Insights Type: Articles

Customer Experience in the Age of AI

HSMAI Staff recently had the opportunity to chat with David C. Edelman, a speaker at the HSMAI Commercial Strategy Conference, June 25-26 in Charlotte. David is author of the upcoming book, Personalized: Customer Strategy in the Age of AI, and is a sought-after advisor on digital transformation and marketing. As CMO, David guided Aetna (now part of CVS Health) through becoming a digitally oriented, customer-centric brand. Repeatedly recognized by Forbes as one of the “Most Influential CMOs in the World,” and by AdWeek as one of the “Top 20 Marketing and Technology Executives,” his work has attracted over 1.1 million followers to his LinkedIn blog. Currently, David teaches Marketing at Harvard Business School and advises CEO’s and CXO’s in Health and Marketing Services, focusing on AI and personalization.  

Read on for our Q&A with David.  

Q: Could you give us a brief overview of your session at the Commercial Strategy Conference and what attendees can expect to learn or experience? 

A: There is a tremendous amount of hype about AI and many executives don’t know where to begin. I’ll be talking about the opportunities from AI in general, how to put together a strategy to use them to drive the business at scale, and how to create a strategy to embed AI to drive scaled impact. Attendees can expect to learn a framework for understanding what AI can do, how to start thinking about the priorities for where to focus investments in AI, and tangible ideas and examples of tools that they might want to explore that could help them on their AI journey. 

Q: What unique perspective or insights do you bring to this topic, and why is it important for today’s hospitality commercial professionals? 

A:  AI can be used for both efficiency and growth in the hospitality industry. From an efficiency standpoint, hospitality generates a lot of content and has a lot of marketing activity going on at many different phases of a customer’s journey. Much of this can now be automated, tracked, measured, tested, and constantly improved. From a growth standpoint, the main way to unlock growth from AI is through personalization, by being dramatically more relevant to each person. AI can allow you to do this by doing the modeling that can help you understand the right trigger for when somebody should be getting some kind of content, the generation of different options for what that content should be, and then for managing the testing and optimization of that overtime. 

Q: What are the practical takeaways attendees will be able to implement after attending your session? 

A: Attendees will come out of his session with a few practical takeaways that they can implement. These include: 

  1. A framework for understanding what AI can do, that they can share with their teams and use in their companies. 
  2. An understanding of how to start thinking about the priorities for where to focus investments in AI. 
  3. Tangible ideas and examples of tools that they might want to explore that could help them on their AI journey.  

Q: Could you hint at any future trends or predictions you’ll be discussing in your session? 

A: There is real value that can be obtained from where AI is, and that it’s been around for a while, though some of the newer genAI tools have only been around for at scale for 18 months or so. Other forms of machine learning have been around for a while and companies are already using those to drive serious results.  

AI is going to improve, but companies need to create the right kind of infrastructure, operating model, and data capabilities to support AI wherever it’s going, because it’s always learning from data.  

Q: For those looking to deepen their understanding or application of your session’s insights, what resources would you recommend? 

A: There’s so much out there, but an easy place to start would be the articles I’ve published in the Harvard Business Review:  

Q: What else should leaders be considering? 

A: AI strategy has to come down from the top and it’s a top leadership issue. It can’t just be little experiments that are happening. Top leadership teams need to spend the time and think about it through a workshop or series of exercises. They need to take the learning and the potential and turn it into a real plan for how they want to proceed. It does not happen organically; it must be deliberate.  

Leadership Defines Culture and Organizational Purpose

Throughout numerous HSMAI meetings, including board meetings, commercial week, and leadership conferences, a consistent and powerful theme has emerged regarding the role of leadership in the post-pandemic era. It has become evident that effective leadership is paramount in defining an organization’s culture, fostering a sense of community, and serving as a shining example of collaborative teamwork. The insights presented in this excerpt from the HSMAI Foundation Special Report: The State of Hotel Sales, Marketing, and Revenue Optimization Talent 2023-2024 are attributed to HSMAI board members and leaders from these meetings. 

