Insights Type: Articles

Katy Gettinger, Vice President Sales, Preferred Hotel and Resorts, HSMAI Sales Advisory Board Member

Kyle McEachran, Sales Strategy & Insights at Google Travel, HSMAI Sales Advisory Board Member

As the implementation of AI and hotels and hotel sales seems becomes more common, it’s really essential for sales leaders to stay in the know about this growing technology. That’s why we wanted to bring this topic, which can feel overwhelming, to the HSMAI Sales Advisory Board for discussion.

Introduction to Artificial Intelligence

At its core, Artificial Intelligence (AI) represents the capacity of machines and software to emulate human intelligence and perform tasks such as learning, reasoning, and understanding natural language. This technology, although not new, has gained significant traction in various sectors, propelled by innovations from leading tech giants like Google, Microsoft, Amazon, and Apple. AI excels in analyzing large amounts of data to derive meaningful insights and facilitate decision-making processes.

Where Are We Learning About AI?

Some mentioned their company’s adoption of tools like Microsoft Copilot Chat, marking a shift towards officially sanctioned AI applications. This aims to harness AI’s potential while safeguarding proprietary information. Security was a huge consideration for most of our group with someone joking that of the hundreds of AI applications, 99.5% of them would never be allowed to be used by their company.

Others mentioned self-taught AI skills and collaborative learning within teams, sharing successes and tips for effective usage. While social channels like YouTube and LinkedIn were mentioned as good sources of tutorials and prompt ideas.  Some of the top-down approaches from IT didn’t resonate as well since they didn’t focus on practical applications of AI, from email automation to customer service enhancements, but more on what was and wasn’t allowed.

Use Cases

One compelling case study highlighted the efficiency of AI in planning unique culinary experiences for a large group. Utilizing AI, the team could quickly generate menus, source ingredients locally, and identify vendors, transforming a potentially days-long process into a matter of hours. This example illustrates AI’s capacity to augment human efforts, not replace them, by enabling high-level planning and execution.

Several members mentioned using AI driven HR systems that helped with review processing and making them more efficient, with better feedback.

The AI Journey

Overall, each person is going on their own unique journey with both understanding and implementing AI. Essentially, AI is the application of big data and understanding big data, and it’s a matter of understating how you can best utilize it for your benefit – whether that’s productive tasks like performance reviews or integrations into a CRM.

The best way to understand the data or AI is to look at your own objectives and tasks and try to work backwards from there.

 

Read Further:

AI in Hotels: A Complete Guide for the Hospitality Industry

Questions for your team:

1. Who, where, and how we are educating ourselves and teams on AI?
2. How and where have we seen success (or failures) in implementing AI in your Commercial Strategy?

Katy Gettinger, Vice President Sales, Preferred Hotel and Resorts, HSMAI Sales Advisory Board Member

Kyle McEachran, Sales Strategy & Insights at Google Travel, HSMAI Sales Advisory Board Member

As the implementation of AI and hotels and hotel sales seems becomes more common, it’s really essential for sales leaders to stay in the know about this growing technology. That’s why we wanted to bring this topic, which can feel overwhelming, to the HSMAI Sales Advisory Board for discussion.

Introduction to Artificial Intelligence

At its core, Artificial Intelligence (AI) represents the capacity of machines and software to emulate human intelligence and perform tasks such as learning, reasoning, and understanding natural language. This technology, although not new, has gained significant traction in various sectors, propelled by innovations from leading tech giants like Google, Microsoft, Amazon, and Apple. AI excels in analyzing large amounts of data to derive meaningful insights and facilitate decision-making processes.

Where Are We Learning About AI?

Some mentioned their company’s adoption of tools like Microsoft Copilot Chat, marking a shift towards officially sanctioned AI applications. This aims to harness AI’s potential while safeguarding proprietary information. Security was a huge consideration for most of our group with someone joking that of the hundreds of AI applications, 99.5% of them would never be allowed to be used by their company.

Others mentioned self-taught AI skills and collaborative learning within teams, sharing successes and tips for effective usage. While social channels like YouTube and LinkedIn were mentioned as good sources of tutorials and prompt ideas.  Some of the top-down approaches from IT didn’t resonate as well since they didn’t focus on practical applications of AI, from email automation to customer service enhancements, but more on what was and wasn’t allowed.

Use Cases

One compelling case study highlighted the efficiency of AI in planning unique culinary experiences for a large group. Utilizing AI, the team could quickly generate menus, source ingredients locally, and identify vendors, transforming a potentially days-long process into a matter of hours. This example illustrates AI’s capacity to augment human efforts, not replace them, by enabling high-level planning and execution.

