🏛️ The government vs. resort fees: Is this the beginning of the end?

🏨 Insider Highlights

• Marriott’s huge cost cutting plan for 2025

• DOJ sides with consumers in hotel pricing case

• How Trump’s win could benefit the hotel industry

• Booking.com’s new AI tools for hotel bookers

• 🔦 How Kasa Living achieves a 70% gross operating profit margin

+ Much more!

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3 TOP NEWS STORIES

1. Marriott to cut $90 million annually

Marriott announced its largest structural overhaul in a decade, with plans to save up to $90 million annually as it adapts to rapid expansion and shifting market dynamics.

🎯 Why it matters: Technology has empowered independents to be more nimble than chains in many cases. The cloud has democratized an industry where once only chains had access to great tech tools and processes. If Marriott and other chains don’t invest heavily in technology and cuts in the wrong areas, more owners may start reconsidering the value prop.

🔑 Key takeaway: If you are an owner or management company with chain hotels, you should be closely watching market saturation (e.g. 101 Marriott’s in Miami) and asking - is being branded still actually worth the costs? Read More →

2. Booking.com’s “Smart Filter” simplifies search

Booking.com announced the expansion of its AI-driven features, including Smart Filter, Property Q&A, and Review Summaries, designed to streamline the booking process and enhance traveler satisfaction.

🎯 Why it matters: The OTAs took the hotel industry by storm with a best in class search experience and massive marketing budgets. Hotel marketers should constantly be watching feature rollouts to learn the latest trends they should be either implementing or countering on our own websites.

🔑 Key takeaway: Hoteliers need to start thinking about (actually, implementing) how to incorporate GenAI search and property live AI Q&A (i.e. hotel chatbots) into our brand.com websites immediately or risk losing more ground to the OTAs on usability. Read More →

3. McKinsey says half of Gen Z travelers will splurge on experiences

A new McKinsey report reveals that travelers are increasingly prioritizing unique experiences over destinations, driving a shift in how the travel industry markets and sells activities.

🎯 Why it matters: As experiences become pivotal to trip planning, hotels must explore innovative technology solutions to streamline the discovery and booking of memorable activities, enhancing their overall value proposition.

🔑 Key takeaway: Hotels can capitalize on this trend by integrating experiential offerings into their services, leveraging technology to simplify bookings and create tailored experiences that resonate with today’s travelers. Read More →

AROUND THE HOTEL INDUSTRY

Things Worth Checking Out

🇺🇸 Some believe Trump policies will help hotels as the real estate vet looks to expand oil supply and get tough crime

🤝 Expedia and Microsoft join forces to offer additional loyalty rewards to Bing users.

🎰 DOJ supports consumers in Las Vegas hotel pricing case.

👨‍👩‍👧‍👦 Family bookings were up 15% on Airbnb in H1 2024 compared to 2023.

🌎 First carbon fines go live in the US real estate market to affect hotels

🤳 Expedia CEO shares strategies for influencer partnerships and AI adoption

⚙️ US Hotel management giant Pyramid merges European division with Axiom

🕶️ Melia targets 10%-30% energy from solar in Southeast Asian properties

HOTELIER SPOTLIGHT
🎙 Kasa CEO Roman Pedan on Using Tech to Reimagine the Hotel P&L

Kasa Living, led by CEO Roman Pedan, is revolutionizing hospitality with a tech-centric approach, enhancing profitability and guest experience.

Key Points:

• Tech Integration: Kasa has developed proprietary systems, including a PMS, trust and safety system, and self-check-in technology, to streamline operations and reduce costs.

• Operational Efficiency: Their labor-light model, driven by centralized services and AI, achieves a 70% gross operating profit margin, significantly higher than the industry average.

• Flexible Living: Kasa addresses the growing demand for flexible living arrangements, converting vacancies into cash flow and future-proofing properties.

• Strategic Partnerships: Trusted by major real estate players like Starwood Capital and KKR, Kasa's model focuses on management agreements rather than risky master leases.

• Gen AI Applications: Kasa leverages AI for customer service, revenue management, and property listings optimization, enhancing both guest experience and profitability.

The Bottom Line: Kasa Living's innovative use of technology and strategic focus on flexible living and institutional partnerships position it as a leader in the evolving hospitality landscape.

👉🏼 Check out the interview on Apple Podcasts or Spotify