Weekly Insights. May 31, 2025

Managing hotel labor costs today

The article addresses the challenges hotels face in controlling labor expenses, which can constitute 30–45% of total operating costs. In the post-COVID-19 environment, factors like inflation and labor shortages have intensified these challenges. The article suggests strategies such as cross-training staff, implementing flexible scheduling, and utilizing part-time or on-call employees to adapt to fluctuating occupancy levels. It emphasizes that while managing labor costs is essential for profitability, it must be balanced carefully to maintain service quality and guest satisfaction.

Image generation and the new creative advantage for hotels

The article discusses how AI image generation, particularly using OpenAI's latest model, is transforming hotel marketing by enabling rapid creation of brand-aligned visuals. This technology allows marketers to produce high-quality images quickly, facilitating more dynamic and personalized campaigns. However, the article emphasizes that human creativity remains crucial for setting intent, ensuring brand consistency, and crafting compelling narratives that resonate with guests.

How to guarantee payment and protect hotel revenue from no-shows or refusals to pay

The article outlines strategies for hotels to secure payments and protect revenue from no-shows, cancellations, and fraud. It emphasizes the importance of implementing secure, automated payment systems that comply with regulations like PSD2, offering flexible payment options, and integrating with property management systems. By adopting these measures, hotels can enhance guest experience while minimizing financial risks.

Glow up your spa’s marketing strategy

The article offers spa operators actionable steps to enhance their online presence and attract more clients. It emphasizes the importance of balancing operational duties with marketing efforts, understanding market trends through tools like Google Trends, and developing a comprehensive marketing plan that includes audience segmentation, analyzing shopping behavior, and boosting visibility through consistent online listings and optimized Google My Business profiles.

Travel packages: Examples and ideas for hotels

The article explains how bundling hotel stays with experiences like dining, tours, or spa treatments into travel packages can boost bookings, especially during low-demand periods. These packages not only enhance guest satisfaction by offering convenience and value but also encourage direct bookings, reducing reliance on third-party channels. The article provides examples from destinations like Japan, Iceland, and Italy, and offers guidance on creating and managing such packages effectively.

All eyes on operating costs in 2025: Lessons learned in 2024

The article highlights the growing pressure on hotel profit margins due to operating expenses outpacing revenue growth. In 2024, costs above Gross Operating Profit (GOP) rose by 4.1%, while total hotel revenue increased by only 2.3%, leading to a decline in profitability. Key expense drivers included higher agency commissions, increased costs for complimentary food and beverage offerings, and rising labor and technology expenses. The article emphasizes the need for hotel operators to closely monitor and control these variable costs to maintain financial health in 2025.

The ultimate tech ecosystem for large hotel properties and groups

The article outlines the essential components of a modern hotel technology ecosystem, emphasizing the integration of systems like CRM, revenue management, and digital marketing to enhance operational efficiency, boost revenue, and foster guest loyalty. It highlights the importance of a connected tech stack in delivering personalized guest experiences and driving commercial success for enterprise hotels.

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