Here are the five key leadership themes that have consistently resonated within the HSMAI community:  

  1. Visionary Leadership: Leadership sets the tone by articulating a clear and inspiring vision that defines the organization’s purpose and values. This visionary perspective acts as a guiding beacon, ensuring that every team member aligns with the organization’s mission and goals. Much like a “wolf pack” analogy, senior leadership within the company and the GM on property are the key drivers of this vision. General Managers are encouraged to build a strong community on property, fostering unity and camaraderie among the team. Above-property teams are urged to form a supportive “wolf pack” behind the GM to amplify their efforts and ensure success. 
  2. Culture Cultivation with a Revenue Focus: Leadership plays a pivotal role in establishing the organizational culture by embodying the desired behaviors and attitudes that drive revenue and profitability. When leaders prioritize guest satisfaction and a commitment to excellence, they create an environment where employees not only understand but actively contribute to the business’s financial success. One critical element identified by HSMAI leadership is the importance of connecting the dots for teammates, helping them see how their roles are integral to the organization’s overarching goals. Leaders must break down these goals and cascade them throughout the organization, reducing the “they said” mentality from team members and helping them understand the personal significance of these goals.
  3. Team Well-being: Leadership sets the tone by placing a high value on the well-being of employees. Through active demonstrations of care and support for their teams, leaders send a powerful message that team care is not just a slogan but a foundational pillar of the organization’s culture. As the saying goes, “frustration hijacks culture every day.” Leaders need to identify and address sources of frustration at work, as these can negatively impact the culture. Removing obstacles and providing support are crucial steps in promoting team well-being. 
  4. Continuous Learning and Growth: Leadership underscores the significance of continuous learning and development by allocating resources and fostering a culture that values skill enhancement. Leaders proactively promote structured learning opportunities, igniting motivation within employees to engage in personal and professional growth. As stated in a Fast Company article, “Leaders see a window of opportunity to upskill their workforces to work with the latest technologies.” Addressing knowledge gaps, particularly in areas like sales, is a critical concern. Additionally, leaders should focus on automating routine tasks to free up employees for more meaningful work. While fears of automation persist, it’s important to acknowledge that AI will create new and more engaging roles in the future. 
  5. Collaborative Synergy: Leadership promotes collaboration by encouraging open communication and establishing clear expectations for teamwork. Leaders actively endorse a culture of collaboration that transcends boundaries, emphasizing that unity between above-property and on-property teams is indispensable for achieving success. Challenges between hotel brands and management companies, as well as asset managers, are creating hardships for owners. Ownership groups are growing resentful of the demands placed by hotel brands, making it essential for brands to leverage the expertise of management companies and asset managers to ensure a more collaborative environment that drives commercial success. Many of the management companies active with HSMAI routinely hold quarterly in-person meetings between above property and property teams across all shared services roles inclusive of finance, asset management, revenue management, and sales and marketing as a standard practice to encourage collaboration between all practice areas to ensure effective collaboration. 

In summary, these five leadership themes consistently echoed within the HSMAI community underscore the pivotal role of leadership in shaping organizational culture, fostering a sense of community, and exemplifying the essence of collaborative teamwork. As the hospitality industry evolves post-pandemic, these leadership principles serve as guiding principles for success. 

Key Takeaways 

  • Leaders define and model culture.
  • Driving results means leaders need to connect the dots for teammates to allow them to contribute effectively.
  • Employee well-being and team care are foundational pillars in successful hospitality businesses. • Upskilling investments to leverage new technologies is needed to automate routine tasks and free up employees for meaningful work.
  • Teamwork and collaboration are keys to success.

 

To read more about the top talent trends download the  HSMAI Foundation Special Report: The State of Hotel Sales, Marketing, and Revenue Optimization Talent 2023-2024.    

