From Bots to Agentic AI: 4 Contact Center Trends to Watch

HSMAI Contact Center SIG Fireside Chat

Steering Committee Co-Facilitators

Fatima Fisher, Director of Global Reservation Support, Pyramid Global Hospitality

Denise Pullen, Founder & CEO, Daisia Consulting

The HSMAI Contact Center SIG, a community for guest engagement leaders, recently hosted a Fireside Chat. These informal conversations give members a space for discussing emerging trends, shared learning, and industry connection.

At a recent call, contact center leaders discussed all the ideas that surfaced at the HSMAI Commercial Strategy Conference. Read on for the top 4 trends that surfaced from the discussion.

  • AI’s Next Phase

Participants discussed agentic AI, virtual agents, web chat, AI call scoring, and agent-assist tools. Questions centered on privacy, voice recordings, content accuracy, and how AI-generated information is managed. One participant reported that their web chat solution is successfully handling nearly 80% of website engagements and has tripled web chat conversations. Another described how they learned different companies approaches to employee AI use, with some allowing approved AI tools and others limiting employees to company-approved platforms.

  • Routing the Right Calls

Call routing generated significant discussion. Participants shared efforts to redirect operational inquiries away from reservation consultants through IVR updates, direct property routing, and digital channels. One participant reported redirecting nearly 40,000 calls back to hotel resources. The goal was to ensure guests reach the right resource as quickly as possible.

  • A Seat at the Table

Technology purchasing and marketing campaigns surfaced as common challenges. Participants discussed the importance of involving contact center teams in technology evaluations, noting that those who use the systems often have valuable operational insights. Marketing and promotional campaigns created similar concerns. Several participants described receiving little notice before launches, while others shared examples of being included earlier in planning discussions to prepare staffing, training, and guest-facing resources.

  • Organizational Alignment

Reporting structures varied, with participants sitting under revenue, sales, commercial, and commercial strategy organizations. The conversation also touched on collaboration with revenue management, marketing, distribution, operations, and analytics teams.

AI’s Best Use Case? Giving Time Back

Sydnee Berger, Senior Sales Manager, Sojern, HSMAI Rising Sales Leader Council Member 

Gabrielle Kantarovich, Senior National Sales Manager, Placemakr, HSMAI Rising Sales Leader Council Member  

A recent discussion of the HSMAI Rising Sales Leader Council explored AI disruption and transformation in hospitality. The conversation focused on how hospitality professionals can adopt AI while preserving the human connection that defines the industry. 

One breakout group discussed the question: What’s one task in your role that AI could realistically make easier? A common theme was efficiency. Participants described the challenge of managing hotel information across multiple systems, tools, and documents. The group discussed the need for a centralized, “one-stop shop” resource that could make information easier to access for both clients and guests. CRM activities and email drafting were also cited as areas where AI can save time. Automating routine tasks allows teams to spend more time on client relationships, business development, and service.  

Across the broader discussion, participants repeatedly returned to the importance of human interaction. AI can help create content and organize information, but participants emphasized the need for human review, personalization, and creativity. As one rising leader put it, “we all desire the human connection.” 

The conversation also included concerns about privacy, security, and the use of personal information. Participants discussed the importance of guardrails around guest data and the responsibility that comes with using AI-enabled tools. 

Another topic focused on how travelers search and discover hotels. Participants discussed the importance of digital visibility and maintaining detailed website content that helps AI systems understand a property’s features and match them to traveler needs. 

The session closed with a shared perspective that hospitality professionals do not need to become AI experts overnight. Learning how to work alongside AI, understanding its capabilities, and adapting as the technology evolves were viewed as valuable skills for the future. 

Recommended Readings 

Questions for Teams 

  1. What skills do you think will become more important as AI becomes more common? 
  2. What’s one task in your role that AI could realistically make easier? 
  3. What do you think is the right balance between human interaction and automation in hospitality?

