Insights Type: Articles

Retention Enhancement Through AI

The HSMAI Foundation recently published a report, The State of Generative AI in Talent Management for Hotel Sales, Marketing, and Revenue Management, exploring the impact of generative AI on various facets of talent management, particularly focusing on the domains of hotel sales, marketing, and revenue management. It provides insights, data, and forward-looking perspectives that are essential for industry professionals to stay ahead in an ever-evolving landscape. This excerpt is taken from the third section of the newly released report.   

The Boston Consulting Group’s study, Joy at Work Matters More Than You Realize (February 13, 2024), emphasizes the critical balance between “joy” and “toil” in improving employee retention. Joy involves engaging, meaningful work that fosters creativity and aligns with individual and organizational goals, while toil consists of repetitive, mundane tasks that drain energy and cause frustration.  

Though data does not yet definitively link generative AI to improved retention, discussions with commercial leaders reveal its potential to address toil and increase joy. For hotel commercial teams—responsible for the interplay between sales, marketing, and revenue management—retaining top talent is essential for sustained success. In the third section of the report, we will dive into the following areas where Generative AI is having a positive impact on employees:  

  • Leveraging Generative AI to Minimize Toil and Increase Joy. Generative AI is transforming hotel commercial teams by eliminating tedious tasks, boosting efficiency, and empowering professionals to focus on strategic and creative work that enhances both job satisfaction and retention. This increase in may lead to higher engagement and long-term retention.
  • Perspectives on Potential AI Time Savings: How would you spend an extra hour in your workday? Hospitality executives weigh in, revealing key priorities like boosting productivity, fostering innovation, enhancing work-life balance, and strengthening workplace culture.

Read the full report for even more insights into talent management using AI here: global.hsmai.org/research  

The work of the HSMAI Foundation is made possible with support from our Corporate Talent Partners.     

Four Focuses of GenAI in Professional Development

The HSMAI Foundation recently published a report, The State of Generative AI in Talent Management for Hotel Sales, Marketing, and Revenue Management, exploring the impact of generative AI on various facets of talent management, particularly focusing on the domains of hotel sales, marketing, and revenue management. It provides insights, data, and forward-looking perspectives that are essential for industry professionals to stay ahead. This excerpt is taken from the second section of the report on professional development.  

The hospitality industry is at a pivotal moment as AI reshapes traditional roles and skills. Leadership teams must balance building their own AI literacy while guiding organizations through this transformation. Two learning models have emerged: structured training frameworks and decentralized, hands-on experimentation.  

Where hospitality companies are finding the most success is when they blend AI fundamentals, practical tool experience, and ongoing learning to build adaptability rather than mastery of specific tools. By fostering a culture of continuous growth and creating dynamic learning environments, organizations can ensure their teams remain agile and capable in an ever-evolving, AI-augmented hospitality landscape.  

In this report, we cover the following areas on how companies are advancing the use of Generative AI as part of their professional development: 

  • Leaderships Role in AI: Forward-thinking leaders are transforming their organizations by embracing an AI-first mindset, becoming primary learners, and pioneering strategies that balance innovation with responsible AI adoption.
  • Structured Learning in AI Development: Traditional training programs are adapting with AI Playgrounds and AI Immersion Workshops, to advance their workforce’s use of AI. It comes, however, with inherent organizational challenges. 
  • Unstructured and Organic Professional Development: This emerging learning model is finding success with new techniques including AI champions, leaders as champions, reverse mentoring and more.
  • Organizational Challenges: Explore the critical challenges organizations face in AI-focused professional development and learn how innovative governance frameworks and AI Task Forces are helping companies navigate these complexities, ensuring safe, effective, and ethical AI adoption while fostering innovation and adaptability.

Read the full report for even more insights into talent management using AI here: global.hsmai.org/research  

The work of the HSMAI Foundation is made possible with support from our Corporate Talent Partners.     

