Insights Type: Articles

Leveraging Generative AI to Minimize Toil and Increase Joy

Michael Goldrich, Founder and Chief Advisor, Vivander Advisors, & HSMAI Foundation Board Member 

The HSMAI Foundation recently published a report, The State of Generative AI in Talent Management for Hotel Sales, Marketing, and Revenue Management, exploring the impact of generative AI on various facets of talent management, particularly focusing on the domains of hotel sales, marketing, and revenue management. This is an excerpt from the report.   

Hotel commercial teams across revenue management, sales, and marketing face daily operational burdens that diminish efficiency, job satisfaction, and retention. Generative AI offers a transformative opportunity to alleviate these repetitive tasks, allowing teams to refocus on strategic and creative endeavors. 

In revenue management, toil often involves manual tasks such as updating rate plans, consolidating data from multiple systems, and generating performance reports. These repetitive activities consume valuable time. Generative AI can eliminate the burden of these time-consuming activities, so teams can focus on more strategic activities such as crafting innovative pricing strategies, identifying hidden market opportunities, and designing guest- centered packages. This shift from operational drudgery to strategic thinking restores excitement to the revenue managers work.  

For sales teams, administrative burdens create another layer of inefficiency. Managers spend excessive time creating proposals, managing contracts, and updating systems with duplicate information. Sales teams are spending valuable time formatting presentations, customizing proposals, and maintaining CRM records, which ultimately reduces the time they spend selling. AI’s ability to automate these administrative tasks, enables sales teams to prioritize relationship-building and client engagement. With instant competitive insights during meetings, sales managers can conduct more impactful conversations, leading to higher conversions and deeper satisfaction in their roles.  

Marketing teams also encounter significant toil in their daily operations with routine tasks like scheduling social media posts, updating website content, and compiling basic performance metrics. With generative AI handling these mundane tasks, marketing professionals are rediscovering their creative spark. This allows them to focus on storytelling, brand development, and campaign innovation. Immediate feedback from AI analytics further enhances job satisfaction by showcasing the tangible impact of their creative efforts.  

The positive impact AI has on these commercial roles can foster genuine joy at work. As the Boston Consulting Group described in their study, this “joy effect” not only improves retention but also builds long-term commitment and innovation within organizations. By reducing toil and enhancing meaningful work, generative AI redefines the employee experience, ensuring teams stay engaged, fulfilled, and dedicated to success. Hotels that effectively address toil through AI and process improvements will experience better retention, enhanced innovation, and stronger business outcomes. The key lies in balancing automation with human input to ensure technology supports, rather than replaces, the strategic thinking that drives success in hospitality.  

Read the full report for even more insights into talent management using AI here: global.hsmai.org/research    

The work of the HSMAI Foundation is made possible with support from our Corporate Talent Partners.     

Negotiation Mastery for Commercial Leaders

Former hostage negotiator Sandy Hein, Negotiation Instructor and Coach, The Black Swan Group, knows a thing or two about high-stakes communication. At HSMAI’s Commercial Strategy Week, she’ll show hospitality leaders how to apply those same skills in negotiations, team collaboration, and commercial strategy. 

HSMAI staff had a chance to sit down with Hein and chat about her upcoming session. Hein will introduce the concept of tactical empathy, a trust-based approach to influence that prioritizes deep listening, psychological awareness, and authentic connection. “This isn’t about manipulation,” she says. “It’s about building rapport and influencing with integrity.” 

Attendees can expect to learn: 

  • Levels of listening and why most people aren’t listening as well as they think 
  • Tools like labels, mirrors, dynamic silence, and summarizing to drive conversations forward 
  • How to practice influence in low-stakes settings to prepare for high-stakes deals 
  • Why putting the other party first leads to better outcomes and stronger collaboration 

Hein brings a unique perspective to Commercial Strategy Week, drawing on her 23 years in law enforcement and her work with The Black Swan Group coaching professionals on multimillion-dollar deals. “We’ve used these skills in life-or-death situations, and they work just as powerfully in business,” she explains. 