The Future of Hotel Distribution May Start Before the Booking

Megan Fratangeli, Revenue Manager, Omni William Penn Hotel, Rising Leader Council Member

William Lee, Senior Market Manager, Priceline Agoda Global Partner Services, Rising Leader Council Member

For years, discussions around hotel distribution have centered on the question, what is the right OTA mix? A recent HSMAI Rising Revenue Optimization Leader Council discussion challenged the premise that there is a single answer. Participants focused less on OTA share as a percentage and more on whether each channel generates profitable, incremental demand once the full cost of acquisition is considered. As one member summarized, “ultimately, each channel should have incremental business.” That perspective shifted the discussion away from direct-versus-OTA debates and toward the role each channel plays in a property’s commercial strategy. 

When More OTA Business Makes Sense 

Participants identified several situations where higher OTA contribution can be intentional and healthy. OTAs were viewed as an effective way to introduce a property to travelers who may not otherwise have discovered it. Several hoteliers referenced the “billboard effect,” using OTA visibility to attract first-time guests and then creating opportunities to convert those travelers into direct-booking customers on future stays. 

The discussion also highlighted how ideal channel mix varies widely. Market type, hotel size, brand affiliation, location, and business objectives all influence the appropriate distribution strategy. 

Independent and boutique properties may have very different needs than hotels operating under major brands. Some smaller properties with limited inventory may require little or no OTA contribution during certain periods, while others benefit from the reach OTAs provide. 

There was broad agreement that no universal benchmark exists for a healthy OTA percentage. 

Looking Beyond Commission Costs 

Participants noted that OTA commissions are easy to identify, while the costs associated with direct bookings are often spread across marketing, loyalty programs, technology investments, and labor. 

The group also discussed challenges associated with measuring true acquisition costs. Return on ad spend, conversion metrics, and other performance indicators can create significant noise, making it difficult to determine the actual cost of acquiring a reservation. Several attendees raised concerns about long-term customer ownership. OTA bookings can be difficult to convert into repeat direct guests because hotels often have limited access to guest data and communication channels. This creates a broader evaluation challenge. The question was not simply what a booking cost today, but what future value that guest may generate. 

AI Enters the Distribution Conversation 

The discussion then turned to how AI may influence hotel discovery and booking behavior. 

Participants shared personal experiences using AI tools to plan travel. In some cases, the tools direct users to OTA platforms rather than brand websites. Others reported being directed to business listings and review platforms. Those experiences prompted discussion around how hotels can improve visibility when travelers begin their search with AI rather than a traditional search engine. 

We discussed how important quest reviews are when AI recommendations often draw from publicly available information, including reviews and ratings across multiple platforms. Delivering strong guest experiences and actively responding to reviews were identified as practical steps hotels can take today. Content accuracy also surfaced as a key consideration. Property details, amenities, renovations, room descriptions, and operational updates need to remain current across digital channels. Outdated information could affect whether a hotel appears in AI-generated recommendations. 

Website readiness was another topic we discussed, including the importance of understanding where AI systems source information and whether hotel websites are structured in ways that make property information accessible and discoverable. For now, the emphasis appears less focused on paid visibility and more focused on ensuring that accurate, relevant content exists wherever AI tools may be gathering information. 

A Wider View of Distribution 

As AI changes the way travelers discover options, participants suggested that future distribution conversations may focus less on where a booking occurs and more on what influenced the guest’s decision. The discussion returned repeatedly to three considerations: 

  • Incremental demand 
  • Full acquisition cost 
  • Visibility throughout the digital journey 

Those factors, rather than any predetermined OTA percentage, shaped the group’s definition of a healthy distribution strategy. 

Recommended Reading 

Questions for Teams 

  1. Under what circumstances can a higher OTA contribution be a healthy and intentional part of a hotel’s distribution strategy? When might it indicate overreliance or a distribution concern? 
  2. How will AI change hotel distribution, and what should hotels do now to ensure their properties are surfaced and recommended when travelers begin their search with AI? 

Do We Have a Sales Training Problem? Or a Commercial Capability Gap?

