In the coming years, the hospitality industry is expected to undergo a number of significant changes, many of which will be driven by technological advances. The latest research on hotel industry trends in the immediate future highlights the role of artificial intelligence and advanced data analytics; the importance of customer experience, personalisation and new values such as sustainability. We explore the top 20 trends that will shape the hotel market in the coming year.
In a world where technology is advancing by leaps and bounds, the hospitality industry is facing an unprecedented transformation thanks to the pivotal role played by data analytics and information and analytics technologies. Beyond simply accommodating travellers, modern hotels are looking to provide exceptional and personalised experiences for their guests. This is where rich data and analytics tools stand as the foundation for innovation.
The presence of technology in the hospitality space is nothing new, but it is undeniable that data collection and Big Data analytics have completely transformed the ability of these companies to deliver personalised and valuable experiences to their guests as a loyalty-building strategy. In this context, the key lies not so much in the choice between different analytics tools, but in the ability to effectively interpret the results obtained, thus enabling more informed and accurate decision-making.
New trends will also come with new challenges that will shape the future of the industry in the years to come.
Explore in greater depth the challenges facing the hospitality industry from 2022-2025 and discover strategies to address them in our exclusive guide: "Hospitality 2022-2025: Grand Challenges and How to Overcome Them". This resource provides a detailed analysis of the key issues facing the hospitality industry today and in the immediate future, along with the latest industry data and guidance on how to effectively address and overcome these obstacles.
In the first part of this series of posts on the 20 big trends in the hotel industry in 2024, we explored the following trends:
Recuperación del sector inmobiliario hotelero: Las proyecciones para 2024 indican una recuperación de inversiones y estabilidad de precios.
Simplifying processes through technology: Strategies to simplify operations and meet demands for personalised experiences are increasingly important.
Below, we list the 10 other key trends (11-20) that are expected to shape the hotel industry landscape in the coming year.
As we discussed in the first instalment of this series, data silos are currently the main enemy of hotel chains. In fact, during the recent Converge 2023 Hospitality Revenue Summit, Shane O'Flaherty, Global Head of Travel, Transportation and Hospitality at Microsoft, identified data silos as one of the industry's biggest challenges, highlighting the need to overcome this complexity, which is exacerbated by the legacy systems that exist in most hotel chains.
However, the report "Future Predictions", developed by IDeaS, a leader in hotel revenue management software and services, projects a significant revolution in this area in the coming year. According to the report, removing these data barriers, through closer partnerships and system integration, will enable the industry to more fully understand the total revenue potential of guests by 2024, highlighting the importance of cross-departmental decision making.
It is common for hotel chains to create data silos due to legacy systems, rapid growth, separate departmental functions, decentralised management and the complexity of guest data. Overcoming these challenges requires modernising technology infrastructure, adopting cloud-based solutions and implementing data integration standards. Eliminating data silos is crucial to deliver more personalised and efficient guest experiences.
Although hotel companies accumulate an impressive amount of valuable data about their customers, this information often comes from disparate sources that prevent them from viewing a complete picture of their guests and their own business.
Bismart, which has long experience working with large hotel chains, has created Hotel Management Dashboards to address this pressing need for hotel chains. The solution is designed to break down information silos, allowing hotels to access all their metrics and manage their business in one place.
Hotel Management Dashboards provides a unified and comprehensive environment to monitor and analyse key results in several areas of the hotel industry. The solution, which is perfectly adapted to the specific needs of each hotel, integrates and synchronises with different data sources, both internal and external. It provides a complete and detailed view of the hotel's performance, presenting information in an accessible and user-friendly way, without the need for programming knowledge, and allowing exceptional graphical and functional customisation.
Personalisation is undoubtedly another key pillar for the hotel industry in 2024. According to detailed research from Forrester Research, more than 55% of travellers value brands that tailor information to their preferences. 72% are interested in participating in loyalty programmes designed to address their unique preferences, and 38% are willing to invest more in a highly personalised experience.
In this regard, by 2024, hotels are expected to intensify their efforts by leveraging customer relationship management systems such as CRM or Customer Data Platorm and behavioural data to create offers and communications aligned with guests' preferences, thereby improving their overall experience.
Recent research also suggests that in the coming year, personalisation in the hospitality industry will shift towards investment in data analytics for guest profiling (buyer persona). The aim is to anticipate their needs, offer personalised services and ensure a seamless experience from booking to departure.
The importance of guest experience in the hospitality industry will further intensify in 2024. In fact, guest experience is projected to be a dominant trend in the coming year. Hotels recognise that exceeding guest expectations is essential to building loyalty and standing out in a competitive market. From the booking process to the stay and post-stay, personalisation and exceptional service become paramount.
Hotel companies are now focusing on understanding their guests' individual preferences, using advanced data analytics and artificial intelligence technologies. In the coming year, hotels are expected to tailor their services, offerings and communications more precisely to the specific needs of each guest, creating memorable and unique experiences.
