How hotels can plug hidden profit leaks with AI and smarter technology
How hotels can plug hidden profit leaks with AI and smarter technology
https://hotelsmag.com/news/how-hotels-can-plug-hidden-profit-leaks-with-ai-and-smarter-technology/?
As hotel owners contend with slowing revenue growth, rising labor costs and persistent inflation, profitability has become the industry’s defining challenge.
During the latest episode of HOTELS’ Magazine Webinar Series, “System Fix: Plugging Hidden Profit Leaks in Hotel Operations”, which you can watch in full below, executives from Remington Hospitality, Keytel and HotelSync discussed how operators can uncover hidden profit leaks and use technology—including AI—to improve margins.
Moderated by HOTELS’ editor-in-chief David Eisen, the discussion examined where hotels are losing money, how technology should be evaluated and why AI is becoming less of a buzzword and more of an operational necessity. You can watch the webinar
Profitability requires more than growing revenue
Adrian de Gortari, EVP of Revenue Strategy at Remington Hospitality, said improving profitability requires hotels to simultaneously maximize revenue while controlling expenses.
“It’s about growing ADR through the right customer segments and the most profitable channels while finding incremental revenue streams and staying disciplined on expenses,” he said.
Technology, he added, helps operators make faster and more informed decisions through predictive analytics, allowing teams to anticipate demand shifts and identify cost pressures before they affect the bottom line.
Djordje Jevtic, co-founder and CEO of HotelSync, cautioned that simply purchasing more technology does not automatically increase profitability.
“Bad technology can become another cost center,” he said.
- Instead, he argued that hotels should prioritize three areas: Automating repetitive operational tasks.
- Improving commercial decision-making by measuring net profitability—not just room rates.
- Increasing revenue per guest through upselling and cross-selling opportunities such as room upgrades, parking, spa services, breakfast, and late checkout.
Looking beyond RevPAR
The panel agreed that RevPAR remains an important benchmark but no longer tells the full profitability story.
De Gortari said Remington increasingly focuses on metrics such as GOP, GOPPAR, EBITDA, and NOI, along with net revenue after acquisition costs. “RevPAR gives a clean picture of industry performance,” he said. “But owners ultimately care about EBITDA and NOI because that’s where valuations and financing are tied.”He also noted that hotel management agreements are gradually evolving to include profitability-based performance incentives rather than relying solely on top-line revenue metrics.
Hidden profit leaks remain widespread
The conversation then shifted to operational inefficiencies that quietly erode hotel profits.
Xavier Cortés, managing director at Keytel, said many hotels have accumulated fragmented technology stacks over time. Properties often operate separate property management systems, channel managers, CRMs and revenue management platforms that do not integrate effectively, creating inefficiencies and unnecessary labor. He also highlighted distribution costs as one of the industry’s largest hidden expenses.
Many hotels, he said, still struggle to accurately calculate the true net revenue generated by each distribution channel after commissions, payment processing fees, virtual credit card charges and foreign exchange costs. Jevtic agreed, adding that many hotels now suffer from having too many disconnected systems rather than too little technology. “Our job is reducing complexity,” he said. “The value is better control over revenue, costs, distribution, payments and operations.”
Distribution strategy is becoming more sophisticated
The panelists also discussed customer acquisition costs and the evolving role of online travel agencies. Rather than viewing OTAs as competitors, Jevtic described them as “expensive demand engines” that should be used strategically.
Hotels should understand the true acquisition cost of every booking channel while investing in direct bookings, CRM capabilities and guest retention.
De Gortari agreed that OTAs have become essential marketplace partners. “The opportunity is engaging that guest and ultimately converting them into a direct customer,” he said. Cortés added that while OTAs have dramatically expanded hotel visibility worldwide, operators now have better technology to build stronger direct booking channels and achieve a healthier balance between third-party distribution and direct business.
AI is shifting from hype to practical applications
Although artificial intelligence dominated much of the discussion’s second half, the speakers emphasized practical implementation over futuristic predictions.
Jevtic said AI delivers the greatest value by automating repetitive tasks. At HotelSync, AI is already responding to guest messages across multiple booking platforms, answering common questions, supporting multiple languages and recommending additional services before arrival. “Hospitality is human-centric,” he said. “AI won’t replace hospitality, but it will automate the back office workload.”
De Gortari said Remington has integrated AI into proprietary business intelligence platforms to support forecasting, competitor analysis, revenue optimization, cost-of-acquisition modeling and risk assessment.