Benjamin Premack, Regional Director, Sales & Marketing- US & Mexico, Omni Hotels & Resorts, HSMAI Sales Advisory Board Member 

At a discussion of the Sales Advisory Board, I brought a question that many sales leaders are asking: are hospitality organizations investing in the right kind of development for today’s sales professionals? We’ve all seen that hotel sales roles have changed. For example, sellers who once focused primarily on relationship-building and prospecting are increasingly expected to understand business mix, profitability, technology, and broader commercial strategy. Training programs have evolved as well, but not always at the same pace as the role itself. One participant summed up the issue: 

“If your sales training program disappeared tomorrow, would anything actually change in how your team sells next week? If not, it’s not a training program, it’s a checkbox.” 

Throughout the discussion, advisory board members brought up how training is no longer limited to teaching sales techniques. The conversation focused on capability development, helping professionals build the skills needed to succeed in a commercial environment that now includes revenue management, digital marketing, analytics, and AI. 

Many sales professionals entered the industry when success was measured by relationships, prospecting, and securing contracts. As organizations became more specialized, roles narrowed around specific market segments and business objectives. Commercial strategy has brought sales, marketing, and revenue management closer together. Sales professionals are now expected to understand which opportunities generate the greatest value for the organization, not simply how to secure more business. Several participants pointed to business acumen as a growing requirement. Understanding profitability, evaluating business mix, and making smarter decisions about demand have become important parts of the role. 

Some participants noted that their organizations have adopted increasingly sophisticated systems and are now exploring AI across the commercial enterprise. While many companies are introducing AI tools and training programs, questions remain about how quickly teams can adapt and how effectively new technology can be integrated into daily selling activities. The discussion was not focused on mastering specific platforms, instead it centered on helping teams become more analytical and more effective in using technology to support decision-making. 

Several Advisory Board members contrasted hospitality training practices with approaches used in technology and SaaS organizations. Rather than relying on periodic training events, these organizations often emphasize ongoing coaching, real-time feedback, performance review, and continuous skill development. Training is directly connected to outcomes and adjusted as business needs change. Others emphasized the importance of providing visibility into career opportunities and outlining the skills needed for advancement. Programs like leadership development programs, mentorship structures, self-assessments, and formal career pathing initiatives support retention while helping employees build both technical and leadership capabilities over time. Career pathing was also discussed as a recruiting advantage. Candidates increasingly want to understand not only the role they are being hired for, but also where that role can lead. 

As hospitality sales becomes more commercially focused, some participants suggested valuable skills can come from outside hospitality, particularly from industries where sales training is rigorous, performance-driven, and highly accountable. Others noted that hospitality’s unique inventory and service-driven environment require specialized commercial knowledge that must be developed after hiring. The consensus was less about finding a specific background and more about identifying adaptable, curious professionals who want to learn. Ambition, coachability, relationship-building ability, and a willingness to develop new skills were repeatedly cited as desirable traits. 

Recommended Reading 

Questions for Teams 

  • How has the current hospitality sales professional’s role evolved over the years? From seller to leader to executive. 
  • How have our industry’s training and development programs changed to align with new roles and responsibilities? 
  • Should every salesperson be fluent in revenue management, digital marketing, and financial analysis, etc? 
  • Are we hiring the wrong profiles for modern hospitality sales roles? And are we providing what is needed to the right talent to keep them in the industry? 

More Resources 

AI and the Shift from Doing to Thinking

Beth McDermott, Area Revenue Manager, First Hospitality, HSMAI Rising Revenue Optimization Leader Council Member 

Shelby Livingston, Cluster Revenue Manager, Rosewood Hotels, HSMAI Rising Revenue Optimization Leader Council Member 

A recent discussion of the Revenue Rising Leader Council explored how AI can help further career growth. The conversation focused on practical ways AI is being used today, where it creates efficiency, and how it may help rising leaders spend less time on repetitive tasks and more time on analysis, communication, and decision-making. 

Participants reported using AI daily and current applications included meeting transcription, note-taking, report summaries, data validation, code interpretation, email support, knowledge searches, and identifying action items from daily reporting. 

