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🤖 Hilton’s big bet on AI: Revolution or marketing buzzword?

Week of January 8, 2025

It’s Wednesday, January 8. This is Hotel Tech Insider, HotelTechReport’s weekly newsletter and window into the future of hotels and the tech that powers them.

Coming Up. AI agents revolutionizing online travel agencies, Wyndham and Hyatt's stock surges signaling strong growth, and the hotel industry's ongoing battle with labor shortages despite recent improvements.

Insider Highlights

  • How AI agents can increase conversion on OTAs

  • 2024 was the biggest year for travel startup fundraising

  • Vacation rental property manager Casago buys Vacasa for $128M

  • Vail Resorts makes tech upgrades a 2025 priority

  • New Lotte hotel debuts in-room drinking water filtration systems

  • 🔦 Dive into Margaritaville’s tech stack to learn how they surprise and delight

+ Much more!

📞 Revolutionize Your Team’s Communication

Frustrated by outdated communication tools slowing down your team? Relay makes it seamless to connect, coordinate, and collaborate—all without:

❌ Missed messages causing operational delays
❌ Bulky devices that limit mobility
❌ Complex systems that are hard to use

🌟 Relay offers instant, push-to-talk communication with smart devices designed for fast-paced teams, ensuring everyone stays connected and productive.

3 TOP NEWS STORIES

1. Wyndham and Hyatt Get Stock Price Target Increases, Signaling Strong Growth Potential

Both Wyndham and Hyatt are seeing positive analyst outlooks, with their respective stock price targets being raised due to recent strong financial performance and growing investor confidence. Both brands are taking advantage of recovery trends in the hotel industry, such as increased use of technology, new openings in key markets, and strategic partnerships.

🎯 Why it matters: The price target increases reflect growing investor optimism about the future of these hotel brands. For Wyndham and Hyatt, this boost is a sign that their operational strategies, brand strength, and adaptability in the post-pandemic recovery are resonating with the market.

🔑 Key takeaway: Hotel executives and investors should take note of Wyndham and Hyatt’s strong performance as a blueprint for post-pandemic success. Focus on strategic brand development, leveraging new growth opportunities, and maintaining operational efficiency to ensure continued upward momentum in a competitive market. Read More →

2. AI Agents Redefine the Future of OTAs

Online travel agencies are adopting AI-powered agents to revolutionize customer interactions, from personalized recommendations to real-time problem-solving. These tools are designed to anticipate traveler needs, creating more tailored and efficient booking journeys.

🎯 Why it matters: AI agents enhance the traveler experience by providing hyper-personalized solutions and reducing friction during bookings. For OTAs, this technology boosts loyalty and conversion rates, setting a new benchmark for digital travel services.

🔑 Key takeaway: Hotels must embrace partnerships with AI-enhanced OTAs while considering implementing similar AI technologies to improve direct bookings, streamline operations, and stay ahead in a rapidly evolving marketplace. Read More →

3. Hotel Industry Eases Labor Crisis, But Hurdles Remain

The hotel industry is gradually rebounding from its pandemic-driven labor shortages, thanks to wage increases, streamlined hiring strategies, and operational innovations. However, challenges like high turnover rates and intensified competition for talent continue to pressure hotel operations.

🎯 Why it matters: While progress has been made, labor-related issues remain a significant barrier to growth and profitability. Hoteliers must balance competitive wages with operational efficiency and employee satisfaction to sustain recovery and meet guest expectations.

🔑 Key takeaway: Hotels should leverage technology to automate repetitive tasks, improve staff productivity, and invest in employee engagement strategies to retain top talent. Balancing short-term fixes with long-term workforce solutions will be key to thriving in an evolving labor market. Read More →

4o

AROUND THE HOTEL INDUSTRY

Things Worth Checking Out

🌞 Hotel industry poised for 2025 growth with rising ADRs and robust group demand, per STR.

🏡 Casago announces $128M acquisition of Vacasa, creating a combined portfolio of 45,000+ vacation rentals across North America.

đź’° More than 200 travel startups raised money in 2024, more than 2x the total dollar amount raised in 2023.

💧 Chicago’s L7 by Lotte debuts in-room water filtration taps, offering guests a more eco-friendly hydration option.

🤳 Emerging “smart lifestyle” brand HQ Hotels on creating Instagram-friendly hotels.

📉 Mass deportations could lead to higher payroll costs and labor shortages in the hospitality industry.

📉 New report finds just 43% of travelers feel loyalty programs make them feel valued, signaling a plateau in engagement.

🎿 Vail Resorts invests in AI-powered apps and tech upgrades, signaling a serious focus on tech for 2025.

HOTELIER SPOTLIGHT
🎙 Margaritaville's Chief Data Officer on the Tech Enabled Moments of Delight

How can a unique approach to loyalty redefine guest experiences in the hospitality industry? In this episode, Claudia Infante, Chief Data Officer at Margaritaville, reveals how innovative technology and a fresh perspective on loyalty are transforming the way hotels engage with their guests.

Key Takeaways:

  • Discover how Margaritaville's anti-loyalty program, which offers immediate perks without points or tiers, is driving guest retention and satisfaction.

  • Learn about the critical technology partnerships that power Margaritaville's operations, including Salesforce for CRM and Synxis for reservations, and how these tools enhance the guest experience.

  • Understand the importance of being nimble and passionate in the hospitality industry, and how these traits can lead to successful adaptation in a rapidly changing environment.

👉🏼 Check out the interview on Apple Podcasts or Spotify

Thanks for reading! If you have any questions you can contact [email protected]

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