Several members mentioned using AI driven HR systems that helped with review processing and making them more efficient, with better feedback.

The AI Journey

Overall, each person is going on their own unique journey with both understanding and implementing AI. Essentially, AI is the application of big data and understanding big data, and it’s a matter of understating how you can best utilize it for your benefit – whether that’s productive tasks like performance reviews or integrations into a CRM.

The best way to understand the data or AI is to look at your own objectives and tasks and try to work backwards from there.

 

Read Further:

AI in Hotels: A Complete Guide for the Hospitality Industry

Questions for your team:

1. Who, where, and how we are educating ourselves and teams on AI?
2. How and where have we seen success (or failures) in implementing AI in your Commercial Strategy?

Effective cross-functional collaboration stands as a pivotal trend shaping contemporary business outcomes. Realizing the full potential of collaborative teamwork demands meticulous preparation, the alignment of shared objectives, and the guidance of skilled leadership to reinforce desired organizational behaviors and objectives. While the advantages of cross-functional collaboration are widely acknowledged, the implementation of this approach requires more than mere immediacy; it necessitates a deliberate shift in organizational mindset beyond joint projects. Achieving successful collaboration between teams necessitates a disciplined and strategic effort focused on people development, underpinned by leadership advocacy and unwavering commitment (Henson, 2023).  

Expanding your organization’s mindset so that cross functional teams have contact and influence from initial development, marketing, and communication both internally and externally is seen as a necessary step for organizations. The emphasis is on preparation and recognizing that cross-functional teammates bring different skills, jargon, and viewpoints, and strong communication and agreed upon goals are important to prevent miscommunications which can become breeding grounds for conflict. These conflicts can not only slow down projects but can have a negative impact on employee well-being (Piaggi, 2023).  

Companies need to be proactive in training their employees to work effectively in cross-functional teams and to work to provide a psychologically safe environment to help build and promote trust and open communication. They also need to promote both individual and group development programs to provide the skills needed to make collaboration successful.  

Cross-functional teams can also help address the shortage of skilled employees within the hospitality industry by encouraging collaboration and skill sharing, promoting efficiency and flexibility, promoting the development of new roles within the organization, helping to promote the development and adoption of new technology and bringing diverse perspectives that can encourage innovation and creative problem solving. Additionally cross-functional teams can participate in both group and individual training and upskilling and add to the development opportunities available to current and potential employees.  

Key Takeaways  

• Effective cross functional leadership requires a disciplined plan focused on people development and leadership advocacy. 
• Cross functional teams need shared objectives and KPI’s. 
• Cross functional teamwork requires training in collaboration and teamwork for both individuals and the group. 
• Cross functional teams bring diverse perspectives that encourage innovation and creative problem solving. 

Additional Resources:

To read more about the top talent trends, including case studies of this trend, download the  HSMAI Foundation Special Report: The State of Hotel Sales, Marketing, and Revenue Optimization Talent 2023-2024.    

In recent years, the realms of sales marketing, distribution, and loyalty have undergone significant transformation in response to the challenges and opportunities brought about by remote work. Discussions held during HSMAI leadership meetings and conferences within these sectors have illuminated the evolving dynamics of the workplace, emphasizing the importance of happiness, productivity, and equity in this new era. It’s noteworthy that the embrace of remote and hybrid work models varies across the globe. As Gallup (Brecheisen, 2023) research revealed, “the attitude of leaders had an outsized influence on workplace strategies.”  

A unique aspect of this transformation is the long-standing practice of sales and revenue manager leaders working remotely. They have adeptly adapted to the changing landscape. However, the broader shift associated with hybrid work is now associated more with leaders in branding, above-property management, marketing specialists, sales enablement, advertising, project management, property support teams, loyalty, and distribution teams. These professionals now allocate a specific number of days to working from home each week, marking a significant change in work dynamics. 

At the core of these discussions emerges a pivotal question: should compensation for remote work differ from that of in-office work? Within HSMAI, executives have engaged in spirited debates on this matter, with concerns raised about the potential for such a compensation philosophy to disadvantage women and other underrepresented groups. Surveys (The Economist, 2023) have revealed a growing willingness among employees worldwide to accept pay adjustments in exchange for the option to work from home, signaling a shift in work preferences. However, this trend has prompted organizations globally to contemplate potential disparities in compensation and opportunities and how to address these concerns. 

