Insights Type: Articles

What Revenue Managers Need to Understand About the Shifting Demographics of Today’s Travelers

Charity Hanke, CRME, Corporate Manager of Revenue Strategy, Oxford Collection, HSMAI Rising Revenue Optimization Leader Council Member 

As generational preferences shift, hotel revenue managers must stay attuned to how different age groups Baby Boomers, Gen X, Millennials, and Gen Z impact pricing, booking behaviors, and overall guest expectations. Understanding these nuances is key to optimizing revenue strategies. At a recent HSMAI Rising Leader Council meeting, I discussed this topic with the group.  

Booking Behavior and Tech-Savviness
Younger generations, particularly Gen Z and Millennials, are reshaping how they plan and book their travel. “I was talking to my sister-in-law, who’s a Gen Z… she was looking at TikTok for all her recommendations,” shared one participant. Unlike older generations who might rely on desktop searches and reviews, younger travelers are increasingly turning to social media content for inspiration. This trend points to a growing need for hotels to adapt their digital marketing strategies, tapping into platforms like TikTok to engage potential guests. 

Experiential Travel and Customization
The demand for personalized experiences is on the rise, particularly among Millennials and Gen Z. “Millennials and Gen Z do not want that packaged model at all,” noted a rising leader. Instead, they seek experiences that allow them to tailor their stay, whether it’s kayaking, bike tours, or other activities. Hotels need to consider offering flexible packages that give guests the option to build their own experiences. 

Transparency in Pricing
Transparent pricing is essential, particularly for younger generations who are more sensitive to hidden fees. “The younger generations are more geared towards transparent pricing,” said one participant, emphasizing the importance of clarity in hotel charges. Guests, especially Millennials and Gen Z, are less tolerant of surprise fees and prefer knowing what’s included upfront. 

Embracing Technology
As younger guests demand faster, more seamless experiences, mobile check-ins and digital tools are becoming critical. The convenience of texting for bookings and the use of QR codes to access services are essential for enhancing the guest experience, but it’s important to offer traditional options for others who may not be as tech-savvy. 

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Questions For Your Team:  

  • What changes have you seen between the different generations? Such as amenities, how they book, length of stay, ETC. 
  • What are some Revenue strategies to appeal to the different generations? 
  • How do we think rates, booking, and amenities will change for the coming generations? 

Leveraging AI for Enhanced Customer Experience and Operational Efficiency in 2025

Scott Wright, Business Development Executive, Telus Digital, Steering Committee Member, HSMAI Contact Center SIG 

At our latest Contact Center SIG meeting we discussed priorities and initiatives for 2025. One highlighted the corporate focus on growth, technology adoption, employee satisfaction, and customer happiness. A significant initiative mentioned was the integration of AI into operations, particularly in recruiting, training, and quality assurance, to enhance efficiency and retention. 

Another member discussed the potential integration of chat functionality to improve customer experience in group bookings, noting the complexities involved compared to individual reservations. While another emphasized the need for a new phone system due to changes in their current setup. 

The discussion also touched on AI’s role in enhancing customer interactions and operational efficiency. One member elaborated on the different applications of AI for agents, customers, and analytics, emphasizing the need for continuous adaptation to new technologies in the industry. 

As we wrapped up, participants reflected on the importance of driving call volume to contact centers despite a trend towards digital channels. One member highlighted their strategy to maintain high revenue per reservation through direct customer interactions, reinforcing the value of personal service in the luxury hotel sector. 

Three Takeaways: 

  • AI Integration into various operations, including recruiting, training, and quality assurance, is a key priority for enhancing efficiency and retention. 
  • Improving Customer Experience through chat functionality and direct interactions remains a significant focus, especially in complex scenarios like group bookings. 
  • Call Volume Strategy –  Despite the shift towards digital channels, maintaining high revenue per reservation through call centers is crucial, highlighting the importance of personal service in the hospitality industry. 

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

Coming Soon: A Future-Focused CHDM Study Guide

The new, updated 7th edition of HSMAI’s Certified Hospitality Digital Marketer (CHDM) study guide—Hospitality Digital Marketing Essentials—will be published in just a few weeks. This edition features fresh insights, tools, and strategies to help hospitality professionals thrive today and for years to come with a strong emphasis on emerging technologies and their impact on hotel marketing. 

Get a sneak peek with the following excerpt from the all-new chapter on Artificial Intelligence—and make plans to earn your own CHDM certification.  