The Rise of Wellness in Hospitality

Megan Chase, SMERF, Sales and Events Manager, Otesaga Resort Hotel, Rising Sales Leader Council Alum 

The hospitality industry, like many other industries, has seen a significant pivot towards wellness and wellbeing offerings, with projections from the Global Wellness Institute estimating the sector’s growth to reach $1.3 trillion by 2025. This shift, intensified by the pandemic, has reshaped everything from client demands to service standards, emphasizing the importance of wellness in daily operations and guest experiences. I brought this topic to one of my final Rising Sales Leaders Council meetings to discuss the trend – read on to hear our take.  

Post-pandemic, many of us argued that wellness has transitioned from a luxury to a necessity in hospitality, influencing not only luxury properties but also some select service hotels. The debate continues whether wellness should be considered a luxury or a standard offering. However, the market’s direction is clear: guests are increasingly valuing wellness as integral to their accommodation choices. One rising leader shared, “it’s become more of a standard, when you get into the specific offerings that’s where it starts to get different, because a 5 star in one State could look completely different from a 5 star in another region. And their offerings might be different. But some of the standards are definitely spas and having an ability to use a spa pools or larger hot tubs, as well as offering specialty services, facials.” 

This broad embrace of wellness is also evident in conferences and events, where features like quiet rooms have become popular, enhancing attendee wellbeing. Similarly, food and beverage offerings have adapted, with a growing trend towards healthier, sustainable, and locally sourced options. Despite the challenges of higher costs associated with these offerings, many properties find that the benefits of supporting local economies and providing high-quality, wellness-focused services outweigh the cost. One RLC Member shared, “A big thing our hotels adapted to is working with local markets and locally grown produce and meats, instead of you know, the big conglomerate, because we want to have that quality. If we’re going to charge a premium, we need to be able to speak for it and say, we get our stuff from local community, this is organic, etc.” 

Read More:  

Questions for Your Team:  

  1. Do you consider Wellness and Wellbeing offerings as a luxury standard?  
  1. How has Wellness Hospitality impacted the questions that clients are asking? 
  1. Has it impacted how you sell your property? 

Marriott Bonvoyland Lands Digital Best of Show

Marriott Bonvoy’s innovative approach earned them the HSMAI Adrian Award’s Best of Show honor in the Digital division for Marriott Bonvoy Land. The campaign successfully engaged younger generations by leveraging strategic partnerships and creating immersive experiences.

 

Learn more about the 2024 Adrian Awards Winners Here:  https://adrianawards.hsmai.org/winners-gallery/

Strategic Approaches to Capturing the International Market

Steven Chrappa, Director of E-Commerce, Hard Rock Hotel New York, Rising Marketing Leader Council Member  

International travel is a key piece of business for hotels in major markets as these guests stay longer and spend more when compared to domestic travelers. Many of these markets are returning to their pre-COVID levels so how are we as hotel marketers looking to introduce and reintroduce our hotels to key feeder markets? This is the topic I brought to HSMAI’s Rising Marketing Leader Council for discussion.  

One Rising Leader Member shared, “Our approach includes tapping into the recognition of our brand, which globally resonates with a diverse audience.” The conversation among the group revealed a common theme: the need for targeted marketing and operational adjustments to serve international travelers better. Tools from various data platforms offer a granular look at who’s coming and from where, which helps in writing targeted marketing messages. 

Hotels are testing other methods that range from leveraging strategic locations that appeal directly to international travelers to employing advanced analytics to understand and predict visitor behavior better. “It’s about more than just waiting for guests to book; it’s actively creating reasons for them to choose us,” adds a participant. This involves everything from customized promotions to partnerships that enhance direct booking opportunities. 

Operational strategies are also evolving to meet the nuanced needs of international visitors. This includes employing multilingual staff and offering services that address cultural preferences and expectations. “Ensuring our guests can navigate their stay comfortably, from check-in to check-out, is paramount,” mentioned one RLC member. The importance of direct bookings is emphasized, with strategies aimed at reducing reliance on third-party booking platforms, which often obscure valuable guest data. 

