Posts by author

eric lutz

6 posts
View Post
  • 2 min

Hilton and Marriott International just added AI to their risk factors in regulatory filings this week. The two largest hotel companies in the world are formally warning investors that AI could erode… | eric lutz 🫒 | 28 comments

💻 Hilton and Marriott International, the largest hotel companies globally, have incorporated AI as a risk factor in their regulatory filings this week. They warn that AI might erode brand loyalty, shift bookings from direct channels, and increase distribution costs. AI could revolutionize hotel bookings by surpassing loyalty programs and offering personalized experiences, potentially diminishing brand value. The future success of hotels will depend on direct guest relationships, independent commerce, and unique experiences that AI cannot replicate.
View Post
Share
View Post
  • 1 min

Testing ads in ChatGPT | eric lutz 🫒 | 22 comments

📰 OpenAI has started running ads in ChatGPT. Sam Altman, CEO of OpenAI, previously called this a "last resort." Hotels could be affected as ads might feature sponsored hotels rather than the best options. AI is evolving rapidly, impacting traditional hotel distribution channels. Hotels with robust commerce infrastructure will adapt, while those with outdated systems might face new financial challenges. This shift mirrors the online travel agency (OTA) model, with AI as a powerful new medium.
View Post
Share
View Post
  • 2 min

Hospitality has a trust crisis, and last week proved it. Last week, my post about the Sonder x Marriott fallout unexpectedly went viral. Almost 230,000 people saw it. Hundreds commented. Many… | eric lutz 🫒

💰 Last week, a post on the Sonder x Marriott split went viral, reaching 230,000 views. The hospitality industry faces a trust crisis, with guests often unsure who is accountable—brands, operators, or third parties. A Titanium Elite member experienced being transferred seven times over a canceled reservation. Loyalty programs appear insufficient, and control of guest experiences is outsourced. Hospitality is compared to companies like Apple and Amazon, which fully own customer experiences. A reset around responsibility is urgently needed.
View Post
Share
View Post
  • 2 min

Sonder Inc. x Marriott International: 𝗧𝗵𝗲 𝗥𝗲𝗮𝗹 𝗦𝘁𝗼𝗿𝘆 𝗜𝘀𝗻'𝘁 𝘁𝗵𝗲 𝗕𝗿𝗲𝗮𝗸𝘂𝗽 Everyone in hospitality has now seen the news about the Sonder x Marriott dissolution, but what I… | eric lutz 🫒 | 59 comments

💸 Sonder Inc. and Marriott International dissolved their partnership, impacting guests’ reservations. Marriott's response involved canceling bookings and directing guests to seek refunds from their banks, a practice criticized for lacking hospitality. No re-accommodation or goodwill gestures were offered, highlighting industry issues where distribution models overshadow guest care. This situation raises concerns about diminishing differences between direct bookings and third-party platforms, emphasizing potential risks for the hospitality sector's reputation and loyalty standards.
View Post
Share
View Post
  • 2 min

The Target “Wake Up Call” That Every Hotel Needs To Hear

💰 Target, facing operational complexity, halted online fulfillment at several stores, returning focus to improving in-store experiences. 96% of orders were fulfilled via stores, harming customer service. The CEO aims for simplicity post-competitions with Amazon. Hotels face similar issues, relying on outdated booking engines. Upgrading to platforms like Olive boosts revenue and halves operational calls. The key is enhancing guest satisfaction through seamless digital experiences while allowing staff to prioritize hospitality.
View Post
Share
View Post
  • 2 min

The Hotel Marketing Revolution & Why the Future Belongs to DTC-Thinking Hospitality Brands.

🏨 Barry Sternlicht warns at NYU IHIF that independent brands are challenging big hotel chains, using a DTC strategy. Traditional brands, like Marriott, offered a standardized, broad appeal, but DTC success comes from niche focus. Allbirds, Glossier, and Brooklinen thrived by targeting specific demographics with zero physical footprint. Future hotel success lies in specificity, focusing on unique customer needs, community building, and precise branding, rather than broad offerings across multiple locations.
View Post
Share