In the specific context of marketing and advertising agencies, a notable trend has emerged. Executives in these sectors are placing emphasis on high-potential employees who choose to invest their time in the office for informal learning opportunities. These individuals are viewed as particularly deserving of additional development and are more likely to receive growth and advancement opportunities. This approach underscores the importance of striking a balance between remote work flexibility and the unique benefits of in-person collaboration and learning.  

Remote work has undoubtedly demonstrated its strengths in facilitating concentration and efficiency, especially for roles that demand solitude and deep focus. The reporting from The Economist suggests that certain functions are more effectively executed from home, challenging the conventional belief that productivity is intrinsically tied to physical office presence. The Gallup study suggests that the best decisions about RTO should consider “(1) employees’ preferred way of working (2) focus on developing communication skills for managers so they can speak to their teams (3) provide managers with training on managing different types of workplace arrangements, especially remote and hybrid.”  

However, the discourse on the impact of remote work on productivity takes diverse forms across the globe. In regions like the United States and Canada, the adoption of hybrid work models has gained momentum, aligning with the desire for workplace flexibility. Consequently, organizational leaders are reassessing their approach to the workplace, recognizing the impracticality of mandating a complete return to the office. As one participant in a study aptly put it, “Feeling good about yourself and your workplace is not a seniority perk; it’s the most important thing to keep your employees healthy, productive, and engaged at work (McGregor, 2023). A recent study showed that companies that provided more employee choice outperformed on revenue growth by 16 percentage points compared to companies that provided fewer choices (McGregor, 2023). 

Korn Ferry (Ferry, 2023) in a Leadership article “Why the World is Back at the Office But the US is not” has also identified how RTO policies are a North American practice while the rest of the world has returned to the office and adopted similar policies for remote work as they had pre-pandemic. This trend of remote and hybrid work is a trend that HSMAI leaders in other parts of the world have clearly stated is a NORAM issue only. Sales, Marketing, and Revenue Management teams in Europe, Asia, and the Middle East returned to the office in 2022 as pandemic concerns eased. 

David Rock (Rock, 2023) has also identified a “patchwork framework” in addressing RTO practices in North America. This framework meticulously ensures that teams are represented in the office on the same days, fostering collaboration and ensuring a critical mass of colleagues for meaningful in-office interactions. This focus on RTO implementation is critical to ensure that all employees benefit from the value creation associated with RTO workdays.  

Moreover, certain HSMAI leaders have adopted a distinctive approach to their designated “collaboration days,” a term coined by an HSMAI leader. These leaders describe their practice of hosting two in-person collaboration days per week. As Michelle Woodley, President of Preferred Travel Group, and past chair of the HSMAI foundation, explained, “We’ve implemented two in-person collaboration days each week where we sponsor lunch, and I personally make an effort to join our team. These days provide an invaluable opportunity for personal interaction with our people, fostering not only informal learning but also enhancing business communication.” This personal touch not only enhances collaboration but also cultivates a sense of unity and camaraderie within the organization. 

The evolving work paradigm in sales, marketing, distribution, and loyalty, as discussed in HSMAI leadership meetings and conferences within these sectors, underscores the critical imperative of balancing happiness, productivity, and equity on a global scale. While the adoption of remote and hybrid work models varies by region, organizations worldwide must remain flexible and responsive to the evolving preferences and needs of their employees. It is recognized that the future of work is not a one-size-fits-all solution. The collaborative and personalized approach embodied in “collaboration days” exemplifies how organizations can foster a sense of belonging and enhance productivity in this ever-evolving landscape. 

Key Takeaways
• Culture and teamwork are fueled by intentional efforts like “collaboration days” for in-office hybrid workdays.  

• Some companies see in-office work as important for high potential employees to drive career growth and advancement. 
• Discussion continues on how fully remote employees may be tied to different compensation models

To read more about the top talent trends, download the  HSMAI Foundation Special Report: The State of Hotel Sales, Marketing, and Revenue Optimization Talent 2023-2024.    

In the hospitality industry, traditional metrics like revenue performance and guest satisfaction have long been the go-to indicators for assessing a hotel’s business health. However, as businesses increasingly acknowledge the vital role of talent in achieving success, talent retention has emerged as a paramount concern, which we explore in this excerpt from the HSMAI Foundation Special Report: The State of Hotel Sales, Marketing, and Revenue Optimization Talent 2023-2024.  

Historically, the hospitality industry measured employee engagement primarily through annual surveys, which eventually evolved into more frequent pulse surveys. While these surveys provided valuable insights, they often proved to be administratively burdensome and lacked the agility needed to address the dynamic and ever-evolving needs of the workforce. Importantly, the majority of hospitality businesses do not accurately measure the health of their culture, at a time when culture is a critical determinant of success. 

