Hotel operators are under mounting pressure to turn every purchasing decision into a margin gain, and a recent HOTELS Magazine webinar in partnership with Entegra argued that the key lies not in gathering more spend data, but in using it more intelligently.
The discussion, titled “The Digital Layer of Procurement: Turning Spend Data Into Profitability”, centred on how owners and operators can use visibility into purchasing patterns, benchmarking and guided buying to...
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ols to improve both efficiency and returns. Speakers said the challenge facing the industry is no longer simply about cutting costs, but about preserving profitability in an environment where inflation, tariffs, fuel and borrowing costs continue to rise faster than revenue.
Kirk Pederson, chief operating officer of PM Hotel Group, said the sector is dealing with an expense base that remains stubbornly elevated. Rachel Dabrowa, vice-president of sourcing operations and engagement at Wyndham Hotels & Resorts, said procurement has become far more strategic as owners look beyond the cheapest upfront option and instead focus on the total cost of ownership. In her view, “every dollar counts”.
A recurring theme was the gap between having data and acting on it. Dabrowa said the real problem is not access to information but converting it into decisions. Debbie Shepard, director of digital solutions at Entegra, argued that operators need more than retrospective reporting if they want to change behaviour quickly enough to affect results.
That is proving difficult for hotel teams already stretched by day-to-day operations. Pederson described his company’s central office as a support hub that helps general managers make sense of purchasing data, rather than expecting them to analyse it themselves. He also pointed to the continuing frustration of linking PMS, POS, accounting and procurement systems into a single workable platform.
Artificial intelligence was another major topic. Shepard said procurement technology is developing cautiously, with providers prioritising accuracy and user trust. Dabrowa said Wyndham is already using technology such as Wyndham Marketplace and PriceIQ to give franchisees more immediate visibility into spending, a step she sees as essential if AI is to become useful in guiding decisions rather than merely processing transactions.
Wyndham has been among the more aggressive adopters of AI in hospitality. Hospitality Today reported that the company has committed more than $425m to AI initiatives, while other industry commentary has said its Wyndham Connect platform is already in use at more than 5,000 hotels. Those reports say the tools are being used for guest messaging, booking interactions, upselling and service requests, with the aim of lifting direct revenue while reducing front-desk workload.
The broader AI investment picture in hospitality also appears to be accelerating. Bay Street Hospitality reported that more than $1bn was funnelled into AI-linked hotel technology in 2025 and 2026, including revenue management software, conversational platforms and property systems. The same report said Wyndham Connect has contributed to upselling revenue and a rise in direct bookings at properties using voice functionality.
Even so, the panel said the biggest pressure still comes from owners facing refinancing strain and higher debt-service costs. Pederson said many assets have already been stripped of easy savings, leaving little obvious room for further cuts. At the same time, the speakers stressed that procurement savings must not come at the expense of the guest experience.
Dabrowa said hotels can often save money by focusing on durability and lifecycle value rather than the lowest sticker price. She gave the example of towels, where cheaper products may need replacing sooner and end up costing more over time.
The conversation also highlighted a series of practical “quick wins”. Shepard pointed to commodity switches such as pepper packets or yoghurt brands, as well as using group purchasing power for services like landscaping, pest control and elevator maintenance. Pederson said one of the biggest barriers is habit, joking that many teams keep buying the same products year after year simply because they are familiar.
The webinar ended on a pragmatic note: incremental change, not wholesale reinvention, is likely to deliver the best results. Dabrowa urged operators to start with one high-spend category and standardise it. Shepard recommended using invoice analysis and AI tools to identify savings opportunities. Pederson advised hotels to review purchasing throughout the year rather than waiting for an annual audit.
The message was clear: in a high-cost environment, profitability depends less on blunt cost-cutting than on turning spend data into faster, smarter and more disciplined decisions.
Source: Noah Wire Services