Her session resonates with the conference’s broader theme of breaking down silos and elevating commercial strategy across functions. “Whether you’re in marketing, sales, or revenue, you’ll leave with communication tools that improve every conversation and every result.” 

Pro tip: Bring a pen and paper. According to Hein, writing things down helps your brain absorb these new techniques. “This is like learning a foreign language you have to practice it, or you lose it.” 

Want to explore more? Hein recommends Never Split the Difference by Chris Voss, Ego, Authority, Failure by Derek Gaunt, and The Black Swan Group’s free resources—including their weekly negotiation newsletter and Negotiation Mastery YouTube channel.

What is the True Cost of Distribution?

Diego Acosta, Director, Partnerships, Flex Pay, HSMAI Revenue Optimization Advisory Board Member 

Understanding the true cost of a hotel booking isn’t as straightforward as it might seem. Between marketing investments, agency fees, and labor costs, even a “direct” booking isn’t always the most profitable. 

Here are a few key insights from a recent HSMAI Revenue Optimization Advisory Board discussion on distribution, profitability, and smarter benchmarking. 

Tools Matter, But So Does Perspective 

Several hotels and management companies are working to get as close as possible to a reservation-level view of costs. While complete granularity may not be realistic, BI platforms such as Juyo Analytics and Kalibri Labs’ Hummingbird can help stitch together key data sources. One Advisory Board member shared, “you can’t always get it down to the reservation level, but you can get pretty close.” 

But not everyone agreed on the value of that level of specificity, as another member said, “You’re just going to create more problems…you’ll spend weeks trying to figure out that number, to have to figure it out again in a few weeks.” It sounds painful but let’s be honest with ourselves here. For the good of the organization, we can’t give up in pursuing this. To do nothing is to light whatever profit you’ve generated on fire.  

Direct Bookings Aren’t Always Cheaper 

Don’t assume direct bookings are more profitable. Take into account the cost of your total investment in capturing a direct booking

  • Ad campaigns
  • Agency retainers
  • Third party widgets
  • Loyalty expenses
  • Payroll costs, etc.

These are just some of the immediate things to think about that chip away at direct booking margins. If you’re not capturing the full picture, you may be overestimating your return. One board member that works across branded and independent hotels wanted to make it clear, “just because you’re throwing money at that to drive direct bookings doesn’t always mean you end up keeping as much of that as you think.”  

NRevPAR Isn’t the End Game 

Net RevPAR has been a helpful benchmark, but it doesn’t fully capture distribution efficiency. Jens Egemalm at Pandox Hotels tries to capture distribution level costs through a formula he uses widely at his hotels  — RevPAR with markups / Net RevPAR — This helps his hotels to find out true channel yield. Like anything, it takes commitment both from an investment in technology and investment in organizational approach and buy in. These things don’t simply happen overnight.  When it’s all said and done, even this is up for debate. As one Board Member pointed out, “if your property isn’t turning rooms daily (e.g., extended stay), understanding net RevPAR per turn can be a more useful lens.” 

Loyalty, Labor, and Long-Term ROI 

As we consider the full picture of distribution costs we arrive at the often overlooked costs of Loyalty programs. With discounted rates, free breakfasts, upgrades and so on, we quickly realize that distribution costs for Loyalty programs frequently go unaccounted for in distribution analysis. And let’s not forget sales payroll costs, especially on the group side. These gaps make accurate benchmarking harder—but also more essential. One Advisory Board member added, “to ignore [loyalty costs] in the conversation…I don’t think we’re getting to the real heart of the matter.”  

Keep an Eye on PMAX 

If you’re not already exploring Google’s Performance Max (PMAX) campaigns, now’s the time to get curious. PMAX for travel goals is widely used so take the time to educate yourself. You can reach high intent travelers at many different touchpoints with easy set up and optimization. To a small degree it will level the playing field against OTAs and to a larger degree may give you a head start on your competition next door.  

