Trickle-down economics – in addition to sounding unpleasant and leaky – has largely been proven not to work, which doesn’t come as a huge shock if you look at who backs it. When a bursting mahogany-panelled room of billionaire tax evaders support an economic theory which means they can make an after-dinner argument for why they should have more money, don’t expect much in the way of trickle.
Oozing economics aside and observers of the much-more-friendly hospitality sector will be reassured to learn that trickle-down technology is very much a thing. And it’s not just Jeff Bezos saying it.
At the group’s most-recent earnings call, Wyndham CEO Geoff Ballotti told analysts: “Earlier this month, we announced the rollout of our new Wyndham Connect guest engagement platform to help our franchisees curate personalised experiences for guests and drive increased ancillary revenue for our hotels. Nearly 2,000 hotels across North America are already embracing these best in class, mobile-centric tools that leverage one of the most substantial AI-driven large language models in the industry to support franchisees bottom lines while increasing guest satisfaction.
“Our hotels are seeing upwards of $1,400 monthly in monetisation opportunity on early check in and late checkout alone, and our new AI-generated messaging that matters is allowing franchisees to communicate with and respond to guests via text message with ease and speed before, during and after their stays.”
The words! The words are all there! Call yourself a full House or Bingo depending on your regional variance. ‘Personalised’, ‘ancillary revenue’ ‘AI generated messaging’.
And even more fascinatingly, Ballotti added: “We’re bringing technology, typically offered in luxury and upscale segments, to select service hotels, helping franchisees manage their businesses more efficiently and creating guest experiences that make stays more meaningful, resulting in happier guests, increased repeat business and more ancillary revenue for our franchisees and consequently Wyndham.”
And it’s not like Wyndham – which has been eyeing the upper reaches of late – doesn’t know that its heartland is in the affordable sector. Prior to these thoughts on living like the other half Ballotti had been telling the assembled that the current (not good) revpar environment was “transitory in nature”.
“Historically,” he said “since 2000 and through four lodging cycles, US revpar for the select service segments, which makes up the majority of our domestic system, has grown at a CAGR of 2.6% despite the occasional downturn.
“Last month, Smith Travel reaffirmed this perspective in their latest outlook, projecting 2.7% US revpar growth in 2025 for the select service segments. We’ve been through similar situations before and we’re confident that the select service revpar will bounce back as it always has historically.”
Wyndham knows its place and that place is driving revenue for its owners. If it can deploy technology to create the personalisation luxury brands like to use costly team members for, then so much the easier sell to owners.
Look at the likes of Numa and Bob W. Maximum technology and keys on phones keeps efficiency rolling, but it’s also what people want. The Venn diagram is becoming clearer by the day; when it comes to technology, all segments want the same thing. And the ROI means it’s available to all, no matter what your tax bracket.