GMH Hotels: Hotel Owners Are Dropping the Big Brands

On this week’s Good Morning Hospitality, A Skift Podcast: Hotels Edition, Sarah Dandashy and Steve Turk are joined by Skift Editor-in-Chief Sarah Kopit to break down a question that is reshaping the hotel industry: is the brand still worth the price?

Sarah Kopit joins for a special segment on her investigation into why hotel owners are quietly dropping the big brands as more than 1,200 franchise agreements expire by 2030.

From there, Sarah and Steve dig into BWH Hotels‘ attempt to reverse years of room count decline by going upscale and overseas, Visa‘s new consumer travel portal that puts the payment network in direct competition with the banks it powers, and Sandals Resorts International‘s executive chairman shutting down sale rumors while committing $225 million to renovation at $1 million per key.

This episode is presented by ⁠⁠Cloudbeds⁠⁠, Bilt⁠⁠, and StayFi.

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Good morning.

We got a new old face in here. I’m not calling you old. You are getting old, but welcome back, Will.

Hey, you know, I missed you guys.

I had to give a little proof of life ever now and then too. So I was thinking like, Jamie’s gone. Got to show some face, but it’s good to see you guys.

Happy Monday.

Happy Monday. How are your 4th of July?

Happy 250th.

Yes.

250th.

Nothing wild here. It’s blazing hot as it is, I think, in most of the country. And with a two-year-old and fireworks out late, we didn’t do a ton.

We went out a little bit in the morning, but kept away from the afternoon heat.

Yeah. Smart. Did the same, kind of walked around, chilled, nothing crazy.

I was supposed to go camping, but with all the wildfires in Colorado, we decided to not go camping. There was a ton of smoke, fire bans, all the stuff. But I’m kind of regretting that.

I’m like, man, no one else went camping. I should have gone camping. That’s the whole point.

It’s like, it would have been perfect.

Breathing in all those fires. Yeah. Awesome.

Breathing that in or like just not having a fire on your own.

That would have been the only downside, but man, would have been totally worth it. I don’t know. That’s just me.

Bea, what did you do?

So I’m up in the Adirondacks, and this might be the only place where it is not blazing hot. It was really hot the first couple of days, but I’m going to swatch it currently, because it is chilly on the lake.

But yeah, also like a pretty calm 4th of July, like a lot of my extended family is up here, but I’m the only one of my siblings here. So like in our house, it was chill, good food, but you know, I slept a lot. That’s actually the highlight.

Two nights in a row, I slept for 10 hours, and that was just incredible.

Let’s go. It’s like dancing for 20 hours.

Yeah, exactly. Yeah, she was grown up and do both.

You had to balance it, Brandy. Good balance.

Brian, you’re listening. It’s a girl that didn’t do both on the show. So just FYI.

She could dance for 20 hours. She could sleep for 20 hours. That’s good.

Exactly.

If you want to.

Anyone hiking with Andreas?

Yeah.

Romy, founder, co-founder. Yeah.

A little Romy reunion. Andreas was up here with his kids. We had some fun walks in the wilderness, which was always nice.

Reminiscing about the old days. It’s almost a year ago that Romy was sold. So it’s really interesting to do a flashback to where we were emotionally this time last year, and just seeing how life has gone since then.

But I’m happy to report that we’re both doing really well.

That’s awesome. Well, I was going to say tomorrow is my one year’s gift. Congratulations.

Yeah. I think we’re all in our one years. Where’s the applause button?

Hang on.

There it is.

Yeah, there it is.

Yeah.

I can’t believe it.

Congrats, buddy. It’s been-

Thanks, YouTube brandy.

Thank you.

It’s flown through. Yeah.

Wasn’t July last year a fun time for all of us when we’re all having these big things happen and none of us could really say anything. We’re just like, well, I don’t have sold the business. Can’t tell nobody, but hey.

Look at how big my eyes are.

The stress.

It’s so, yeah.

Not being as stressed out is pretty electric, I have to say.

Quality of life, 10 out of 10 has improved.

Yeah.

I must call out the first weekend of July. Brandi’s out of town. So congrats.

I made it the whole month of June.

But in my defense, I’m still at one. I’m at a house that is mine. So and I drove here.

