You may belong to any industry but there is one industry which will have touched your life in some way or the other. It is the hospitality industry. In this article, we discuss the top trends of the hospitality industry in 2020 and beyond.
Some of these have been trending from the past couple of years and have become more relevant in the current year.
Organic food to a Gluten-free diet. From e-platforms to wellness spas; all are trendsetters in the hospitality industry.
We will, however, go a step further to discuss the top fashions and fads of the hospitality industry.
The hospitality industry is composed of a wide set of services. This can include one out of the many hospitality industry sectors like hotels, theme parks, event planning, casinos, transportation etc. This industry also covers various services for the tourism industry.
Before we run through the top hospitality trends, let’s check some of the key statistics:
- In 2018, the industry pundits predicted that the global hotel sector would rake in up to a whopping $550 billion US dollar over the year. This has now grown even further in 2020.
- For comparison purposes, the value in 2011 was $457 billion US dollar according to global hotel industry statistics.
- And, the industry is poised to grow steadily marking an increase of about $100 billion US dollars in the next five years or so.
- Global hotel industry statistics for occupancy rate shows that the numbers continue to rise slowly, albeit steadily, across the globe
- There are over 150,000 rooms under construction in the middle east with maximum hotel rooms in Saudi Arabia under contract. Africa has close to 300 hotels under construction at this time.
- Social media engagement will continue to play a greater role in the hospitality and travel industry. According to hotel industry data, the influence of sites like Twitter, Facebook and Instagram will continue to drive consumer purchasing power.
Now moving towards the top hospitality trends.
1. Automated Hotels
Is it possible to have automated hotels? Would it be nice to have a hotel where you are greeted by Robots speaking hundreds of languages?
Henn na Hotels in Japan are pioneering this concept of automated hotels with robot as receptionists. While this might look like a pilot project but self-service kiosks at hotels, automated check-in eye scans and other technology disruptions always pushed towards this move.
We will have to wait and watch to see if this ignites a flurry of automated hotel chains like Henn na Hotels. Will the global chains embrace the concept is a question still to be answered?
2. Text and chat will be used more within the Hotel premises
Apps such as Facebook Messenger and WhatsApp, which allow you to chat, will be used more in 2019 and beyond.
Such apps allow easier communication with guests.
This hospitality trend is spreading like wildfire in the hotel industry.
Technology is making it a lot easier for hotel businesses to implement these guest service enhancements.
For instance, managers and hotel staff can respond to the needs of customers as they materialise.
This goes a long way in dealing with issues that require immediate attention.
In-house apps by Hotels will probably integrate Facebook, WhatsApp, Snapchat etc. to make it easier for the guests to communicate with different hotel departments in real-time.
For more interesting technology trends, please have a look at our guide to Top Hospitality Technology Insights.
Apps like Alice are already helping out hotels streamlining the guest experience and in providing great customer support.
Image Courtesy- Hotel-Online
3. Mobile Check-in will become more popular
Web check-in became a common thing in the Aviation sector which was later improvised to Mobile check-ins.
Mobile check-in has been an element in the hospitality industry for the past few years, however, it has become one of the major trends in the hotel industry as it is now more widely used as technology has advanced.
Image Courtesy- Mobile Check-in by Marriott Hotels
Mobile check-in allows guests to book their own rooms directly from their smartphones in any nearby locations.
Adding this feature to the Arsenal can prove to be one of the Best Hotel Industry marketing strategies.
4. Enhanced In-Room Technology
Today, guests are expecting top-notch in-room technology and entertainment owing to the vast technological advancements.
It is one of the top innovation in the hospitality industry.
Guests are expecting to be supplied with on-demand streamlining services, fast internet, custom lighting, smart mirrors and in-room tablets that are all designed to improve the in-room experience.
The technology is supposed to be tailored to each guest before the guest’s arrival.
The future Hotel will know each of its guests taste and will have the technology in place.
If you are not a technology fan, you would still find a newspaper/magazine in place of a Tablet.
The millennial will, however, be ready for a technology treat overtime they check-in to their favourite hotel.
We leave you with a video from Samsung showcasing the latest Hospitality technology solutions
5. Direct booking is trending more than ever
Smartphones will be used more than ever in 2020 and thus become a crucial trendsetter for the hospitality industry.
The concept of travel agencies is not unfamiliar.
Many customers make direct bookings through these agencies.
These agencies make a lot of money by taking a reasonable percentage of commission from what the hotels earn.
This trend in the hospitality industry is going to stay strong for 2019 as well.
