The Federal Reserve orchestrated a soft landing. Yes, quantitative easing used $9 trillion to juice the economy, and as a result, we have steady inflation. We have stuck our kids with a mess, but for now, we can focus on avoiding non-recoverable mistakes and navigating all opportunities. The stock market likes what is going on with inflation, and while the journey might be bumpy and labor costs continue to rise, we should have a good year ahead. Human resilience and agility will be required, but we are headed to a better place regardless of your politics.
Today, there is a war for talent. The lockdowns of 2020 permanently changed this, but delivering customer promises is critical again. After all, we went backward in customer service. How do we simplify breakfast and housekeeping and make both of them better? Upgraded bed toppings, breakfast and attitudes are all needed. The customer is pushing back, and we must respond. We need to differentiate ourselves from our competition by offering more service, improved technology, and a cleaner, renovated product.
Group and business travel
Pent-up demand exists in the group and business travel sectors, and it should be sustainable going forward. Our balance sheets are in better shape, but there are always headwinds. Our cost of customer acquisition is very high, especially new customer acquisition. We must have great content, clarify the search process, and drive incremental revenue.
Sales promos
Need something to spark your weekend business? Try a spinning wheel, not like the Blood, Sweat and Tears song, but like one at a carnival. Prizes can include brand points, free upgrades, coupons for food, beverages, snacks and more! Host a “putt for points” golf reception in the lobby and invite all local neighborhood businesses. This is like a sales blitz in reverse—it will drive enrollments for your brand and involve the whole community.
One of our hotels just completed a traditional sales blitz. It was hugely successful, but it required mapping out the calls, splitting sales teams up for optimum team building and providing a well-deserved reception for the finish. We booked business for the day, on the day.
AI for travel enhancements
Two big players are leading the industry in AI implementations for those comfortable using travel partners: Expedia and Booking Holdings. Partnering with industry leaders could help us reach the next generation of tech-savvy travelers.
Expedia: Travel Assistant
As generative AI keeps improving, so will travel planning tools that leverage the technology. Expedia Group, Inc. deployed an AI travel assistant app called Romie this past year that can craft tailored itineraries and troubleshoot unexpected travel disruptions. Invite the Romie chatbot into a text chain with your travel companions. It can help find ideas everyone will love. According to Expedia, Romie will also suggest restaurants, activities, and other places to see in areas you’re visiting and answer general travel questions. As with any AI, check the work. AI is great but imperfect.
Booking Holdings: Vacation Ideation & Pricing
Booking Holdings released Ask Kayak and Kayak PriceCheck to help travelers find vacation ideas and quickly compare flight prices against 100 websites. This is all new!
TSA: Biometrics for speed
Biometric technology is being implemented at global airports to hasten checking in or dropping off luggage. The most advanced example so far is a self-service variation on TSA screenings—done without the presence of human agents—currently being tested at Harry Reid International Airport in Las Vegas. My luggage and I cleared customs in 15 seconds with biometrics last month!
My mantra is that we must never stop marketing and selling. Remember, success is never final! To a great 2025!
Robert Rauch, CHA, has been an owner-operator of hotels for several decades and is founding chairman of Brick Hospitality, owner of R. A. Rauch & Associates, Inc.
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