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In this article

Trends in the hospitality industry

SNATIKA
Published in : Tourism and Hospitality . 11 Min Read . 1 year ago

Introduction

The hospitality industry is undergoing a massive change in the changing world. The trends in the hospitality industry have originated from several concerns and disruptions. While climate change has been steadily gathering more and more attention and is driving tourists to choose sustainability over luxury, technological advancements have increased expectations in the services of the hospitality industry. In this article, we will discuss the top ten trends in the hospitality industry.

Ten trends in the hospitality industry

1. Bleisure travel is an ongoing trend.

According to Expedia, in the US, it is estimated that 243 million business trips (60 percent) turn into bleisure trips. Welcome to the stress of remote and hybrid work. Thanks to the reach of the internet, incoming technologies like the internet, incoming technologies like 5G, and an ever-increasing user base of the internet, remote work, freelancing, and outsourcing are constantly becoming the new norm. Many employees now regularly work from home, wherever it is either permanently or on some specific days of the week.


This trend is expected to last longer than just the moment. This is not a trend, but it's expected to last longer as the internet age will reach new heights through its innovation. An unprecedented number of well-known businesses, led by tech giants, are taking a hybrid or flexible approach to work remotely, a trend that has been driven by the worldwide public health issue. The percentage of people who are permanently employed remotely is increasing. Overall, a majority of employees prefer to work from home for at least a few days each week.

 

All that being said, what do these topics have to do with the hospitality industry? How can hospitality employees use these developments in their industry? The answer lies in the new trend, bleisure travel. Both locals looking for a change of scenery and business and leisure travellers are using hospitality facilities as temporary offices.


Indeed, a workspace that includes a laptop table and a comfy couch with WiFi has become a critical component in any hospitality facility. This has been included in the checklist of most booking websites and is frequently requested by leisure travellers. Visiting with them, delicious coffee and power backup make a hospitality favourite an ideal place for these travellers. Hotels and F&B establishments are looking to capitalise on the trend and modify their offerings to fit the needs and wishes of this rising demographic.


Related Blog- The Top 10 Sectors of the Hospitality Industry


2. Holistic hospitality, health & well-being

After the pandemic, preventative medicine and self-care have unquestionably become en vogue. A recent McKinsey survey had found that wellness is important for 79% of consumers. Personal wellness through guided meditation and self-help is also on the rise due to the emotionally draining environment that most people find themselves in. Hospitality establishments, especially those with existing spa facilities, are well positioned to seize a sizable chunk of the wellness industry's burgeoning trillion-dollar market.

 

In addition to these spa offerings for relaxation and beauty, there is a rapidly expanding market for health diagnostic technology, natural and alternative medicine, lifestyle therapy, and customised treatment plans provided by professionals. They lead individual or group sessions to promote vitality, healing, stress management, emotional balance, mindfulness, and improved sleep. Many hospitality sectors have gone a step further and have in-house gym facilities, sports areas, swimming pools, yoga hubs, etc. There are even diet meals and diet experts in some hospitality facilities. All these health-oriented facilities boost health-conscious tourists' interests and make their stay memorable.


Related Blog- Revenue Diversification in Hospitality: Exploring Non-Room Revenue Streams

3. Digitised guest experiences

With the inception of the Internet of Things technology and its subsequent popularity, the ability to handle many areas of the visitor cycle and experience has increased. Apps are becoming more and more significant in how hoteliers manage the services they offer. It goes without saying that since the pandemic, the movement toward digital and contactless services has picked up steam. The more common usage of technology-assisted alternatives, such as smartphone check-in, contactless payments, voice control, and biometrics, is transforming traditionally used in-person services.

 

Consumers who are accustomed to using facial and fingerprint identification to unlock their smartphones and computers are anticipating the same simplicity when checking into hotels. Unfortunately, these changes are currently expensive to implement and maintain. This might hinder some facilities that want to offer a top-notch user experience to their visitors.