Rethinking Employee Engagement in 2024

Megan Becker, Manager of Hiring and Training, Reservations; Hershey Entertainment & Resorts Company; Steering Committee Vice Chair, HSMAI Contact Center SIG 

Denise Pullen, Founder, CEO, Daisia Consulting, Steering Committee Member, HSMAI Contact Center SIG 

The HSMAI Contact Center SIG recently gathered and discussed best practices, challenges, and ideas for measuring and improving staff engagement. We all agreed that employee engagement is crucial for the success of our business and our colleagues’ well-being. Our conversation emphasized the importance of listening to staff, creating a culture of trust and collaboration, providing feedback and growth opportunities, and having fun. Please read on for our top six takeaways.  

1. Prioritize Regular Check-Ins

One member shared, “Each leader connects with colleagues every month to really check and see how they’re currently feeling about their position.” Regular, personal check-ins are a useful tool for understanding individual employee needs and fostering a culture of trust and transparency.

2. Leverage Engagement Surveys 

Surveys can provide insights into employee satisfaction and engagement, guiding strategic decisions to enhance workplace culture. As one participant shared, “We do an annual employee engagement survey, and we are currently looking at moving to a quarterly model.” 

3. Form an Engagement Task Force

Starting an Employee Engagement Task Force was highlighted as an effective way to involve employees in crafting engagement strategies, ensuring they reflect the team’s true needs and desires.

4. Focus on Career Development Paths

Clear career paths and development opportunities are crucial for aligning employees’ growth with organizational goals, significantly boosting engagement. One SIG member noted, “We have a career development hub…it helps the leader and the colleagues both work towards a role.” 

5. Create Opportunities for Peer Connection

Fostering a sense of community among employees can lead to a more cohesive and motivated team, enhancing overall engagement.

6. Utilize Net Promoter Scores (NPS) 

NPS offers a quantifiable measure of employee willingness to advocate for their job, serving as an indicator of satisfaction within the organization. “We typically look for…the likelihood to recommend their role to a friend or family member, the Net Promoter Score model…is really indicative of whether or not they’re engaged in their role.”  

Read More:  

Questions for Your Team:  

1.     How are you measuring staff engagement? Turnover? Productivity? “Feeling”? 

2.     What is one way you currently (or want to, in the future) challenge your team to engage themselves? 

3.     What have you changed since 2020, and what do you think needs to come back? 

To learn more about HSMAI’s Contact Center Special Interest Group, please visit https://americas.hsmai.org/about/hsmai-contact-center-special-interest-group/  

HSMAI Perspective: Celebrating Women’s History Month

Robert A. Gilbert, CHME, CHBA, President and CEO, Hospitality Sales & Marketing Association International (HSMAI)    

As Women’s History Month ends, I am reflecting on the progress we’ve made toward gender inclusivity and the empowerment of female leaders in hospitality. Several years ago, we published a report with Castell, that showed that women held more leadership positions in commercial functions than the hospitality industry as a whole. We can use the upcoming Commercial Strategy Conference (CSC) slated for June 25-26, in Charlotte, as a litmus test to these advancements. CSC shows a significant shift from the association’s origins as a male-dominated group—a sign of progress worth celebrating.  

HSMAI is dedicated to fostering an inclusive space where the industry’s female leaders can shine. On International Women’s Day, we spotlighted women leaders on LinkedIn:  

These videos are not just gestures, but affirmations of the crucial roles women play in driving innovation, strategy, and success in our industry. As my colleague recently said, “We have to see it to be it.” The more we can amplify the voices of women, the more people it will inspire.  

CSC, emerging from the synthesis of HSMAI’s Marketing Strategy Conference and HSMAI ROC, captures this commitment to inclusivity. It’s designed to merge insights across commercial disciplines, from marketing to revenue optimization and sales, creating a holistic platform for learning and leadership that reflects the diverse sectors of the industry. The gender balance in the speakers sends a message that the future of hospitality is inclusive. 

