Cloud Innovation at Scale

From Challenges to Opportunities

March 2020 brought unprecedented challenges for the hospitality industry. For Wyndham Hotels and Resorts, the world’s largest hotel brand with nearly 10,000 properties across 95 countries, the COVID-19 pandemic threatened to derail operations and revenue streams. Travel restrictions, plummeting demand, and economic uncertainty required the organization to act swiftly. Scott Strickland, Wyndham’s Chief Information Officer, faced a daunting task: maintaining operational efficiency while managing costs at an enterprise scale. The solution lay in a transformation strategy Wyndham had embarked on years earlier—cloud migration.

“We were already leveraging cloud technology before the pandemic hit, and that decision turned out to be one of the best bets we made as an organization,” Strickland remarked. By embracing a cloud-first philosophy and integrating AI-driven insights, Wyndham weathered the storm with agility, scalability, and efficiency.

Preparing for Crisis with Cloud Vision

When Strickland joined Wyndham, he was tasked with modernizing the company’s technology stack to support its growing portfolio of brands. The organization’s approach emphasized three guiding principles:

1. Cloud-First Philosophy: “If it’s not cloud-cloud, we’re not buying it,” became a mantra for Strickland and his team. Unlike hosted solutions, true cloud systems provided the elasticity Wyndham needed to adjust to fluctuating demands.
2. Platform Consolidation: The organization reduced its reliance on fragmented tools in favor of scalable platforms, simplifying integrations and operational maintenance.
3. Listening to Stakeholders: Strickland’s team engaged franchisees, employees, and customers to align technology investments with the most pressing needs.

These principles culminated in the migration of Wyndham’s central reservation system (CRS) to Amazon Web Services (AWS), making it the largest cloud-based CRS in the hospitality industry. AI tools embedded within the system optimized data processing, helping Wyndham analyze real-time demand and guest behavior.

Cloud-Driven Resilience During COVID-19

When the pandemic hit, Wyndham’s cloud-based CRS became the backbone of its operational resilience. The elasticity of the cloud allowed the company to scale down resource usage during the crisis, resulting in significant cost savings.

“The beauty of the cloud is paying only for what you consume,” Strickland explained. With reservation volumes at historic lows, Wyndham’s AWS-driven infrastructure automatically adjusted its computational needs, eliminating expenses tied to unused capacity.

The ability to optimize in real-time was further enhanced by AI capabilities. AI-driven analytics monitored booking trends and forecasted demand shifts, enabling the organization to make informed decisions about resource allocation. This functionality was especially critical as restrictions eased and markets began reopening at different paces worldwide.

AI’s Role in Optimizing Operations

AI played a multifaceted role in Wyndham’s crisis response and recovery. Key implementations included:

• Dynamic Demand Forecasting: Leveraging AI algorithms, Wyndham processed millions of data points from internal systems and external signals (e.g., flight cancellations, local COVID-19 restrictions). These insights allowed the company to predict regional demand patterns and adjust room availability dynamically.
• Real-Time Pricing Optimization: Wyndham’s revenue management system incorporated machine learning to optimize room rates five times daily. The system considered factors like competitor pricing, historical trends, and external events (e.g., a nearby airport closure or a local concert announcement) to ensure pricing remained competitive and profitable.
• Operational Efficiency at Scale: With AI-enhanced cloud systems, Wyndham’s IT team automated routine tasks, such as managing reservations and updating property-level configurations. This freed up staff to focus on more strategic initiatives and ensured consistent guest experiences across its properties.

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Franchisee Empowerment Through Data Insights

For Wyndham, franchisees are critical stakeholders. Strickland’s team worked to ensure that the cloud transformation directly benefited these small business owners, many of whom faced significant financial pressure during the pandemic.

Wyndham deployed mobile dashboards powered by AI to give franchisees real-time access to operational data. These tools provided actionable insights, such as occupancy trends and pricing recommendations, empowering franchisees to make data-driven decisions. “The system allows franchisees to accept or adjust recommendations easily,” Strickland noted. Over time, many franchisees learned to trust the AI’s recommendations, allowing the system to operate autonomously.

Results That Speak Volumes

Wyndham’s investment in cloud and AI technologies yielded measurable results:

• Cost Savings: During the pandemic, Wyndham’s operational expenses tied to IT infrastructure decreased substantially as the organization paid only for the resources it used.
• Scalability: The cloud infrastructure seamlessly handled fluctuations in demand, accommodating both record lows and surges as travel rebounded.
• Faster Innovation: AI-enabled insights accelerated decision-making, reducing the time required to identify and address market changes.
• Franchisee Satisfaction: The AI-driven tools provided franchisees with greater control and clarity, fostering trust and collaboration.

Lessons for the Future

Reflecting on Wyndham’s journey, Strickland identified key lessons for CIOs and technology leaders:

1. Invest Early in the Cloud: The flexibility and cost-efficiency of cloud systems are invaluable, particularly in times of crisis. Organizations that delay adoption risk being unable to respond to rapid market changes.
2. Prioritize Platforms Over Tools: Consolidating systems simplifies integrations and reduces maintenance costs, enabling faster innovation.
3. Align Technology With Stakeholder Needs: Listening to franchisees, employees, and customers ensures that technology investments deliver tangible value.
4. Leverage AI for Strategic Insights: AI is not just a buzzword; it’s a transformative tool for uncovering trends, optimizing operations, and enhancing decision-making.

The Road Ahead

As travel rebounds, Wyndham is doubling down on its technology investments. Strickland’s team is exploring new AI applications, such as generative AI for customer service and advanced analytics for sustainability initiatives. The lessons learned during the pandemic have solidified Wyndham’s commitment to innovation.

“We were using AI and cloud before they were cool,” Strickland quipped. “The real value lies in building systems that not only adapt to change but thrive on it.” Wyndham’s journey demonstrates the transformative potential of cloud and AI, offering a blueprint for other enterprises navigating the complexities of digital transformation.