The strongest theme was time. Several participants described AI as a tool that helps surface information faster, allowing more attention on strategy and problem-solving. One discussion centered on using AI to identify trends, booking window shifts, length-of-stay changes, and other patterns that revenue professionals already review manually. 

As one participant put it: 

“If AI can tell us what the issue is, then we can just think about what we’re going to do about it.” 

The group also discussed limitations. Participants noted that AI output still requires review and validation because mistakes can occur. While many viewed AI as an advantage, the group poll showed most participants saw it as an equal mix of opportunity and risk. 

Career development emerged as a second major theme. Participants shared examples of using AI to improve public speaking, executive communication, leadership presence, and learning. Others highlighted AI’s ability to help locate information across meetings, messages, and documents, reducing time spent searching for context. 

The discussion reflected a broader reality for revenue professionals: AI is already embedded in daily workflows. The question is becoming less about whether to use it and more about how to use it effectively. 

Recommended Readings 

 Questions for Teams 

  1. Where in your current role do you feel stuck in “doing” instead of “thinking,” and how could AI help shift that balance? 
  2. What is one career goal you’re working toward (next role, skill, or responsibility), and how could AI help you get there faster? 
  3. Looking ahead 3–5 years, which skills will distinguish top revenue leaders, and what role will AI play? 

The Rising Leader Councils are powered by the HSMAI Foundation. As part of its mission to power the people behind the business of hospitality, the Foundation invests in emerging commercial leaders through professional development, networking, mentorship, and leadership opportunities. The Rising Leader Councils help cultivate the next generation of talent across sales, marketing, revenue management, and distribution. 

AI’s Place in the Guest Journey

Shannon Burdine, Corporate Director, Digital Marketing, Sage Hospitality Group, Marketing RLC Member
Melissa Olson, Senior Marketing Manager, Equinox Hotel New York, Marketing RLC Member 

A recent discussion of the Marketing Rising Leader Council explored a question many hospitality marketers are asking right now: When should AI be used to impact the guest journey? 

The conversation started with how AI is already showing up in daily work. Participants shared examples ranging from content creation and caption writing to data visualization, meeting summaries, task management, workflow organization, research, and fact-checking. Most viewed AI as a practical tool that reduces manual work and helps teams move faster. 

The discussion then turned to the guest experience. Participants pointed to chatbot experiences, AI-supported customer service, and voice-enabled guest assistance as examples where technology has become more useful and less frustrating than many early versions. Several noted that AI now handles simple requests efficiently, reducing wait times and helping guests find answers quickly. 

The question wasn’t whether AI can improve efficiency, but where AI efficiency should stop and hospitality should begin. Many participants felt the strongest guest experiences combine AI and human follow-up. Technology can answer questions, capture preferences, and remove friction. Human interaction remains critical when personalization, empathy, judgment, and relationship-building are required. 

One participant summed up the current moment this way: “It really feels like we’re in this everyone’s doing whatever they want sort of stage” 

The group also discussed concerns around ethics and authenticity. Topics included AI-generated content, AI influencers, image manipulation, permissions, likeness rights, and brand voice. Several participants noted that policies and guardrails are still developing as adoption accelerates. 

Another recurring theme was the risk of losing personality. While AI can support workflow and productivity, participants cautioned against relying on it for everything. Brand voice, community engagement, and guest relationships still benefit from a distinctly human approach. 

The conversation ended with broad agreement that AI is becoming part of hospitality operations. The opportunity is finding the right balance between automation and authentic service. 

Recommended Readings 

Questions for Teams 

  1. How are you using AI in your daily life? 
  2. Where are you seeing AI implemented in daily life outside of work? 
  3. Where have you noticed AI improving your own customer experience? 
  4. Where have you noticed AI frustrating your own customer experience?  
    • Does AI risk removing empathy from luxury hospitality? 
    • At what point does AI content or AI-powered experiences become unethical? 
  5. Where is AI going? How do you think AI will evolve over the next 6 months? 1 year? 5 years? 
  6. What opportunities does AI create for hospitality? 