Integral to this narrative of progress is the power of mentoring, as highlighted in the “Power of Mentoring” report released by the HSMAI Foundation and Women in Travel THRIVE last year. The findings focused on women in hotel sales, marketing, and revenue management, highlighting the transformative impact mentorship in nurturing the next generation of industry leaders. It explores the barriers and pathways women have in mentoring and career advancement and offers actions to get started. If you haven’t had a chance to read it, I highly recommend it. 

While progress has been made, we’re reminded of the work still ahead. CSC, alongside the Foundation’s report and the recognition of women leaders, underscores our collective commitment to not only acknowledging women’s contributions but actively supporting the advancement of the next generation of women leaders. 

Nurturing Tomorrow’s Hospitality Leaders: Retention through Upskilling, Reskilling, and Providing Pathways to Upward Mobility

The HSMAI Foundation Special Report: The State of Hotel Sales, Marketing, and Revenue Optimization Talent 2023-2024, explores the idea: “Hands-on learning is the only way to build a pipeline of talent ready for unknown roles. You have to build this talent because you cannot buy them” (McCarthy, 2023). As we navigate the 21st century, the need for upskilling and reskilling is more critical than ever, particularly in the sales, marketing, distribution, revenue management, and loyalty space not only to retain valuable employees but also to position the hospitality industry as a destination career choice.  

In the pursuit of employee retention, it is crucial to emphasize a systematic approach to identifying employees’ skills and fostering their growth within the business. The key is recognizing that every individual is a unique asset, brimming with untapped potential waiting to be discovered and cultivated. 

Gone are the days when traditional learning and development methods sufficed. The rapid pace of technological advancement, coupled with shifting consumer preferences, has ushered in a new era where the old ways of learning and development cannot keep pace with modern-day skill needs. To stay competitive and retain top talent, organizations must adapt, and the answer lies in providing hands-on learning opportunities (McCarthy, 2023).  

Today, both employers and employees are forging a new kind of contract—a lifestyle contract that prioritizes mental and physical health. A healthier workplace is not just about offering gym memberships and wellness programs; it’s about nurturing the potential of every employee through continuous learning and growth. This is where upskilling and reskilling come into play, forming the cornerstone of this progressive contract (Ilya Boinic, 2023).  

Every revolution in the workplace has created the need for constant learning. The digital age is no exception. As technology transforms every aspect of the hospitality industry, from revenue management to asset management, employees must adapt. However, expecting employees to navigate this journey alone is unrealistic. 

Organizations must take the initiative to systematically identify their employees’ skills and actively train and nurture their growth. To achieve this, a multifaceted approach is essential. It begins with identifying employees’ existing skills and potential areas for growth. 

To achieve this, a multifaceted approach is essential. It begins with identifying employees’ existing skills and potential areas for growth. By conducting regular skills assessments and performance evaluations, organizations gain valuable insights into the strengths and weaknesses of their workforce. This knowledge forms the basis for tailored development plans.  

Stretch project assignments, where employees are pushed out of their comfort zones and encouraged to tackle complex challenges, provide invaluable learning experiences that align with individual growth trajectories. Shadowing individuals in their roles allows for firsthand exposure to the intricacies of the job, accelerating the learning curve. Simulations, such as cyberattack scenarios, offer a safe environment to develop critical skills while fostering confidence and expertise. 

By embracing these “lived” learning opportunities, organizations not only foster skill development but also cultivate a culture of adaptability and innovation. Employees become more engaged, motivated, and invested in their careers, making them less likely to seek opportunities elsewhere.  

Furthermore, providing clear career trajectories is essential for team members to meet their financial and personal goals. When employees see a well-defined path for growth within an organization, they are more likely to commit themselves to its longterm success. This systematic approach to skill identification and development ensures that employees recognize and seize growth opportunities within the business.  