Bottom Line
Start somewhere. In the complex world of hotel distribution, understanding the true cost of bookings is essential for sustainable success. Track as much as you can and find the right tools to help reduce the friction.  As the industry continues to evolve, hotels that are agile, data-driven, and customer-centric will be best positioned to thrive. We all want to improve our Direct Bookings but aiming for a clearer understanding of your distribution costs is the real win. 

Learn More:  

Breaking Down Silos, Together

Brian Hicks, President and CEO of Hospitality Sales & Marketing Association International (HSMAI)   

 

If there’s one word that sums up the future of hospitality commercial strategy, it is unified. At HSMAI, we’ve long talked about the power of cross-disciplinary collaboration. But this year, we’re doing more than talking about it, we’re making it the centerpiece of the HSMAI Commercial Strategy Conference. Commercial growth today happens when sales, marketing, revenue, and distribution professionals come together with shared goals, aligned data, and integrated strategies. That’s why this year’s conference is structured to reflect the transformational power of moving from solos to symphony.  

In one keynote, Breaking Down Silos: Uniting Commercial Strategy for Maximum Profitability, Kristie Goshow, Allison Handy, Kelly McGuire, and Ankur Randev will set the tone. They will share what collaboration across the commercial spectrum actually looks like in practice. 

Designed for the Full Team 

Whether you lead a sales team, manage revenue optimization, oversee distribution, or lead marketing strategies, this year’s agenda delivers something for you and for your teams. 

Highlights include:  

  • What Sales Leaders Need to Know about revenue, marketing, and distribution. 
  • AI in Action, highlighting real-world examples of smarter, faster hospitality workflows. 
  • Aligning with Ownership, helping commercial leaders translate strategy into stakeholder value. 

Plus, deep dives into customer journey mapping, reskilling, and future-proof leadership skills. 

The Must-Attend Event in 2025 

So, here’s the invitation: don’t just come as one part of a team, come as a team. 

This isn’t a marketing event that includes sales. It’s not a revenue event with a nod to distribution. This is an integrated, intentional, and inspiring experience for the full commercial team. 

Every commercial team member brings a unique perspective to the conference. As you listen in on the diverse topics covered at the conference, you can harness these different viewpoints to create a more rounded and effective strategic approach when you get back to your hotel. 

The Price Perception Pivot: Hotel Websites Now Seen as Best Bet for Deals in the UK

Rick Garlick, Ph.D., Consulting Partner, BVA BDRC, HSMAI Foundation Board Member  

For years, online travel agencies (OTAs) dominated the perception game, widely regarded by travelers as the go-to source for scoring the best hotel deals. But new insights from BVA BDRC’s Hotel Guest Survey (HGS) in the UK suggest a meaningful shift in consumer thinking: travelers are increasingly turning to hotel-branded websites, viewing them as the most reliable source for the best rates. 

HGS, which monitors hotel brand performance and consumer behavior across 25 countries, shows that this trend is particularly pronounced in the UK, where the findings offer a telling snapshot of changing attitudes. In the first half of 2024, 32% of UK guests believed that hotel websites offered the best rates—up from 28% in 2018. Meanwhile, belief in OTAs as the lowest-price option declined from 41% to 36% over the same period. 

This perception shift is evident among both business and leisure travelers, although generational differences remain. Gen X travelers still show a notable preference for OTAs (45% versus 26% for hotel websites), likely a reflection of their early digital travel habits formed during the rise of third-party booking platforms. 

Whether this trend mirrors U.S. consumer sentiment remains to be seen. The most recent U.S. data from 2021 showed OTAs still leading in rate perception (47% vs. 39% for hotel websites). However, hotel brands have increasingly promoted direct booking through price guarantees, loyalty perks, and member-only deals—factors that may be eroding OTA dominance in the U.S. as well. 

