I’m thrilled to sit down with Katarina Railko, a seasoned expert in the hospitality industry with a deep background in travel and tourism. Her insights into entertainment, events, and large-scale expos have made her a trusted voice in the field. Today, we’re diving into the latest trends shaping the hotel sector, particularly focusing on luxury travel, loyalty programs, technology advancements, and strategic growth in a competitive market. Katarina will unpack what’s driving success for major players like Hyatt and share her perspective on where the industry is headed.
Can you tell us what’s fueling the growth in the luxury segment, especially with metrics like a 0.3% year-over-year RevPAR increase, and how luxury chains are leading the charge? What behaviors or preferences among high-end travelers are making this happen?
I’m really excited to talk about this because the luxury segment is such a dynamic space right now. That 0.3% RevPAR growth systemwide might seem modest, but when you zoom into luxury chains, the story gets much more compelling—leisure transient RevPAR is actually the strongest driver here. What we’re seeing is a high-end customer base that’s incredibly resilient, even in uncertain economic times. These travelers aren’t just booking rooms; they’re seeking curated experiences—think bespoke wellness retreats or exclusive cultural immersions. I recall a particular instance at a luxury property where a guest requested a private rooftop dinner with a Michelin-starred chef flown in for the evening. That kind of demand for personalization is pushing properties to innovate constantly. Looking ahead to 2026, I believe this trend will only deepen as wealth bifurcation continues, with luxury travelers prioritizing destinations and brands that can deliver unique, memorable stays over mere accommodations.
What’s driving the sustained demand for luxury all-inclusive travel, and how does this play into confidence for future growth? Could you share an example or insight that illustrates this trend?
The demand for luxury all-inclusive travel is fascinating because it taps into a desire for seamless, high-value experiences. Travelers in this segment want everything taken care of—dining, activities, wellness—without the hassle of additional costs piling up. This gives them peace of mind, especially for family or multi-generational trips, and it’s a huge confidence booster for the industry looking toward 2026. From what I’ve observed, properties that bundle exclusive perks like private excursions or premium spa access into their packages are seeing tremendous uptake. I remember visiting an all-inclusive resort where they offered a private yacht day trip as part of the package—guests couldn’t stop raving about feeling like royalty without ever reaching for their wallets. This trend shows that luxury all-inclusive isn’t just about convenience; it’s about elevating the entire vacation into something extraordinary. Moving forward, I think we’ll see brands double down on these offerings, using them to differentiate in a crowded market.
With loyalty programs growing rapidly—surpassing 61 million members with a 20% year-over-year increase—what strategies do you think are most effective in building such a large, engaged base? Can you share a specific tactic or partnership that stands out?
Loyalty programs are the heartbeat of modern hospitality, and hitting 61 million members with a 20% growth rate is a testament to how much guests value feeling recognized. The most effective strategies revolve around creating emotional connections, not just transactional rewards. It’s about making members feel like they’re part of an exclusive club through personalized offers, surprise upgrades, or even tailored travel recommendations based on past stays. A standout example is expanding partnerships, like the recent collaboration with a major financial institution such as Chase Bank, where co-branded credit cards offer accelerated points for everyday spending—turning a coffee run into a future getaway. I’ve seen firsthand how these partnerships light up guest engagement; a friend of mine racked up enough points for a week-long stay just through daily purchases, and she felt like she’d won a jackpot. The next step is leveraging data to anticipate member needs even before they ask, ensuring they keep coming back for that personal touch.
The opening of new properties, including a significant one in Manhattan with over 5,000 rooms added in a single quarter, signals ambitious growth. What makes a location like Manhattan so critical to a brand’s strategy, and what challenges come with such high-profile expansions?
Opening a property in Manhattan, especially as part of a portfolio expansion adding 5,163 rooms in one quarter, is a bold statement. Manhattan isn’t just a market; it’s a global stage—being there signals a brand’s relevance and ambition to capture high-end business and leisure travelers alike. The location choice often hinges on proximity to cultural landmarks, business districts, and transport hubs, ensuring guests have access to everything that makes the city pulse. I remember touring a site during its planning phase, and the excitement in the air was palpable—every detail, from the lobby design to the skyline views, was crafted to scream ‘New York.’ But the challenges are immense: zoning regulations, sky-high real estate costs, and intense competition mean every decision is under a microscope. Overcoming these often requires deep local partnerships and a willingness to adapt—whether it’s negotiating with city planners or ensuring the property reflects the city’s unique energy. It’s a gamble, but when done right, it cements a brand’s footprint in a way few other markets can.