Upskilling and reskilling are the lifelines that will help organizations navigate the turbulent waters of modernization, ensuring that they are well-prepared to meet the demands of an ever-evolving market, while simultaneously fostering a culture of retention and growth.  

Key Takeaways 

  • Hands on learning is needed to fuel talent pipeline.  
  • Creating internal employment marketplaces powers retention strategies.  
  • Lifestyle contracts with employees supported by leadership are a new and emerging model.  
  • Technology advances require constant upskilling.  
  • Development plans and career mapping are expected.  

To read more about the top talent trends, including case studies of this trend, download the  HSMAI Foundation Special Report: The State of Hotel Sales, Marketing, and Revenue Optimization Talent 2023-2024.   

Enhancing Customer Experience with AI

Isaac Gerstenzang, Vice President Digital Marketing & CRM, Atlantis Bahamas, HSMAI Marketing Advisory Board Member 

AI is ubiquitous these days, but a lot of the attention has been focused on content. I am interested in how different companies are using AI to enhance customer experience and use AI to boost their performance and quality. For example, Amazon is constantly improving their delivery routes by utilizing AI based traffic pattern analysis. How can we use AI to build an intelligent experience engine and ultimately enhance the guest experience? I brought these questions to the Marketing Advisory Board for discussion.  

Integrating AI for Enhanced Guest Experience 

We discussed the significance of utilizing AI to bring together various data signals and insights to create a more intelligent and personalized guest experience. There was an emphasis on the need to connect different data points, such as website interactions, email campaign engagements, reservation details, and then to leverage AI to make sense of this data quickly and efficiently to ensure team members can act on the learnings in their respective areas. 

Collaboration and Communication  

Our discussion highlighted the importance of collaboration and communication among different departments to effectively implement AI for guest personalization, both online and offline. We must understand the specific needs and requirements of each department and work together to bring all the different pieces together. We also are leveraging agency partners, vendors, and technical leaders to implement AI solutions. There was a feeling that vendors should include industry leaders in solutions earlier on, so programs don’t have to be retrofitted to how the industry uses the data.  

First-Party Data and Personalization 

Because of the shift towards first-party data and the decreasing reliance on third-party cookies for personalization, we saw the value of gaining more insights on guests through first-party data and utilizing AI to collect, curate, and analyze this data from various touchpoints to a single data stream to help elevate the customer journeys. Using first-party data could enhance personalization efforts and provide a more tailored experience to guests. 

Learn More  

Discussion 

  1. For hotels, what specific touchpoints in the customer journey can be optimized for personalization?
  2. The article mentions impediments to personalization, such as orchestration across channels. How do these challenges apply to the hotel industry, and what strategies can marketers adopt to overcome them? Are there specific examples of hotels successfully navigating these challenges? 
  3. How can hotels effectively integrate AI and customer data to improve customer interactions? What lessons can be drawn from companies like Starbucks or Qantas in terms of activating experiences across channels? 
  4. How can hotel marketing teams adopt a mindset of continuous testing and experimentation to refine offerings and better understand guest preferences? 
  5. What steps can hotel marketing executives take to build an intelligent experience engine for their properties? How might the 70/20/10 rule mentioned in the article be applied in the context of a hotel’s digital transformation, focusing on people, data, and technology?

Rising Sales Leaders Discuss Mastering Efficiency: Optimizing Calendars and Emails for Productivity

Jake Moreland, Global Sales Manager, Hyatt Hotels Corporation, HSMAI Rising Sales Leader Council 

Many of us grapple with the constant influx of emails and the pressure to stay organized and responsive, which can lead to the overwhelming feeling of email anxiety or stress. In our fast-paced industry and constant connectivity, managing email and calendar schedules effectively has become a crucial aspect of maintaining productivity and well-being. 