So does that still count as travel?

I’ll give you half a point.

It’s out of town.

Yeah, it’s out of town. You’re going to see varying backgrounds this summer because I’m trying to find the best place in our camp to do this. So we’ll see.

You’ll have to let me know what looks best as I go throughout the summer.

Yeah. Well, one quick comment before we get into things. Last week, VRMA announced probably their biggest speaker ever, Glenn Fogle, the CEO of booking.com.

And if you never heard Glenn speak, he’s fantastic. He’s very like direct and blunt and, you know, northeastern, but that’s very in a very, very endearing way. Yeah.

So I’m super excited for Glenn to come to, got to be his first VRMA.

Yeah, unless he’s been in stealth mode before.

Certainly his first VRMA.

Or a long, long time ago, pre-PR time.

Yeah. Well, I don’t, he didn’t own Booking at that point. So.

About 20 years ago?

He was the one that led the acquisition of Booking, but he wasn’t the CEO of the company until probably six, seven, eight years ago, not too long ago.

So Glenn, welcome. We’re excited to have you.

Yeah.

Welcome to the CR side.

That is a speaker I’m very excited to actually go listen to.

Well, not to shameless plug, but also if you guys come to a Skift Global Forum in September, you get to see Glenn speak on stage along with Ari and Gordon, Brian Chesky and all the big three OTA CEOs. So just a little shameless plug, had to do it.

Got to do it. We got all the big ones, all the big folks.

We got the big players.

7:08

AI Agents OTA Strategy

But what are we talking about today on the show? Yeah.

Well, we’re going to talk about whether OTAs are building for AI agents or not. We’ll go into some unexpected World Cup benefits for certain countries. But before we jump into all of that, we want to give a shout out to our sponsor, StayFi.

StayFi helps short-term rental operators build direct guest relationships through branded Wi-Fi portals, email marketing, and guest data tools that turn one-time bookers into repeat guests.

So start growing your direct booking revenue today at stayfi.com/goodmorninghospitality, and you can find that link in the show notes as well. That’s how you get those secretly hidden emails from the OTAs.

This is how you get the actual guest information. 100%. Our first topic today is how OTAs are no longer, you the customer are not who OTAs are trying to win over now.

They are now trying to win over the trust of AI agents who are looking and searching and trying to potentially book trips on behalf of consumers. So yeah, we are no longer, people are no longer what the OTAs are building for.

Yeah, it’s the AI agents.

Technology has evolved so quickly. How long did it take for Google to be the force, the power? It took years.

Yahoo and AOL and Netscape and all these other folks and Google probably took a decade to win out. I don’t know if there’s any Internet historians out there, but somebody can tell me how long.

But the switch from Google to agentic search has happened so fast. Like to 2023, I think was when the first model was released. So we’re talking three years ago.

But really in the past year, we went from single digit searches to now greater than 50% searches. And when a change happens that fast, it catches everybody’s eyes. And the OTAs own the market.

They own Dominate SEO. They own Dominate SEM. They spend billions and billions of dollars on ads every year.

And this is the biggest threat the OTAs have had in a long, long time. They’re gonna, they’re the incumbents. They’re in pole position to win this race.

But there’s a gap in time that individual management companies, owners, hotels can actually adopt the agentic way of searching and be found and compete and disintermediate the OTAs.

Yeah, it’s interesting.

We had Jason from Kismet on a couple of weeks ago, and that is like, not a sponsor, but definitely a way that you can, as an operator, in this period of time, compete with those big OTAs and having your inventory be searchable and available.

I think a really interesting part of this that I didn’t understand before is that if you have dynamic pricing or things of that nature, that’s not readable.

And so Jason showed us at Prime this example of one of our websites tried to find, did a query for Siesta Key, and our properties should have been in the search results, for sure.

But this one tiny boutique rental company that probably hasn’t updated their website in a year, had static pricing. It’s like pricing starting at $500 a night. And then so that’s the only thing that the LLM picked up.

And those were the only search results because it was the query asked for pricing. And so it’s not seeing your dynamic pricing, it’s seeing just this like text that was on this website.

So that to me was really eye opening in how this search is going to change. And it’s not enough that you just have pricing on your website. Like there’s certain things that will be illegible or irreadable to the LLMs.

