Key Takeaways:
- The hospitality industry is experiencing significant growth, and to thrive in this environment, hotels must be prepared to meet evolving customer demands.
- From artificial intelligence to contactless payments and smart hotels, integrating technology into operations is crucial for enhancing the guest experience.
- Trends like green hospitality and hyper-personalization are gaining traction, highlighting the importance of environmental responsibility and tailoring experiences to individual preferences.
With people learning to balance between work and life, the travel and tourism market has seen a significant boost. And that boost has impacted hotel markets the most! The hotel market is projected to reach a market volume of US$446.50 billion in 2024.
It means that you must be prepared to meet the new customer demands in the ever-growing hotel market. But to meet demands, you must be aware of the trends in the hospitality industry.
So, what are the current trends in the hospitality industry? Let’s take a look.
Maximize guest satisfaction by staying ahead of trends in the hospitality industry. Regularly update your offerings to meet evolving customer demands, integrate technology for efficiency, prioritize sustainability, and personalize experiences.
Latest Trends In The Hospitality Industry
Here are some of the leading hospitality industry trends that are expected to shape the way you do business. Let’s learn about the recent trends in the hospitality industry.
1. Artificial Intelligence
AI is one of the ever-growing trends in the hospitality industry. Artificial Intelligence performs a variety of roles, with improving customer service being its main objective.
Unprecedented progress is expected from the fusion of artificial intelligence (AI) and modern technologies like the Internet of Things (IoT), virtual reality (VR), and augmented reality (AR).
AI blends in seamlessly with modern point-of-sale (POS) systems, enabling hotels and restaurants to streamline and automate a lot of labor-intensive processes. For the foreseeable future, it is expected that artificial intelligence will continue to shape trends in hospitality companies.
2. Sustainability
Sustainability is one of the current trends in the hotel industry. Hospitality industries look for new and effective ways to incorporate, evaluate, and communicate their sustainability commitment. The increasing awareness of environmental issues among customers has led to sustainability, with many businesses showcasing their environmentally friendly programs.
Restaurants exhibit their vegan and vegetarian menus to lodging establishments using smart technology, like energy-efficient lighting and heating systems. Multiple hotel chains use eco-friendly materials for beds and linens.
Moreover, hospitality organizations are adopting sustainable construction practices and working to put complete strategies into place that cover sustainability from the beginning phases of development to the end.
3. Robotic Systems
Automation is one of the major trends in the hospitality industry, and robotics is one example of its progression. Robots perform a variety of functions in establishments like hotels and restaurants, from assisting and greeting visitors to strengthening security protocols.
They perform cleaning and room service duties in the context of lodging, and they offer a viable way to streamline food service operations in restaurants. Robots are especially helpful in meeting customer needs who like to have minimal interaction with people when dining.
Robotic systems transform backend operations, optimizing workflows and increasing productivity. It reduces the need for additional staff, gives management the ability to handle problems quickly, and encourages accountability.
4. Contactless Payments
Several notable changes in the hospitality sector are related to process optimization, among which the acceptance of contactless payments is a primary example. Contactless payments are one of the recent trends in the hotel industry.
Adopting this approach saves customers time by eliminating the need to handle currency or enter PINs, which increases productivity.
As contactless payments have benefits for a wide range of companies (hotels, resorts, restaurants, bars, and cafes), they are one of the most advanced technology innovations in the hospitality industry.
By adopting contactless services, wait times and in-person points of contact are decreased, streamlining the guest’s experience. Guests can use features like digital keys, voice or tablet interface control, mobile check-in, and room automation.
The continued development of contactless-enabled POS systems projects the significant growth of contactless mobile payments by 2027.
5. Cloud-Based Infrastructure
Technology is one of the main hospitality trends driving expansion in the hotel industry.
Since cloud computing became popular, multiple hotels have been using cloud-based solutions to meet their management software requirements. Their goal is to acquire solutions that can be easily integrated with other IT systems, improving the entire guest experience.
A cloud-based infrastructure makes it easier to share data instantly, improves customer service, and customizes the guest experience, increasing efficiency. Cloud-based software offers long-term cost reductions and streamlines hotel operations. A complete cloud-based hotel PMS includes a variety of modules and features that automate every aspect of hotel operations.
Furthermore, utilizing the right restaurant management software can facilitate a smooth connection with your PMS, providing instant insights into each diner’s experience.
