In the last issue, we talked about enshittification, a term Rafat Ali has used to describe what happens when businesses slowly degrade when they shift from serving users to extracting profits. At first, they serve the customer, then shareholders, and eventually, everyone’s experience suffers. Hotels aren’t immune; loyalty programs, resort fees, and shrinking service levels are all symptoms of the same slide.
At the HTA conference, STR tossed another word into the mix: bifurcation. That’s the industry’s way of describing a split market, high-income travelers still spending big, while everyone else is pulling back. Luxury is holding strong while budget and select-service are under pressure.
And it’s not just consultants saying it. Marriott’s CEO flagged the same bifurcation trend at a recent investor event.
So now we’ve got names for two forces shaping the hotel landscape: enshittification (the slow decline of value) and bifurcation (travelers splitting into haves and have-nots). Both of these phenomena are on display in this now-viral TikTok video taking to task a Waikiki resort. Can you name the resort? Do you agree with here take? Are you enshitfying your guests experience?