At the same time, OTAs themselves are evolving. Once squarely focused on attracting price-sensitive travelers, platforms like Expedia are repositioning around convenience, personalization, and discovery. With AI-powered tools, they now offer tailored recommendations, interpret vague or flexible travel searches, optimize itineraries, and synthesize post-trip reviews—all enhancing the planning experience rather than simply competing on price. 

As a result, the market may be moving toward a new segmentation of traveler behavior: on one side, loyal brand followers who seek out the best rates through direct booking; on the other, open-minded explorers who prioritize variety, inspiration, and digital convenience over strict price competition. The price perception pivot suggests that for many travelers, value is no longer just about cost—but about the total experience of booking and traveling. Understanding this shift will be critical for both hotel brands and OTAs as they refine their strategies in an increasingly segmented marketplace.  The US edition of HGS launches in early May and will reveal how direct booking preferences have evolved among American hotel guests. 

5 Actions You Can Take to Break Down Silos

Kim Snow, Vice President Commercial Strategy, Aimbridge, HSMAI Sales Advisory Board Member 

Sales. Marketing. Revenue Management. Distribution. When these functions operate in silos, the result isn’t just internal frustration, it’s missed revenue, slower decision-making, and inconsistent guest experiences.  

During a recent HSMAI Sales Advisory Board Meeting, Advisory Board Members shared their on-the-ground strategies for breaking down barriers and building up commercial collaboration. 

Here’s what we heard and what you can put into practice. 

What’s at Risk When Silos Rule 

Misalignment slows everything down.
Think RFPs, pricing, and promotional offers stuck in limbo because departments aren’t in sync. One participant summed it up like this: “Customers are dissatisfied. They have to wait longer, it takes three days to get an answer… it just becomes a big, fat dissatisfier.” 

When decisions require multiple approvals across departments, sales teams can’t move fast enough to close deals. This can result in lost opportunities and poor customer experiences. 

Lack of coordination can lead to promotions that undercut the brand or attract less profitable business. Silos make it harder to target high-value segments with unified messaging and strategy. 

Tactics That Are Working 

1) Combine meetings, not just goals.
Several organizations replaced separate sales, revenue, and ops meetings with a single commercial strategy meeting. This creates shared visibility and alignment and accelerates decisions. 

2) Empower sales with smart tools.
One team rolled out a “group booking tool” that allows sales to generate rates and net profitability in 60 seconds—helping them book quickly when green-lit, and flag exceptions when necessary. 

3) Align incentives across departments.
When everyone is bonused on shared goals like total revenue, guest satisfaction, and profitability and it forces cross-functional thinking. 

“It causes you to pause as a sales leader, because you’re responsible for more than just bookings.” 

4) Cross-train and co-locate teams.
From bringing revenue managers into the sales office to merging media and client service teams, the message is clear: proximity fosters trust. One team even physically moved teams together and started cross-training to increase understanding and responsiveness. 

5) Cut the noise, not the collaboration.
More communication isn’t always better. Over-emailing in the name of transparency can bog teams down. Reset expectations and focus on targeted, meaningful collaboration. 

Breaking down silos doesn’t happen by accident. It takes effort, structure, and a culture of mutual respect. One attendee put it simply: “It’s hard work to be collaborative. It doesn’t come naturally. We have to be committed to it.” 

Looking Ahead to How Agentic AI Will Revolutionize Hotels

The HSMAI Foundation recently published a report, The State of Generative AI in Talent Management for Hotel Sales, Marketing, and Revenue Management, exploring the impact of generative AI on various facets of talent management, particularly focusing on the domains of hotel sales, marketing, and revenue management. It provides insights, data, and forward-looking perspectives that are essential for industry professionals to stay ahead in an ever-evolving landscape. This excerpt is taken from the final section of the newly released report.    

