TOP NEWS

💸 Adobe's report reveals a 1,300% surge in U.S. retail site traffic from generative AI during Nov-Dec 2024, doubling every two months since Sep 2024. A related survey of over 5,000 U.S. consumers found 39% have used generative AI for online shopping, with 55% conducting research and 47% receiving product recommendations. Generative AI users exhibit 8% higher engagement, 12% more page views, and a 23% lower bounce rate than non-AI sources. Additionally, generative AI traffic conversion is up, only 9% less likely to convert compared to 43% in July 2024. Desktop devices account for 86% of generative AI traffic. The electronics and jewelry categories have the highest conversion. In travel, AI traffic increased by 1,700% with a 45% lower bounce rate. In financial services, there was a 1,200% increase, with AI users spending 45% more time browsing banking sites.

🏨 Hospitality industries face labor shortages, rapidly changing guest expectations, and a need for efficient operation. The Guest Journey Manager emerges as a new role to streamline the guest experience, replacing fragmented service, and maximizing revenue opportunities. This role blends technology, operations, and data to optimize the entire guest journey. Drivers for this role include a shift from service to experience, the integration of technology with human touch, and labor shortages. The Guest Journey Manager utilizes AI messaging, real-time monitoring, CRM, and automated systems to enhance guest satisfaction, driving revenue through better reviews, repeat bookings, and increased ancillary revenue. Success is measured by Net Promoter Score, Guest Lifetime Value, Ancillary revenue growth, and Guest Effort Score.

🏢 Q1 of an unspecified year shows ADR increasing, occupancy plateauing, and rising costs impacting the hospitality industry. Super Bowl, All-Star Weekend, and inauguration events provided an early lift, yet RevPAR indicates an upcoming moderation. Key insights include: slow occupancy growth with weekends outperforming midweek, rate importance with higher guest expectations, the significance of labor culture over financial incentives, urgent CapEx demands due to postponement, a cautious transaction market, and the still secondary role of tech and AI in guest loyalty. Q2 is set to reveal the true operational challenges as early tailwinds wane.

🏨 IHG Hotels & Resorts expanded in Europe since early 2024, adding nine brands in 13 countries, reaching over 1,100 open or in-pipeline hotels. Highlights include luxury and lifestyle brands like Six Senses and Kimpton, with over 100 open and 70 pipeline properties, and the InterContinental brand, with 225 global hotels, recently entering Serbia. Essentials brands, nearly 70% of IHG's European portfolio, grew with the Garner Hotels debut in Germany, the UK, Austria, and The Netherlands. The suites segment is also growing, with Candlewood Suites set to launch in Germany in 2025. Presently, IHG has 878 hotels open and 260 being developed across Europe.

🏨 Hospitality ON unveiled a map of new hotel openings worldwide over the past 10 days, including hotels from groups and chains. The map color-codes hotels that opened this week (yellow), those announced to open later in the year (blue), rebranded hotels reopening this week (green), and newly signed hotel projects slated for future opening (orange). The compilation aims to provide a snapshot of the hospitality industry's recent developments.

👨 Christy Haycraft entered the hospitality industry focusing on staff safety and well-being, particularly housekeepers. Mentors included Patricia Kavanaugh, known for building strong client relationships and George Winker, SVP of sales for North America, who excels in customer service and market understanding. The sector is increasingly valuing diversity and inclusion, enriching the guest experience and workplace environment. Progress in gender equality is seen with more women in leadership, driven by mentorship programs and supportive policies.

👨‍💻 Leah Roberge, after starting a front desk job in high school, progressed from operations to accounting, combining her passions. Mentored by her father and Mike Straube, she values the lessons on following one's heart and the importance of patience. With over 20 years of experience, she notes significant growth in women's leadership roles in the hospitality industry and emphasizes the importance of diversity and inclusion for both staff and guests.

🏨 Hotels now rely on Customer Data Platforms (CDPs) to enhance marketing strategies and guest experiences. CDPs consolidate data from Property Management Systems, CRM systems, and OTAs, enabling informed decisions, communication personalization, and revenue growth. They provide a 360-degree customer view, allow hyper-personalized messaging across channels, facilitate precise audience segmentation, boost customer loyalty and lifetime value, and drive strategic pricing and promotions. Adopting CDPs is crucial for competitive hotels seeking revenue maximization and sustained growth.

💾 In the hospitality industry, the misbelief that IT or marketing can substitute for a Chief Digital Officer (CDO) persists. Unlike IT departments focused on servers and software, a CDO concentrates on digital business models and user experiences, translating guest needs into technology requirements. Successful hotel groups recognize digitalization as a continuous strategic process, necessitating leadership with dedicated digital expertise. The need for a CDO is not about affordability but the cost of lacking one.