20 Key Trends in the Hotel Industry in 2024 (1-10)

The hotel industry has undergone a major transformation in recent years and is expected to continue to evolve in astonishing ways in 2024. Technology, and especially artificial intelligence, are positioned as key drivers of this change, enabling hotels to deliver more personalised and efficient experiences to their guests. In this article we explore the 20 key trends for the hotel industry in 2024.

Today, the role of technology in the hotel sector is key and everything indicates that it will continue to be so in the coming years. The constant technological evolution has allowed hotels to offer increasingly personalised and efficient experiences to their guests. Thanks to artificial intelligence, hotels have managed to revolutionise the way they interact with their guests, exceeding expectations and providing services and recommendations tailored to their tastes and preferences accurately and quickly.

In addition, the latest AI applications have facilitated communication with guests through chatbots and virtual assistants, which can answer frequently asked questions and provide information in real time.

On the other hand, technology has also had a positive impact on the internal management of hotels. Technology-based hotel management systems allow hotels to automate processes such as check-in and check-out, room management and staff deployment. By implementing advanced technology, hotels have been able to improve operational efficiency, reduce costs and increase profitability.

Where do hotel chains and tourism companies stand, what are the main challenges they face after overcoming the Covid-19 pandemic, how can they meet these challenges and what is the link with technology? Find out in the e-book "Hotel Sector 2022-2025: Major challenges and how to overcome them".

Data-driven hotels

Beyond artificial intelligence, data collection and data analysis have become an invaluable resource for hotel companies. The evolution of AI also allows hotel chains to collect and analyse even greater amounts of information about their customers. Thanks to advanced data analytics, hotels can anticipate their customers' needs and market trends, as well as forecast occupancy. Undoubtedly, data is a key tool to improve the quality of service in the hotel sector and to continue to surprise customers with innovative solutions. In this sense, the development of a data-driven culture will be one of the main priorities for companies in the sector in 2024.

The hotel sector in 2024

The impact of technology on the hotel sector in the coming years, and specifically in 2024, will continue to rise, with artificial intelligence taking centre stage.

Hotel forecasts for 2024 reflect a landscape of change and opportunity, marking a significant turnaround after facing a number of challenges in recent years. The pandemic and constantly fluctuating interest rates have been key factors contributing to the depreciation of hotel assets and a decline in tourism demand in previous years.

However, the scenario looking ahead to 2024 shows encouraging signs of transformation in the hotel real estate market. Emerging trends and projections of traveller behaviour, combined with technological changes, are shaping an evolving environment that is redefining the future of hospitality. This new landscape opens the door to innovative and strategic opportunities for those willing to adapt to changing market demands and take advantage of emerging trends.

Top 20 Trends in the Hotel Industry in 2024 (1-10)

1. Return to pre-pandemic investment and prices

The year 2024 is shaping up to be a period of recovery for the hotel real estate sector, with forecasts indicating a recovery in investment volumes and a correction in prices. Experts suggest that we are entering a phase of price adjustment and increased investment activity, causing hotel investors to be on their guard over the next 18 months. This scenario promises to make 2024 an auspicious year for building strong real estate portfolios.

In the new landscape, the hotel sector stands out as one of the most robust. Recent data reveals that the sector accounted for 31.4% of total investment during the first half of 2023, surpassing the average of 22.4% recorded between 2018 and in 2022. This promising trend is also projected for next year.

2. The intention to travel will grow even more

A July 2023 study, called the Changing Traveler Report, interviewed 10,000 people in 12 countries, analysing responses related to several variables such as generation, income, type of accommodation, travel plans and travel companion.

Stabilisation of Travel Demand in 2024

Within the forecast for 2024, 91% of respondents plan to travel at least the same amount as in the previous year, while 57% intend to increase their travel. Only 9% plan to travel less. 

Thus, as we approach 2024, travel demand is expected to stabilise, especially group and corporate travel. Hotels can capitalise on this trend through innovative marketing strategies, attractive packages and unique experiences that meet the changing interests of travellers. From the rise of group travel to the uptick in corporate travel, the hotel industry is poised for a year of sustained excitement in 2024.

3. Demand for international travel will double

In a marked change from previous years, there is a significant increase in the number of travellers planning to venture abroad, marking a major milestone in tourism and hotel forecasts for 2024. This projected increase underlines the importance of international travel in the coming year.

These projections for 2024 pose a positive challenge for the hotel sector, as strong demand is expected. Against this backdrop, there is an opportunity for hotels to prepare and adapt their services to meet the new expectations of a growing clientele.

4. Intention to spend more

With demand for personalised experiences on the rise, a shift towards attribute-based pricing is anticipated in 2024, with a focus on personalisation by location and amenities. As consumers increasingly seek personalised experiences, hotels will face operational challenges in managing room types and integrating amenities. Technology is expected to play a crucial role in addressing these challenges and ensuring a seamless guest experience.

In 2024, 87% of global travellers are expected to express a willingness to spend additional money on accommodation in 2023. In addition, 21% of Millennials intend to stay in luxury hotels on their next trips.

An additional aspect that stands out in hotel trends for 2024 is optimism regarding additional spending. A significant portion of travellers are willing to invest additional money in their accommodation, supporting the growing importance they place on personalised experiences and exclusive services.