Building Careers in an Integrated Commercial World

Dorothy Dowling, Principal, Introspect Strategic Advisory Services Special Advisor, HSMAI Foundation 

As we continue the research journey toward the HSMAI Foundation’s next State of Talent report, I recently had the opportunity to spend time with members of HSMAI’s Rising Leaders Councils. I wanted to hear directly from emerging leaders about how changes in hospitality’s commercial model are showing up in their careers—how they are developing, how much exposure they are getting across commercial disciplines, how AI is changing their work, and how they are thinking about their own career progression. 

It was an important conversation, and one theme stayed with me: the expectations of commercial leadership are broadening faster than many of our traditional career pathways. 

Sales, marketing, revenue management, distribution, digital, loyalty and analytics are increasingly interconnected. Technology is accelerating that convergence. Organizations are centralizing some capabilities, outsourcing others, and asking leaders to operate across a much broader commercial landscape. 

For people building careers in this environment, functional expertise remains important. But increasingly, it is only part of the equation. 

Building breadth in a world of convergence 

Our Rising Leaders conversation reinforced the importance of cross-functional experience. Participants clearly valued opportunities to understand disciplines beyond their own, yet those opportunities were not always part of a formal development path. 

For many, career development was something they were actively navigating themselves—seeking mentors, volunteering for broader projects, learning from colleagues in other disciplines and making thoughtful decisions about which roles and experiences would build the capabilities they would need next. 

One participant captured it particularly well: 

“Career paths aren’t linear anymore, so you have to really think about the job choices you’re making internally in the organization, and also what roles can really drive your development outside of the organization.” 

I think there is an important lesson in that observation. 

Owning your career is not a new idea. 

Previous generations of leaders also had to seek out experiences, build relationships, take risks, find mentors and sometimes make lateral moves to acquire skills they did not have. Organizations can—and should—provide learning opportunities, feedback, exposure and clarity about what successful progression looks like. But no organization can completely map a career for us. 

Career development has always required personal agency. What may be different today is the complexity of deciding which experiences will matter most. 

The apprenticeship model is changing 

For decades, hospitality developed commercial talent through experience. People learned by doing the work, observing more experienced leaders and progressively taking on larger responsibilities. But the work itself is changing. 

AI, automation, centralized services and external partners are beginning to perform some of the analytical, administrative and production work historically undertaken inside commercial organizations. That creates efficiencies, but it also raises an important talent question: 

As we redesign the work, are we also thinking carefully enough about how people will learn the work? 

If some traditional stepping-stone responsibilities disappear or change substantially, we will need to think differently about how future leaders acquire judgment, commercial instincts and operating experience. 

That does not necessarily mean recreating yesterday’s career paths. It may mean building new ones. 

Cross-functional projects, exposure to different parts of the commercial organization, stretch assignments, mentoring and a stronger understanding of the financial implications of commercial decisions may become even more important. 

AI changes the work—and the learning agenda 

AI was already very much part of the working environment for the Rising Leaders we spoke with. Participants described using it across content creation, marketing activities, reporting and analysis. But becoming proficient with AI tools is only one dimension of readiness. 

As technology takes on more execution, human capability will increasingly need to move toward judgment, problem solving, interpretation and decision-making. For emerging leaders, that means asking not simply, How can AI help me do my current job? but also, What capabilities do I need to develop because AI is changing my job? 

That same question applies much further up the organization. 

This is not only an emerging-leader issue 

While my conversation with the Rising Leaders Councils provided one valuable perspective, our broader State of Talent work is examining these changes across the commercial leadership pipeline. 

And some of the greatest pressure may actually be occurring among established leaders. 

Across the industry, organizations are operating with increasingly disciplined organizational structures while AI, automation and new operating models continue to reshape how work gets done. In many cases, experienced leaders are being asked to absorb broader responsibilities, lead across functions and technologies, manage increasingly complex organizations and continue delivering results with fewer resources. 

For someone who has spent years becoming very good at a particular discipline, that can represent a significant professional transition. The question of career development therefore does not end when someone reaches a director, vice president or C-suite role. If anything, the need to keep learning may be accelerating. 

