💳 Is BNPL Stuck on the Runway?

Insider Highlights

• OpenAI’s SDK will soon enable your hotel company to build AI Agents

• New World Tourism Council report shows weak BNPL adoption in hotels

• TikTok becomes the go-to travel inspo app

• Will AI make metasearch obsolete?

• + much more!

• 🛠️ 6 Tech tools you should try

• 🎧 Podcast: Jens Egemalm, Director of Distribution at Pandox, on why direct bookings aren’t always best

BIG STORIES

Big headlines this week

💆‍♂️ Aescape raises $83M and partners with Four Seasons and Marriott to scale AI-powered robotic massage therapy.

🌱 IHG’s new voco property opens as the brand’s first net-zero hotel.

📊 New Cvent survey shows 80% of meeting organizers want venue responses in 4-days or less signaling demand for venue management software like IVvy.

🤖 Booking CFO says AI chatbots won’t replace OTAs, citing trust and complexity challenges.

📱 TikTok is reshaping travel inspiration, influencing bookings and destination trends through viral content.

TOOLS & TACTICS

⚒️ Hotel Tech Tools You’ve Gotta Try

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

✅ Inn-Flow: Simplify hotel finances with user-friendly accounting software solution.

✅ Visiting Media: Offer stunning 3D tours to drive more hotel sales.

✅ Cloudbeds: All-in-one hotel management software at the speed of AI.

✅ IVvy: Simplify venue bookings, manage events, and track revenue easily.

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

GOING DEEPER

1. Travel Industry BNPL Adoption Stalls at 1.3%

According to a new report from the World Travel & Tourism Council BNPL (buy now pay later) adoption sits at just 1.3% of total sales in travel despite 10.1% adoption in online retail —a missed opportunity for hotels to capture higher-value bookings and appeal to budget-conscious travelers. As BNPL users surge from 380M to 670M by 2028, hotels that fail to integrate flexible payment options risk losing market share to more adaptable competitors.

🎯 Why it matters: Hotel owners who ignore BNPL because adoption is low today risk losing bookings to competitors that offer installment-based payments, especially as younger travelers prioritize affordability and cash flow flexibility when planning trips.

🔑 Key takeaway: Hotels looking to stay ahead of the curve should seek out PMS and booking engines that embed BNPL functionality through platforms like Affirm and Stripe, making flexible payments visiseamless for guests. Cloudbeds, for example, partners with Affirm to enable BNPL for hoteliers. With BNPL already booming in retail and e-commerce, early-adopter hotels can tap into this growing demand, boost conversion rates, and attract a new wave of cost-conscious travelers. Read More →

2. OpenAIs Agents Will Soon Run Your Hotel

OpenAI has launched new tools designed to help businesses easily create AI agents. AI agents (like OpenAI’s Operator) are virtual agents that can execute tasks like customer support, operations, and marketing. AI agents are flashy and fun to play with, but they have proved difficult to scale into real business contexts and daily use — so far. OpenAI’s new releases might change that.

🎯 Why it matters: AI agents can enhance hotel operations by automating routine tasks like check-ins, booking management, and guest service requests, allowing staff to focus on more personalized interactions. AI agents could also help personalize marketing efforts and streamline back-end processes like inventory management and maintenance tracking. For guests, AI can offer customized recommendations, handle inquiries 24/7, and create smoother, frictionless experiences.

🔑 Key takeaway: If you’ve never tried an AI agent like Operator, now’s a good time to do so. Hoteliers should focus on leveraging these AI agents to automate guest interactions, provide personalized recommendations, and streamline booking processes. These tools can enhance operational efficiency, improve guest satisfaction, and offer cost-effective solutions, especially for small to mid-sized businesses. Read More →

3. McDonalds Scraps Corporate Office Driven Tech Strategy (Hotel Chains Take Note)

McDonald's CEO Chris Kempczinski emphasized the need for a centralized leader who views technology from the perspective of restaurant operators, ensuring that innovation directly benefits day-to-day store efficiency rather than becoming a corporate-driven experiment. This approach means that instead of rolling out new tech for the sake of modernization, McDonald's will prioritize tools that actually make restaurant operations smoother, improve service speed, and enhance employee workflows—whether that's AI-powered drive-thrus, automated kitchen systems, or digital menu enhancements.

🎯 Why it matters: By consolidating oversight under a Chief Restaurant Experience Officer, McDonald's is ensuring that technology deployment is practical, scalable, and directly aligned with real-world restaurant needs rather than just corporate ambitions. Hotel chains that push top-down corporate tech initiatives without considering the realities of on-the-ground operations risk rolling out expensive, disconnected solutions that frustrate staff and fail to improve guest experience. Just as McDonald's is ensuring tech aligns with restaurant managers’ needs, hotel corporate offices must empower property-level leaders in tech decisions or risk losing efficiency, employee buy-in, and ultimately, their competitive edge to more adaptable brands.

🔑 Key takeaway: McDonalds sees the writing on the wall that if it doesn’t learn to rapidly deploy technology into its business and its stores — it will find itself in serious trouble given the technological revolution we’re experiencing right before our eyes. If the worlds most dominant fast food chain needed a fully reorg, it’s probably time to take a serious look at your hotel’s org chart and assess whether you have the right roles, structure and people to succeed in the age of AI. Read More →

AROUND THE HOTEL INDUSTRY

Other hospitality happenings this week

🏨 Huawei and Meliá launch Global Smart Hotel Showcase, leveraging AI and IoT for seamless connectivity and efficiency.

💰 UK hotel labor costs surged 10% in January, driven by wage hikes and labor shortages.

📈 Jefferies upgrades Airbnb stock forecasting 40% share pop, citing strong demand and improving profitability as key growth drivers.

♿ Accessibility on travel websites lags, with 97% of sites failing key disability-friendly design standards.

🔍 AI-powered agents like OpenAI's Operator challenge metasearch, but industry leaders see opportunities, not threats.

💡 Booking Holdings bets on generative AI to enhance traveler intent predictions and trip personalization.

HOTELIER SPOTLIGHT
🎙 Pandox's Director of Distribution Breaks Down How to Analyze the True Cost of Distribution

Are direct bookings always the best choice for hotels? In this episode, Jens Egemalm, Director of Distribution at Pandox, reveals the surprising truth about distribution costs and channel management.

Key Takeaways:

• Discover why understanding the true cost of distribution is crucial for maximizing net revenue across various booking channels.

• Learn how to effectively analyze and compare the performance of direct bookings versus third-party channels to make informed decisions.

• Explore the importance of utilizing technology, like BI tools, to gain real-time insights into distribution efficiency and optimize revenue strategies.

👉🏼 Check out the interview on Apple Podcasts or Spotify

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