Well, what you’re saying, Brandy, I just had something happen this weekend.

I was looking at a place to book kind of month to month type of booking for a place in September. And I was using Chat2BT. I was like, all right, like, what’s the monthly cost of this place?

Like, da, da, da, da, da. Here’s what my requirements are. I was doing the whole thing.

And it was like, oh, it’s about X amount a month. I was like, how do you know? Because I couldn’t find it on the website.

I couldn’t find it on any of the easy go-to places. Couldn’t even find it on the Google Maps suggestion piece and reviews.

And it said that it went to a Facebook group and found them post about, like in their Facebook group, they posted their monthly rental price or X, Y and Z thing and that’s where it got the X amount.

And for me, that’s where I’m like, I go back to kind of multiple conversations that I’ve had the last couple of weeks with our data and AI summit, but AI agents prioritize speed and convenience and obviously all my personal priorities of what I want

and don’t want. But when you get something like that, yes, I got that answer fast, but how accurate is that answer? I don’t know.

I have to call the place now, verify, is it XML or was that from 2013 or 2015 or however long ago that Facebook post was posted in that group.

So I think when it comes to the AI agents, reading this article for me, I got a little like, yeah, but you’re still having to serve the human. The agent is a by-product of that human or an extension, I guess, maybe not even a by-product.

And so the customer side of things doesn’t really change much. It just gets a little bit faster and has to be more accurate. That’s my thinking, but I don’t know if you guys…

No, you’re spot on.

The fact that it found data that answered your question was impressive because you probably would have never found that. And now when you call, you have a data point of, well, it was 1,500 bucks then, I expect it to be 2,000, whatever.

Ten years ago, it was $50 a site.

Now it’s $6,000. But websites, historically, are built for humans and for Google. And now it’s completely different.

Agents don’t look at photos. They look at photo descriptions. Agents can’t read calendar rates if you have them wide open.

You have to be able to provide that data to them. So it’s a completely different way of surfacing things. If you’re looking for a house that has a double oven for Thanksgiving, that’s not going to be in anybody’s listing anywhere.

It’s going to be in a photo. So you have to actually distill that information into text that then the agent can go read. And that’s what the OTAs have probably teams and teams of engineers doing.

And if you don’t have a solution for it like a Kismet out there, you can’t compete and the OTAs will absolutely dominate. So we’re in a completely different website world where the traffic was built for eyes and for ease of scroll and look and click.

That world doesn’t exist as of six months ago anymore.

Yeah, I think it’s like, think about all the time or all the sessions we’ve seen where it’s like how to create the best listing description.

It has all this flowery language that is like mentioning all these things and really what it’s going to be is just like a bullet point list of what’s in the house and all these photos.

I mean, I think it will take a very long time for photos to not be important, but because obviously the end user is going to be like, I want to see the house.

But we are seeing a dramatic reorganization of the power dynamics and think all of the money and time that people put into SEO to make sure that Google is read.

People are putting white copy at the bottom of a white page on the website so that Google is picking up. It’s just like all sorts of little tricks that people have figured out over the time that just like are about to become totally irrelevant.

Yeah, good.

Oh, I was going to say that I was listening to a conversation on the Skift Travel Podcast with Seth Borco and I forget Gilad’s last name, but he’s a venture capitalist in travel and done a lot of investments and they’ve looked at companies like Muse

and CloudBeds and all these big players. He was talking about AI agent swarms basically, whereas Michael is not just one AI agent. He’s going to have an AI agent for travel. He’s going to have an AI agent for his day-to-day household things.

A robot hopefully. Yeah, like hey, don’t forget to pick up your wife’s flowers because it’s your guys anniversary and the next blah, blah, blah. Little things like that, your personal agent, your travel agent, your work agent.

There’s going to be a bunch of different agents is what he was describing as a swarm and as I was thinking about this, like yeah, it could be that. But the B2C, if that actually happens, B2C disappears. It really comes B2A truly.

It is Expedia to agent, it’s booking to agent, it’s Airbnb to agent. They’re no longer going to interact with a true customer. Even though the agent is supposed to be an extension of you, it’s still not you.

