As we dive into the ever-evolving world of hospitality, I’m thrilled to sit down with Katarina Railko, a seasoned expert in the travel and tourism industry. With a sharp focus on entertainment, events, and a deep passion for expos and conferences, Katarina brings a wealth of knowledge about the trends and challenges shaping hotels today. In this conversation, we’ll explore critical issues like labor disputes, the overwhelming number of hotel brands, performance differences across North America, and the impact of rising costs. Let’s get started.
How do you see the recent wave of hotel worker strikes in major cities impacting the industry’s ability to operate smoothly?
I think these strikes, especially in places like Los Angeles and New York, are a wake-up call for the industry. They’re driven by workers’ demands for fair wages amidst skyrocketing living costs. When thousands of union workers walk out, it disrupts operations, guest experiences, and even future bookings. Hotels are forced to scramble for solutions, often at a high cost, and it creates a ripple effect on reputation and revenue.
What’s behind the coordinated efforts of union workers across different cities, and why does this pose such a unique challenge for hotel companies?
The coordination is really a strategic move by unions to amplify their impact. Workers are sharing tactics and successes from one city to another, creating a domino effect. If Los Angeles secures a higher wage, Boston workers use that as leverage. This is tough for hotel companies because they’re often operating in silos, lacking the same level of unified response. It’s a fragmented defense against a well-organized push, and that imbalance is a real hurdle.
In your view, what does it mean for the hotel industry to ‘come together’ in response to these labor movements?
It’s about creating a collective strategy. Hotels, from independents to big chains, need to align on how they address wage demands, benefits, and working conditions. This could mean joint negotiations, shared resources for training, or even lobbying for policies that balance worker needs with business sustainability. Without this unity, individual companies are picked off one by one, unable to match the scale of the labor movement’s reach.
With Los Angeles setting a $30 minimum wage, how do you think this will influence wage expectations in other major markets?
This sets a powerful precedent. Workers in cities like Boston or San Francisco will point to L.A. and demand similar or higher wages to match their own cost of living. It’s not just about the number; it’s the message that unions can win big. This could accelerate wage hikes across the board, pushing hotel operators to rethink budgets, pricing, and even staffing models to absorb the costs without alienating guests.
Why do you think New York stands out as a critical battleground for labor disputes in the coming years?
New York is a massive market with a huge concentration of hotels and unionized workers. With the union contract expiring in 2026, there’s a ticking clock for a showdown. The city’s high visibility means any strike or wage agreement there will have a national echo. Plus, political support for higher wages, like proposals for a $30 per hour floor by 2030, adds fuel to the fire. It’s a perfect storm waiting to happen.
Turning to the topic of brand proliferation, why do you think there’s so much confusion among travelers and investors about the sheer number of hotel brands today?
It’s simple—there are just too many. Guests can’t tell the difference between brands that often overlap in style, amenities, or price point. Investors and owners struggle to see unique value propositions when every chain seems to launch a new label every other week. This clutter dilutes identity and makes it hard for anyone to know what they’re really buying into, whether it’s a stay or a franchise.
How does this overload of brands end up being a disservice to the average consumer?
When brands aren’t distinct, consumers face decision fatigue. They book expecting a specific experience, only to find it’s not much different from another brand under the same umbrella. It erodes trust and loyalty. Instead of feeling tailored options, guests feel tricked by marketing, and that frustration can push them toward competitors or alternative lodging like vacation rentals.
What steps can the industry take to make hotel brands more meaningful and less confusing for travelers?
The industry needs to focus on clear differentiation. Each brand should have a unique story, design, or target audience that’s instantly recognizable. Streamlining portfolios by merging or retiring redundant brands could help. Also, better communication—through marketing or staff training—can educate guests on what each brand stands for, turning choice into an asset rather than a puzzle.
Despite the criticism, some argue that the demand from developers justifies having so many brands. What’s your take on this perspective?
There’s truth to it—developers want variety to match different markets or investment goals, and big chains respond to that demand. But quantity shouldn’t trump quality. If new brands don’t offer something genuinely different, they’re just noise. The challenge is balancing developer appetites with a coherent strategy that doesn’t sacrifice consumer clarity for the sake of growth.
Shifting gears to hotel performance, what do you think contributed to Canada’s record-breaking occupancy and revenue numbers recently?
Canada’s boom, especially in August, comes down to a few factors. Domestic travel surged as Canadians stayed closer to home, possibly due to economic caution or border hassles. There’s also an undersupply of hotel rooms in many markets, driving up demand and rates. Add to that a strong summer tourism season, and you’ve got a recipe for record occupancy and revenue across the country.
Why do you think the U.S. experienced a decline in hotel revenue during the same period, in contrast to Canada?
The U.S. faced headwinds like economic uncertainty, which curbed both government and international travel—key revenue drivers. Markets like Las Vegas saw fewer Canadian visitors, for instance. Plus, there’s more supply in the U.S., so competition keeps rates and occupancy in check. It’s a stark contrast to Canada’s tighter market dynamics, where scarcity boosted performance.
How has economic uncertainty specifically shaped travel behaviors in the U.S. lately?
Uncertainty makes people and businesses cautious. Government travel budgets get slashed, and international travelers hesitate due to currency fluctuations or geopolitical concerns. Even leisure travelers might opt for shorter, cheaper trips. This all translates to fewer bookings, shorter stays, and pressure on hotels to discount, which directly hits revenue numbers.
Looking at costs, how have tariffs and trade policies affected the hotel industry’s bottom line in recent times?
Tariffs have driven up costs for essentials like building materials, furniture, and even food and beverage supplies. For hotels renovating or building new properties, these price hikes are a major blow to budgets. The unpredictability of policy changes adds another layer of difficulty—operators can’t plan effectively when costs might spike overnight due to a new announcement.
What’s your forecast for how labor costs and brand strategies will evolve in the hospitality industry over the next few years?
I see labor costs continuing to climb, especially as unions gain ground in key markets. Hotels will need to innovate—think automation or flexible staffing—to manage expenses without compromising service. On the brand front, I expect a push toward consolidation or redefinition, as companies realize that clarity trumps quantity. Those who adapt to these pressures with smart, guest-focused strategies will come out ahead.