Questions for Your Team 

  1. Is international travel a focus or an emerging focus?
  2. How do you sell your property to international consumer? How is your marketing different (if at all)? If your property is branded do you rely more on the brand’s assistance (if applicable)?
  3. Have you noticed a shift in your markets pre and post COVID?
  4. For our partners, how do you market a particular property to international markets?
  5. Operationally does your team do anything different for international guests?

Rising Above Uncertainty – How Tomorrows Hotel Leaders are Taking on Today’s Challenges

Recent discussions with and Menti poll results from all three of HSMAI’s Rising Leader Councils have identified issues impacting our rising leaders. Looking at the challenges across commercial functions reveals nuanced concerns that vary across sales, marketing, and revenue management. Economic uncertainty was a concern across the board, closely followed by the need to manage rising operational and marketing costs effectively. Technology offers immense opportunities and presents some adaptation challenges, even for the digitally native generation. Read on for a look at each council’s rankings. 

For sales professionals, the primary concern is rate management and revenue strategy conflicts.  

 

Marketing leaders are primarily focused on rising operational and marketing costs as the issues impacting hotels. In the rank of what was impacting the rising leaders themselves, career progression topped the list. One participant shared, “there’s limited director of marketing positions for on-property. If you want to grow when you’re on property, you get pushed to corporate. Many may not want to jump into a portfolio of 30 plus because you still want to do social media, the fun activations and more of that guest experience marketing, but you get pushed more into analytical marketing, because there aren’t other positions to move into.”  

Revenue management professionals cite economic uncertainty and inflation as their top concern. One rising leader suggested “Everyone’s uncertain when it relates to this and the reality is there is no magical formula to figure out which way it’s headed tomorrow or even a couple months from now. What’s most important is recognizing that uncomfortable feeling is mutually felt by everyone.” 

Despite these variances, a unifying thread among all groups is the impact of economic uncertainty, which underscores the need for all disciplines to have a seat at the table. One participant astutely posited, “It’s so important to address this economic uncertainty with all teams, not just revenue management or sales or marketing. You have to bring in distribution as well. A key word that I’m using a lot lately is prioritization. What’s going to be our strategy moving forward? Are we going to be focusing more on heads and beds? Are we going to be focusing more on technological improvements. That has to be a conversation amongst the commercial strategy team.” 

Technological adaptation, another theme, highlights the industry’s push towards digital transformation. For rising leaders, however, the challenges often extend into personal development, with issues like career progression, work-life balance, and leadership credibility. Burnout is a prevalent issue among rising leaders, driven by the need to manage multiple responsibilities and keep up with rapid technological changes. “With technology that’s ever changing…every morning you wake up and you feel like you have to be on top of the next trend or something new. And just when you think, I finally caught up, a new course comes out about something in digital marketing and you think oh, now I have to start all over again. You’re constantly feeling like you’re never caught up and you’re just go, go, going and you can never take a break.” 

 

The leadership strategies that emerge in response to these challenges will likely define the success of the hospitality sector for years to come. Rising leaders are fostering environments where innovation is encouraged, collaboration is required, and learning is continuous.  

They are seeking career pathways and mentoring programs can help mitigate some of the unique personal and professional challenges they face.  Moreover, adopting flexible pricing and marketing strategies that can quickly respond to market changes will be crucial for maintaining competitiveness. 

Rising Leaders Councils are made possible by funding from the HSMAI Foundation. They are two-year term advocacy groups, comprised of up-and-coming professionals working in a mix of hospitality roles (e.g., hotel on-property, regional, or corporate, DMO, DMC, Management Company, brand or partner, etc.), learn more about HSMAI Rising Leaders.  