It’s not going to be fully you. Depending on that day and how you’re feeling and what information you may have gotten from work or whatever, your mood can change and the AI agent won’t know that.

Anyways, for me, there’s all these different GIFs happening. Like you were saying, Michael, it’s happening so fast. I don’t think it’s going to play out that way.

I don’t see myself having an AI swarm anytime soon. Because who knows, at the end of the day, it seems like I hear everyone talk about agents, but I’ve never seen an agent in action. So I’m just curious, when is this really going to become the thing?

The agent will, anytime you search in ChatGPT, that’s an agentic search.

So you’re sending it out to-

I call that a low agentic search. Sure.

Yeah. For everyone else who talks about media.

Everyone’s like, the AI agents are going to be the thing. You’re like, ChatGPT, Todd, that’s it. That’s my agent.

I have to type to it all day.

You can talk to it. You can talk to it. It knows you.

You’ve done how many years of searches already. It doesn’t know you perfectly. It’s still a ways off there.

But the only thing it wants to do is to please you, Will. It wants to find the best place for you, for the best price, for the best value, trust, etc. The Skift article and how OTAs, they view their winning capabilities based around trust.

And I think to some extent, that’s going to be very true.

But as long as operators have in their sites, clear plans on cancellation policies and returns, everything that the OTAs offer the traveler, if you can offer them as much, then my guess is the agent, the agentic search and the agents are going to

ultimately prefer the direct booking sites. The long tail of the industry.

Okay. I think the only point of the only fear around that is if down the road, there is a partnership and Claude now only has a partnership with booking.com. I see that being a very likely possibility, maybe not right now, but in the future.

A second key point is payment processing and being able to book in the LLMs. I know that that was scrapped, but I don’t think that that is forever. It’s not scrapped.

It’s coming soon.

It’s coming soon.

It’s just a bigger pain point than they probably wanted to deal with. But that is the next function. I can see a way where this actually could benefit an operator.

If your direct site can get pulled in and you can book from your book in Claude on your direct site. But it’s like how are the OTAs going to muscle their way in and make that extremely difficult to happen. So exactly.

Well, money, right?

They’re going to spend.

How? Money.

They’re going to spend lots and lots of money on ads. I don’t think anybody will be exclusive.

If anything, they’re going to they have the ability to go do what Google had the ability to do and didn’t really capitalize on, which has become their own OTA. They can go out and source their own individual traffic.

Now, there’s 10 million things they should do first to monetize, but over time, that’s a very realistic thing to do. They want to then, in that case, go direct and then get a margin of everything that happens.

I ultimately think it’s a really, really big benefit for the long tail, for the booking direct cohort. But our industry is really slow to adapt to new technology, and the folks that don’t very seriously risk going 100% dependent on the OTAs.

If you don’t adapt, you will almost certainly be 100% unless you’re getting good re-marketing with StayFi, you’re gonna be 100% OTA dependent.

Yeah, and Paul Manzi, always active in the comments, we appreciate you, but brought up the recent kind of exchange between Brian Chesky and Francis, the former founder of Sonder because he released a new, a Gentic travel planner called Odessia.

And we’ve avoided kind of bringing it up on here because it’s just a Claude rapper. At this point, it’s not really, it literally just look, I mean, it’s not doing much. And Paul’s point that there’s an Gentic experience that will work for travelers.

We’re just not there yet. I think the Odessia is a great example of that. Like, you know, taking, if you want some entertainment, go and look at their X exchange.

There’s a little feisty back and forth with some people on the internet. But it’s not, we’re not at the level of where people are going to be fully dependent or, you know, fully invested, I think, in these specific travel planners.

You can do almost all of that in another app that you have. So that’s another interesting one to watch. And yeah, again, if you want some fiery internet comments, you can go look at that X thread.

I thought Chesky handled it brilliantly.

Yeah.

Well, speaking of ads, before we move on to our next topic, we want to give a shout out to our sponsor Bilt.

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22:56

World Cup Marketing Tourism

So, I mean, I guess it’s an ad heavy day because our next topic is about World Cup ads.

And so Airbnb and Marriott are both big World Cup sponsors. Marriott spent more money, but Airbnb’s ads have been resonating more, garnering more views. And so it’s an ace of like more money does not always mean you’re going to have the best result.

