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What is the Role of Today’s Hotels?

In many industries the customer base is changing drastically. Today’s consumers care about the overall experience more than the older generation did, which is leading some industries, particularly hospitality, to seriously rethink their business models. In the past, a clean room, decent water pressure, and an edible breakfast were good enough for many hotel patrons….

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What is the Role of Today’s Hotels?

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In many industries the customer base is changing drastically. Today’s consumers care about the overall experience more than the older generation did, which is leading some industries, particularly hospitality, to seriously rethink their business models.

In the past, a clean room, decent water pressure, and an edible breakfast were good enough for many hotel patrons. But not so today. Competing with AirBnB and a changing consumer culture, hotels are being forced to innovate and rethink what they do.

One success story is a small hotel chain that has taken to completely reinventing what it means to be a hotel. The citizenM chain was started in Amsterdam, The Netherlands, and is a completely radical departure from most other models. It was designed to be egalitarian and utilitarian by removing all the usual annoyances that make the hotel experience a drag.

All of the hotel’s rooms are exactly the same in every way; size, furnishings, and price. The experience is paired down, but not cheaply; exactly the opposite. It is everything a guest needs, done perfectly, with no frills. There is no room service or restaurant; instead, hot food and drink can be accessed 24/7 in a canteen style area.

There is no bar or concierge desk, instead, the lobby is designed to feel like a living room; perfect for guests who need a quiet space to relax, but without getting in the way when he or she wants to get to their room. The check-in kiosks get guests through the whole process in under 60 seconds. 

While this may sound impersonal, it is not. The rooms are cozy, thoughtful, and high-quality. Tablets control the free entertainment system and the fun, infinitely adjustable RBG lighting, while the bathroom is a space-age smoked glass pod with a truly luxurious shower.  

Other hotels are focusing less on removing traditional annoyances of the hotel process, but rather making the hotel more of a destination, and by improving on their food and entertainment experiences.

Meanwhile, some boutique hotels offer unique decor to transport visitors to another time and place, for example Bay Area Hotel Emblem takes visitors back to San Francisco’s most iconic era— beatnik. Other hotels try to increase their popularity as a social spot with better bars and cafes, or lobby games like pool and darts.

At the end of the day, today’s customers care about the overall experience, and they want to get their money’s worth. It is up to hotels to create these experiences, whether through dining, entertainment, or location based attractions.

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More Hospitality Insights

Hotel Effectiveness: HPOR gains continued through H1 2026

Hotel Effectiveness: HPOR gains continued through H1 2026

Hotels cut labor hours per occupied room in H1 2026: 3.1% at full service, 3.5% at select service. Gains shrank in Q2. With hourly wages up 2.9% to 3.3%, holding labor cost per room flat may require further hour savings.

  • 01Select-service HPOR improved 5.1% year over year in Q1, then the gain narrowed to 1.8% in Q2. The report says that pattern reflects how hard it is to sustain gains as occupancy and workloads grow.
  • 02Hourly wages rose 2.9% to 3.3% while hours per occupied room fell 3.1% to 3.5%. That suggests the productivity gains could roughly offset the raises on a per-room basis.
  • 03For operators watching second-half data, select-service gains that stay below the pace of wage growth could push labor cost per occupied room back up.

Sep 26, 2026

If a competitor's move triggers your rate change, that is market-based pricing, not dynamic

If a competitor's move triggers your rate change, that is market-based pricing, not dynamic

Lighthouse writer Joe Hanly published a ten-strategy hotel revenue management guide on Hotel News Resource on September 8, ranking real-time dynamic pricing first. Its most useful content is a test: a hotel whose rate changes mostly follow a competitor's move is running market-based pricing, whatever it is called internally. A companion explainer says audit the compset and rate plans first.

  • 01Market-based and dynamic pricing both watch competitors; the line Lighthouse draws is whether a competitor's rate is the trigger or one input alongside local events, booking pace and market trends.
  • 02Properties that have gone years without a structured rate-plan review often carry more active plans than anyone tracks, and those legacy floor rates and stay restrictions sit under any pricing engine layered on top.

Sep 18, 2026

STR: Summer 2025 was tracking as weakest in four years

STR: Summer 2025 was tracking as weakest in four years

STR said summer 2025 was the weakest U.S. hotel summer in four years: as of an Aug. 22 weekly report (with two weeks left), hotels had sold 1.4 million fewer room nights than summer 2024 and top 25 market weekday RevPAR was down 2.3% in mid-August. STR said business travel plateaued while leisure held up weekends. Hotel Dive reported widespread U.S. RevPAR growth in Q1 2026, making 2025 the comparison base.

  • 01Weekday performance is a key read on business travel: in the week ending Aug. 16, 2025, top 25 market weekday RevPAR fell 2.3%, per STR; in that same update, non-metro and rural areas posted a 0.7% full-week RevPAR gain.
  • 02The 2025 demand loss was concentrated, not spread evenly: STR traced 45% of the economy-class decline to 10 markets, with Houston and Las Vegas alone near a quarter of it, so a national average can hide a very different local picture.
  • 03The gap between occupancy on the books and occupancy actually realized, flagged by CoStar in Las Vegas, Houston, Philadelphia and Orlando in June 2025, is a sharper thing for a revenue manager to track than headline RevPAR.

Sep 18, 2026

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