🚧 What Hoteliers Need To Know About Tariffs

Insider Highlights

• U.S. hotels brace for RevPAR drop amid tariff turbulence

• Deloitte: 16% of travelers plan trips with GenAI

• UAE hotels see 3% revenue growth from a surge in international visitors

• Mandarin Oriental uses tech to reduce food waste

• + much more!

• 🛠️ 6 Tech tools you should try

• 🎧 Podcast: Draw inspiration from McDreams Hotels’ use of AI in daily operations.

BIG STORIES

Big headlines this week

​📉 Morningstar slashes 2025 revenue growth forecasts for Booking Holdings, Airbnb, Expedia Group, and Tripadvisor, citing a deceleration in online travel demand.

🏨 Duetto Doubles Down on Hotel Profitability with HotStats Acquisition

🔍 Despite the rise of AI search, Google still dominates with 93% market share, so Google Ads, Google Hotel Ads, and SEO pay off.

📊 IHG revamps its upper-midscale brands in China, emphasizing tech-driven operations like AI operators and delivery robots.

📈 Accor plans record pipeline growth for 2025, focusing on sustainability and bleisure travel.

TOOLS & TACTICS

⚒️ Hotel Tech Tools You’ve Gotta Try

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

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

✅ Hireology: Find and hire reliable staff faster to fill key hotel roles.

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

✅ MeetingPackage: Simplify MICE bookings and boost event revenue.

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

GOING DEEPER

1. US Hotels Expect RevPAR Drop and Higher Costs Amid Tariff News

The U.S. hotel industry is confronting significant challenges due to escalating trade tensions and tariffs, leading to economic uncertainty that dampens international travel demand. One industry expert, Michelle Russo, CEO of HotelAVE, anticipates a 5% YoY decline in RevPAR as a result. Furthermore, tariffs hit operational expenses, especially for imported goods, making it more expensive for hotels to run their operations.

🎯 Why it matters: Escalating tariffs introduce economic uncertainty that adversely affects the travel industry, leading to softer demand, fewer bookings, and higher operational costs for hospitality businesses. Tariffs could have a negative impact on both leisure and business travel, as higher prices discourage potential travelers.

🔑 Key takeaway: In response to these challenges, hoteliers should implement strategic measures such as targeted promotions to secure advance purchase bookings, closely monitoring and adjusting marketing spend, and preparing for potential shifts in corporate travel patterns. Proactively assessing and adapting to the evolving economic landscape will be crucial for maintaining profitability and competitiveness. Read More →

2. Deloitte Report Finds 43% of Travelers Who Used GenAI Booked Hotels the AI Recommended

Deloitte's latest travel industry outlook reveals strong continued travel demand heading into 2025, with hoteliers facing a critical balancing act between AI advancement and maintaining the human elements guests still prefer. While AI adoption has doubled among travelers in the past year, with 16% of travelers now using generative AI for trip planning, 75% of guests still want human interaction for key touchpoints like local recommendations and problem resolution.

🎯 Why it matters: As travelers increasingly use AI for trip planning, hoteliers face a unique opportunity to implement attribute-based selling strategies powered by AI, which lean into personalization without sacrificing the human touches that guests still expect. The report shows trip context (international, family, "laptop luggers") matters more than demographics in determining guest preferences.

🔑 Key takeaway: Hoteliers should prioritize AI use cases that enhance rather than replace human interactions, i.e. using tech to personalize offers, streamline operations, and gather guest preferences. Hotels that successfully balance tech efficiency with in-person hospitality will create differentiated experiences that drive loyalty. The winning formula includes both a modern tech stack and meaningful human connections. Read The Report →

3. UAE Hotels See 3% Revenue Growth From Tourism Surge

Dubai’s tourism sector continues to thrive, with record passenger traffic at Dubai International Airport and nearly 17 million international visitors in 2024. This growth is driven by strategic investments in infrastructure, innovative tourism initiatives, and global marketing efforts. The UAE’s broader tourism boom is part of a national strategy to attract 40 million hotel guests by 2031.

🎯 Why it matters: The UAE’s tourism sector is a success story we can all learn from, showing the payoff of widespread investment in tech and marketing. It’s on track to meet its 2031 targets, driven by new hotel openings and a growing number of international visitors.

🔑 Key takeaway: The UAE's expanding hospitality industry, supported by technological advancements in hotel operations and digital marketing, is poised for continued growth. As the country strengthens its global tourism identity, technology will play a critical role in driving innovation, improving efficiency, and meeting ambitious tourism goals. Read More →

AROUND THE HOTEL INDUSTRY

Other hospitality happenings this week

📈 Expedia Group's Q4 2024 results showed a 10.3% YoY revenue rise, underscoring its adept integration of new tech.

🇮🇹 Mandarin Oriental to open a sustainability-focused Rome hotel, incorporating tech to reduce food waste.

​📋 What you and your staff need to know about legal protocols and rights regarding ICE interactions.

🤖 Expedia introduces a generative AI playground, enabling employees to experiment with various large language models.

💰 DIAMO Raises $4M to Empower Independent Hotels with AI-Powered Revenue Platform

HOTELIER SPOTLIGHT
🎙 McDreams Hotels' Managing Director on Immediate Applications of AI in Hotels

How can budget hotels leverage technology to enhance guest experiences and streamline operations? In this episode, Dominic Klein, Managing Director of McDreams Hotels, reveals the transformative power of tech in the hospitality industry.

Key Takeaways:

• Discover how McDreams Hotels implemented an open API-based PMS to improve flexibility and operational efficiency.

• Learn about the integration of AI, including their virtual assistant Lisa, which has significantly reduced response times for guest inquiries.

• Understand the importance of hyper-segmentation in marketing and how data-driven strategies can enhance guest communication and satisfaction.

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

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