Related Blog- Best Practises for Supporting Guests in Applying for Tourism Visas


4. Personalization

Due to the bloom of social media and e-commerce, recommendation software has become mainstream. This induces personalization in everything they use for customers. The hospitality industry is no exception. Nowadays, tourists rant about personalization in every service they use. Today's visitors want to be treated with respect and with a personal flair in the service. Hospitality businesses are going beyond their conventional approaches to personally welcome visitors. Online marketing platforms like Mailchimp and Zoho have made personalised email marketing accessible to everyone, including hospitality facilities.


These are extremely targeted, audience-specific, and align with the interests of a potential customer. Due to the data collected through cookies, they provide insight into past purchasing or room booking habits. This helps hotels tailor their discounts, offers, and promotions to the customer's preferences and automatically provide similar services. This goes far beyond simply adding the customer's name to email greetings and includes deeper analysis through online marketing platforms.

 

Technology is used in one-to-one interactions between the visitor and the host. AI-driven chatbots have been shown to improve customer service both during the reservation process and when answering frequent queries. The use of management systems to track and improve revenue, customer interactions, property, channels, and reputation has a growing impact on hotel operations in general.


Related Blog- 8 Tourism Trends You Should Know


5. Experiment with economics and essentialism.

Customers ask for high personalisation as well as distinctive experiences. This may result in the demise of travel agents and the emergence of independent travellers. This also means that customers prefer economic solutions as well. Guilt from travel still exists. As a result, minimalism has been revitalised, and travellers are often content with less than they had hoped for. They no longer seek extravagant displays of riches; instead, they wish to spend their money sensibly, meaningfully, and with the intention of improving the world.


The recent crises and an increased sense of responsibility for sustainable tourism initiatives are some of the reasons behind this mindset shift. Niche properties, adventurous vacations, and relaxation retreats are in demand. Sustainable tourism that provides a fresh experience without wasting a tonne of money is in demand. Moreover, singular experiences that contribute meaningfully to local communities have become mainstream.

6. Asset management strategy

The asset-light strategy has gained popularity in the sector. The management of operations and real estate assets is now separate in many mainstream hospitality chains and businesses. This allows these businesses to concentrate on their core operations and increase efficiency. However, it results in increased complexity and potential agency issues, which explains the creation of new occupations like asset managers. In addition, new job profiles have evolved as a result of the hotel industry's growing complexity. In parallel, there has been an increase in the demand for mathematical skills like budgeting, forecasting, etc.


Related Blog- The Impact of Geopolitics on Tourism


7. Solo travel

The modern world is stressed. There are several internal struggles an individual now handles that need an outlet. Depression and anxiety are now more common than ever. 21 million US citizens alone have depression according to NIMH. Thankfully, travelling is a revitalising and energising experience, and most individuals are aware of this. In the era of mindfulness, many people have embraced the meditative benefits of spending time by themselves and exploring the large, wide world without any restrictions. They are now aware of the need for personal time to reflect and reinvigorate their lives.


They love engaging and making friends to the extent that suits them. Because of this, more and more travellers are travelling alone. The borders between hotel personnel and guests are being dropped, homey-inspired interior design decisions are being made, and a relaxed atmosphere is being fostered to help solo travellers feel at ease. Alternative facilities like home stays are making the headlines, which provide a family experience and new bonds for travellers. This fosters a sense of hotel community combined with a less pronounced barrier between visitors and residents. Solo travel is likely to become more common in the coming years.


Related Blog- How Solo Travellers are Changing the Tourism Industry


8. Sustainability

The increasing threat of climate change, pollution, and rising levels of awareness and concern over the well-being of the planet have been the driving forces behind sustainable tourism. Sustainability resumes its position as a current and defining element of the hospitality industry. More extensive ethical and environmental considerations are influencing decisions made at the hotel management level. These decisions are a logical extension of avoiding disposable plastics, eliminating superfluous paper consumption owing to opt-in receipts, and decreasing food waste.