5. The impact of digital platforms continues to grow

In the tourism landscape of 2024, the role of digital platforms stands out as a determining factor in global travellers' decisions. It is estimated that the average traveller is 2.5 times more likely to search for hotels through a search engine compared to other sources such as recommendations from friends or brand loyalty. In countries such as Thailand, this preference is amplified, with travellers 5 times more likely to use search engines.

Among specific search trends, 36% of Australian travellers search for accommodation primarily through search engines, followed by those from the UK and France. In contrast, Italians, at 32%, are more likely to use online booking platforms (OTAs) or websites. This behaviour is closely followed by the Spanish and Chinese, with 29% and 28%, respectively.

Social media continues to play a crucial role in the travel and hospitality sector, especially influencing Generation X travellers, whose connection to these platforms continues to grow.

6. The importance of a positive and safe digital experience

Hotel projections for 2024 highlight a growing sensitivity to bad digital experiences, with more than 50% of travellers choosing not to complete hotel bookings online due to these negative experiences. This phenomenon is most evident among the 75% of Generation Z and Millennials who cancel bookings for these reasons.

In response, security and creating a seamless digital experience emerge as crucial priorities in the design and operation of industry companies' websites. As modern travellers spend a significant amount of time online and are exposed to potential scams, it is considered essential to provide an online booking process that is simple, secure and easy. These elements emerge as critical to ensuring the success and satisfaction of the traveller in the digital age.

7. Unforgettable experiences are the priority

The evolution in travellers' expectations is evident, with three out of four confessing a change in their demands over the past year.

Today, what the contemporary traveller craves most is authentic and memorable experiences. Among the markets most hungry for these experiences are Indian, Chinese and Indonesian, especially the subgroup of young working people seeking luxury experiences.

As a result, luxury boutique hotels are projected to be in high demand by 2024, those able to offer unique and unforgettable experiences.

8. The hotel as a destination in itself

Hotels are undergoing a significant transformation, evolving into special spaces where travellers want to spend more time, whether for business or pleasure. This shift reflects the growing preference of today's traveller for this type of accommodation. An estimated 50% of travellers surveyed express a desire to spend most of their time in their accommodation during their next trip.

9. The definitive penetration of Artificial Intelligence in the hospitality industry

By 2024, Artificial Intelligence (AI) stands to be a transformative element in hotel operations, efficiently addressing the operational challenges the industry faces. In a context where manual administrative tasks have distanced the connection and empathy with customers, hotels are at a pivotal moment of change.

We see a whole generation of employees increasingly moving away from direct interaction with customers, immersed in administrative tasks. Aware of this transformation, it is anticipated that hotels will prioritise the use of AI to automate processes and operations.

This strategic move not only seeks operational efficiencies, but also acts as a catalyst to refocus existing staff on customer-centric skills. By leveraging technology to improve service, hotels are looking to bridge the gap and rediscover personalised and empathetic interactions with customers.

AI will not only streamline operations, but promises to elevate the overall guest experience, harnessing the power of generative AI, evidenced by tools such as ChatGPT and DALL-E last year.

10. Hypercommerce: the technological simplification of the hotel sector

The complex technological landscape poses continuous challenges to hotels, pushing them to ride the wave of rapid technological evolution. In this context, the adoption of hypercommerce emerges as a transformative strategy to simplify operations and meet guests' demands for personalised experiences.

The hypercommerce revolution extends to the way hotels interact with consumers, highlighting early engagement on platforms such as social media and conversational interfaces. This approach transforms the guest experience, from search to checkout, comprehensively simplifying hotel operations. It is a smart solution that addresses operational and customer engagement challenges, positioning hotels to thrive in an ever-evolving competitive marketplace.

How to harness and address these trends?

Technology has revolutionised the way we live and do business. And the hospitality industry is no exception. The adoption of innovative technologies can improve operational efficiency, optimise the customer experience and ultimately increase revenue.

In addition to technology adoption, leveraging data has become a crucial element for hotel chains. Intelligent data collection and analysis can provide deep insights into guest preferences and behaviours. This allows hotel chains to anticipate guests' needs and further personalise their experience. 

Indeed, one of the biggest issues facing hotel chains is the fragmentation of information. Although companies use different software and platforms to collect data, they do not have an integrated system that allows them to obtain a complete view of their activity. This makes strategic decision-making and change management difficult.

To solve this problem, a specialist can be hired to analyse all available data, but this requires an implausible amount of time and money. A simpler alternative is to use Hotel Management Dashboards, a set of analysis services covering all functional areas of the hotel industry.

Improve the strategic management of your hotel

Hotel Management Dashboards allows companies to consult indicators and results, and to manage activity in an integrated way from a single place.

Hotel Management Dashboards is a modular solution that can be adapted to the needs of each company. It integrates with own and external data sources, providing a complete view of hotel operations. In addition, it is easy to use, customisable and has a low acquisition cost. In short, Hotel Management Dashboards is the complete solution that hotel companies need to obtain a global vision of their activity.

Other hotel industry trends in 2024

This post is part of a two-part series - don't miss the other 10 hotel industry trends in 2024 in the second instalment of this series (11-20)!

Also, don't miss the main challenges of the hotel sector until 2025 in our e-book: "Hotel Sector 2022-2025: Grand Challenges and How to Overcome Them".