This focus on customer experience will not only contribute to guest satisfaction, but will also positively influence online reviews and hotel reputation. In a market where customer feedback is crucial, delivering exceptional experiences becomes a key differentiator for hotels in 2024.
In an environment of fleeting attention and a multitude of booking channels, hotels recognise the importance of leveraging their digital and social media strategies. Creating accurate strategies, aligned with short-tail platforms such as TikTok and Instagram, is essential for hotels to not only stay relevant, but also make effective connections with their guests.
On the other hand, in 2024, the selection of accommodation through external digital portals will continue to grow. It is therefore essential for hotels to strengthen their digital presence and take control of their online presence, both in-house and on external sites.
Looking ahead to 2024, hotels will maintain their focus on growing direct business as an imperative strategy. Aiming to reduce reliance on third-party platforms, they are actively intensifying their direct booking channels through exclusive offers, personalised incentives and strong loyalty programmes.
By fostering direct communication with guests, hotels are seeking not only to maximise revenue, but also to strengthen long-term relationships, thereby consolidating their brand presence. Aware of the enduring value of direct bookings, hotels continue to invest in strategies that connect with modern travellers, ensuring a seamless and personalised booking experience. In an environment characterised by continuous change, commitment to direct business growth is the cornerstone for hotels to remain strong in the competitive landscape of the hospitality industry.
Facing a decline in bookings in 2023, Google is at the crossroads of requiring a strategic shift. With growing demand in the corporate and leisure travel markets, the tech giant faces the challenge of adapting to changing dynamics and diverse traveller preferences.
In a scenario where the traditional focus on leisure travel may be declining, Google's reinvention becomes essential to effectively address the diverse needs of travel segments. This process becomes a crucial factor in maintaining Google's relevance and leadership in the ever-dynamic travel industry.
In the hotel industry, profit optimisation has gone from a luxury to an urgent necessity. Hoteliers face economic challenges such as inflation and rising labour costs as central banks seek to control inflation, marking the end of the era of low interest rates and easy access to money. This shift leads to higher borrowing and debt servicing costs, which significantly reduces the share of income going to investors, with less attractive capitalisation rates.
In response to this constant financial pressure, hoteliers are expected to go beyond simple revenue optimisation, embarking on substantial measures to optimise total profits. This strategic approach aims not only to maximise revenues, but also to effectively balance costs, thus representing a proactive response to changing economic dynamics. In this landscape, hoteliers are exploring innovative approaches to ensure financial sustainability, while seeking to maintain quality and competitiveness in a dynamic hotel market.
Hotel chains are undergoing a remarkable transformation, adopting an approach that emulates the airline model by integrating additional services such as transfers and car rental. This strategic shift, focused on enhancing the guest experience, not only seeks to improve service quality, but also opens up new revenue streams for hotel chains. Some leading establishments are exploring innovative partnerships, such as collaborations with local attractions or exclusive experiences, in order to stand out in an increasingly competitive market.
This dynamic evolutionary process not only involves operational adjustments for independent hotels, but also drives the implementation of creative strategies to adapt to changing guest expectations and innovative service offerings that large hotel chains are introducing to the market.
Adaptability and creativity emerge as essential factors in this ever-changing competitive landscape.
The hotel industry is projecting a substantial revitalisation in Meetings & Events (M&E), anticipating a 135% recovery from pre-pandemic spending levels by 2024.
By 2024, meetings and events are expected to reach 133.5% of levels recorded in 2019, according to Knowland. Visionary hotel chains understand the importance of diversifying their revenue streams beyond rooms, as up to 60% of hotel revenues come from the M&E sector, making it a crucial opportunity.
Success lies in implementing a comprehensive M&E strategy, ensuring that every event space is exploited to its full potential. IDeaS highlights that more hotels are poised to conquer this new frontier in revenue management by 2024.
Sustainability remains an essential pillar for the hotel industry, highlighting the importance of the key elements: People, Planet and Profit. Beyond simply being an ethical choice, the commitment to environmentally friendly practices, social responsibility and financial viability has evolved into an economically fruitful decision.
In response to complex consumer expectations and workforce challenges, technology emerges as an imperative for economic sustainability. Investment in technology solutions that automate repetitive administrative tasks will experience a boost, freeing staff to concentrate on higher value aspects of the business.
The adoption of environmentally friendly technologies, such as smart rooms with efficient thermostats, not only provides greater control for guests, but also reduces operating costs. Measures such as replacing bottled water with dispensers contribute to improving the experience and reducing plastic waste.
Social sustainability, ranging from local sourcing to community partnerships, adds to carbon footprint reduction. These initiatives not only make hotels stand out in a competitive marketplace, but also strengthen direct customer relationships, fostering more meaningful and profitable business. In the future, it is anticipated that hotels will integrate environmental sustainability into their pricing strategies and adopt holistic carbon offset models.
If you want to start implementing strategies to prepare your company for the new key trends of the coming year, don't miss the e-book "Hotel Sector 2022-2025: Grand Challenges and How to Overcome Them".
In the e-book you will find the steps to follow and the strategies to implement for hotel chains that want to move forward at a strategic and competitive level.