Predicting how travelers' needs and wants will change in the future can feel like an impossible task for hoteliers. Ron Swidler, CEO of the Gettys Group said firms like his — along with the major hotel brands — have to keep that in mind to stay relevant.
Speaking on the latest episode of the "CoStar News Hotels" podcast, Swidler talked about the many down-the-stream effects of keeping tabs on changing consumer behavior, and how artificial intelligence is making that more achievable.
He noted his company works with an AI startup called Vurvey Labs to try to do just that.
"They are using AI technology as a predictive tool for consumer products," he said. "They're working with Unilever and Procter & Gamble, and they're testing products with real people, then building up a database that is a combination of real responses and video responses from consumers who are testing these products — Dove products, Nike Shoes, Legos, et cetera — with their AI database. And they're putting those things together and saying, 'This is what's most important to consumers now, and this is what's likely to be most important to consumers later.'"
Swidler noted that it's more important than ever that the investments brands look to push on to their owners actually make a difference in terms of consumer's perceptions of the brands, but owners also need to recognize that not every investment into their assets can be gauged by a direct boost to things like average daily rate. He said those investments also come back to building brand equity.
"It isn't as simple as saying, 'Let's put the money in the places where we can get an immediate return on investment and say, if we put money in the guest rooms, we know we're going to get a bump in rate, or we're going put money in the [food and beverage] outlets because we know we're going to get increased demand and maybe average check,'" he said. "It's more complicated than that."
For more from The Gettys Group's Ron Swidler, listen to the podcast embedded above.