Employee engagement, often dubbed as a mission-critical metric, is now under the spotlight of senior leaders and boards of directors who recognize its pivotal role in driving shareholder and commercial value. Engaged employees (Gallup, 2023) contribute discretionary effort that can make all the difference in the fiercely competitive hospitality sector. Today, the pursuit of engaged employees is not merely a choice but a competitive advantage, and the means to achieve this engagement are evolving rapidly.  

The Stafford Collection, a member of Preferred Hotels & Resorts, Improves Culture and Engages Employees through the Empowered Program 

In this context, the introduction of programs like the Empowered Program is an example of a significant shift in how hotels can more effectively engage with their employees. Listening to and learning from employees have become crucial elements of effective talent management. Hoteliers now seek innovative ways to engage their workforce proactively. The Empowered Program, recently piloted by The Stafford Collection and its flagship hotel The Stafford London, is a comprehensive solution that empowers hotels to actively listen, learn, and act on confidential and anonymous employee feedback. This dynamic program developed specifically for the hospitality industry provides leading culture scores and metrics, including survey templates, employee communication tools to boost survey participation, communications to share actions taking from the employee recommendations, a virtual suggestion box, and clear dashboards for presenting the insights gleaned from the feedback process. Talent retention and employee engagement have risen to the forefront of concerns for hoteliers, reshaping the way they view their workforce. In an era marked by a significant talent shortage, the ability to attract, engage, and retain top talent has become a linchpin of success in the industry.  

Case Study: The Stafford Collection Improves Culture and Engages Employees  

At The Stafford Collection in London, a member of Preferred Hotels & Resorts, the Empowered Program achieved remarkable success, boasting an outstanding 93% participation rate among employees in survey activities. This high level of engagement translated into meaningful actions, as outlined below. The positive outcomes were two-fold: improved employee retention and cost efficiencies that swiftly justified the program’s initial investment within just 90 days. Equally important, employees reported feeling more valued, cared for, and heard, resulting in a workforce that was not only more engaged but also more dedicated to the organization.  

This robust engagement led to meaningful actions, including:  

1. Confidential Mental Health Support: The program identified the need for employee mental health support. In response, the Stafford Collection implemented a confidential mental health support line, demonstrating their commitment to employee well-being. 
2. Catering Solutions: To alleviate pressure on their chefs and improve employee satisfaction, the Stafford Hotel Group transitioned to an outsourced catering solution for their employee canteen. 
3. Streamlined Food Sourcing: Employee suggestions from the program highlighted opportunities to optimize food sourcing across their properties. The Stafford Hotel Group’s response streamlined the food purchasing process and enhanced cost-efficiency. 
4. Enhanced Communication and Collaboration: Employee feedback identified opportunities for improved communication and collaboration among various employee groups, fostering a more cohesive and collaborative team structure. The senior team at Stafford acted on this feedback and provided a more consultative and collaborative employee communication approach with more frequent meetings. 

The positive outcomes were twofold: best-ever employee retention and cost efficiencies that rapidly recouped the program’s initial investment within just 90 days. Moreover, employees themselves reported feeling more valued, cared for, and listened to, resulting in a more engaged and dedicated workforce.  

The Stafford Collection demonstrates how deployment of The Empowered Program reshaped the landscape of employee engagement in their hotel portfolio. By proactively listening to employees, acting on their feedback, and utilizing leading culture scores and metrics, the program has not only paid off in terms of improved employee retention and cost savings but has also fostered a workplace culture where employees feel genuinely cared for and heard. As the hospitality sector evolves, innovative programs like Empowered are set to play a pivotal role in ensuring that employees are at the heart of positive change and continuous improvement within the hotel community. 

The impressive actions resulting from the implementation and embracing of the Empowered program by The Stafford Collection prompted Preferred Hotels & Resorts to adopt the program at a corporate level and to endorse it to all member hotels. 

Key Takeaways  

• Employee engagement is a pivotal metric on most businesses’ scorecards.
• Listening and learning from front line employees’ fuels efficiency and productivity.
• Technology is powering more dynamic employee engagement platforms that respond to employees’ needs and allows employers to continue to learn from employees in close to real time.

To read more about the top talent trends, including case studies of this trend, download the  HSMAI Foundation Special Report: The State of Hotel Sales, Marketing, and Revenue Optimization Talent 2023-2024.