The pressure to remain perpetually connected has led to email anxiety, worsened by the hybrid and remote work environments. Some statistics highlight our challenge:  

  • The average number of emails sent and received in 2023 was 347.3 billion – 4.3% higher than 2022.  
  • 58% of people check their emails first thing in the morning.  
  • 90% of people between 25-34 years old equal 89% of email users.   

I brought this topic to the Rising Sales Leader Council. How, amidst this email onslaught, are we reclaiming our time and focus? Here are our top tips:  

Leverage Outlook Rules:  To help prioritize, create filters and folders to auto-sort emails that you can access when you need to. 

2-minute Response Principle: If it takes less than two minutes to reply, do it immediately. 

Embrace Inbox Zero: For some, having zero emails is their happy place.  

Strategic Calendar Management: Block specific times for email management, link reports in recurring tasks, and use tools like Clockwise to visualize free time and meeting distributions. 

Prioritize and Categorize: Use color-coordinated stickers or categories for emails to streamline priorities and manage sales cycles efficiently. 

Mindful Communication Timing: Consider time zones before sending emails, optimizing the timing for recipient responsiveness. 

Digital Detox: Sometimes, stepping away from digital devices or limiting their use for work-related communication can significantly reduce stress. 

Further Reading  

 

Questions for Your Team 

  1. Do you experience email anxiety or stress? 
  2. Do you use tools/features (i.e., filters, folders, categories) to organize your inbox/calendar? 
  3. What are your strategies for decluttering your inbox? 
  4. Have you implemented any email boundaries to protect your personal time outside of work hours? 

Digital Natives Discuss Technology Evolution and Adoption

Taylor Baca, CRME, CHDM Corporate Director of Revenue Management, Balboa Bay Resort & Club, HSMAI Rising Revenue Optimization Leader Council Member 

In a time of technological advancement, keeping up with the latest tools and systems can pose a considerable challenge both organizationally and personally. However, the adoption of technology can provide us with enhanced data analytics, the ability to provide personalized guest experiences and expand revenue opportunities. Moreover, technology and AI can offer solutions by streamlining routine tasks and allowing our leaders the opportunity to focus on the more creative and strategic aspects of their roles. Barriers such as budget constraints and reluctance to change can impede the seamless adoption of technology. I brought this topic to the HSMAI Rising Leader Council to discuss how we can challenge the status quo.  

Our discussion revealed hurdles to adopting technology, such as budget concerns and resistance to change. Yet, as rising leaders, we are uniquely positioned to be agents of change, since we have the language of technology. 

We agreed that often it came down to showing technology’s concrete benefits: how revenue management and business intelligence platforms not only can integrate with existing systems but also significantly boost ROI by optimizing pricing and improving operational efficiency. This requires a dual focus on the data as well as on gaining buy-in through effective communication. 

The goal is to use technology as a tool to enhance, not replace, personal interactions, ensuring the hospitality experience remains warm, genuine, and, ultimately, human. This balance is critical in leveraging data for personalization while preserving the hospitality that guests require. 

Further Reading:  

Questions for Your Team:  

  1. As young leaders, we belong to a generation that has grown up through great technological advancement. How can we leverage this technology first mindset and expertise to challenge the existing technology within our organizations and embrace new solutions and systems?
  2. Could it be argued that amidst escalating labor and supply costs, economic uncertainty and workforce shortages, technology integration can assist in addressing these challenges? 
  3. With rising costs and budgetary restrictions, how can we effectively demonstrate a return on investment to justify our adoption of new technology? 
  4. How can technology enhance revenue beyond room sales by leveraging hyper-personalization tools? 

Can Guest Experiences Serve as a Differentiating Hotel Marketing Strategy?

Sine Scott, Marketing Executive, HMSAI Marketing Advisory Board Member  

Amidst the prevailing focus on AI’s impact on marketing, I sought to steer one of our HSMAI Marketing Advisory Board discussions toward a core hospitality topic. How can we integrate enhanced guest experiences into our marketing strategies to stimulate demand and enrich the stay? We exchanged insights on how hotels and resorts can elevate guest experiences by creating unforgettable events and transforming spaces into memorable touchpoints. Such experiences foster collaboration between marketing and operational teams, cultivating brand loyalty and market distinction. 