So, what are your takes on this? Just a better ad, something that people resonated with? Is there something more underneath all of this?

I’ve been watching a reasonable amount, not an obsessive amount of the World Cup.

And it feels like every single time I turn it on, it’s the Airbnb ad. It’s where the Jamaicans bring the speakers to England, it turns into punk rock. Fantastic ad.

Airbnb has always been really, really good at marketing and PR. That said, on the flip side, Marriott spent beaucoup dollars on ads, and I honestly don’t remember what ad they’re putting out right now.

So it doesn’t quite resonate with what’s going on, which is the World Cup. That’s why Airbnb’s ad hits so well. And I think if we look at it in total…

It’s not just the World Cup.

It’s how they display the World Cup with the different cultures and different countries interacting with each other, supporting each other. All the anti-media display that we’ve had in the last couple of years, it’s actually showing that.

And sorry to cut you off. I just… For me, I just felt like I only see Marriott Bonvoy.

I just see them advertising Bonvoy everywhere in terms of that. And that’s their target. They’re growing loyalty numbers, quote unquote.

Airbnb is trying to get you to daydream and hopefully book an experience or a place or whatever they’re trying to do. So I think there’s just different approaches.

You know, 100% and Marriott has spent what? $40 million across its brands in the first half of 2026. Airbnb spent almost the same $38 million.

But again, what we’re talking about on here, what’s resonated and what’s landed. Now I will say I’ve seen the Marriott or the Bonvoy in the background of the soccer field on the field. I have definitely noticed that.

But in terms of 30-second ads, Airbnb has done a great job.

Yeah, it’s playing on like the emotion. You’re watching this ad that’s actually just like a story that you can get emotionally invested in at the end. You’re like, it’s Airbnb.

Instead of being like this is Marriott.

Well, it’s what we’re seeing on our Instagram reels or TikTok.

How many videos did I send of you guys of like South Korea and Mexico, of them like partying together in Mexico and having like all these funny, hilarious moments, you’re like, that’s what everyone’s watching right now.

That is literally what the Scottish Army or what do they call it? The Tartan Army. Tartan.

Yeah, like watching all that. Hilarious. All the places in Boston ran out of beer.

So funny, so stereotypical, so awesome, like everyone’s expecting that. So that’s what we’re all engaged with. And I think Airbnb saw that and just really pushed it into the ad.

Well, it also kind of I think Airbnb has always been like the cool younger kid, even though they are absolutely immature, public facing or a public traded company.

But I think Marriott still can’t shake the like, oh, we’re like, you know, it’s like that Steve Buscemi meme from SNL, like, you know, and he’s like, what’s going on, kids or something like that. And it’s like, yeah, you’re not.

They need, I don’t know, maybe some younger people on the marketing team.

But if they really want to drive home the Bonfoy part, but I think that they might get better results if they don’t try to like drown you in their logos and all of that from the get, they just deliver a good story that resonates with the moment.

And then at the end, you see that it’s Marriott.

We’re talking about this like it’s the Super Bowl ad, but it really is. I mean, how many millions of people over a month long, month and a half?

It’s bigger than the Super Bowl, you know? And it’s so many different, and both of these companies are international. And so you’re appealing to such a wide, you know, variety of people.

So. Yeah. Airbnb, again, just crushing the PR game.

It’s really, and marketing, they really master class.

The other company crushing the PR game, and it’s not a company, it’s a country, is Cape Verde. We talked about it, Cabo Verde. I don’t even know the name of the country.

In the soccer games, I think they’re called Cape Verde, but they used to be called that, and they’re now Cabo Verde. Brandy, you had heard of them because there’s apparently a large-

Yeah, population in Boston, yeah, in New England, and one of my friends is Cape Verdean.

And so it’s like, there’s like this, in Boston, and I think in New England in particular, because it was a Portuguese colony, and there’s a huge Portuguese population in New England as well.

So there’s just like, I know people who never get to get excited for like their national team are like every, they are so excited. It’s so fun to watch.

Yeah, this is like the White Lotus moment for Cape Verde. It’s the, it looks like an absolutely beautiful island. Search for it coming out of the United States is up more than 800 percent on Expedia.

