The Emergence of PIP-Driven Sales in Hospitality: Anticipating Trends for 2024

By Gavin Fraser | March 22, 2024

In the ever-evolving landscape of the hospitality industry, adaptation and innovation are paramount. Among the many strategies that have emerged, one particular trend has gained significant traction in recent years – PIP-driven sales. Property Improvement Plans (PIPs) have long been a standard practice in the hospitality sector, but their role in driving sales and shaping the industry’s future has taken on new importance.

Understanding PIP-Driven Sales

Property Improvement Plans, typically initiated by franchisors, outline a series of required upgrades and renovations for properties within a hotel brand’s portfolio. These renovations can encompass anything from aesthetic improvements to operational upgrades aimed at enhancing guest experience, ensuring brand consistency, and maintaining competitiveness in the market.

What sets PIP-driven sales apart is their direct impact on revenue generation. By investing in PIPs, hotel owners and operators aim to enhance the overall quality of their properties, thus attracting more guests and commanding higher room rates. Moreover, meeting PIP requirements often results in improved guest satisfaction, leading to repeat business and positive word-of-mouth referrals.

The Rise of PIP-Driven Sales:

In recent years, the hospitality industry has witnessed a surge in PIP-driven sales for several reasons:

  1. Brand Standards and Competition: As competition within the hospitality sector intensifies, adherence to brand standards becomes non-negotiable. Properties that fail to meet these standards risk losing their franchise agreements or being outperformed by competitors that invest in renovations.
  2. Guest Expectations: Today’s travelers are more discerning than ever, with heightened expectations for comfort, amenities, and overall experience. Properties that undergo PIPs can better meet these expectations, thus attracting and retaining guests in an increasingly competitive market.
  3. Technology Integration: Many PIPs now include requirements related to technology integration, such as upgrading to smart room features, enhancing Wi-Fi connectivity, or implementing contactless check-in systems. These technological advancements not only improve operational efficiency but also align with evolving guest preferences for convenience and connectivity.
  4. Sustainability Initiatives: With growing environmental consciousness among consumers, PIPs often include elements aimed at enhancing sustainability, such as energy-efficient lighting, water-saving fixtures, and eco-friendly materials. These initiatives not only appeal to environmentally conscious travelers but also contribute to cost savings in the long run.

Anticipated Trends for 2024

Looking ahead to 2024, several trends are expected to shape the landscape of PIP-driven sales in the hospitality industry:

  1. Emphasis on Health and Safety: In the wake of the COVID-19 pandemic, health and safety have become paramount concerns for travelers. PIPs are likely to incorporate enhancements such as improved ventilation systems, enhanced cleaning protocols, and touchless technologies to minimize contact points and reduce the risk of transmission.
  2. Personalization and Customization: With the rise of data analytics and guest profiling, PIPs may include provisions for personalizing guest experiences. This could involve implementing tailored amenities, services, and experiences based on guest preferences and past behavior, thereby fostering loyalty and increasing guest satisfaction.
  3. Flexible Spaces and Hybrid Models: As remote work and virtual events become more prevalent, hotels may adapt their spaces to accommodate hybrid gatherings, offering state-of-the-art technology for virtual meetings alongside traditional event venues. PIPs may focus on creating flexible spaces that cater to a variety of functions, from coworking areas to social hubs.
  4. Integration of Augmented Reality (AR) and Virtual Reality (VR): PIPs may incorporate AR and VR technologies to enhance the guest experience, allowing for virtual tours, immersive storytelling, and interactive content that showcases hotel amenities and local attractions. These technologies can differentiate properties and appeal to tech-savvy travelers seeking innovative experiences.

The rise of PIP-driven sales in the hospitality industry signifies a shift towards proactive investment in property enhancements to drive revenue growth and stay competitive in a dynamic market. As we look to 2024 and beyond, hotels that embrace PIPs as a strategic tool for innovation and adaptation will be better positioned to meet the evolving needs and expectations of travelers, ensuring long-term success in an ever-changing industry landscape.


Gavin Fraser

Gavin Fraser is an Editor at Hotel Interactive, a leading provider of online resources and information for the hospitality industry serving as a hub for industry news, trends, and insights. Gavin covers the hospitality sector for, distributes its e-newsletter, and moderates panel discussions for the company’s BITAC events.

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