He believes many hospitality companies are still discussing AI rather than deploying it. “Everyone’s talking about AI,” he said. “Not many people are actually utilizing it.”
Cortés added that AI will continue transforming revenue management, conversational search and hotel distribution, although he believes the industry remains in the early stages of adoption.
A vision for fully integrated hotel operations
Asked what single initiative could most improve hotel profitability over the next year, all three speakers envisioned more integrated technology ecosystems.
De Gortari called for a unified platform that combines property management, revenue management, booking, ancillary revenue and business intelligence into a single live operational dashboard.
Cortés agreed, suggesting the industry’s future lies in comprehensive, connected platforms capable of delivering seamless hotel operations.
Jevtic looked even further ahead, envisioning AI agents that automate nearly all back-office functions while managers oversee operations through centralized dashboards. “The final goal is a hotel without the back office,” he said. “You have AI handling operations while management focuses on making decisions.”
Throughout the discussion, one message remained consistent: improving profitability is no longer about simply increasing occupancy or room rates. Success increasingly depends on eliminating operational inefficiencies, understanding the true cost of every booking, and deploying technology that helps hotels make faster, smarter decisions across the business.
The One Thing You Have to Do in Every State
PHOTO: San Francisco Travel Association
https://www.fodors.com/world/north-america/usa/experiences/news/photos/the-absolute-best-thing-to-do-in-every-state
The ultimate USA Bucket List.
As the United States approaches its 250th anniversary, events examining and celebrating our history abound, but we’re focused firmly on the present and on where a traveler should go today to see the absolute best this country has to offer. From national parks and gorgeous beaches to historic trails and iconic landmarks, here is the best of what each of the 50 states (and Washington, D.C.) has to offer.
And for even more of the best to see, do, and eat in each state, be sure to check out our Bucket List USA guidebook, available everywhere books are sold.
Edited by Amanda Sadlowski.
PART II
PHOTO: ENGEL CHING/ISTOCK
11 OF 51
Waikiki Beach
WHERE: Hawaii
Hawaii’s most famous 2-mile stretch of sand has an undeniable appeal, and it’s a must when you visit Oahu. Waikiki’s beach, capped at one end by the volcanic peak of Diamond Head, is gorgeous. You can visit historic palaces like the Moana Surfrider and the Royal Hawaiian, sip mai tais and nosh on pupu platters at a slew of waterfront restaurants, take surfing lessons or ride in an outrigger canoe, or curl up on a beach blanket with that someone special (and thousands of others) while you enjoy the sunshine and soft ocean breezes. Waikiki is known for its wealth of nightspots, including the majority of Hawaii’s LGBTQ+ hangouts.
PHOTO: VISIT IDAHO
12 OF 51
Craters of the Moon National Monument and Preserve
WHERE: Idaho
Like the more famous calderas and geysers next door at Yellowstone National Park, much of Southern Idaho sits on a great volcanic rift. But the explosive activity here was much more recent: 2,000 years ago, compared to more than 600,000 years ago for Yellowstone. The lava from these flows remains frozen in what was described by the presidential order that preserved them as a “weird and scenic landscape, peculiar to itself.” Today, you can hike and camp in the more than 1,000 square miles of jet-black flows, crags, and caves that make up Craters of the Moon National Monument and Preserve. Life, of course, can find a foothold in even the most extreme environments, and in early to mid-June each year, dozens of species of wildflowers bloom throughout the preserve, drawing photographers and visitors from all over.
PHOTO: SKYDECK CHICAGO
13 OF 51
The Skydeck at Willis Tower
WHERE: Illinois
At 110 stories and 1,451 feet high, the tallest building in Chicago’s skyline—and third-tallest building in the Western Hemisphere—is the Willis Tower (formerly known as the Sears Tower). The tower mostly houses offices, but you can visit the Skydeck on the 103rd floor to take in a 360-degree view of the city and its architecture. If you’re feeling especially brave, go out onto the Ledge, an observation deck—the highest one in the United States—with a glass floor to walk out onto and peer below. In addition to an unparalleled bird’s-eye view of Chicago, you’ll see three states besides Illinois from the Skydeck: Indiana, Wisconsin, and Michigan.