6. Hybrid Space For Work-Tour Balance
The impact of the pandemic has led to a considerable increase in hybrid or adaptive work arrangements across multiple companies. This change has given people more flexibility in their work settings, leading to an increase in workcations and the emergence of “bleisure travel.”
Bleisure travel is the combination of business and leisure activities. It is a current hospitality trend where you can expect to see an increase in hotels customizing their offerings to meet the needs of this expanding market.
This modification includes dozens of power outlets, free high-speed internet access, shared work areas, lodging, pet-friendly activities, and travel packages even after the conference.
7. Improved Culinary Experience
Hotels need to expand the menus of their restaurants to accommodate the wide range of tastes of their guests. When this is done well, the restaurant becomes the focal point of the entire experience rather than just an add-on, transforming the hotel into a culinary destination.
Immersion design aims to take customers on a multimodal experience that stimulates more senses than just taste. Some hotels have taken this philosophy a step further and are creating lively dining experiences.
Restaurants need to update their operating models to support delivery services in addition to dine-in customers. It entails developing creative, premium packaging options and optimizing delivery processes to guarantee accessibility and cost-effectiveness, all while enhancing rather than competing with well-established delivery networks.
You May Also Read: Best Hotel Guest Experience Software
8. Hyper-Personalization
Hyper-personalization, one of the emerging trends in the hospitality industry, is gaining pace significantly. The key to tailoring experiences to each customer’s preferences with data-driven insights enables hotels and restaurants to increase customer satisfaction, strengthen brand loyalty, and increase profits.
Within the hospitality industry, repeat customers can easily receive services similar to previous trips owing to GPS monitoring and reservation history. Additionally, guests can utilize their personal devices and entertainment accounts while on hotel property with the widespread use of smart devices, enhancing their personalized experiences even more.
The use of social media is one of the rising trends in the hospitality industry. Marketers need to come up with creative ways to grab consumers’ attention who are constantly flooded with messages. The rise of TikTok and Instagram, especially with short-form video content, seems encouraging.
With these platforms, hospitality facilities can improve their storytelling capabilities by incorporating clients into the narrative via employees or behind-the-scenes recordings. In addition, influencer marketing has become quite prevalent in the hospitality sector. Marketers are responsible for identifying influencers whose audience aligns with the hotel’s story and ethos.
Marketers must precisely gauge the success of their social media campaigns and adjust their communication accordingly. Paid and free content must be balanced with the creation of organic and customer-driven content. All things considered, social media expenses have to match the returns. The content must be genuine and professional and adhere to a defined plan that is consistent with conventional marketing initiatives.
10. Mobile Check-In Service
Mostly associated with lodging facilities, like hotels, the advent of mobile check-in services stands out as an especially beneficial development in reducing interactions in person.
However, even in less unusual situations, mobile check-ins provide guests with the ease of self-service, streamlining the arrival process and improving the entire guest experience. The key to a successful deployment is giving users access to a specific app, which may be done by integrating a website and using QR codes in marketing materials.
Additionally, guests do not need to wait in a queue at the front desk, which is a very useful feature for families with small children and business travelers. This smooth process meets the various needs of hotel visitors while increasing efficiency.
11. Smart Reserved Parking
Modern solutions to these problems can be found in smart parking technologies, which use automatic indicators to quickly indicate places that are reserved for cars. These advanced technologies use lights and sensors to indicate when parking spaces are available or occupied, making it easier for cars to get in.
The goal of Smart Parking’s technology and human resource integration is to maximize resource utilization by reducing the amount of fuel, time, and space needed for effective and congested vehicle parking during idle times.
Hotels can utilize advanced mobile applications and sensor networks to allow guests to reserve parking spaces in advance, guaranteeing individualized allocations when they arrive.
12. Digitized Room Keys
One of the most noticeable hospitality trends is the switch from smartphone applications to swipe cards for faster check-in times and reduced key loss. Using their cellphones, visitors may quickly use digital keys to speed up check-ins and gain immediate entry to their rooms—a necessary convenience for modern travelers looking to unwind quickly after a demanding day of meetings or travel.
The industry’s dynamic nature is shown in the many hotel brands that are adopting this innovation, which highlights a dedication to satisfying guest expectations and improving overall experiences.
