Innovation

📢 In San Francisco last weekend, Toast ads were spotted in the Castro Street Muni station. Within the last week, Toast released a three-minute short starring chef-turned-actor Matty Matheson at Manhattan's Marea restaurant. The marketing campaign by Toast's CMO, Kelly Esten, aims at restaurant people and also seeks to increase brand awareness with the general public. Toast retracted a controversial 99-cent charge in 2023 after backlash from restaurant customers. CEO Aman Narang announced last summer that Toast is expanding from restaurants to grocery and convenience stores. The latest ad involves actors and Marea's executive chef, PJ Calapa, but the waitstaff was not acting.

```html 📢 ``` In a Jan. 23, 2025 podcast episode, Michael Levie discusses innovation in hospitality, advocating for "importing" ideas and cross-industry skills. Supported by Shiji Group, a global hospitality technology leader, the episode encourages implementing ideas for business enhancement and improving guest experiences. Music provided by Bespoke Sound, specializing in Music Identity Design for hospitality brands.

🏨 Sean Seah, SVP of Strategy, Technology and Innovation at Langham Hospitality Group, emphasizes innovation tailored to specific problems in hospitality. Langham plans to grow from 32 to 100 hotels in ten years, focusing on customer experience and digital transformation. CEO Bob van den Oord, appointed in 2023, tasked Seah with disruptive ideas and innovation. Langham's move to a cloud-native property management system aims to centralize customer data for enhanced personalization. Seah is leveraging AI for targeted customer offers and operational efficiency, with pilot projects like Microsoft's AI co-pilot for back-office improvements. The first hotel cloud migration took six months, prioritizing learning and scaling with empathy. The overarching mission is to maintain Langham's luxury essence while innovating at scale, serving property owners, customers, and the team.

💻 The travel and hospitality industry, valued at $5 trillion, dedicates about 7% of its revenue to digital marketing, with giants like Booking.com and Expedia spending $16 billion in 2024, representing 30% to 50% of their revenues. In contrast, hotels typically spend 2% to 5% on marketing. AI platforms like ChatGPT, which achieved 200 million monthly users and 100 million app downloads in over a year, are reshaping consumer behavior. Despite the high cost of AI development, with new models estimated at $100 million, smaller companies are finding opportunities through third-party AI models. OpenAI faced a $5 billion loss in 2024, highlighting the challenge of sustainable revenue models in the AI industry. As AI evolves, incorporating real-time Availability, Rates, and Inventory (ARI) becomes a likely next step, mirroring metasearch advancements. Major companies are integrating AI to stay competitive, but AI's high costs could impact short-term profits. The hospitality marketing landscape is on the cusp of transformation due to AI's increasing influence.

💻 Stable Kernel launched a Data & AI Practice led by Ben Manning, Ph.D., featuring Agentic AI, which enables autonomous decision-making and adaptation. Agentic AI is transforming industries including foodservice and retail by streamlining operations and enhancing customer experiences. A quick-service restaurant (QSR) saw an 80% faster time to market, reducing promotion rollout from 3 weeks to 3 days. For a video-on-demand (VoD) platform, Stable Kernel's solutions scaled operations and forecasted peak demand, supporting competitive market presence.

✈ Corporate Travel Management's (CTM) booking tool Lightning now shows Sustainable Aviation Fuel (SAF) scores for over 250 airlines during flight selection. Initially tested with a pilot group in the UK and Europe in early 2024, SAF scores are now free for all customers in North America, Asia, with Australia and New Zealand to follow in 2025. This feature aids in making sustainable travel choices, considering factors like price, policy status, seat availability, and detailed carbon emissions.

✈ Paxport, an airline solutions specialist, has formed a strategic alliance with Airxelerate, aiming to simplify the distribution and management of airline content for airlines, OTAs, and Tour Operators. This partnership is designed to remove complexities in managing allotment-based content, ensuring efficient seat sales and a frictionless booking to travel experience for travelers. Simon Taylor, Paxport's head of commercial, and Nina Sifi, CEO of Airxelerate, emphasized the collaboration's role in redefining industry standards, enhancing connectivity, and unlocking new revenue opportunities.

🚀 Travelsphere partnered with TProfile to integrate its 89 itineraries into TProfile's platform, enhancing agent experience with streamlined quoting and bespoke content. TProfile, serving over 100 travel brands, processed travel quotes worth more than £8 billion in 2024. The partnership is part of Travelsphere's trade strategy, aiming to improve customer experience and operations. Just You, Travelsphere's sister brand for solo travel, will also join TProfile soon.

🚀 Ukraine's largest airline, SkyUp Airlines, has migrated to IBS Software’s iFly Res to support its commercial operations restart as the airline resumes regular flights in the EU. This transition is seen as a "key milestone" for the airline's recovery after its temporary phase as an ACMI and charter carrier. The new Passenger Services System (PSS) provided by IBS Software aims to enhance customer service and ensure operational efficiency. Chief Commercial Officer Daria Alieksieienko expresses excitement for future opportunities and the strengthening of the airline post-conflict in Ukraine.