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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 than half of hotels are still short-staffed despite 70% raising pay

More than half of hotels are still short-staffed despite 70% raising pay

AHLA's March 2026 survey of 246 hotel owners found more than half understaffed even though 70% are offering higher wages. Cost of goods and supplies (71%) outranked labor costs (65%) as the most cited financial pressure.

  • 01Cost of goods and supplies (71%) outranked labor costs (65%) among hotel owners' most frequently cited financial pressures in AHLA's 2026 survey.
  • 02Higher wages are offered by 70% of surveyed hotels; a separate AHLA and Hireology survey fielded between Dec. 6, 2024, and Jan. 3, 2025, put that figure at 47%.
  • 03Some 39% of owners expect 2026 demand to remain relatively stable compared with 2025, 29% expect it to be somewhat stronger and only 6% expect it to be much stronger.

Sep 14, 2026

65% of North American hotels reported staffing shortages in 2025 as AI moves into ops

65% of North American hotels reported staffing shortages in 2025 as AI moves into ops

A BCG and NYU SPS analysis says 65% of North American hotels reported staffing shortages in 2025. Labor costs rose 11.2% year over year. The report says hotel discovery is shifting to AI assistants, pushing operators to build machine-readable content and integrated data.

  • 01If AI assistants surface only a short list of hotels, content and rate shopping shifts from “best page” SEO to “best answer” data hygiene across channels.
  • 02The biggest blocker to scaling AI in hotels is still plumbing: nearly half of hoteliers report difficulty accessing critical business information, according to Hotel Management.
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Hotels Face Branded-Search Interception as Google Reshapes Booking

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Hospitality Technology reported that third-party sites bidding on hotel brand names can intercept guests before they reach a hotel's own checkout, citing Operto research. The outlet also reported that Choice Hotels enabled native checkout inside Google AI Mode while Hilton routes AI-driven searches back to Hilton.com to complete bookings.

  • 01Hospitality Technology cited Operto research finding that a competing third-party ad appears on roughly three-quarters of branded hotel searches, with an average of nine such sites bidding on a given hotel's name
  • 02The same report attributed roughly 8% of direct-booking loss to this interception, noting these bookings can be misclassified as ordinary OTA business in PMS reports
  • 03Choice Hotels announced a Google AI Mode integration allowing guests to complete bookings via Google Pay without leaving Google, according to Choice Hotels' own announcement

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