It’s been great reading some articles here on Hospitality Net about trends and opportunities this year, such as Martin Soler’s hotel media review and EHL’s “Key Hospitality Technology Trends to Watch in 2025.”
I wanted to contribute to these insights as we look into the year ahead and share some things that stood out to me after conducting a research project with hundreds of hotel owners, managers, and brands over the past few months on the State of the Hotel Industry.
The Research Results
Financial Pressures Are the Biggest Challenge When asked about their greatest day-to-day obstacle, hoteliers consistently pointed to financial pressures. It’s not just about generating revenue but also about retaining enough of it as profit after covering rising operational costs like utilities and paying their talent.
Guest Experience Innovation Sparks Excitement On the flip side, what excites hoteliers most now is the opportunity to innovate in guest experience delivery. It’s about finding new ways to surprise and delight guests, creating memorable stays that foster loyalty and drive direct bookings – and doing this all through smart, creative, tech-empowered operations.
When we put these findings together, it reveals the #1 opportunity for hoteliers in 2025: driving revenue and earning profits by doubling down on innovation in guest experience delivery.
Case Studies: How Leaders Are Innovating
Let’s take a look at how this can look in the real world.
Collaborating to Build Brand Loyalty SingleThread, a Three-Michelin-starred restaurant and inn, partnered with Auberge Resorts, OpenTable, and Audi to create ThroughLine, an immersive dining experience. Guests watch short films showcasing the origins of their food, connecting them to the artisans and processes behind the meal. This storytelling deepens guest engagement and raises awareness of the SingleThread brand.Takeaway: Partnerships that enhance storytelling can create unforgettable experiences.
Enhancing Websites with Personalization Appellation Hotels’ website uses guest data—such as past bookings and browsing behavior—to tailor the online experience. Returning guests see loyalty rewards, while new visitors are introduced to the brand’s unique offerings. This approach increases conversions and profitability.Takeaway: Personalization, even online, can create deeper connections and drive revenue.
Personalizing Pre-Arrival Engagement At Club Med, the team focuses on the pre-arrival phase of the guest journey to build excitement and confidence. First-time guests receive tailored communications introducing them to the brand, while repeat visitors are rewarded with loyalty perks. This proactive approach creates a seamless transition from booking to check-in.Takeaway: Use the time between booking and arrival to build guest confidence and anticipation.
Empowering Upsells with Technology Appellation also integrates all services—rooms, spa, dining, and events—into a unified system accessible by any team member. For instance, a barista can book a guest’s spa appointment during a casual interaction. This seamless process eliminates friction and drives additional revenue.Takeaway: Equip your team with tools that make upselling effortless and guest-centric.
Offering Flexible Service Models Kasa Hotels empowers guests to choose their preferred experience, whether fully automated or high-touch traditional service. Automated check-ins cater to independent travelers, while staff use technology to deliver personalized assistance quickly.Takeaway: Flexibility in service models helps cater to diverse guest needs while improving efficiency.
Thriving in 2025 and Beyond
The data highlights a clear opportunity for hotel leaders: innovating in guest experience is key to overcoming profitability challenges. By empowering teams, adopting smart technology, and rethinking service delivery, hotels can thrive despite financial pressures.
Focus on delivering memorable, human-centered hospitality—it’s the foundation for driving satisfaction, loyalty, and long-term profitability.
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Josiah Mackenzie hosts the Hospitality Daily Podcast and is the Principal of Benchmark Research Partners. You can also get instant access to the full set of benchmarking data referenced in this article by taking the AI in Hospitality Survey here.
Visioning 2025