Key Strategies and Insights  

  • Competitive Differentiation via Unique Offerings – In a competitive market, standing out is crucial. Customers are looking for unique experiences, viewing a trip as more than just a vacation, expecting a journey to personal growth. Participants explored how unique offerings and innovative space utilization can differentiate a hotel. For instance, the property can serve as a gateway to the destination, while on-site staff can act as ambassadors, such as a bartender curating a list of hidden cocktail bars
  • Activate Underused Spaces – Elevating guest experiences by creatively activating underutilized spaces has emerged as a differentiator. As one AB member noted, “Activating underutilized spaces can bring your brand pillars and positioning to life. There’s nothing worse than a non-animated lobby or flat experience.” These guest spaces can become vibrant aspects of the guest experience and integral to marketing and storytelling. For example, one hotel transformed an empty wall into an Instagrammable mural, turning a neglected space into a powerful marketing asset, driving social media engagement and indirectly promoting the hotel. “Everyone takes a picture of that spot and shares it on social media. People come and seek it out.
  • Marketing and Operations Collaboration – Discussions revealed an occasional disconnect between marketing/sales teams and operational teams regarding the value of minor yet impactful guest enhancements. Success stories underscored the benefits of collaborative efforts in personalizing experiences and providing tailored guest recommendations. This synergy between marketing and operations is pivotal for effectively implementing and showcasing the impact of guest experience initiatives. 
  • Demonstrating ROI to Leadership – Addressing the challenge of demonstrating ROI on experiential marketing highlighted the need to shift perspectives from considering guest experience enhancements as expenses to recognizing their long-term value. A strategy for demonstrating ROI includes leveraging data and sentiment analysis from guest reviews to correlate specific enhancements with positive feedback and repeat business. Additionally, creative ideas can garner significant earned media and reduce advertising costs. However, we acknowledged that not all returns are immediately quantifiable, emphasizing the need for a broader understanding of ROI that encompasses brand building and indirect revenue streams.  

The meeting underscored the significance of innovative guest experience strategies for competitive differentiation. By embracing creativity, fostering cross-departmental collaboration, and navigating the challenges of demonstrating ROI hotel teams can enhance guest satisfaction and bolster the brand. 

Supporting Articles:   

Questions for Your Team:  

  1. Why is it increasingly important to include unique guest experiences in our marketing plans?  
  2. How can we tailor experiences for different demographics while respecting privacy concerns?
  3. Can experiential marketing create demand and generate positive ROI?  
  4. How do we demonstrate the value and ROI of elevated guest experiences and personalization to our leadership team and owners? 

Transforming Talent Sourcing in the Hotel Industry: The Rise of the Gig Economy and Fractional Staffing Models

In the recently released HSMAI Foundation Special Report: The State of Hotel Sales, Marketing, and Revenue Optimization Talent 2023-2024, the second trend investigates how the gig economy and fractional staffing models are changing talent sourcing. Employers in the hospitality industry must adopt a marketing mindset to effectively attract and source the best talent. As businesses strive to fill critical roles in the post-pandemic world, it has become increasingly evident that traditional hiring approaches are insufficient to meet the growing demand for skilled professionals. The persistent shortage of skilled labor, especially in the hospitality sector, has created a challenging workplace environment. In North America, only 31% of workers report full engagement, with the majority either quietly quitting or engaging in negative behavior (Gallup, 2023). This talent gap remains a top concern globally, particularly in the United States, where over 75% of HR leaders identify it as a significant hurdle (Dean, 2023).  