PHOTO: GRINDSTONE MEDIA GROUP/SHUTTERSTOCK
14 OF 51
Indianapolis Motor Speedway
WHERE: Indiana
The Indianapolis 500, the largest one-day sporting event in the world, takes place at Indianapolis Motor Speedway at the end of May. But the 500 isn’t the only time to soak up the excitement of the race and learn about its history. Throughout the month of May, you can check out practices, qualifications, and concerts. You can even attend other races throughout the year. Visit the grounds for free on non-event days to take in the museum or a guided tour.
PHOTO: LOWA STATE FAIR
15 OF 51
The Iowa State Fair
WHERE: Iowa
The Iowa State Fair is the biggest annual event in the state and one of the oldest and largest agricultural and industrial expositions in the United States. The annual event held over 11 days each August attracts more than a million people. Besides serious exhibits, it’s famous for serving more than 60 foods on a stick. There are the traditional favorites, like deep-fried desserts, corn dogs, and caramel apples, and more unusual options, including key lime pie, caprese salad, and peanut butter and jelly sandwiches. There are always great concerts in the grandstand, as well as tons of free entertainment.
PHOTO: ROBERT LOVE
16 OF 51
Dodge City
WHERE: Kansas
Few towns evoke the Wild West like Dodge City, Kansas. Stroll along the wooden sidewalks of the Boot Hill Museum, a historic street that keeps the 1800s alive in the “Queen of Cowtowns.” Learn about the town’s unique characters like Wyatt Earp, Doc Holliday, and Bat Masterson. During summer, you can experience Dodge City’s heyday through historical reenactments, including the famous gunfight at the O.K. Corral. You’ve seen shootouts in the movies, but this one makes you want to kick up your heels with Miss Kitty and the Can-Can Girls in the Long Branch Saloon.
PHOTO: KENTUCKY TOURISM
17 OF 51
The Kentucky Bourbon Trail
WHERE: Kentucky
Kentucky, where bourbon was first commercially produced, still makes close to 95% of the world’s bourbon (and more than 2 million barrels a year!), making it the definitive home of the spirit. Visit the country’s top distilleries in Central Kentucky, a picturesque area full of rolling hills of the lush bluish grass that earns the state its nickname. Big-name distilleries include Maker’s Mark, Jim Beam, and Evan Williams, but just as worthy are exciting newcomers like Castle & Key and Black-owned distillery Fresh Bourbon Distillery.
PHOTO: ZACK SMITH PHOTOGRAPHY
18 OF 51
The French Quarter
WHERE: Louisiana
New Orleans’s oldest neighborhood is visually stunning, with Creole cottages, Spanish colonial architecture, and cobblestoned streets steeped in legends of brothels and pirates, ghosts and fires, and more, more packed with activity than anywhere else in the city. You must take a romp down rowdy Bourbon Street at least once (perhaps with a to-go drink in hand, which is famously legal in the city); stroll the French Market; window-shop the galleries and antiques stores on Royal Street; get your fortune told at Jackson Square overlooking iconic St. Louis Cathedral; and eat a po’boy or two.
PHOTO: CAIT BOURGAULT
19 OF 51
Acadia National Park
WHERE: Maine
At 1,530 feet, Cadillac Mountain dominates New England’s only national park, Acadia, a rugged 49,000-acre tract of surf-pounded granite coastline and an interior graced by sculpted mountains, sheer cliffs, quiet ponds, and lush, deciduous forests. The park also has graceful stone bridges, miles of carriage roads, and a 27-mile Park Loop Road, which you can drive to Cadillac’s summit. But the most memorable way to access the summit is to hike to the top via the 4-mile round-trip North Ridge Trail.
PHOTO: JASON VARNEY
20 OF 51
Baltimore’s Inner Harbor
WHERE: Maryland
One of Baltimore’s most-visited destinations is the Inner Harbor, a waterfront neighborhood that’s just as popular with locals as it is with out-of-towners. The area was once known for its steel mills and shipyards, and today you can learn about its seafaring past while you board some of the centuries-old vessels, including a three-masted beauty called the USS Constellation. There are also world-class museums, waterfront restaurants, and spectacular views. The sprawling National Aquarium is home to more than 750 species of underwater creatures.
Passenger Nearly Sucked Out of Plane After Window Dislodges
Joshua Hanson/Unsplash
https://www.fodors.com/news/photos/this-week-in-travel-bison-attack-at-yellowstone-plane-window-incident-and-more
And more of this week's top news.