HSMAI Perspective: Wish You Were There – 4 Takeaways from the Adrian Awards Celebration

Brain Hicks, President and CEO, Hospitality Sales & Marketing Association International (HSMAI)    

The recent Adrian Awards, “Wish You Were Here,” was a showcase of creativity and innovation that embraced the theme. As the first-time host, I was personally thrilled with the event’s success and the incredible talent on display. The Adrian Awards continue to be a testament to the ingenuity and passion of hospitality marketers who push boundaries and redefine what is possible in travel marketing.

Here are my takeaways from the event, each illustrating how this year’s participants made us all wish we were part of their incredible journeys. 

  1. Embrace Digital Integration – Marriott Bonvoy’s campaigns Marriott Bonvoy Land campaign by Marriott International took home the Best of Show in the Digital division. Their campaign integrated the digital world with the physical, offering an immersive experience that invites gamers and travelers alike into a Marriott-inspired virtual realm.
  2. Hyper-Personalized Customer Engagements – “Puerto Rico Sí” from the Puerto Rico Tourism Company showcased how deeply personalized content can effectively resonate with potential travelers, earning it the Best of Show in Integrated Campaigns.
  3. Tell a Compelling Story – The “Find What You Need in Port A” by the Port Aransas Tourism Bureau & Chamber of Commerce campaign utilized narrative-driven advertising to engage visitors, winning Best of Show in Advertising. The campaign highlighted local attractions through stories that attract and retain tourist interest.
  4. Leveraging Major Events for Brand Impact – Omni Hotels and Resorts’ “SOLARBRATION” campaign tied into the excitement surrounding the solar eclipse, providing guests with a memorable experience that aligned perfectly with the celestial event, winning it the Best of Show in Public Relations and Communications.

During the celebration we also honored the career achievements of industry leaders. Victoria de Falco was recognized with the Winthrop W. Grice Award, for her visionary public relations strategies that have elevated the profile of numerous hospitality brands. Michelle Woodley was the honoree of the Albert E. Koehl Award, which underscored her profound impact on hospitality marketing and her leadership at Preferred Travel Group.  

Thank you to everyone who attended the Adrian Awards, let’s take these inspirations from the night and integrate them into our practices. By doing so, we continue to elevate the travel experience, making every guest wish they were right there with us. 

Learn more about the honorees in the Winners’ Gallery

A(I) Recruitment Revolution

The HSMAI Foundation recently published a report, The State of Generative AI in Talent Management for Hotel Sales, Marketing, and Revenue Management, exploring the impact of generative AI on various facets of talent management, particularly focusing on the domains of hotel sales, marketing, and revenue management. It provides insights, data, and forward-looking perspectives that are essential for industry professionals to stay ahead in an ever-evolving landscape. This excerpt is taken from the first section of the newly released report.  

Recruitment Revolution 

In 2024, AI adoption in recruitment within the hospitality industry remains in its infancy. While AI holds the promise of revolutionizing talent acquisition, most organizations are still experimenting, focusing on basic applications like resume screening and job description writing.  This cautious approach reflects concerns over data privacy, algorithmic bias, and the absence of tailored frameworks for hospitality. Budget limitations and a commitment to human oversight further temper the pace of adoption, with significant investments deferred until 2025. With that said, AI is being leveraged throughout the recruitment cycle with early success. In this section we’ll walk through tangible examples in the following areas:  

  • Job Descriptions: Not only is AI reducing the time involved, but it is also improving the quality of the descriptions to attract top talent.
  • Resume Screening: AI can quickly evaluate thousands of resumes to not only identify those that most strongly meet the job description criteria, but can infer skills not specifically listed, to identify hidden talent that would previously be overlooked. 
  • Interview Preparation: Learn how recruiters are tapping into the power of AI to craft interview questions that are tailored to each candidate and their unique work experiences to determine appropriate fit.
  • Interview Analysis: By leveraging AI to transcribe and analyze candidate interviews, recruiters can be more thorough and objective on the interview evaluations.

The report also explores the strategic impact generative AI is having on recruiting, from creating new types of roles to attracting top talent. 

