A cornerstone of the global economy, with overall revenue expected to reach $426 billion by the end of 2024, the hotel industry is an ever-changing landscape, constantly evolving to meet the needs of modern travellers. The best in the business are embracing emerging technology and innovative ideas to usher in a new era of hospitality.
Recent years have seen a record number of openings and rooms, with Hilton breaking records in 2023, Marriott seeing a net growth in rooms by 4.7 per cent and Hyatt enjoying an 85 per cent increase in rooms between 2017 and 2024.
Global travel is gaining momentum too, with outbound Chinese travel on course to reach pre-pandemic levels, Asia Pacific travel seeing a consistent upward trend and inbound tourism to Europe predicted to supersede previous records this summer.
Change is in the air
The hospitality industry is changing at a rapid rate. Driven by emerging technologies, shifting guest expectations and a clearer focus on sustainability and ecological issues, the best hotels are looking to lead the charge towards an exciting future.
The guest experience is taking centre stage and innovative brands are now looking to offer a hyper-personalised experience, where every detail counts. And while modern hotels look to become destinations in themselves, their surroundings are increasingly key – immersing guests in the local culture offers them a unique experience and, ultimately, helps hotels position themselves for long-term success. Here are the hospitality industry trends to look out for…
High tech in hotels
Hotels are harnessing high-tech solutions to provide a better experience for guests. From simple things like digital cashless tipping and streaming services on room TVs to harnessing big data to predict guest preferences and embracing renewable energy, there is a lot of change underway.
Artificial intelligence (AI) can be harnessed for data analysis to personalise the guest experience like never before. AI-powered concierges, like Hilton’s Connie – a futuristic robot that’s powered by IBM Watson’s AI, can dish out information on hotel amenities, while also giving you advice on the hottest dining and entertainment spots in the area. Then there’s Bluetooth technology, which can be utilised to provide guests with a mobile “key”, enabling a more streamlined guest experience
From virtual reality tours and predictive room service to AI-powered sustainability systems that can optimise energy, electricity and water usage at an unprecedented level, emerging tech in hotels will play a big part in shaping the future of hospitality.
Hyper-personalisation
In the digitalised era, our daily lives are increasingly streamlined and personalised. For hotels to succeed, they must find a way to deliver the kind of personalised experiences that modern travellers expect, using new advancements in technology to know their guests like never before.
Hotels can take a data-driven approach to gain a deeper understanding of their guests’ preferences. By collecting data at each of the touchpoints throughout the guest experience – including pre-arrival surveys before, Internet of Things (IoT) data tracking during and AI-based feedback loops after their stay – hotels can create a bespoke experience. This can involve personalised pricing, AI-based customised concierge services and GEO-targeted notifications about promotions or events happening in the nearby vicinity.
Data analytics can be used to implement dynamic pricing based on guests’ previous booking history, while AI can be harnessed for predictive analytics. These complement pre-guest surveys to find out their preferences on everything from room location to bedding and pillow types.
Meanwhile, hotels can implement IoT devices, enabling guests to control room settings through a mobile app or by using a virtual assistant via voice commands.
Epicurean experiences
One of the biggest hospitality market trends in recent years, culinary tourism reached a global market value of $946.4 billion in 2023, a figure that’s projected to increase to $3.5 trillion by 2032. A new generation of luxury hotels with restaurants is creating immersive guest chef experiences and cooking masterclasses, upscale wine tastings and authentic food tour itineraries.
Meanwhile, as an increasing number of travellers build their holidays around gastronomic travel experiences, successful restaurateurs are looking to get in on the act by launching their gourmet hotels, catering to the evolving tastes of today’s travellers.
There’s also an increasing number of hotel restaurants earning Michelin stars, enticing guests from far and wide, together with luxury resorts such as Ikos, who invite Michelin-starred chefs to devise menus for their restaurants.
Boutique goes big
The concept of luxury travel is being redefined. Today’s traveller is looking for a richer experience, one that focuses on the uniqueness of a location, provides a certain charm and comes with a personal touch. So it’s no surprise that the popularity of boutique hotels is soaring.