Generative AI in Action  

Understanding how generative AI works is just the beginning. The true value of this technology lies in its applications. For hotel marketers, generative AI bridges the gap between complex data processing and tangible outcomes, enabling them to solve real-world challenges, enhance creativity, and deliver exceptional guest experiences. By translating these technical capabilities into practical tools, generative AI empowers hospitality professionals to innovate across marketing, guest engagement, and operational efficiency.   

Content Creation for Marketing  

Generative AI has revolutionized how hotels approach content creation, making it faster, more personalized, and cost-effective. AI tools like ChatGPT and Jasper can craft engaging captions, hashtags, and stories tailored to specific platforms and audiences. For example, a boutique hotel might use generative AI to create Instagram posts highlighting its unique features.  

 AI-generated blogs can attract potential guests by providing travel tips, destination guides, or behind-the-scenes hotel insights. These articles can be optimized for SEO to drive organic traffic. Tools like DALL·E and Canva AI generate eye-catching visuals, including room mockups, promotional banners, and themed imagery for campaigns.  

  

The benefits of leveraging AI for content include time efficiency, personalization, and cost savings:  

  • AI creates high-quality content in minutes, freeing marketing teams to focus on strategy.  
  • AI-generated content can be tailored to specific guest demographics, enhancing engagement.  
  • Reduces the need for outsourcing creative tasks, cutting overall marketing expenses.  

  

Personalized Guest Experiences  

Generative AI enables hotels to deliver hyper-personalized guest experiences by crafting customized communications and recommendations. Tools like Google’s Performance Max use AI to create and optimize ad campaigns across multiple platforms, improving reach and direct bookings. AI can generate personalized emails based on guest preferences and booking history. For example, a returning guest who previously booked a spa package might receive an email offering a discounted spa upgrade for their next stay.  

You can use AI to create personalized travel itineraries that align with guests’ interests, such as local cultural experiences, family-friendly activities, or luxury dining recommendations. Generative AI also powers virtual assistants to respond to guest inquiries, suggest activities, or provide detailed information about hotel amenities.  

AI leverages guest data to deliver insights and create meaningful interactions. Using those insights to deliver customized guest experiences can bring multiple benefits including enhanced loyalty and improved guest satisfaction:  

  • Personalization fosters stronger connections with guests, encouraging repeat visits.  
  • Tailored recommendations and services address individual preferences, elevating the overall stay.  

Streamlining Operations and Training  

Beyond guest-facing applications, generative AI is transforming internal operations and employee training within the hospitality sector. AI can generate employee training content, such as video tutorials, role-play scenarios, and step-by-step guides for handling guest interactions. This ensures consistent and efficient onboarding processes. AI-driven chatbots streamline operational efficiency by handling common inquiries about bookings, amenities, or local attractions, reducing the workload on staff.  

Benefits of using AI in operations and training include consistency and cost reductions:  

  • Standardized training and reporting ensure uniform quality across all operations.  
  • Automating routine tasks allows staff to focus on high-value activities, improving overall efficiency.  

AI-Driven Productivity: What Would You Do with an Extra Hour in the Day?

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. This is an excerpt from the report.  

We posed a scenario to executives, asking them to imagine AI technology reducing their team’s workday from eight hours to seven. How would they allocate the extra hour?  

To guide responses, we provided five options: 

  • Leave an hour earlier for better work-life balance 
  • Spend the time connecting with colleagues to strengthen team culture 
  • Dedicate it to working more to boost productivity 
  • Invest it in training for professional development 
  • Use it for open-ended innovation projects, like Google’s “20% time.” 

 

  1. Productivity as a Top Priority

Many executives prioritized using AI-driven time savings to enhance productivity. These leaders see parallels to past technological advancements, such as PCs and Excel, which allowed teams to achieve higher efficiency and output. Leaders advocated channeling the saved hour into revenue-generating activities, such as making additional sales calls, handling larger workloads, or focusing on strategic initiatives. This perspective underscores the belief that AI is a tool to drive measurable business growth and operational efficiency.  

  1. Professional Development and Innovation

 Others emphasized the importance of using the freed time for professional growth and innovation. A significant number of executives endorsed a model similar to Google’s “20% innovation time,” where employees engage in training, strategic planning, or creative projects. This approach is seen as a way to future-proof the workforce, ensuring teams are equipped with the skills and AI literacy needed for long-term success. Leaders also highlighted that such also foster a culture of curiosity and continuous learning.  