The established commercial leader may need to develop AI fluency, stronger financial acumen, broader cross-functional understanding, new approaches to leading technology-enabled teams and the ability to determine which work should remain internal, which should be automated and which may be better accessed through external expertise. 

Career ownership is becoming a lifelong requirement. 

A new commercial career landscape 

One of the ideas we will continue exploring through the State of Talent research is what a successful commercial career looks like as the operating model changes.I don’t believe the answer is simply that organizations need to provide more development. Nor is it that individuals are entirely on their own. It is a shared equation. 

Organizations have an important role in creating environments where people can learn, gain exposure, receive meaningful feedback and take on greater responsibility. 

Individuals have an equally important role in understanding where the industry is going, identifying the capabilities they will need and actively seeking the experiences that will prepare them for what comes next. 

That applies whether someone is three years into their hospitality career or thirty. As we continue the State of Talent research, there are several questions I believe are worth asking: 

  • Are we building commercial talent with enough breadth to operate across increasingly interconnected disciplines? 
  • As AI, automation and new operating models change the work, how will people acquire the experiences and judgment traditionally developed through doing that work? 
  • Are we treating development as something that continues throughout a commercial career—not something that ends once someone reaches leadership? 
  • And perhaps most importantly: are we all taking enough ownership of keeping our own capabilities relevant as the industry changes around us? 

The commercial organization of the future will almost certainly look different from the one many of us grew up in. Our challenge is not simply to prepare the next generation to lead it. 

It is to make sure all of us are continuing to learn fast enough to lead in it. 

From Demo to Divorce: Why Hotel – Vendor Relationships Fail (and How to Fix Them)

Kristi White, VP Reporting, Data & Analytics, Groups 360, HSMAI Sales Advisory Board Member

If you’ve ever sat through a flawless product demo, signed a contract full of optimism, and then found yourself frustrated, underserved, and locked into something that isn’t working, you’re not alone. At the 2026 HSMAI Commercial Strategy Conference, Dan Wacksman of Sassato walked through the full lifecycle of hotel-vendor relationships with the kind of honesty the industry doesn’t talk about enough. 

Why You Should Care 

Technology decisions are among the most consequential a hotel team makes. A bad vendor relationship doesn’t just waste budget. It drains staff time, stalls strategy, and creates the kind of organizational cynicism that makes the next technology adoption even harder. What Wacksman made clear is that these relationships don’t fail because people are bad at their jobs or because vendors are evil. They fail because of structural, repeatable problems most teams never stop to address. 

What the Presentation Got Right 

The courtship phase is built on mutual fiction. RFPs reflect what hotels wish they were. Vendor responses reflect what buyers want to hear. Demos show a best-case scenario with perfect data and a rehearsed A-team. References come pre-screened. And often, the decision ends up going to the best salesperson, not the best product. 

Once the contract is signed, the problems shift. During the sales process, “it’s on the roadmap” sounds like a promise. After the contract is signed, Wacksman translates it for what it actually means: we heard you, we are not building that, please stop asking. If you’ve ever nodded along to that phrase and then waited 18 months for a feature that never came, you already know he’s right. 

Beyond the roadmap problem, there are no defined success metrics, no clear internal owner, no regular operating rhythm, and communication only happens when something breaks or a renewal invoice lands. Wacksman named three root causes that keep this cycle going:  

  • Misaligned expectations 
  • Diffuse accountability 
  • Relationship inertia.  

That last one is the most insidious. It is almost always easier to stay and complain than to fix things or walk away. 

A Framework Worth Keeping 

The practical takeaway from the session is what Wacksman calls the DATE framework:  

  • Define success in real numbers before you sign 
  • Assign one named owner on each side 
  • Talk on a regular rhythm rather than only in crisis 
  • Exit with intention when the relationship isn’t working  

Simple, but most teams skip at least two of those four steps. 

Where to Go From Here 

The hotel industry has never had a shortage of vendor options, and it has never had a shortage of disappointing implementations either. Wacksman’s point is that the pattern is predictable enough to be preventable. The demo will always look great. The salesperson will always be charming. “It’s on the roadmap” will always sound more reassuring than it should. But teams that go in with clear success metrics, a named owner, and an honest willingness to fix or walk away are the ones that get value from the tools they buy. That’s less about vendor selection and more about how you show up to the relationship from day one. 