In a 2023 report by the World Economic Forum (World Economic Forum, 2023) businesses now perceive talent shortages as a more significant limitation to their performance than a shortage of capital. The scarcity of essential skills in the local labor market is seen as a more formidable barrier to transformation across various industries (Dean, 2023). 

As labor and talent challenges persist, independent contractors and the gig economy have become integral parts of the workforce. Between 2016 and 2021, the gig economy experienced a 31% growth, with projections indicating that contract employees in the U.S. will surpass 90 million by 2028 (McKinsey & Company, 2023).  

McKinsey’s American Opportunity Survey (AOS) found that 36% of employed respondents, equivalent to 58 million Americans, identify as independent workers. This figure includes not only gig workers but also highly paid professionals in various fields, highlighting the diverse nature of independent work. 

 A shortage of workers with specific skills has led to a growing acceptance of the Project Economy model, where workers are hired for specialized projects. This approach appeals to those who prefer the gig lifestyle and offers flexibility in employment arrangements. 

A report by Strategic Solutions Partners titled “Moving Beyond the Staffing Crisis” (Hoch, 2023) underscores the importance of gig workers in the hospitality industry. Gig workers are essential in filling roles that cannot be adequately staffed by full-time employees. They offer flexibility, crucial skills, higher pay, and the ability to work remotely.  

The hotel industry has evolved significantly, and the surge in gig labor has proven valuable, especially for management companies and brands. Gig labor allows swift access to skilled professionals for specialized roles. This agile approach enables companies to address specific needs promptly and effectively, such as new property openings, sales leaders with strong business development skills, Go-To-Market plans for new properties or properties that require repositioning.  

The use of fractional revenue management and sales leadership has been a trend for several years. As sourcing experienced talent in these fields becomes even more challenging, this model is gaining more traction. Tammy Gillis, a recognized sales industry expert, highlights the attractiveness of the gig labor model for sales professionals. She states, “Now more than ever, sales professionals are looking for work/life balance, and culture is one of the most important deciding factors in choosing their next employer. Many salespeople are tired of working on property and getting pulled into operations and want full-time remote or hybrid remote positions. They also value training, coaching, and support which the hotel industry does not consistently provide.” In this current labor market, attracting and retaining sales talent is challenging, and a fractional sales model allows hotels to focus on employee well-being and customer satisfaction without the burden of internal sales management. This is why many strong sales leaders are choosing fractional sales careers with organizations like Gillis and Associates. This offers them the ability to work from home in a dedicated sales environment with strong senior sales leaders that offer coaching, training, and sales enablement support.  

Owners and operators are also increasingly considering the cost of client acquisition, and a fractional sales model can be a costeffective solution, typically being only 1/3 of the cost of bringing a full-time resource in-house. For management companies, this approach can serve as a stop-gap measure while they search to fill vacant on-property sales positions, ensuring they remain competitive with active selling initiatives still in progress.  

The rise of gig labor is not a mere trend but a transformative force in the modern workforce landscape. For companies, it offers flexibility, specialized skills, and cost-effectiveness. Fractional talent models, especially in sales and revenue management, have become integral to the hotel industry’s success in adapting to post-pandemic challenges. As Bill Scanlon indicated, marketing to talent and having more personalized solutions to provide them with choice and fulfillment mirrors the kind of customer marketing all hospitality organizations are engaging in today, and they simply need to think of their employee base as another customer group. In addition, fractional employment solutions allow hotels, management companies, and brands to hire seasoned experienced talent at a lower cost that provides growth opportunities for their developing employees to have senior leader’s role modelling and supporting their learning journey.  

 

Key Takeaways 

  • Competition for talent means recruiting requires a marketing mindset and dedication to employer branding. 
  • Gig and independent workers are growing in relevance and value. 
  • Fractional revenue management and sales leadership continues to grow— both employees and employers value fractional employment. 

To read more about the top talent trends, download the  HSMAI Foundation Special Report: The State of Hotel Sales, Marketing, and Revenue Optimization Talent 2023-2024.