Since 1974, Robert Rauch has been tracking our industry from the inside.
1974 – Old Fashion American Hotel Industry
At that time, the American hotel industry had just taken shape, and Holiday Inn, Ramada Inn, Sheraton, Hilton, and Marriott were the primary players. I transferred to the hotel school at Florida International University (FIU) and became a sales representative with Ramada. They paid better than the others then, and I have no regrets!
That first salaried position led to a training program that got me some experience at several hotels throughout the 1970s. After five years, I became General Manager in Chicago (thanks Peter Schruender, Jack Bornstein, Jerry Robin, Lou Weckstein, and Bob Schneider). There were no cell phones or automated property management systems (PMS). I did the night audit of a 535-room hotel on a Sweda cash register, and there were no computers. Revenue management was for the airlines, and hotel restaurants had a reputation for lousy food. Sales calls were made by walking into buildings and passing out business cards. The business was obtained via billboards, relationships with travel agents, and clients earned via sales calls and advertising with the Hotel & Travel Index (thanks, Melinda Bush).
1980’s – Technology Revolution
The 1980s began the technology revolution for hotels, thanks partly to Larry Cervanek, a guest lecturer I met at Florida International University (FIU) and an early adopter of hotel technology. Fax machines hit in 1983; my Embassy Suites got one first, PCs and MACs were developed later in the ‘80s, and hotel restaurants got better thanks to companies like Hyatt. Hotel revenue management took a page out of the airline book, and cell phones were essentially big car phones that you could carry around if you dared, but at least you could make calls from your car.
Reagan served as president, ended the Cold War, and ended the Carter economic debacle, and all was good. Special thanks to Randy and Carolyn Smith for STR, Peter Yesawich for MMGY, and Steve Rushmore at HVS for feasibility analysis. I left hotel operations for a while to join what is now Deloitte (thanks Randy Pullen, my boss at Deloitte).
1990’s – Hotel Competition Heats Up
The 1990s started slow and fizzled out quickly when the Resolution Trust Corp had to take back hotels (thanks, Rick Parizek, for giving me my first court-appointed receiver job). Bill Clinton was president and steered the economy back to normal after the Persian Gulf War. The Internet, invented by Al Gore (ha ha), took shape in the ’90s. Marriott and Hilton had developed Courtyard, Residence Inn, Hilton Garden Inn, and Homewood Suites. All four brands remain successful despite incredible numbers of brands competing. Thanks, Gary Wisinski, for partnering with me on the “54 hotels in one day” takeover by what was then the Crossroads Hospitality division of Interstate Hotels. A shout-out to my wife, Linda, for suggesting we buy a hotel instead of toiling at consulting work.
2000’s – Tech Bust, 9/11, and a Recession
The 2000s started with a tech bust, followed by 9/11 and a recession. I remember flying alone on an airplane with five crew members trying to find Wall Street money for our hotel projects in October 2001. Thanks, Joe Simone, for joining me at the Hilton properties we have had for over 20 years! 2005 the economy was booming, and technology and social media soared (think iPhone, Android, Twitter, and Facebook, all developed by 2007). We then got hit with the Great Recession that began in December of 2007 and lasted until 2009.
2010’s – Hotel Technology, Finally
The 2010s started as a transition from bust to almost boom times. We had a good run from 2010 to 2019, expecting a recession beginning in 2016, but it never came in this decade. Thanks to firms like Kalibri Labs, we got more laser-focused on customer acquisition costs and profitable revenue management by going granular. We started developing service robots (thanks to Relay Robotics and partner Gary Levitt for trusting my instinct on robotics for our Marriott) and caught up with other industries technologically.
2020’s – Pandemic, Recovery, and the Rise of AI.
The 2020s started with a complete meltdown in March 2020. Talk about depressing times. The Governor shut down our beaches in California and forbade us to drive anywhere if we were not essential workers. Business tanked to desperate levels, and hotels closed. It was literally like a plague hit us, and we are finally recovering substantially in 2025. It’s been quite a ride for 50+ years in the hotel industry. Artificial intelligence is listed as my top trend for hospitality in 2025, and while I did not use it at all for this article, it is happening. Enjoy the ride!
Curious for more? If this content sparked your interest, you’ll love what’s coming next. Be the first to hear when my new book is released by signing up for Hospitality Innsights, my monthly newsletter filled with industry trends, forecasts, and a behind-the-scenes look at the hotel world. Or follow me on LinkedIn to stay connected. -Bob Rauch
Robert Rauch, CHA, has been an owner-operator of hotels for several decades and is founding chairman of Brick Hospitality and owner of R. A. Rauch & Associates, Inc. If you’re in need of hotel management or consulting services, Bob Rauch and his team are ready to help.