Signal vs. Noise: The Data Driving Hotel Strategy

Juli Jones, CAE, CHBA, SVP, HSMAI 

The current environment is defined by one word: uncertainty. Hotel commercial strategy executives describe today’s forecasting climate as unusually volatile—with macro indicators, forecasts, and on-the-ground booking behavior often telling different stories. 

The following is a distilled view of what senior commercial leaders in hotels are watching and acting on right now—as identified by HSMAI’s Sales, Marketing, Revenue Optimization, and Distribution Advisory Board members earlier this summer. 

Short-Term Economic Indicators in Focus 

Macro signals are being watched, but with skepticism. Executives continue to track traditional indicators, but with less confidence in their predictive value. 

  • Inflation & consumer confidence 
    • Persistent concern, particularly for middle-income segments 
    • Sentiment is weakening—but not always translating into reduced travel 
  • Fuel prices (gas + jet fuel)  
    • Direct impact on airfares and travel intent 
    • Price resistance is beginning to emerge in some markets 
  • Geopolitical risk  
    • Creating background uncertainty, especially for international travel 
  • Credit card delinquency rates  
    • Emerging as a leading indicator of consumer stress 
    • Viewed as an early warning for demand softness in non-luxury segments 

Many note a growing disconnect between macro signals and hotel performance. Costs are rising, yet hotels are still pushing rate. And, consumer sentiment is softening, yet people are still booking. 

Travel-Specific Indicators Gaining Priority 

More actionable, industry-adjacent data is taking precedence including: 

  • Airline capacity + bookings data can be used to guide market-level pricing and demand expectations. 
  • Airfare trends have a direct influence on destination demand. 
  • TSA throughput & inbound international travel data is especially important for gateway markets. 
  • Cost of acquisition is rising with OTA bidding and CPCs impacting profitability. 
  • It’s all about market-by-market performance. There’s increasing divergence and no consistent national story for the U.S. 

Structural and Strategic Indicators 

Executives are also watching broader shifts that influence medium-term positioning: 

  • Lack of supply growth 
  • Increased renovations and conversions 
  • Hotel valuations and transaction pricing 
  • Channel shifts (including AI-driven discovery and booking behavior) 
  • Domestic vs. international demand mix 

Demand Signals Driving Real-Time Strategy 

While macro indicators are monitored, behavioral data and booking activity are driving decisions. 

  • Booking pace vs. prior year: Still one of the most trusted leading indicators 
  • Revenue on the books: Forward-looking consumption remains critical 
  • Cancellation trends: Including rising group cancellations 
  • Booking window behavior: Increasingly short-term and compressed with more “month-for-month” booking patterns emerging 

Group Demand: Stable Volume, Declining Value 

A consistent theme across markets is that RFP volume is flat to slightly down with the value per lead down (~25% in many cases). Demand hasn’t disappeared, but spend per program has reset lower and hotels are seeing significantly smaller programs (a normally 300 room night group coming in at 125 room nights for example)

Hotels are booking similar transaction volumes with less revenue per booking. 

Demand Signals Gaining Importance 

Executives are increasingly triangulating demand using a broader set of inputs, including: 

  • Customer behavior & engagement: actual booking behavior vs. stated sentiment, loyalty and repeat visitation trends, post-stay feedback (value perception), and first-touch-to-booking tracking (including long conversion cycles) 
  • Sales & funnel metrics: Lead volume and conversion rates, share of account performance, and long-tail pipeline health (90+ day conversions) 
  • Channel performance: channel mix shifts (direct vs. OTA), visibility in high-converting channels, and emerging AI-driven discovery patterns 

 For midscale and economy hotels, and external indicators like retail performance (e.g., Walmart, Dollar Tree) is used as a proxy for consumer health and price sensitivity. 

What Does This Mean For You? 

A few clear themes are emerging in how demand is behaving and what it means for strategy.  

