Three members of the Cogwheel leadership team attended The HSMAI Commercial Strategy Conference Indianapolis in 2025. Three main themes were dominant at the conference: the impact artificial intelligence has on marketing; the realignment and alignment of commercial strategy by using data storytelling; and the need to be authentic in audience segmentation. Each insight shows not only the direction in which the hospitality industry will go, but also what hotel revenue teams and marketers must do to stay competitive.
Here are three key takeaways from Cogwheel, including context, facts, as well as the evolving approach of each.
We’ll address the elephant: were you really paying attention if you didn’t hear “AI” at least 15 times during each session? HSMAI’s event showed that artificial intelligence has become a hot topic in all areas of commercial life, especially 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.
It is important to note that AI does not always provide accurate information. 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. While AI is good at binary questions (“Does Marriott Chicago provide parking?”), it’s not very useful for context-heavy, personalized travel planning.While AI is great at binary questions (“Does the Marriott Chicago offer parking? Ask ChatGPT for example “what’s a pet-friendly hotel near Chicago?” You’ll receive a generic list, which you could get through a 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.
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Google has also launched Search Generative Experience, which we’ve all experienced. The AI-generated search results are a result of this. According to early data, it is causing traffic decreases for hotels’ websites. According to some hotels, organic search traffic has dropped by 19%. We’ve always known that some of our organic traffic came from simple black-and-white answers, such as: “Is there a spa open after 9pm?” Or “What is the valet rate at Hotel X?” These questions do not drive 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. Traffic that is not prompted by a search engine or other links. All of this points to the importance of ensuring accurate content and NOT worrying about losing exposure or awareness. If you properly prepare your property, at least.
Cogwheel is a company that has guided its clients towards GEO With SEOGenerative Experience Optimization (GEO) with Search Engine Optimization. Content strategies are being adapted to be AI friendly while maintaining traditional SEO best practice. This means more structured data, schema-marked landing pages, and human-readable content to answer both AI and user intentions. Our enhanced SEO packages will ensure your visibility in the future, both for search engine results and AI-fed experience.
This year’s conference featured a focus on cross-functional integration. No longer are sales, marketing and revenue departments able to operate independently with their own agendas. Commercial leaders today are expected to have a holistic approach, and storytelling will be their most powerful tool.
The message was very clear. KPIs like ROAS (Return on Ad Spend)Once considered to be the ultimate metric for performance, they are now only one (small!) Dashboards are a part of the broader picture. Speakers Derek Brewster from Lotte Hotels & Resorts The following are some examples of how to get started: Dan Fernandez from Concord Hospitality The top success indicators are more multidimensional metrics, like the brand.com booking increase, the channel mix, and the quality of campaign traffic. These better align with long-term profit and owner value creation which is increasingly being scrutinized.
A second theme that was repeated was the (real but misused) concept of a 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. This is supported by the conference presentations! While last-minute bookings do exist, they are the exception and not the rule. The marketing strategy should reflect the longer cycle between research and booking.
As a principle of leadership, the importance of ownership was also highlighted. Panelists discussed both successes and failures to emphasize the importance of 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?
Cogwheel combines data with storytelling through custom analytics dashboards. We help clients to visualize multi-channel performances over time, and not only week-toweek or month-tomonth. 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.
The third key takeaway—one still evolving into a broader theme—was the critical importance of segmentation and authenticity. These days, marketing is no longer created for “everyone”, and internal stakeholders are assumed to know their customers better than the data. Let me say that again…they…are…OVER.
Several sessions at HSMAI stressed the need for brands to reassess who their real audience is. Are you targeting your existing customers or potential new ones with your marketing campaigns? It is a huge difference that is usually missed. It is important to move from personas based on assumptions or opinions, to segments based on data. It is important to not just rely on gut instinct, or what your brand wants you be, but also take into account booking trends, user behaviour, geographic origin, and campaign engagement. This also includes tailoring the tone and content to match. The modern traveler has an allergy to fake. Your message cannot sound like an advertisement for a unicorn-petting zoo. It must be grounded, real and aligned to the customer’s motivations.
Here, multi-channel engagement becomes critical. Effective segmentation doesn’t stop at knowing who your audience is—it’s about delivering personalized content across platforms where they spend time. Payed media is a key component of this. Simple creative—when it’s specific and audience-informed—often outperforms elaborate campaigns. All of this won’t work if the organic and paid channels don’t match.
Cogwheel is refining its audience segmentation model using first-party and third party insights. We are combining this with tailored creative strategy across display, search and paid social. Email is also included. The voice of the story must be authentic, whether it’s about a boutique hotel that is important to a particular neighborhood or a short video on Instagram.
Final Thoughts
Stephanie Smith, the CEO of our company, has spoken about tried and true methods. creation of hotel marketing budgetsThere is still much to be done in order to resolve commercial strategy issues.
The HSMAI Commercial Strategy Conference confirmed that, even though technology changes the landscape of hospitality marketing, its fundamentals remain constant. Know your audience. Align your strategy. Tell the truth.
AI transforms how travelers find information, but doesn’t replace the need for an in-depth search strategy. Leaders in the commercial sector are asked to link departments and timelines. Marketing content must, more than ever before, reflect what customers need to hear, not what the brand wants.
Cogwheel’s mission is to help our clients navigate through this constant change, with creativity and clarity. We also want them to be able measure the impact. While the tools might change, the mission is the same: reach the right guest at the right moment with the right message.
