Artificial intelligence (AI) is revolutionizing the way travelers discover and compare hotels, prompting hospitality revenue leaders in Brazil to rethink their strategies, according to a Skift report. This shift has moved hotel discovery further upstream in the traveler’s journey, necessitating a reevaluation of visibility ownership, success measurement, and budget allocation.

The Challenge of AI-Driven Visibility

Brand awareness has traditionally protected large hotel companies due to their accumulated recognition and loyalty programs. However, independent and regional brands face a more daunting task. If they aren’t surfaced during initial research, they risk being left out of the booking conversation altogether. With 94% of hotels rendered invisible in AI search results, according to Curacity and Cornell research, the urgency for a visibility strategy is clear.

Responsibility and Teamwork

The question of who owns visibility within hotel organizations is one that many have yet to formally address. Jenna Villalobos of Outrigger Hospitality Group admits that until now, visibility has been a priority spread across various teams without a single commercial objective. She envisions formalizing this role with the analytics team due to their data-driven approach. Lance Burton of Remington Hotels underscores the complexity of visibility management across multiple brands, emphasizing the importance of a cross-functional effort.

The Shift in Commercial Operations

Villalobos describes Outrigger’s operation as a coordinated effort involving revenue, CRM, direct channel technology, and business intelligence. This collaboration has influenced how the company invests across the traveler journey, focusing on building demand before occupancy gaps appear. The company is emphasizing early-stage investments to capture future demand, such as its work with Curacity, which influences travelers before they compare hotels.

Budget and Measurement Adjustments

The shift towards AI-driven discovery is prompting financial decisions. With most U.S. Google searches ending without a click, as reported by SparkToro, there’s a compelling case for reallocating budget to where consideration is happening. Villalobos is testing new methods to amplify Outrigger’s message earlier in the traveler’s journey, including generative engine optimization (GEO) through Curacity VISTA.

These changes also necessitate a different measurement approach. Traditional attribution models, which reward the last click before a booking, are less effective in measuring the influence of activities that shape traveler decisions weeks before booking. Villalobos stresses the importance of measuring brand encounters across various touchpoints before a booking is made.

In conclusion, as AI continues to impact how hotels are discovered, Brazilian hospitality leaders are at the forefront of adapting their strategies to ensure visibility, optimize revenue, and effectively allocate budgets in this new landscape.