Simple choices, like selecting towel rails to install during renovations, have exaggerated effects when they are made on a large scale. Eco-friendly measures are also widely accepted in the industry and sometimes even preferred by informed customers. Simple eco-friendly changes include using larger, locally sourced dispensers instead of tiny toiletries; using organic bed sheets that are ethically manufactured; and conserving electricity with smart bulbs, among other things. Options that are vegetarian and vegan also have well-known environmental benefits.


Related Blog - Sustainability in Facilities Management


9. Virtual reality

Though virtual reality is not a new technology, it was only during and after the pandemic that it made a reentry into the mainstream. It is now viewed as one of the most influential future technologies. The hospitality industry is using this technology to reap the benefits in the future. Following the trend toward aesthetically appealing materials, companies in the hotel sector invested in features like virtual tours that allow customers to imagine themselves in the setting. This allows customers to experience the service even before they have booked and gains the customer's trust in a hotel's services.

 

Videos offering 360-degree views of a restaurant's atmosphere, nearby tourist attractions, and nearby locations, for example, are the ideal way to make a business stand out in this internet world. However, making content accessible on several devices without requiring a VR headset is a challenge in reaching the widest audience with virtual reality content, as it always has been. Bringing the technology to frequently used handheld devices like smartphones and tablets could be a technological breakthrough that will aid the hospitality industy's future dreams.

 

VR can also be used in exhibitionistic settings like museums, art galleries, collections, etc. There, visitors should be able to use their smartphones with VR technology to access more information about the collections. Graphical or informative overlays are used in augmented reality to improve in-person settings. Visitors can use this tool to get restaurant opening hours, reviews, interactive maps with tourist information, and even to create user-generated content once they have downloaded the appropriate app.


Related Blog- How Smaller Properties are Changing Hospitality Industry


10. Staycation instead of travelling

According to TechRepublic, 78% of teams will have remote employees by 2028. The popularity of staycations is increasing with remote working schedules and freelancing. Many people believe that going abroad is either too expensive for a large family vacation or not worth the hassle of the weekend getaways of the past. Tourists are more interested in exploring deep within their countries where there are still gems of natural destinations far from the knowledge of mainstream tourism.


Many new hospitality facilities near such destinations offer these fresh destinations with the option to work from there. Therefore, the staycation trend has increased. Nowadays, there are packages in which one can work from the beach, work from farms, and even work from forests (Source: Pluria). As tourism and remote working opportunities abound, the hospitality industry is seeing a shift in different aspects of its services.


Related Blog- Eco-Friendly Hotel Design and Architecture


Conclusion

Following the changes in the modern world, the hospitality industry is adapting to technological and social revolutions. After the pandemic and the economic crisis, the industry is still bouncing back, and it needs fresh perspectives, ideas, and strategies to get back to pre-pandemic levels. New trends are reinvigorating the industry and positively driving change. The use of technology has led to massive adaptations in the operations and marketing strategies of the industry. Health-conscious travellers are looking for facilities that understand their needs for a healthy lifestyle.


Environment-friendly travellers are looking for alternative stays that conserve the planet through sustainable tourism. The remote workforce is using staycations, and stressed workers are increasingly travelling solo to get in touch with their inner selves. Finally, financial factors are also causing travellers to travel wisely. Only time will tell which of these trends will survive into the future. However, the adaptability of the hospitality industry cannot be underrated as it will bounce back with new solutions in the face of fresh challenges.

 

SNATIKA offers UK Masters in Tourism and Hospitality Management to senior professionals. If you have managerial experience, you can earn a UK Masters and a PG Diploma within 12 months! Moreover, the programme is online and self-paced, which helps you manage your time. Visit SNATIKA to find out more!


Related Blog- Highest Paying Jobs in Tourism and Hospitality Management


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