With changes in decision-making and purchasing power, the future of the hotel industry looks bright. However, the only way to see solid success is to embrace the inevitable changes.
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So, what can you expect in 2022, 2023, and beyond? The wait is over; this post will show you how the future of the hotel industry looks like. Ready? Let’s dive in!
6 Hotel Management Trends that Will Continue to Rule the Future
1. Sustainability is the New Normal
If we consider the U.S. workforce, millennials have officially taken over the U. S workforce. Moreover, the reign will last till 2034. At that point, Gen X will see full-scale employability (reaching up to 78 million). So, it is not a wise idea to ignore them. One of their top demands is that hotels go green.
As per Diana Verde Nieto, co-founder and CEO of Positive Luxury,
“Millennials are twice as likely to support brands with strong management of environmental and social issues, and expect brands to not only manage their impact but communicate it.”
Let us have a look at some of the statistics that support our claims.
- 55% of global travelers want to choose sustainable accommodation, but the lack of appealing options makes it difficult.
- 87% of millennials believe that business success is proportional to its impact on the world. Millennials have a hard time trusting businesses.
Thus, the future of the hotel industry involves sourcing food from local farms, monitoring the use of water, and removing single-use plastics from dining centers and restaurants.
Besides, hotels will focus on multi-purpose spaces that promote health and wellness for an increase holistic guest experience. While these upgrades can eat up a significant chunk of your time, the payoff is worth the time!
2. Global Outlook
Well, local events and targeting a specific set of audiences is great; the hotel industry needs to think on a global scale.
As per global hotel studies, the industry is set to witness an increase in tourist destinations; previous generations had not even considered.
The demand for international travel is flourishing, causing top airlines to add more direct flight routes to foreign countries. Ignoring the effects of globalization can be detrimental to your hotel’s health. A possible solution for this is to have both localized management teams and an oversight hub to boost international expansion.
Besides, events and meetings no longer need to be local. International venues are eager for more group sales, and attendees will be more than willing to travel than ever.
3. Old Threats and New Inspiration
Did you know, Airbnb now offers 4 million places for guests to stay?
Besides, the travel giant even partnered with Century 21 and positioned itself as a real-estate leader. So while in the past, hotels considered Airbnb as a threat, things are changing at a fast pace.
But, what is actually happening?
Pressure from these giants is pushing hoteliers to adopt better practices and providing better customer experiences.
As Airbnb continues to expand into hotels, more hotels are expected to continue to foray into home-sharing, which means 2x more opportunities!
More hotels will realize that working in tandem with giants is a great hotel marketing strategy and will make way for better offerings.
The coming years will see a balanced distribution among leisure-focused Airbnb and hotels moving towards home-sharing to satisfy group demands. As the shift to the new marketplace happens hotels, will be able to reap more profits.
4. Addressing Peak Demands
There will be a significant increase in hotel bookings in the coming years. Here is what Jim Chu, the Global Head of Development & Owner Relations, Hyatt Hotels Corp has to say.
“Be aggressive. Continue to move forward. We’ve never had this demand from all directions.”
United States Commercial Real Estate Services (CBRE) forecasts consecutive growth for the U.S. hotel industry through 2022-2026. Besides, the hotel market will see steady growth in the future.
The future hospitality trends look overwhelmingly positive, and hotels are investing heavily in construction and renovations. Hotels will also witness healthy competition and adopt the smarter way to become customers’ favorites.
5. Increased Use of Social Media for Promotion
Unfortunately, many hotels are lagging as they are not using social media to promote their hotel services. It is not only a great marketing medium, but it also helps you cater to a diverse set of customers at the same time. These include youth, influencers, and corporate business travelers.
The future of the hotel industry will see more hotels using social media as customer care and driving revenue. This means you will get more opportunities to engage with your customers when they visit your social media channels. These interactions will help you build brand awareness and customer loyalty.
The modern online customer shares their travel and destination experience on social media platforms. These social media platforms will act as a reference for people planning their vacation, looking for the best stays, and finding out the exciting menus.
Thus, with time hotels have new avenues to interact with customers, make interesting offers and build long-term relationships.
6. Rise in Video Marketing
Video marketing is becoming a popular medium for hotels. In the future, hotels will be able to attract 80% of guests with video engagement.
Videos are a popular medium to highlight the specialties of your hotels and restaurants. You can even use it to give your customers a preview of what facilities you will provide beforehand.
For example, you can attract guests with videos of delicious cuisines and share videos of smart rooms to make them visit your hotel. Besides, 64% of users are likely to book rooms after watching a video.
Thus, the future of the hotel industry will see hoteliers creating custom videos and engaging in innovative ways to retain customers.
This blog discussed the future of the hotel industry and how the segment will change for the better. If you are new to the hotel business, you must use hotel management software to streamline your processes and stay updated with the latest trends.
Are you still searching for a hotel management solution? Then, schedule a free demo with us to find the best one!