human ever could, AI tools supply invaluable insights to guide the decisions of hotel marketers. This doesn't mean letting algorithms make all the decisions, but rather, using them as powerful tools in the marketer's toolkit.

The power of social media is another crucial aspect of modern marketing in the hospitality industry. Social media platforms have evolved from being mere entertainment channels to potent marketing platforms. The discussion is not just about being present on these platforms, but about leveraging them, about navigating their nuances, and about harnessing their potential to display a hotel's unique offerings. Collaborating with influencers, once seen as a fringe strategy, has become central to many hotel marketing campaigns, as influencers can provide authentic voices that resonate with new demographics and attract a broader audience.

Beyond the platforms and tools, the fundamental essence of marketing is the brand itself. It's one thing to have a brand, but how do you make it resonate? The answer, as suggested by experts, lies in weaving emotions into marketing. It's about creating brand-first experiences that linger in the minds of guests and potential guests. Once this emotional connection is established, it is essential to protect and nourish it through consistent messaging, education, and ensuring that the brand's promise is authentically represented across all marketing channels.

Despite the prominence of Artificial Intelligence on marketing strategies and the nuanced use of social media platforms like TikTok and Meta, the human connection remains paramount within the hospitality industry. Building relationships, understanding guest needs, and delivering exceptional customer experiences are timeless aspects of hotel marketing that technology can enhance but not replace. In a world increasingly shaped by technology, the human element remains indispensable in creating memorable and meaningful interactions in the world of hospitality.

Becoming Revenue Strategists

Revenue optimization is so important, but so is the synergy necessary between various hotel disciplines in today's challenging environment. A pivotal lesson in recent years has been the interplay between management and data driven strategy. In an era where big data and AI are becoming central to operations, it's the skill of looking at data sets and providing actionable insights that sets true revenue strategists apart. They are experts in making sure the data is clean and using it in an efficient and effective manner. With an emphasis on an all-encompassing team approach, where every stakeholder is attuned to the hotel's primary metrics, the future of revenue management promises to be more agile and innovative.

Expert insights offered valuable guidance for revenue management in this data-driven era:

  1. Embrace Technology: The era of manual data entry, segmentation fragmentation, and overwhelming reports is waning. Instead, embrace available technology to streamline processes and enhance efficiency.
  2. Identify Key Metrics: It's crucial to identify which metrics and goals matter most to your key stakeholders. Tailor your revenue strategy around these essential performance indicators.
  3. Effective Communication: Learn how to tell the Revenue Strategy Story through communication, confidence, persuasion, and preparation.
  4. Team Collaboration: Building a holistic revenue strategy team where everyone not only understands but also buys into the key metrics of the hotel is essential. Each team member should contribute their expertise to drive revenue growth.
  5. Agility and Innovation: In the dynamic hospitality landscape, staying agile and flexible is imperative. Continuously seek innovative, new ways to conduct business and adapt to changing market conditions.
  6. AI Integration: Leverage AI to assist with the labor-intensive task of cleaning and processing data. AI can automate data management, allowing revenue managers to focus on strategic decision-making.

AI & Personalization

Another topic dominating the hospitality sphere isthe potential of generative AI in reshaping leisure travel experiences. Generative AI offers an advanced method to design bespoke stays for leisure travelers, diving deep into data to craft an individualized experience. By analyzing datasets, including travel histories, preferences, past experiences, and even online behavior, these AI algorithms can draw out intricate patterns and insights that might be unreachable to human hotel managers. This capability allows hotels to offer tailored recommendations, enhancing the overall travel experience.

Hotels can use the power of generative AI to stand out in a competitive market. As travelers increasingly seek experiences that resonate with their unique tastes and preferences, AI-driven suggestions can be game-changing. Whether it's suggesting activities that align with a guest's previous trips, offering dining options that match their culinary tastes, or tailoring room amenities based on past preferences, generative AI ensures that every recommendation hits the mark. In an age where personalization is becoming paramount, the embrace of such advanced AI tools can position hotels at the forefront of customer-centricity, ensuring that guests feel seen, heard, and valued.

The disciplines of revenue management, marketing, sales, and digital have traditionally been interconnected in hotel operations. Moreover, the aftermath of the COVID-19 pandemic has underscored the heightened significance of seamless communication and collaboration among these groups. This synergy is crucial for navigating the complexities and uncertainties of the post-pandemic landscape, ensuring a unified approach that adapts to evolving market dynamics and customer preferences.

Executive Insights

Among the myriad topics, the potential of AI consistently surfaced as a significant theme. Reinforcing the ideas from the conferences, the executives at the roundtables painted a future where AI is not merely a tool; it's poised to become an integral component of marketing and revenue strategies, reshaping the way the industry operates.

Another crucial takeaway was the increasing emphasis on collaboration. Not only between hoteliers but also between hotels and their partners. This spirit of collaboration is the cornerstone of progress, as industry partners find avenues to grow business collectively. The recognition of the interconnectedness of the industry and the need for collaborative efforts to navigate the evolving landscape highlighted the industry's commitment to adaptation and innovation in the face of unprecedented challenges and opportunities.

State of Talent

The emphasis on corporate culture, values, and the rise of commercial strategy in job titles suggests a notable industry shift. Companies that adopt a commercial-centric approach tend to outperform in revenue and profit metrics, and this trend was clear in the discussions at the conference.

As the hospitality industry navigates the new frontiers of big data and generative AI, human connection is still at its core. As we stand on the cusp of this new age, one thing is clear: the fusion of traditional hospitality with the advancements of big data is not merely a future aspiration; it's the present reality, where technology enhances but does not replace the quintessential warmth and personal touch that defines the hospitality experience.

Reprinted from the Hotel Business Review with permission from http://www.hotelexecutive.com/.

Bob Gilbert
+1 703 610 9024
HSMAI