First, behavior is outpacing sentiment. While consumers continue to express caution about the economy, that hesitation is not consistently translating into reduced travel. Bookings are still happening, and in some cases, inflation expectations may be accelerating decisions. Travelers appear to be operating with a “book now before prices rise” mindset, choosing to commit rather than wait. 

At the same time, demand is becoming increasingly fragmented. Performance is no longer moving in a single direction across the industry. Instead, results vary significantly by market, segment, and price tier. Some destinations and customer groups are thriving, while others are softening. This dispersion makes it difficult to rely on broad forecasts—what works in one market or segment may not apply in another, and a one-size-fits-all approach is no longer viable. 

Importantly, the pressure point in this environment is not demand volume, but demand value. Many hotels are seeing roughly the same number of transactions, but the composition of that business has shifted. Groups are smaller, overall spend is lower, and acquisition costs are higher, particularly as competition for demand drives up distribution and marketing expenses. The result is a more challenging profitability equation even when top-line activity appears stable. 

For commercial leaders, this environment calls for discipline and focus. The strongest performers are staying anchored in fundamentals maintaining clarity around target segments, aligning sales, revenue management, and marketing efforts, and avoiding reactive shifts driven by headlines rather than data. Instead of over-indexing on macroeconomic forecasts, they are prioritizing real-time signals such as booking pace, on-the-books revenue, and conversion metrics to guide decisions. 

There is also a growing need to recalibrate expectations for a lower-spend environment. That includes adjusting assumptions around group size, refining pricing strategies, and resetting profitability thresholds to reflect higher acquisition costs and changing demand patterns. At the same time, flexibility is critical. Ongoing volatility is expected, with continued forecast revisions and rapid market shifts. Leaders are building agility into pricing, inventory controls, and channel strategies to respond quickly as conditions change. 

Ultimately, hotel commercial strategy today is less about predicting the macro environment and more about reading demand as it unfolds and responding with consistency and discipline. The leaders outperforming in this cycle are not chasing every signal. They are filtering noise from insight, trusting behavioral data overstated sentiment, and executing against a clear, focused commercial strategy. 

Optimized to Fail: Research on the Future of Revenue Management

Tess McGoldrick, Senior Director Product Enablement, Lighthouse, HSMAI Sales Advisory Board Member
This article is a summary of Dr. Breffni Noone & Dr. Sherri Kimes’ presentation at the recent HSMAI Commercial Strategy Conference.

The provocative title is intentional — this research-backed session challenged a core assumption: that better tools produce better decisions. Based on 22 interviews and 194 surveys across hoteliers, owners, asset managers, vendors, and consultants, the answer is no.

Why It Matters

The industry has invested heavily in RMS, forecasting, dashboards, and AI — and manual overrides are still rampant, data is still fragmented, and profit is still inconsistently optimized. More capability has not translated into better decisions. The problem isn’t execution. It’s system design.

Key Insights

The data is striking: 54% of respondents override their RMS regularly, 79% describe their tech stack as poorly or critically fragmented, and just 1% say their data is well integrated. Meanwhile, 47% still measure success primarily through RevPAR — versus only 24% who prioritize profitability.

The shift to ‘Commercial’ integration happened at the title level, not the structural level. RM, Sales, and Marketing may share an org chart, but incentives and ways of working remained siloed. As one interviewee put it: “We all just have more meetings about the silos now.

Revenue Management has quietly become a coordination function — balancing revenue vs. profit, reconciling owner and operator expectations, and interpreting conflicting data — without being given the authority or accountability to match. AI won’t fix this. It will accelerate whatever system you already have, broken or not.

Next Steps (or homework as the professors would say)

  • Compare what RM is expected to optimize with what is actually measured and rewarded. Review scorecards, incentive plans, and KPIs — and ask whether profitability influences decisions or just appears in reports.
  • Map RM’s actual decision authority against its expected influence. Find one recent decision where RM shaped the outcome but didn’t own accountability.
  • Ask whether your organization has invested as much in executing decisions as in generating insights — and whether the gap is analytical, organizational, or structural.