Hotel guests want more than a room, and Israeli hotels must adapt

The Israeli hotel industry has spent recent years talking about recovery from COVID, war, weak inbound tourism, labor shortages, higher costs and constant uncertainty. But the writer, who is the CEO and owner of the Melonot Metaylim hotel chain, argues that the real question is no longer when conditions will return to normal, but whether hotels should even want to go back to the old model. She says the market, travelers, employees, sales channels, service expectations and technology have all changed.

Her chain operates in Israel’s periphery, in the Galilee and the Arava, where she sees tourism as more than a room for the night. In her view, a hotel connects people with local communities, nature, small businesses, families, workers, suppliers, agriculture, food and regional experiences. That makes a hotel a platform, not just a physical asset, and means the industry cannot wait for stability that may never come.

She also warns that technology is not innovation unless it solves a real problem. Adding systems, dashboards and automation, she says, only matters if it shortens response times, reduces front desk workload, links marketing with operations and revenue management, speeds decisions and frees employees from bureaucracy. The chain has recently begun introducing AI agents, not to replace staff but to help managers and workers get information faster, spot patterns and spend more time on human hospitality.

Another mistake, she says, is treating the room as the core product. Guests still expect cleanliness, comfort, service and price, but they now also want context, local attractions, food, family options and authenticity. For her chain, the hotel is a gateway to a local experience, such as a stream, trail, winery or family restaurant. She concludes that in a volatile market, flexibility is a condition for business stability, and that the best hotels will be those with the most learning-oriented, adaptable and humane management culture.