This week in travel, we have several stories that may have flown under your radar. Among them: a flight unlocked a new fear for passengers when a man was partially sucked out of a window; a gay cruise in Europe, denied entry by Turkey, was also rejected by Egypt; a bison charged at a man at Yellowstone and flung him eight feet into the air; and Norwegian and British Airways engaged in a playful rivalry online as their countries faced off at the FIFA World Cup.
Dive into these and more as we examine the latest in travel news.
1 OF 5
Bison Attacks Man at Yellowstone
In a shocking video, a bison is seen flinging a tourist eight feet into the air. The tourist, Carl Isom-McDaniel, survived the attack but suffered broken bones. The incident happened on Friday near Yellowstone Lake, where an upset bull terrified campers. The wild animal charged at a group of teenage boys and later chased a man and his grandson, who had stopped to take pictures. The tourists maintained a safe distance from the bison, but the animal chased them around trees and ultimately flung the grandfather into the air.
Photographer Mike MacLeod recorded the terrifying video of the incident and stepped in to help Isom-McDaniel, who suffered broken bones. He told the New York Times that there were many tourists at the national park and people maintained their distance from the bison, but it attacked because it may have had a surge of testosterone.
2 OF 5
Australia’s Celebrity Seal Frolics in Tasmania
A new animal is gaining traction online (remember Punch the monkey?), and this time it’s a seal Down Under. In Tasmania’s Seven Mile Beach, Neil the seal has become a celebrity visitor during his twice-annual pilgrimage. The recent visit is bringing locals to see this unruly elephant seal smash traffic cones, damage telephone boxes, or nap on the streets. Traffic police are managing the crowds and redirecting traffic as the five-year-old goes wild, and online fans can’t get enough of his antics.
Experts are warning that people should maintain their distance because Neil is 2,200 pounds and can be dangerous. In the past, if an animal became a threat to public safety, it was euthanized, as was the case with Freya the walrus in Norway.
3 OF 5
Norwegian and British Airways Delight With Fun Feud Online
Over the past weekend, Norwegian and British Airways entertained their followers with a friendly feud on social media as their countries played against each other at the FIFA World Cup. Norwegian instigated it by asking British Airways online if they’d swap their logo to Norwegian’s if Norway won the game, and vice versa. Then came a series of jabs and banter all weekend, including a video of two representatives shaking on it before the match. American Airlines also joined in: “We don’t have a horse in this race… but we do have flights to the match. ✈️⚽”
On Saturday, Norway lost 2-1 to England, and the Oslo-based airline changed its logo as promised. In the end, audiences cheered for both airlines’ social media accounts. Norwegian also announced a flash sale and made the best of it.
PHOTO: STEFANO GARAU/SHUTTERSTOCK
4 OF 5
Man Nearly Gets Sucked Out of Plane
A Ryanair flight from Greece to Germany became a nightmare for passengers when a 61-year-old man was partially sucked out of a window. Operated by Malta Air, the plane was in the air for about 10 minutes before it quickly descended. A passenger window dislodged shortly after takeoff, and a passenger, who was still buckled in, was partially sucked out. His wife held on to his legs, and passengers helped to bring him back inside.
A broken window also meant the plane was depressurized, and oxygen masks were deployed to help passengers breathe. The plane landed safely, and the man was taken to the hospital, where he was treated for friction burns.
Ryanair said in a statement, “A Ryanair flight from Thessaloniki to Memmingen on Friday morning (10 July) returned to Thessaloniki shortly after take-off when a passenger window dislodged inflight. The aircraft landed normally, and passengers returned to the terminal. One passenger requested and received medical assistance on the ground in Thessaloniki. To minimize any delay, a replacement aircraft was arranged to bring passengers to Memmingen, which departed Thessaloniki at 9:53 local this morning.”
PHOTO: MERYDOLLA/SHUTTERSTOCK
5 OF 5
After Turkey, Egypt Denies Entry to Gay Cruise
Earlier this month, authorities in Turkey refused to let a cruise with LGBTQ+ passengers dock in their city. Now, Egypt has followed suit and banned the same cruise from docking in Alexandria. On Thursday, the Scarlet Lady was refused entry, organizer Atlantis Events said. CEO Rich Campbell told passengers in a memo, “I know how much this visit meant to so many of you. We successfully sailed a similar itinerary last year without issue, so we were surprised by this unfortunate decision.”
More than 1,000 Americans are sailing on this Athens-to-Venice trip. Egypt was added to the itinerary after Turkey turned the ship away, but Egyptian authorities denied them entry at the last minute. Now the ship will be docking at Crete in Greece.
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