🤝 Are hotel loyalty programs keeping up with changing traveler habits?

Insider Highlights

• STR data shows hotel labor costs skyrocketed by $9 per room in 2024

• CitizenM uses modular construction to expedite hotel development

• Google integrates generative AI into its travel search products

• Mandarin Oriental places bet on the luxury vacation rental sector

• Taylor Swift concerts led to exceptionally hotel occupancy and ADRs

• EV charging stations pop up at NH hotels across Mexico

• 🔦 How the Olive Living brand made virtual reception desks possible

+ Much more!

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❌ Missed revenue opportunities due to outdated strategies
❌ Overwhelmed teams struggling to keep up with market trends

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3 TOP NEWS STORIES

1. Labor Costs Rise 11%, F&B Hit the Hardest

In 2024, U.S. hotel labor costs have surged, with F&B departments being the primary driver, reports STR. Labor costs have risen approximately $9 per room compared to 2023. While rooms labor remains the biggest share of expenses, F&B is seeing disproportionate wage inflation, significantly impacting overall operating costs.

🎯 Why it matters: As F&B operations expand and guest preferences evolve, understanding and managing labor costs is critical for hoteliers aiming to maintain profitability. Rising F&B expenses means you should leverage operational efficiencies or technological innovations in staffing and service delivery.

🔑 Key takeaway: Hoteliers should explore solutions like automation and workforce optimization to mitigate rising costs in F&B departments. Monitoring labor trends can also help anticipate future financial impacts and ensure profitability. Read More →

2. 3D-Printed Hotels Offer Faster Builds & Lower Costs

New construction techniques, including large-scale 3D printing and modular building, are transforming how hotels are designed and built. In Marfa, Texas, ICON is creating a 60-acre hospitality village with a 3D printer. And brands like CitizenM use modular construction, which accelerates project timelines, lowers carbon emissions, and enhances quality control..

🎯 Why it matters: Hotel developers should be versed in 3D-printed hotels because the technology significantly reduces construction costs, timelines, and waste, enabling faster openings and higher ROI. With innovative designs that were once cost-prohibitive and strong sustainability credentials, 3D printing offers a competitive edge in attracting eco-conscious investors and travelers.

🔑 Key takeaway: 3D-Printed hotels are still niche in the US making up 6.6% of all construction starts last year (up from 2.1% in 2015) but this technology demonstrates clear value and is poised for explosive growth ahead. Read More →

3. Google VP Lays Out Vision for AI Travel Search

Julie Farago, Google’s VP of Engineering for Travel and Local Search, gave an in depth talk about how generative AI and voice search is pivotal to the evolving travel search landscape that hoteliers should make time for. Her team, which manages 2 billion daily queries, shares data around the massive shift from traditional keyword searches to conversational, AI-driven interactions and what that means for hotel marketers.

🎯 Why it matters: The integration of AI in travel search offers hoteliers an opportunity to connect with highly qualified and confident travelers. As AI transforms how people plan trips, hoteliers must align with emerging platforms to remain discoverable.

🔑 Key takeaway: There’s a lot of talk about ChatGPT and OpenAI but Google is still the largest direct and indirect (via meta + OTAs) source of traffic for hotels globally. When Google share’s it’s AI vision for travel, hotel marketers are wise to take the time to listen. Read More →

AROUND THE HOTEL INDUSTRY

Things Worth Checking Out

⛔️ Italy bans self check-in at Airbnbs, citing security concerns.

🌱 Marriott launches "Connect Responsibly," enabling event planners to track and offset carbon footprint.

🛠️ U.S. hoteliers brace for higher costs due to potential tariffs on imported goods, like furniture and construction materials.

🌿 Accor study finds travelers plan to spend more in 2025 and want sustainable options.

🏡 Mandarin Oriental expands its luxury vacation rental portfolio, aiming for 100+ homes globally.

🦋 Taylor Swift’s Eras is over, here’s what it did for hotel occupancy and ADRs in concert host cities.

🔌 NH Hotels installs EV stations across Mexico based properties.

HOTELIER SPOTLIGHT
🎙 Olive Living CEO on the Future of Remote Hotel Management

What if you could manage 100 hotel receptions with just two staff members? In this episode, Kahraman Yigit, co-founder and CEO of Olive Living, reveals how innovative technology is reshaping the hospitality landscape and enhancing the human touch in service.

Key Takeaways:

• Discover how Olive Living transitioned from co-living to a tech-driven hotel operator, leveraging AI and video conferencing to streamline operations and improve guest experiences.

• Learn about the unique implementation of remote reception management, allowing a single team to oversee multiple properties, significantly reducing operational costs while maintaining high service standards.

• Explore the integration of AI-enabled analytics for real-time sentiment analysis, enabling hoteliers to proactively address guest needs and elevate service quality.

👉🏼 Check out the interview on Apple Podcasts or Spotify