You May Also Read: Hotel POS Systems: Benefits, Types & Features
13. Chatbots
Chatbots are popular hospitality technology trends. AI-powered chatbots are skilled at enabling online client interactions, reducing wait times and providing quick answers to queries. This is especially helpful when human support is not readily available. Chatbots make quick decisions during first contact and act as a channel for gathering and forwarding pertinent data to human agents as needed.
Employees in the hospitality industry need to be able to handle the increase in customer questions about policies and restrictions in hotels and restaurants. By utilizing chatbot technology, simple questions can be swiftly answered, reducing stress and simplifying interactions for both customers and employees.
14. Safety And Hygiene
Prioritizing safety and hygiene is among the key hospitality trends, especially after COVID-19. To give customers a sense of security, establishments like hotels, restaurants, bars, and cafés must ensure that clear and strictly enforced guidelines are communicated to patrons to instill a sense of security.
Effective promotional strategies for the hospitality industry must also highlight the steps taken to maintain standards of sanitation and safety. This transparency can significantly impact customer loyalty and booking decisions.
Hotels are expected to make significant investments in modern fitness centers, improved spas, and customized services that encourage rest. As customer perceptions increasingly link food choices to well-being, restaurants are expected to update their menus with a variety of healthier options, like gluten-free, lactose-free, and organic options.
15. Workforce Empowerment
The industry’s biggest challenge has been finding and keeping qualified employees instead of attracting new customers. In response to this critical problem, many hotel chains have started making improvements.
Many hotels offer free or inexpensive accommodation to their employees, along with increased pay and reduced peak work hours. They are investing funds in training programs to motivate employees.
To ensure your perks and pay are competitive, it’s beneficial to review them. Incentives like flexible schedules can draw in potential hires, and if attrition is startlingly high, it’s a warning to review your workplace culture.
Using technology can also act as a solution to these issues relating to labor. Manual labor can be reduced by automation and streamlining operations. By integrating your systems and tools, you can minimize administrative work and save up valuable time.
16. Metaverse
The metaverse is a rapidly emerging trend in the hotel sector that insiders in the business must stay up to date on. It basically involves creating immersive digital worlds by utilizing modern technologies like augmented reality, virtual reality, and even non-fungible tokens (NFTs).
To provide potential guests with an in-depth overview of their stay, hotels can offer virtual reality tours or avatar-guided explorations to make reservations. Yet, this is only the tip of the iceberg when it comes to the hospitality industry’s metaverse ventures. Additionally, hotels may offer access to virtual areas for their customers, enabling virtual events like birthday parties or conferences.
17. Augmented Reality
Augmented Reality (AR) modifies real-world environments with digital overlays. This technology provides a variety of functions and is usually accessed through cell phones and applications. By pointing their handsets toward certain places, consumers can easily obtain relevant information like restaurant ratings or operation hours with augmented reality applications.
Additionally, hospitality sectors can use augmented reality (AR) to provide interactive maps for visitors or create engaging settings for user-generated content, enhancing the practical use and entertainment value of real-world locations.
Augmented reality also plays a crucial role in training staff. It exposes new hires to simulated scenarios before they work in operational contexts.
Let’s see a few other benefits of augmented reality in the hospitality industry.
18. Smart Hotels
The Internet of Things can be seen in a modern hotel that incorporates Internet-enabled equipment. This strategy has become more prevalent, especially with the rise in smart speaker and hub acceptance among consumers.
In these types of places, customers can operate facilities like air conditioning or heating by using their cellphones, or they can simply use voice commands to activate the television by using smart speakers.
In addition, these technologically advanced room service requests have automatic controls that smoothly modify variables like lighting intensity and ambient temperature to provide a perfect and customized experience for guests.
19. Growth Of Locally Sourced Food & Experiences
A growing number of customers choose to support local companies, whether they are driven by concerns about the environment or a desire to support the community’s economy.
This trend indicates that hotels and restaurants will place more value on local and hyperlocal sourcing. Businesses may develop stronger relationships with local farmers, craftspeople, and producers to obtain fresh produce, meats, and dairy products.
But the “buy local” movement has more effects than just sourcing food. Tourists now choose experiences above material belongings and are drawn to hotels that capture the spirit and originality of the destination.
You May Also Read: 15 Ways to Improve Direct Bookings for Hotel Business
20. Data-Driven Decision Making
The emergence of data analytics is transforming the marketing paradigms for hotels by providing them with improved means of tracking guest preferences and satisfaction.