Technology, particularly agentic development platforms, is becoming a game-changer for revenue and efficiency. Can you explain how these platforms work in practice and share an instance where they’ve made a tangible impact?
Agentic development platforms are revolutionizing how hotels operate, and I’m thrilled to see this shift. Essentially, these are intelligent systems that use AI and automation to make real-time decisions—whether it’s optimizing room pricing based on demand spikes or streamlining back-end operations like inventory management. Some focus on boosting top-line revenue by predicting guest preferences and upselling tailored packages, while others cut costs by automating routine tasks. I recall a case where a major chain implemented a platform to dynamically adjust pricing during a citywide event; they saw a revenue bump of nearly 15% over manual adjustments because the system reacted faster than any human could. Picture a bustling operations room where dashboards light up with data, and decisions happen in a blink—that’s the magic of it. My vision for the future is scaling these tools across smaller properties, not just flagships, so even boutique hotels can compete on efficiency and guest satisfaction.
Despite overall growth, there’s been a dip in U.S. RevPAR by 1.6% in a recent quarter. What do you think is behind this domestic decline, and how can the industry respond effectively?
That 1.6% drop in U.S. RevPAR is a bit of a wake-up call amidst the broader growth story, and it’s worth unpacking. I think several factors are at play—economic uncertainty might be causing some domestic travelers to tighten their belts, especially in the mid-tier segment, while regional disparities could also be dragging numbers down. For instance, softer demand in certain oversaturated urban markets or areas hit by seasonal slowdowns might skew the overall figure. I’ve walked through hotel lobbies in some U.S. cities recently and felt that quieter buzz—fewer business travelers on weekdays, which used to be a given. The industry’s response needs to be multi-pronged: doubling down on targeted marketing to re-engage domestic leisure travelers, perhaps with value-driven packages, and focusing on underserved markets where demand still has room to grow. It’s also a chance to push innovation—think pop-up experiences or local partnerships to draw in nearby guests who might not consider a staycation otherwise. Addressing this dip head-on will be critical in the next few quarters to stabilize and rebuild momentum.
With system size growth forecasts climbing to between 6.3% and 7% for next year, what’s sparking this organic momentum in signings, and how do you balance rapid expansion with maintaining quality?
The jump in system size growth forecasts to 6.3% to 7% for 2025 is a clear sign of robust confidence in organic expansion, and it’s thrilling to see. This momentum in signings heading into the fourth quarter comes from a mix of pent-up demand for new destinations and a strong pipeline targeting untapped markets—both domestically and internationally. I’m particularly excited about recent signings in emerging leisure hotspots; I heard about one in a coastal region where the property will blend local culture with modern luxury, and the buzz around it is already electric. Balancing this rapid growth with quality is the real challenge, though. It requires rigorous vetting of partners and locations to ensure brand standards aren’t diluted—every new property has to feel like it belongs. I’ve seen brands tackle this by investing heavily in training programs for new staff, ensuring that even at breakneck speed, the guest experience remains consistent. It’s a tightrope walk, but with the right focus on culture and operational excellence, it’s absolutely doable.
Looking ahead, what is your forecast for the luxury travel segment as we approach 2026, and what should industry leaders keep their eyes on?
I’m incredibly optimistic about luxury travel as we head toward 2026—it’s poised to be a cornerstone of industry growth. The resilience of high-end consumers, coupled with their hunger for unique, all-inclusive experiences, will likely keep pushing RevPAR and demand upward, especially in international markets. Leaders need to watch for shifts in how wealthier demographics define luxury; it’s less about opulence now and more about authenticity and sustainability—think eco-conscious resorts or stays that immerse guests in local heritage. I can already picture properties weaving these elements into their DNA, creating spaces that feel like a story rather than just a hotel. There’s also the tech angle—using data to hyper-personalize every touchpoint will be non-negotiable. My forecast is that brands who adapt to these evolving expectations, while staying nimble in volatile markets, will lead the pack in capturing this lucrative segment.