By mid/late-2025, a clear divide will emerge in the hospitality industry. Forward-thinking hotels that leverage AI to enhance their commercial teams’ capabilities will gain a decisive edge, initiating a profound recalibration that will reshape industry standards and guest expectations. 

At the moment, a majority of hotels are still getting on board with generative AI, trying to understand what it is, how it works, and where it can create the most value. From crafting personalized email responses to automating guest inquiries, generative AI has proven its worth as a productivity booster. Yet, the hospitality industry is barely scratching the surface of its potential. 

As hotels navigate learning generative AI, the next wave of AI innovation is already emerging, agentic AI. This technology promises to go far beyond generative AI’s capabilities, changing AI from a helpful assistant into an autonomous, decision-making partner. This virtual partner can assist in managing operations, driving revenue, and anticipating needs without waiting for human input. In other words, just as the industry begins to understand the current phase of AI, the next phase is already charging right behind it. 

Bridging the Gap from Generative to Agentic AI 

To fully appreciate the impact of this shift, it’s critical to understand the difference between generative and agentic AI. Generative AI tools, such as those that assist in content creation or task automation, work well within defined parameters. However, they rely on human direction to be effective. In contrast, agentic AI introduces autonomy, giving AI the ability to identify problems, evaluate solutions, and act independently. 

For example, where generative AI might create a beautifully written proposal or marketing email, agentic AI can take the next step. Identifying a target opportunity, strategizing an approach, and executing a personalized outreach plan without needing human intervention. It’s not just assisting the team; it’s driving action, solving problems, and delivering measurable results. 

Real-World Applications of Agentic AI in Hospitality 

The possibilities for agentic AI in hospitality for commercial teams is immense.  

  1. Sales

Currently, generative AI is starting to be used for tasks like drafting proposals. But agentic AI can proactively identify high-value opportunities, such as local companies booking meeting spaces elsewhere, and create and execute strategies to win their business. 

  1. Marketing

While generative AI helps with content creation, agentic AI can autonomously monitor engagement metrics, identify trends, and adjust strategies on the fly. For example, if young professionals in neighboring cities respond strongly to a rooftop bar promotion, agentic AI can reallocate budgets, refine messaging, and even suggest menu changes to capitalize on the trend. 

  1. Revenue Management

Existing AI systems provide pricing recommendations, but agentic AI takes it further by driving revenue strategies end-to-end. For instance, when a major event is announced in the area, agentic AI can instantly adjust room rates, create targeted packages, and ensure staffing levels align with anticipated demand, all without human input.  

The future of hospitality is unfolding faster than most realize. While generative AI is still 

being explored, agentic AI is already here, offering new opportunities for those willing 

to embrace the change. 

 

Read the full report for even more insights into talent management using AI here: global.hsmai.org/research   

The work of the HSMAI Foundation is made possible with support from our Corporate Talent Partners.      

Inside the Industry: Talent, Travel, and the Future of Hospitality

What’s next for hospitality? Between generational shifts in the workforce, skyrocketing guest expectations, and new pressures on boutique hotels, uncertainty abounds. HSMAI President & CEO Brian Hicks recently dropped by the Good Morning Hospitality podcast to unpack it all, from loyalty programs and cruise ship emissions to what makes a truly standout hotel experience. Here are the can’t-miss takeaways from the conversation. 

  1. Evolution of HSMAI’s Conference Strategy Reflects Industry Integration

HSMAI has merged its conferences into a single Commercial Strategy Conference, in response to the growing convergence of these disciplines within hotel organizations. This change aligns with how many hospitality brands now operate combining sales, revenue, and marketing teams into unified commercial units.  

  1. Talent Challenges Span Generations and Hotels Offer Unique Flexibility

The workforce in hospitality continues to span a wide range of ages, from Gen Z to Boomers. This generational diversity demands tailored communication, motivation strategies, and flexible opportunities like part-time shifts. A key insight from HSMAI Foundation’s 2024 State of Talent report was the importance of understanding how the drivers like PTO, purpose, and community vary widely across age groups. 