  1. Work-Life Balance 

A contrasting viewpoint centered on work-life balance. Some executives proposed giving employees the flexibility to leave work an hour earlier, allowing them to invest in personal growth, family time, or community engagement. These leaders recognized that supporting employee well-being is vital for sustained organizational success. By prioritizing work-life balance, companies could enhance employee satisfaction, reduce burnout, and foster loyalty.  

  1. Strengthening Workplace Culture

Several leaders saw an opportunity to use AI-driven time savings to strengthen workplace culture. They proposed dedicating the hour to team-building activities, collaborative projects, or informal interactions that deepen workplace relationships. This approach reflects an understanding that technological efficiencies should complement, not replace, human connections. Leaders acknowledged that fostering a cohesive and collaborative culture is critical for long-term organizational health and retention.  

  1. Strategic Implementation and Customization

The varying perspectives present both opportunities and challenges for organizations. Effective strategies will require flexibility, with role-based customization playing a central role. Executives might allocate extra time to strategic planning, while frontline employees may benefit more from skill development or work-life balance initiatives. This tailored approach ensures that the additional hour aligns with individual responsibilities and organizational goals. 

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.      

 

Commercial Strategy is Evolving and So Is Our Conference

In today’s world, commercial success doesn’t happen in silos. It’s built at the intersection of sales, marketing, distribution, and revenue optimization—with collaboration, data, and strategy as the glue. That’s why HSMAI’s Commercial Strategy Conference is designed to bring all commercial disciplines together in one impactful event. 

Last year, we brought revenue optimization and marketing together under one roof. This year, we’re being even more intentional about integrating sales into the fold. The result? A conference that mirrors the way commercial strategy is actually being practiced across the industry. 

This isn’t just a marketing or revenue event with sales sprinkled in. From negotiation strategy to AI applications and owner alignment, this year’s agenda is packed with content created for and by sales leaders—and built to help you navigate a fast-changing commercial world. 

Here are just a few sessions not to miss: 

Breaking Down Silos: Uniting Commercial Strategy for Maximum Profitability — Join industry leaders, as they illustrate what it truly means to ‘break down silos’ and collaborate as a Commercial Strategy team.  

What Every Sales Leader Should Know About Revenue Management, Marketing & Distribution — This session will break down the key insights and important trends every sales leader needs to know about these critical disciplines. 

AI in Action: Transforming Hospitality Workflows for Maximum Productivity — Through real-world examples and interactive demonstrations, participants will leave with actionable strategies to implement AI solutions that deliver measurable results for their organizations. 

Aligning Commercial Strategy with Ownership: Understanding What Owners Really Want — Learn how to better align your commercial strategies with owner objectives and strengthen your ability to communicate value through an asset management lens. 

Plus: sessions on the customer journey, upskilling and reskilling, data, and commercial leadership skills that will future proof your team. 

Whether you’re leading a sales, marketing, or revenue team, driving distribution, or managing the full commercial portfolio, this is the event for your whole commercial team—a shared space to get aligned, inspired, and ready for what’s next. This is your must-attend event in 2025. 

Learn more and register now! 

Maximizing Hotel Revenue: The Interdependence of Sales and Revenue Management

The relationship between sales and revenue management is complex and necessitates collaboration and communication. In The Hotel Sales Playbook, the study guide for HSMAI’s Certified Hotel Sales Leader certification, we offer a comprehensive guide for sales leaders to optimize revenue and drive business success.  

Below, we share excerpts from Chapter 11: A Sales Leader’s Guide to Revenue Management contributed by Dan Skodol, CRME. 

The Interdependence of Sales and Revenue Management 

An effective sales/revenue management team will work together to facilitate idea generation and creativity, responding to opportunities with unique solutions. Members in both disciplines will learn new skills, methods, and knowledge from one another. A strong sales team paired with a skilled revenue professional will feel empowered to take innovative approaches when developing solutions for their customers — they will ask the right questions and be able to talk constructively about patterns, need dates, and concessions. 

 

Unfortunately, the sales/revenue management relationship sometimes does not get past the “forming” stage. It can be derailed by a lack of communication and flawed decision-making, often based on feelings rather than facts. Sales suffer. Revenue suffers. 

