The Evolving Commercial Landscape: Key Takeaways from HSMAI's 2025 Strategy Conference

Hospitality Net

9 hours ago

Three members of our leadership team from Cogwheel attended The HSMAI Commercial Strategy Conference in Indianapolis in June 2025. The conference was dominated by three major themes: artificial intelligence's impact on marketing, the realignment of commercial strategy through data storytelling, and the growing need for authenticity in audience segmentation. Each insight reflects not only where the hospitality industry is headed but also what hotel marketers and revenue teams must do now to remain competitive.
Here are our three top takeaways, with context, facts, and Cogwheel's evolving approach to each.
AI, AI, AI… and Yes, More AI—But SEO Is NOT Dead
Let's address the elephant in the conference hall: if you didn't hear the term 'AI' at least 15 times per session, were you even paying attention? The HSMAI event made it clear that artificial intelligence is top of mind across all commercial functions, but particularly in marketing and sales. That said, the chatter often masked a more balanced reality—AI is here, but SEO is far from obsolete…and AI is NOT destroying marketing.
For starters, what AI giveth, it doesn't always giveth accurately. Studies by Stanford in 2024 show AI language models can deliver factual correctness only around 52%–60% of the time when asked direct queries—a coin toss at best. And while AI is great at binary questions ('Does the Marriott Chicago offer parking?'), it's nearly useless at context-heavy, personalized travel planning. For example, try asking ChatGPT, 'what's the best pet-friendly hotel in Chicago?' At best, you'll get a generic list that you could have gotten through a regular Google search. AI doesn't—and won't for some time—know what is 'best' for you or what you mean by 'nearest' or 'luxury'. Make no mistake…AI HAS and WILL get better.
But then there's Google's rollout of Search Generative Experience (SGE) that we have all seen. It gives AI-generated answers into search results, and early data suggests this has triggered traffic declines for hotel brand sites. Some hotels have been quoted they are experiencing a 19% drop in organic search traffic. But we have always known that part of our organic SEO traffic was attributed to simple, black-and-white answer queries like: 'Is the spa open past 9pm?' or 'What's the valet fee at Hotel X?' These queries do not contribute meaningfully to driving new business. With our own Cogwheel Analytics data of the past two years across hundreds and hundreds of branded properties, we are seeing an organic drop…BUT…we are also seeing an INCREASE in 'direct' traffic. This is traffic that comes to a property page with no other link or search assistance. This all combines to point towards the need to focus on ensuring hyper-accurate content, but NOT panicking about a meaningful loss of exposure and awareness. At least not if you prep your property correctly.
At Cogwheel, we've been guiding our clients toward GEO With SEO: Generative Experience Optimization with Search Engine Optimization. We're adjusting content strategies to be AI-friendly while still rooted in traditional SEO best practices. That means structured data, schema markup, DEEPLY informative landing pages, and more human-readable content that answers both AI and user intent. Our enhanced SEO packages are future-proofing visibility in both search engine results and AI-fed experiences.
Hotel Commercial Strategy Must Be Integrated and Data-Driven
One of the most refreshing shifts at this year's conference was the focus on true cross-functional integration. No longer can sales, marketing, revenue, and distribution operate as isolated departments with overlapping agendas. Today's commercial leaders are expected to lead a holistic strategy, and storytelling is their most effective tool.
The message was clear: KPIs like ROAS (Return on Ad Spend), once considered the pinnacle metric of performance, are now just one (small!) part of a broader dashboard. Speakers Derek Brewster from Lotte Hotels & Resorts and Dan Fernandez from Concord Hospitality emphasized more multidimensional metrics like brand.com booking lift, channel mix, and campaign traffic quality as top indicators of success. These are better aligned with long-term profitability and owner value creation, which is increasingly under scrutiny.
Another recurring theme was the misused (but real) concept of the funnel. While some of you roll your eyes at this cliché, the data supports its continued SIGNIFICANT relevance. Expedia's 2023 Path to Purchase report shows that U.S. travelers visit an average of 277 pages of travel content over a 70+ day booking journey…and then take an additional 60 days before their check-in date. The conference presentations backed this up! And while last-minute bookings exist, they're the exception, not the rule. Marketing strategy must reflect this longer research-to-booking cycle.
Ownership of results also stood out as a leadership principle. Several panelists shared both wins and failures, emphasizing the importance of learning from both. Campaign didn't meet its goals? Great—what insight did we gain? Campaign exceeded expectations? Perfect—how can we replicate that performance next quarter or next year?
At Cogwheel, we're merging storytelling with data through customized analytics dashboards. We help clients visualize multi-channel performance over time, not just week-to-week or month-to-month. And by integrating campaign data with operational results, we're telling stories that resonate with asset managers, ownership groups, and stakeholders—not just marketing teams.
Audience Segmentation and the Call for Authenticity
The third key takeaway—one still evolving into a broader theme—was the critical importance of segmentation and authenticity. The days of creating marketing for 'everyone' or assuming internal stakeholders know 'our guest' better than the data are over. Let me say that again…they…are…OVER.
At HSMAI, several sessions stressed that brands must reassess their true audience.
Are your campaigns designed for your loyal customers, or are they reaching potential new ones? The difference is huge and usually overlooked. The key is moving from assumption-based or opinion-based personas to data-defined segments. That means pulling insights from booking trends, user behaviors, geographic origin data, and campaign engagement, not just gut instinct or what your brand-book wants you to be. It also means tailoring tone and content accordingly. Today's traveler is allergic to anything inauthentic. Your messaging can't sound like a brochure for a unicorn petting zoo. It has to be real, grounded, and aligned with the motivations of the customer.
Multi-channel engagement is critical here. Effective segmentation doesn't stop at knowing who your audience is—it's about delivering personalized content across platforms where they spend time. Paid media, especially targeted paid social, plays a growing role in this. Simple creative—when it's specific and audience-informed—often outperforms elaborate campaigns. And of course, none of this works if organic and paid channels aren't aligned.
At Cogwheel, we're refining our audience segmentation models using both first-party analytics and third-party insights. We're combining that with tailored creative strategies across display, search, paid social, and email, always anchored in authentic messaging. Whether it's a simple story about why a boutique hotel matters to a certain neighborhood or a short-form video on Instagram, the voice must be real.
Final Thoughts
And, our very own CEO, Stephanie Smith, spoke about the tried and true creation of hotel marketing budgets, which still has a ways to go to truly be done to solve commercial strategy issues.
The HSMAI Commercial Strategy Conference reinforced that while technology is changing the landscape, the fundamentals of hospitality marketing remain constant: know your audience, align your strategy, and tell the truth, backed by data.
AI is transforming how travelers access information, but it isn't replacing the need for a deep search strategy. Commercial leaders are being asked to connect the dots across departments and timeframes. And marketing content, more than ever, must reflect not just what the brand wants to say, but what the customer needs to hear.
At Cogwheel, we're committed to helping our clients navigate all of this change with clarity, creativity, and measurable impact. Because while the tools may evolve, the mission remains the same: reaching the right guest, at the right time, with the right story.
About Cogwheel Marketing
Cogwheel Marketing™️ is a full service digital marketing agency specializing in branded hotels, first leveraging brand systems then coupling that with supplemental strategies to maximize total online presence. Their reporting and business intelligence tool, Cogwheel Analytics, aggregates data from multiple sources to allow companies to identify trends and opportunities in their online presence. Our defined processes ensure the best positioning for your hotel against the competitive set and against other hotels of the same brand. Let us work with your sales and revenue management teams to identify and close the gaps and target your ideal guests.
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