Introduction

When analyzing business processes in the hospitality industry, one striking observation emerges: we do not truly manage consumption. Or rather, while we do manage it to some extent, we could be doing so much more effectively. To better grasp the significance of this statement, let’s compare it to retail businesses.

Imagine a hotel as a retail store (such as Konzum, DM, or Aura). In this analogy, booking and revenue management function as the shopping cart that a customer takes upon entering the store. However, once they reach the checkout counter—the equivalent of a guest’s stay in the hotel—they enter a completely different environment: the world of impulse purchases. The key difference? Impulse purchases in retail are strategically managed, while in hospitality, they remain largely unstructured.

Unlike retail organizations, where the customer’s primary point of transaction is the checkout counter, hospitality organizations operate in a more fragmented manner. Guest spending opportunities are scattered across multiple touchpoints—restaurants, spas, room service, guided tours, premium experiences, and more. Yet, unlike the checkout counter in retail, which is designed to encourage last-minute spending, these touchpoints rarely operate as a unified system of consumption management.

Bridging the Gap: The Role of Technology

The only way to integrate this fragmented business process is through technology that seamlessly connects all communication with the guest throughout their stay. A well-integrated communication system gently guides the guest toward spending opportunities that offer perceived value, enhanced experience, savings, or a combination of all three.

Currently, marketing and sales efforts in hospitality focus predominantly on booking and branding. However, a key question arises: Do we have a defined business process for managing guest consumption? If so, what is its current level of maturity, and how do we plan to develop it further in the future?

The Future of Consumption Management in Hospitality

It is evident that effective consumption management will become a crucial business process in hospitality moving forward. Hotels and resorts will need to intensify their focus on structured guest spending strategies, leveraging technology, behavioral insights, and personalized recommendations to create a seamless, value-driven consumption experience.

By recognizing that guest spending is not merely a byproduct of their stay—but rather, a process that can be gently guided, optimized, and enhanced—hospitality businesses can unlock new revenue streams, improve guest satisfaction, and create a more engaging, immersive experience for their customers.

The next step? Developing a structured approach to consumption management—one that aligns with the principles of the Augmented Department, where technology and human insights work in harmony to shape the future of hospitality.