Organizations in the hotel industry are prime examples of the shift to data-driven business strategies. Leading tourism industries use its technology to extract valuable real-time insights into hotel and guest behavior, allowing for quick changes to offers and presentations and productive discussions with hotel owners.
It allows for more targeted customer experiences and tailored encounters. Furthermore, it enables hotels to enhance their income streams by implementing advanced revenue management techniques supported by enhanced demand forecasting and dynamic pricing strategies.
21. Voice Technology
The increasing use of voice search by customers looking for places to stay and eat highlights the need for businesses to adjust. It is crucial to proactively optimize website content for smooth integration into voice search results to take benefit of this developing trend.
Moreover, the application of voice-activated technology goes beyond simple search features, offering chances to improve the visitor experience in hotel settings.
22. Virtual Reality
Virtual reality is one of the most interesting developments in the hospitality industry. It gives potential hotel guests and food enthusiasts the chance to fully immerse themselves in virtual worlds from the comfort of their own homes.
Using 360-degree movies or virtual tours can help clients better understand the amenities that are provided by the hotel staff. Furthermore, offering these services gives a company a clear edge over rivals who haven’t taken advantage of this emerging trend in the hospitality industry.
Modern VR tours may be accessed via the Internet, guaranteeing broad accessibility across several devices and doing away with the need for specialized VR equipment.
Hospitality Industry Trends Survey 2024
Here’s a survey report of Eat App that they carried out amongst hospitality leaders. Let’s check it out.
1. Training is Crucial
Successful training is essential to attaining success. When employee turnover is common in a commercial setting, the ability to quickly and effectively train new hires makes the difference between success and failure.
2. Personalization is Important
The industry’s trajectory is centered on developing the skill of implementing advanced personalization and marketing strategies in line with the changing demands of consumers.
3. Air BnB Will Decline, Hotels Will Rise
Hospitality owners must take advantage of the opportunity that is being offered by Airbnb’s declining appeal. At the moment, Airbnb is known for its exorbitant fees and poor offerings.
4. Implement Technology To Improve Efficiency
There will be a significant integration of technology into the hotels, which goes beyond the guest rooms to include the pre- and post-trip phases. As a result, businesses need to prioritize integrating technology into their interactions with customers.
5. Sustainability
Sustainability is becoming a dominant factor in several industries, including hospitality. Lodging facilities and resorts are actively seeking methods to lessen their environmental impact through the adoption of techniques like using renewable energy, obtaining local food, and putting waste management techniques into place. The main goal is to maintain environmental responsibility while also catering to travelers looking for sustainable accommodations.
Conclusion
The needs of guests are ever-changing. It means you will be required to update your hotel accordingly for any changes that are needed every single year.
Keeping up with popular trends in the hospitality industry can be costly, but once your visitors realize that you’re meeting their needs, they are likely to make repeat bookings. They will also refer other customers to your business. So, go ahead with the latest trends and get a restaurant POS software solution for seamlessly centralizing and automating information!
Emerging technologies such as artificial intelligence, robotics, contactless payments, cloud-based infrastructure, virtual reality tours, and augmented reality are being widely adopted in the hospitality industry.
Hospitality businesses leverage artificial intelligence to enhance customer service, streamline operations, and personalize experiences. AI is integrated into systems like POS, chatbots, and analytics for efficient service delivery.
The future of hospitality businesses is being shaped by shifting consumer expectations, technology integration, sustainability, and customized experiences. To be competitive, businesses must adapt and innovate.
The five sectors of the hospitality industry are:
- Lodging/accommodation
- Food and beverage
- Travel and tourism
- Entertainment and recreation
- Timeshare and meetings
The hospitality industry is adapting to cultural and experiential tourism trends by offering immersive experiences, promoting local culture, cuisine, and activities, and providing personalized services tailored to diverse traveler preferences.
Priya is a seasoned writer with expertise in the SaaS industry. With over five years of experience in the field, she deeply understands the requirement of this specific industry, its techniques, and tools. Her articles, whitepapers, and blog posts are known for their clarity, practicality, and actionable insights. Priya also possesses in-depth knowledge of SEO and content marketing, which enables her to develop effective strategies to increase website traffic and improve brand visibility.