 

Today, more and more hotel companies are restructuring their organizations around commercial teams where sales and revenue management, along with marketing and distribution, come together to optimize results for one common goal. Each discipline plays a critical role in driving revenue by generating demand and optimizing strategy. Sales and revenue management are important components of the commercial team: revenue optimization optimizes revenue through pricing and inventory management, and sales layers in foundational pieces of business through direct sales techniques. 

 

Each discipline must stretch its expertise and appreciate the perspective of the other. For example, from the sales point of view, key considerations for evaluating a piece of business with revenue management should include: 

  • The total value of the account. How much does this account bring in annually?  
  • The total value of the stay, including incremental revenues, catering, in-house spending, etc. 
  • The expense and the value of building the relationship with the account 
  • The expense or reduction in value from concessions contracted 

  

At the same time, the revenue professional’s point of view when evaluating a piece of business with sales should take into consideration the following: 

  • The revenue and profit displacement caused by layering the group during a high-demand period 
  • The expense to the shoulder dates in closing out transient for group 
  • The incremental value based on average transient spend 
  • Price sensitivity and the associated willingness to pay by the group 

 

Sales professionals need to recognize the highly situational nature of revenue management decision-making and the bearing of those decisions on the overall financial outcomes for the enterprise. At the same time, revenue professionals must stretch beyond the “black and white” of the analytics and understand the “gray area” and less tangible aspects of total value over the long haul. 

 

HSMAI members who attain the CHSL certification will gain professional recognition, career advancement opportunities, and the ability to contribute more effectively to their organizations’ success. For more information, visit hsmaiacademy.org/certification-hotel-sales-leader or contact Kathy Tindell at kathy.tindell@hsmai.org.  

The Power of Networking and Professional Development in Hospitality Career & Business Growth

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

In hospitality, relationships are the key to growth, yet many professionals overlook how powerful a strong network can be. While we’re in an industry built on human connections, too often the potential of these relationships goes untapped. If you’re looking to thrive in this industry, it’s time to start making connections that can truly propel your career and business forward. 

I recently shared my insights on The Future of Hospitality podcast with Arjan Eikelenboom. During our conversation, I explored how networking, continuous learning, and embracing AI can fuel both career growth and business success.  

Why Relationships Matter More Than Ever 

This simple yet powerful concept is essential for success. Building a strong professional network isn’t just about making contacts—it’s about fostering meaningful relationships that will provide the support, knowledge, and collaboration necessary for long-term career  advancement. 

On the podcast, I mentioned, “Insights come from shared experiences. Opportunities come from conversations. Growth comes from the people around you,”  

HSMAI’s Role in Building Connections 

HSMAI plays a pivotal role in fostering these relationships by creating spaces where professionals can connect, learn, and grow. Through local chapter events, Commercial Strategy Conference, and other networking opportunities, HSMAI provides professionals in sales, revenue, marketing, and distribution the platform to exchange ideas, share experiences, and create new opportunities. 

Whether you’re a newcomer or a seasoned professional, these events can be a game-changer for your career. Building relationships in person or virtually can give you the competitive edge needed to stay ahead in the ever-evolving hospitality sector. 

Additionally, the Adrian Awards and the Rising Leader Councils have continued to celebrate excellence and foster professional development within the community.  

The Advisory Boards have been instrumental in providing valuable insights and creating actionable strategies that contribute to both individual and organizational growth.  Globally our Advisory Boards are driving content, workshops and strategies that optimize revenue.   

Future-Proofing Your Career and Business 

As technology continues to evolve, having a clear understanding of the technology changes and the data-driven decision-making process are becoming crucial elements of driving revenue. AI tools and revenue management strategies can significantly impact business performance.  

HSMAI remains committed to helping its members stay competitive by supporting industry chapters and connecting professionals across the hospitality landscape. From partnerships with like minded organizations to launching the HSMAI Foundation’s Century Campaign ahead of HSMAI’s 100-year anniversary in 2027, the association is ensuring its members have the resources they need to succeed. 

Take Action: Build Connections, Earn Certifications, and Thrive 

The key to thriving in hospitality goes beyond mastering the latest technologies and strategies—it’s about engaging with the right people. At HSMAI, we’re dedicated to helping professionals unlock opportunities that lead to personal and organizational growth. By tapping into the power of networking and continuous learning, you can set yourself up for long-term success. 

If you’re ready to get more engaged with HSMAI, attend a local chapter meetup, explore certification opportunities, or simply reach out to fellow professionals.  

To read more details about HSMAI initiatives, check out our 2024 Annual Report.   

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.” 

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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?