  1. Boutique Hotels Face Cost Pressures, But Innovation Creates Opportunity

Despite boutique hotels experiencing a strong 2024, rising costs for labor, food, and energy are causing concern. The success of boutique properties moving forward will hinge on lean staffing models, high ADRs, and personalized experiences. Those failing to differentiate or plan strategically may struggle. However, those embracing innovation, like pre-bookable experiences and a luxury positioning could thrive. 

  1. Loyalty Programs Are Critical Tools in an Uncertain Market

With signs of the tightening of corporate travel budgets, loyalty programs are becoming an increasingly vital lever for brands to maintain occupancy and guest engagement. Expect to see more aggressive offers like bonus points and credit card sign-up perks. For travelers, it’s about value, recognition, and consistency, especially as elite status becomes harder to achieve. 

  1. Sustainability Is a Rising Priority in Hospitality—Especially for Cruises

The cruise industry faces a major shift starting in 2026, when it will be required to pay for carbon emissions, prompting adjustments to operations and pricing. While cruise lines are already investing in newer, cleaner ships, this policy will intensify the need for environmentally conscious decisions.  

Listen to the full show to hear more about these topics and stay ahead in the industry! 

 

Decoding the Consumer Journey: AI’s Impact on Hospitality Commercial Strategy

At this year’s HSMAI Commercial Strategy Conference, Benu Aggarwal, President & Founder of Milestone, will bring her decades of digital and tech leadership to the stage with a session that promises to challenge and energize attendees. In “Decoding the Consumer Journey: AI’s Impact on Hospitality Commercial Strategy,” Benu will explore how AI is transforming how guests and planners discover, compare, and engage with hospitality brands and what that means for leaders looking to stay ahead. 

Benu is a seasoned C-level tech executive, founder, operator, product & solution visionary, and industry thought leader in leveraging disruptive technologies to drive business growth, including AI, SaaS, Search. HSMAI staff spent some time with Benu to find out more about her subject and session.  

What can attendees expect from your session?
We’re facing one of the biggest disruptions in digital marketing in decades. Consumers aren’t just using search engines anymore. They’re turning to AI engines, LLMs, and tools like ChatGPT and Perplexity to plan their journeys. My session will explore how brands can future-proof their presence across these emerging platforms and why it’s critical to evolve beyond traditional digital strategies. 

Why is this such a pivotal moment for hospitality commercial professionals?
AI isn’t about bouncing back…it’s about bouncing forward. You have to curate your future now. No matter your title, CMO, GM, investor, or owner, you need to rethink how you personalize the customer journey across every touchpoint and bring organizational alignment to your AI strategy. 

What are practical takeaways attendees can expect?
Expect to leave with a use cases and ideas of how to transform data into strategy. I plan to talk through many of the questions people face when developing AI strategy. How do we align teams, foster a culture of innovation, and use existing resources to drive breakthrough results?  

What makes this a must-attend session at Commercial Strategy Week?
This is a leadership moment. As professionals, we can’t sit on the sidelines and watch the future unfold; we need to be active participants in shaping it. AI is evolving fast, and we have a responsibility to adapt. 

Any trends or predictions we’ll hear more about?
You know, I’m from the Bay Area, so I’ll be sharing insights from tech giants like Google, Meta, LinkedIn, and Apple. I’ll be covering the evolution of search, the rise of AI agents, and how to use them to enable hyper-personalized infrastructure at scale. 

How can attendees keep up with this space?
I encourage everyone to participate in ongoing learning through industry resources like Search Engine Land (where I contribute regularly), Milestone webinars, and HSMAI’s educational content. There’s no shortage of content. The key is knowing what outcome you’re after and staying committed to growth. I think it is going to be more about curiosity and prioritization. During my session I would like to plant the seeds of curiosity about changing infrastructure, upskilling, and thinking about what outcomes are critical.