Boutique hotel marketing focuses on the uniqueness of the brand, offering a guest experience that focuses on personalisation and authenticity. The best boutiques build genuine connections with their guests, forming a loyal audience and cementing long-term growth.
Even the world's leading hotel brands are adapting to the times, shifting their marketing and hospitality branding and creating their own boutique brands. IHG has recently acquired the chic boutique brand Ruby, following in the wake of Marriott’s Moxy and Hilton’s Tru – both vibrant boutique brands that are captivating a new audience with quirky, youth-focused hotels.
The data shows people want to travel more sustainably. A Booking.com survey found that 67 per cent of travellers who see sustainable practices while travelling are inspired to be more sustainable in their everyday lives, while 62 per cent say they are the best version of themselves when they travel sustainably. Accordingly, the hospitality industry is increasingly looking to adopt sustainable practices, with a greater awareness of ecological issues and the evolution of guest expectations as key motivators for the shift towards a greener focus.
More hotels are innovating with energy-efficient systems that cut costs, save waste, and reduce carbon footprints. This includes the likes of photovoltaic panels, Power over Ethernet (PoE) technology used to power low-energy devices, Energy Management Software (EMS), and smart metres that analyse and control energy consumption.
Hotels are also taking measures to support their local communities, both culturally and environmentally, engaging in clean-up initiatives, local hiring schemes and focusing on sourcing food from local producers. Modern hospitality brands are also incorporating sustainability into their brand identity, informing and educating their staff and guests on green policies.
The nomadic life
Hotels are shifting their focus to cater for the remote work revolution. The rise of the digital nomad means adapting to a new generation of professionals, and hotels are reshaping the guest experience in a variety of ways.
Communal areas are being reimagined, with a modern co-working environment being integrated into the design. Meeting rooms, event spaces and business centres are increasingly key, with special events and collaborations used to foster a sense of community and cultivate an entrepreneurial ecosystem.
Hospitality industry marketing is also shifting towards digital nomads, with some hotels marketing themselves as remote working hubs, showcasing the unique benefits they offer, from technology and design to a sense of collaboration and community – a place to be inspired.
Business meets leisure
The rise of remote work and an increase in flexibility has led to a huge increase in ‘bleisure’ travel. It’s a questionable portmanteau, but undoubtedly a huge draw for hotels looking to maximise their profits with a focus on providing the best business and travel experiences for guests.
Inspirational workspaces, a fast internet connection, a comfortable environment, and quality facilities are big priorities for those combining work with pleasure, as is a genuine knowledge of the local area and connection with the culture. Hotels that strike the right balance and cater for both business and leisure will increase the return rate of guests and cement a reputation as providers of exceptional accommodation for modern travellers.
A new way of marketing
With a new wave of innovative techniques and technologies, digital marketing in the hotel industry can help hotels stand out and attract their target audience, driving engagement and increasing bookings.
Virtual reality marketing can offer guests an immersive ‘walkthrough’ experience, giving them a sense of your hotel and the services they can expect. Another innovative technology, AI chatbots can allow you to communicate with guests instantly, while voice search functionality enables your guests to search for services and experiences via voice-activated technology, or even control settings such as lights, heating or entertainment centres.
Hyper-personalised marketing schemes can be utilised to deliver tailored content to guests through AI and automation technology. And SEO-rich content, with a focus on content marketing and social media marketing for hotels using Google’s E-E-A-T framework (experience, expertise, authoritativeness, and trustworthiness) will be increasingly key to increasing visibility and search engine rankings.
What’s next?
At Peregryn, we know that effective digital marketing in the hospitality industry can be the difference between success and failure. We are an expert hotel digital marketing agency with experience working with leading hotel brands including Ikos Resorts and the Canaves Collection, providing professional support for marketing and branding teams with a combination of cutting-edge SEO strategies and creative content campaigns. If you’re looking for an industry leader to help you take the next step, we’re ready to take your brand to greater heights.
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