If you've recently read AT&T's internal memo from their CEO, you may have noticed a striking theme: businesses that cling to old models are walking straight toward irrelevance. And while the memo was directed at telecom professionals, its core message couldn't be more relevant for us in hospitality.
We too are midstream in a multi-year journey: not just to optimize the hotels we have, but to build the industry we need. Yet, many hospitality businesses still operate with a mindset of hierarchy, tradition, and "business as usual", a comfort zone that's becoming dangerously outdated.
«The way we've always done it» Is not a strategy
AT&T's CEO noted that some employees still cling to the old employment deal: tenure = security. Sound familiar?
In hospitality, we often hear similar sentiments:
- “I've been in this role for 20 years; I know what guests want.”
- “We don't need to focus on upselling; it's not part of our culture.”
- “KPIs are for finance, not for front-desk or F&B staff.”
But here's the hard truth: Loyalty, tenure, and tradition don't drive revenue. Performance does.
And in today's hyper-competitive travel market, where guests expect personalization, efficiency, and innovation, we need to evolve just like tech companies have.
Results-driven cultures work. Across all industries
Let's draw a parallel. In the tech world, AT&T moved away from being a utility and towards being a tech-forward, customer-centric company. They did this by:
- Rewarding capability and contributionnot just presence.
- Embracing cross-functional collaboration over siloed teams.
- Tracking data and behaviors to ensure alignment with business goals.
Now, compare that to a hotel still working without:
- KPIs like TRevPAR or RevPASqM.
- Upselling metrics such as % of arrivals upsold, or Ancillary revenue per occupied room.
- Customer Lifetime Value (LTV) or Customer Acquisition Cost (CAC) analytics.
Is it any wonder many hotel teams operate reactively, rather than proactively?
Culture shift: From service-only to service + strategy
A front desk that doesn't upsell is a missed opportunity. A spa that doesn't track revenue per hour is running blind. And a hotel that measures employee satisfaction without tying it to performance is… well, AT&T before their pivot.
Hospitality needs a culture shift, from service only to service plus strategy.
We need to:
- Equip our teams with training on how KPIs relate to their day-to-day roles.
- Incentivize revenue contributionnot just tasks completed.
- Share performance dashboards in team meetings, not just reviews.
- Encourage transparency, showing how each role impacts GOP (Gross Operating Profit) and guest satisfaction.
When you give people the "why" behind the numbers, you empower them to make a measurable impact.
Real example: Upselling isn't salesy. It's Strategic
Let's say your front office staff begins tracking upselling revenue by room type. In a month, you notice that 20% of premium rooms are being sold at check-in. Great, right?
Now imagine you dig deeper and find that only one team member is driving 80% of those upgrades. Instead of assuming it's luck, your KPI dashboard highlights their conversion rate, their scripting, and guest feedback. You now have a blueprint to replicate success across the team.
This is what a market-based, performance-driven culture looks like. It's not about pressure. It's about clarity, recognition, and growth.
Disruption is the cost of relevance
Every major legacy company has had to disrupt itself to stay relevant—Apple, Netflix, IBM, and yes, even Hilton and Marriott.
As the AT&T CEO said:
“If you dislike change, you're going to dislike irrelevance even more.”
Hospitality must stop treating change something as to be tolerated. It needs to become something we embrace. Just as AT&T is evolving from fixed-line legacy to 5G innovation, we must evolve from room-night tracking to total revenue optimization per guest.
Let's Build the industry we want
We can't just optimize the hotels we have. We need to Build the industry we want. One where KPIs are everyone's business, where tech supports (not replaces) human touch, and where results speak louder than résumés.
To get there we need:
- Courage to confront legacy thinking.
- Systems that show the real numbers.
- Leaders who inspire cultural change; not just manage operations.
Let's stop admiring the problem and start measuring the solution.
The path to relevance is paved with KPIs, commitment, and change. If tech companies can evolve, so can we in the Hospitality industry.
The next time someone says “we're not a tech company,” remind them: we're not just hospitality anymore: we're hospi-tech-lity.
Onwards and upwards, Pablo
Excited to launch my new website: torreshospitalityconsulting.com
Discover how we help hotels boost ancillary revenue through tailored strategies and guest-centric experiences.
Let's unlock the full earning potential beyond the room!