Read the full report for even more insights into talent management using AI here: global.hsmai.org/research 

The work of the HSMAI Foundation is made possible with support from our Corporate Talent Partners.    

Insights from our CMO Roundtable Partners

At the DMO roundtable in New York, experts from Milestone, Sojern, and Lotus Marketing joined Digital Marketing Executives to discuss the impact of AI on marketing and advertising, sharing their insights, strategies, and how to avoid pitfalls.  

AI in Marketing
The session opened with Anil Aggarwal, CEO, Milestone illustrating how AI is reshaping customer discovery and content personalization, significantly enhancing conversion performance. He pointed out the critical role of AI-driven traffic and the imperative for technically robust websites to support effective AI interactions. 

Advancing into the advertising domain, Anil highlighted the powerful effects of AI, including automated ad creation and smart bidding techniques. He detailed how AI facilitates the creation of thousands of ad variations, optimizing content delivery in real-time to boost marketing efficiency. 

Content Personalization
AI applications that are changing the game in content creation and personalization. He spoke about integrating AI into everyday workflows to not only enhance content quality but also ensure its relevance on a hyper-personalized level. This includes AI’s ability to craft personalized itineraries and trip plans, tailoring experiences to individual preferences. 

Noreen Henry, Chief Revenue Officer, Sojern, emphasized the power of data-driven insights in achieving personalization at scale. Using Nike’s Run Club as a case study, she showcased how personalized workout plans and AI-driven coaching can be leveraged alongside predictive analytics for precise product recommendations. 

Noreen outlined a four-step personalization strategy that utilizes historical data, real-time shopping habits, and guest experience insights to refine marketing efforts and elevate customer engagement. 

Operational Efficiency and Data Literacy
Kimberly Erwin, Principal, Lotus Marketing stressed the importance of data literacy and operational efficiency as critical enablers for leveraging AI effectively. She noted how AI could amplify both strengths and weaknesses within business operations, underscoring the need for precise data and strategic alignment. 

Kimberly explored AI’s role in enhancing customer experiences, explaining how predictive capabilities and personalized interactions can be optimized to improve customer satisfaction significantly. Seh advocated for a blend of human expertise and AI capabilities. 

Thank you to the companies sponsoring this roundtable Lotus Marketing, Milestone, and Sojern. This Roundtable was attended by ownership groups such as Outrigger Hospitality Group Sonesta International, IHG, Peregrine Hospitality, Red Roof, CoralTree Hospitality, Castlerock Asset Management, Drury Hotels Company, LLC, Extended Stay America, FLYR Hospitality, and Preferred Travel Group. 

HSMAI hosts this unique by-invitation forum annually for executives from ownership groups who specialize in a commercial role at their company. If you are interested in being invited next year, please email Brian Hicks.  

 Lodging Construction Drops in 2024: Uncertainty Ahead

Bernard Baumohl, chief global economist at The Economic Outlook Group, provided his insights during a session on ”A New World Order: Trump’s Impact on the US & International Economy,” during the HSMAI Destination Marketing Executive Roundtable, February 19, 2025.  Among the takeaways: 

  • Lodging construction spending fell 5.6% in 2024 to $23.3 billion, slowing room supply growth and likely driving higher prices. While this benefits hotel revenues, broader risks add uncertainty. 
  • Global tensions—China-Taiwan trade issues, Iran’s nuclear developments, and severe weather— all have the possibility to disrupt travel. Domestically, U.S. political instability and diplomatic tensions may deter international visitors while pushing more Americans to travel abroad. 
  • With fewer new hotels entering the market, existing properties have an opportunity to capitalize. However, navigating economic and geopolitical shifts will require careful planning.  

HSMAI Executive Roundtables are networks of like-minded senior hotel leaders that meet face-to-face and virtually. They are a unique opportunity for executive-level peer groups to have meaningful dialogue in a confidential environment.