So people are curious about it. And a small country of 550,000 people, now we’re going to have an influx of new travel and tour. Whereas historically, well, 25 percent of all of their GDP is travel.

So this is huge for their entire country. And this is what sports can do in pop culture, whether it’s a musician, like we talked about with Bad Bunny in Puerto Rico last summer, Taylor Swift over the past year or two.

Now it’s the World Cup, telling the world about a country that 90 percent of the world hadn’t heard about. And now, you know, it turns out to be a beautiful country. They have some new hotels opening up this year, which is perfect timing for them.

And they had a really good World Cup. They almost beat Argentina.

I know, which is crazy. So I didn’t see the game because I was up here. But then I was checking the scores to see like these games.

And I was like, wait a minute, they scored twice. Like it wasn’t a total blowout against Argentina. Like they can hang their hat on that.

That is pretty incredible.

I understand. I was just going to say the same thing that Michael said. It’s the power of live tourism, right?

Like just the ability to see that 800% increased search on Expedia just shows you what happens when fans, loyal fans in a country, in reality, get behind what’s going on. And it’s so cool. So I think that’s just amazing to see.

You took all the examples, Bad Bunny, Taylor Swift. You think about Formula One. I think about a lot of EDM, Dubstep, DJs that have done residencies at the Sphere or whatever.

They bring people where they’re going, which is so cool. And I think that’s, again, power of live tourism and the reason why people need to travel.

Yeah, I wonder if… So there’s a bunch of smaller countries that were made it in because of the expansion this year. You have like Bosnia and Herzegovina, Curacao, Cabo Verde, all these smaller countries.

I wonder in a year if we look at what their tourism rates have been because now just so many people are just more aware of where they are, what they have to offer and they always do those little reels of the country before the games and stuff like

that. So it’ll be interesting to see how all countries benefit from this little bit of publicity.

Well, I hope the Skift team is tracking this in 12 months, comes out with a fun report showing Cabo Verde, Cape Verde up 200 percent year over year in travel. That’d be awesome.

Oh yeah. Our Skift research editorial and advisory teams are all tracking this stuff. So it’s going to be fun to see.

I’m excited. I know there’s a lot of stories continuing to come out, but yeah, I’m excited for the year recap, the fun visit.

Awesome. Well, before we wrap, I just wanted to give a quick shout out to Maurice, who’s coming to us live from Kenya. So I don’t know how many people we’ve had tune in from Kenya, but really, really happy that you’re joining in.

Love the comments. So definitely keep engaging with us live. We love hearing from everyone.

And of course, Paul Manzi and John N, we love hearing from you every week as well. For the two of you, what do you have going on this week?

Michael?

No, you go first, buddy.

Well, tomorrow, like I said, it’s my one year at Skift, but I’m also picking up my five month old puppy from her two week training. So she’s officially coming home, and I’m pumped because I have so much planned.

But yeah, outside of that, it’s just a busy week. Heads down, we’re really building for Skift Global Forum in September, and the three of us are going to be at Guesty Val in Madrid the week prior.

So lots to prepare for as the second half of 2026 is going crazy, but it’s been good. So outside of that, it’s just head down and enjoying the small moments, like picking up my dog and going on walks and stuff.

Beautiful. Yeah. When you say the second half of 2026, it blows my mind.

We’re already halfway through, but also so many moving parts in the rest of this year. It’s like everything is…

I know. It’s really about the kick in to overdrive.

Yeah.

Get your vacations in now. Request your… If you haven’t done anything this summer, get some rest time before the chaos hits.

If you can. If you’re an operator and this is your peak season, I’m so sorry. Get some rest in October, September, November.

Book your trips now for after season.

You have something to look forward to.

Exactly. Get your December trip in or something like that.

Yeah.

Be good. But it was good to be back on the show. Thanks for letting me crash your guys’ party every now and then.

Of course.

We’re happy to have you on. Now, I have to go. I’m driving back to Boston hoping to beat a storm, and my cat is burrowed into the box spring in my bed.

Wish me luck on getting her out of there to get her home. Good luck.

Good luck. I don’t envy you right now.

Yeah. Well, thanks everyone for tuning in live, and for all of our listeners who are listening later on in the download, and to our sponsors, StayFi and Bilt. We will see you all next week.