👨‍🚀 Cloudbeds' New AI Agents

Insider Highlights

• KAYAK goes live with a new AI playground

• U.S. RevPAR predicted to grow just 0.4% in 2025

• How to choose which AI model to use at your hotel

• 48% of EV drivers pick hotels with EV chargers

• + much more!

• 🛠️ 6 Tech tools you should try

• 🎧 Podcast: Learn why social media is a crucial piece of Safestay Hostels’ tech stack.

BIG STORIES

Big headlines this week

🌍 IHG eyes digital-led growth in Europe and Asia through loyalty, distribution tech, and brand expansion.

👨‍✈️ Choice Hotels CIO shares plans to scale AI co-pilots and other uses of gen-AI to unlock value for franchisees.

📊 U.S. hotel outlook dims as weak demand and policy uncertainty hinder tech investments.

📶 Cloudbeds launches Signals demand forecasting LLM that’s 96% accurate

🔦 Lighthouse acquires The Hotels Network to add hospitality marketing capabilities to commercial platform

📊 Duetto acquires HotStats to integrate real-time profitability data into its revenue optimization platform.

TOOLS & TACTICS

⚒️ Hotel Tech Tools You’ve Gotta Try

✅ Canary Technologies: Powerful but simple digital guest journey platform.

✅ Cloudbeds: Comprehensive hotel management software at the speed of AI.

✅ MeetingPackage: Streamline MICE bookings and boost event revenue.

✅ RoomPulse: Simplify rate shopping with actionable insights and intelligent alerts.

✅ Actabl: Turn powerful data into actionable insights that maximize profits

✅ SuitePad: Boost hotel revenue with in-room tablets for 1-click ordering and booking.

GOING DEEPER

1. CBRE Says Hotel Loyalty Still Drives High ROI Despite Rising Costs

A new CBRE study analyzing data from 675 million loyalty program members reveals that hotel loyalty programs are more influential and widespread than ever, with 52.8% of room nights booked by members. Membership is expanding, with 14.5% more members in 2024 vs. 2023, outpacing room growth of 6.7%. But the average number of booked nights per member is shrinking (1.0 vs. the 2016 high of 1.8), as casual travelers increasingly join through credit card partnerships. At the same time, the costs of managing these programs, including redemption fees and liabilities tied to unredeemed points, are rising faster (4.4% increase in cost) than revenue growth (up 2.7%).

🎯 Why it matters: Loyalty programs remain essential for driving occupancy and revenue, especially during uncertain economic conditions. But growing participation from less frequent travelers, combined with rising program fees and redemption activity, means hoteliers must be more strategic than ever in how they manage and evolve these programs.

🔑 Key takeaway: Hoteliers should focus on optimizing loyalty programs to deliver ROI—balancing broad appeal with cost control, leveraging data to personalize engagement, and preparing financially for increasing redemption activity. A thoughtful approach to loyalty could be the difference between short-term gains and long-term sustainability. Read More →

2. Cloudbeds Unveils 2 New AI-Powered Tools

Cloudbeds has introduced Cloudbeds Labs, unveiling two AI-driven solutions—Signals and Engage—that aim to revolutionize revenue optimization and guest interactions in the hospitality industry. These tools offer capabilities such as 96% accurate demand forecasting up to 180 days in advance and a multilingual AI concierge to handle guest inquiries and bookings. For hoteliers, this presents an opportunity to enhance operational efficiency, increase direct bookings, and provide superior guest experiences.

🎯 Why it matters: I’ve said for a while that innovation is going to come not from new startups in this era but from the companies who are big enough to sit on massive datasets but not too big that their product roadmaps are locked for 4 years out. Implementing AI solutions like Signals and Engage can significantly improve demand forecasting accuracy and automate guest interactions, leading to increased revenue and enhanced guest satisfaction.

🔑 Key takeaway: It’s more important than ever to do two things in this space. Carefully and proactively monitor what your existing vendors are building to ensure you are leveraging everything you’re paying for. Also monitor their competitors - if you work with vendors who aren’t pushing the limits with the latest AI tools as Cloudbeds is you’re missing out on some huge opportunities. Read More →

3. KAYAK Debuts Conversational Travel Planning Tool

KAYAK has launched KAYAK.ai, a live innovation lab for the metasearch engine’s most experimental AI features. This playground is where AI-first ideas are tested in the wild, giving users early access to cutting-edge travel planning tools, like real-time flight pricing through conversational search.

🎯 Why it matters: KAYAK.ai is more than a cool tech demo—it’s a forward-looking platform that collects rich user intent through natural language input. That means users get more personalized, accurate results and a faster path from inspiration to booking. For hoteliers, it signals a future where search behavior is deeply contextual and AI-assisted planning becomes the norm: the search process becomes far more nuanced than simply entering a city and travel dates into a search box.

🔑 Key takeaway: Conversational AI is redefining how travelers search, plan, and book. If your hotel’s digital strategy isn’t ready for that shift, from keyword search to intent-based dialogue, you risk falling behind. The AI revolution is happening today, and KAYAK is a good example of big players adapting quickly. Read More →

AROUND THE HOTEL INDUSTRY

Other hospitality happenings this week

💼 Sonder cuts costs by $50M and announces layoffs as Marriott integration approaches.

🛎 Boutique hotel growth slows amid rising costs, demand shifts, and digital marketing challenges.

🎮 Radisson launches “Esports-Ready” program with high-speed connectivity and gaming lounges to attract younger travelers.

​📉 Hotel stocks dropped in March as RevPAR concerns and market volatility spooked investors.

💳 Hilton streamlines business travel with cardless payments, easing reconciliation and boosting efficiency.

🔍 AI-powered visual search transforms trip planning by inspiring bookings through imagery and intuitive discovery.

🧠 How travel brands weigh custom vs. foundation AI models to drive personalization and efficiency.

🔌 EV charging becomes an essential tech amenity for boutique hotels to attract eco-conscious travelers.

⛵ A planned 120-key floating hotel in Cardiff Bay will blend modular construction with tech-driven sustainability features.

🍽️ ClearCOGS raises $3.8M to grow its AI platform that forecasts restaurant demand in real time.

HOTELIER SPOTLIGHT
🎙 COO of Safestay on Redefining Hostel Hospitality with Tech

How can hostels balance cutting-edge technology with the irreplaceable value of human interaction? In this episode, Peter Zilke, COO of Safestay Hostels, reveals the secrets behind creating a vibrant community experience while leveraging innovative tech solutions.

Key Takeaways:

• Discover how Safestay uses social media not just for marketing, but as a vital communication tool that enhances guest interaction before, during, and after their stay.

• Learn about the importance of a robust property management system (PMS) in managing high transaction volumes and streamlining guest communication, especially in a hostel environment.

• Understand the role of AI in hospitality, including its applications in pricing strategies and internal communication, while recognizing the limits of technology in maintaining genuine human connections.

👉🏼 Check out the interview on Apple Podcasts or Spotify.

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