Research shows that a single customer visits at least 38 travel agency websites before deciding on the final purchase.
Travel agencies must come with strategies that will stop the customer on their website and hopefully make a direct booking through them.
Expedia.com, Hotel.com, makemytrip.com, booking.com, goibibo.com and many similar websites are competing against each other fiercely yet growing at a rapid pace.
6. The all-round growth of the hospitality industry is hot and trending
While this is obvious, we thought we will back it up with some statistics. Speaking of hospitality industry trends, the growth is most obvious and will include growth in Hotels, travel, events and transports.
The hospitality industry is going to fire on all cylinders in 2020 and beyond.
Innovative Budget concepts like Tru by Hilton and many others are clear indicators of the trends in the hospitality industry.
More Growth means more hospitality jobs. While the world complains about unemployment, the trend of hospitality industry shows a completely different picture. There are millions of more jobs on offer in the future. The infographic by Hilton (source- Career bright) explains it all.
You can sense the surge in the Hospitality industry by the number of hotels opening around the globe or the growth of Cruise Lines around the world.
Let alone the globe, upcoming hotels in UAE are good indicators of how well the hotel industry is doing with its growth rate.
The Middle East alone has close to 100,000 rooms under construction at the current stage.
7. Greater use of Technology as one of the top hospitality industry trends
Technology has affected us all tremendously.
You might be reading this article on your smartphones or tablets on the go.
Technology is transforming the hospitality industry in multiple ways.
From virtual reality to customer service experience related software; the hospitality industry has it all.
At the time you are reading this, you are already able to pay from your phone.
How about entering your room through an image code sent to you by the hotel upon booking? No hassles of collecting keys or anything.
Don’t be surprised if you don’t find a Budweiser in your mini-bar as the Hotel doesn’t serve them but you might find your Budweiser in all the hotel rooms of the chain wherever you travel next.
Technology keeps track of your comfort and choices.
Hotels have used very expensive software solutions for a long time.
However, trends from a few past years have shown the use of SaaS (software as a service) products that are cheaper but still are of good quality.
This has enabled small organisations like independent hotels and hostels to compete with other competitors within the same service. The trend of SaaS products will continue in 2020.
8. Consumer-Facing Technology | A top trend in the hospitality industry
This is an extension of the previous point but with a greater focus on customer-facing technology.
When the world is being disrupted by technology innovation, why should hospitality fall behind?
Currently, the Information Technology spendings in the hospitality industry is a bit low.
The new trend in hospitality is taking strides to make the hospitality industry more tech-savvy.
Consumers are using various software and applications that help them find the best hospitality services.
Have you seen self-service check-ins and kiosks in hotels?
Do you use the vending machines for your drinks and snacks while travelling? Do you use hospitality aggregators for finding the best prices of hotels and flights online?
Do you check in to your flight carrier online and make hassle-free online payments?
There is much more to be seen in the travel and hospitality industry in the future as spending on consumer-facing technology will be coming up as a top trend in the hospitality industry in 2020.
You would be able to select rooms online, will have access to e-menu, can have virtual travelling experience and much more in the future.
This particular trend has been on a peak in the past and is all set to continue to strengthen in 2020. These technologies greatly influence customer behaviour.
The hospitality industry will strengthen as these technologies make travel easier and cheaper.
9. Niche Marketing is now even more important
Personalised and niche Travel agencies are becoming very popular. Even more so, as they dive into niche marketing.
It will stay among the trends in the hospitality industry even in 2020 and beyond. They are willing to cater to customers with specific needs and demands.
This has been a trend for the past few years which will peak further in the coming years. One such example of this concept is ‘Bud and Breakfast’. They cater to customers who use marijuana and want to travel to a place where they can enjoy their habit without any legal constrictions.
Similarly, there are niche hospitality segments for retired personnel, health enthusiasts, extreme sports and so on.
There is a very strong link between the hospitality and tourism industry. It depends on the hospitality organisations how they take advantage of this trend.
This is not all.
We do have exciting hot trends lined up for the future-ready to make travel and hospitality experience even more colourful and convenient.
10. Alternative Lodging
Alternative lodging such as Airbnb has become popularised by the market sharing economy.
It is said to be the Uber of the hospitality industry.
Alternative lodging has become a force that cannot be ignored as it has gripped a vital share of the market.
The low commission structure gives alternative accommodation companies an upside when it comes to attracting and maintaining new customers.
Such platforms have also streamlined the booking and purchasing process, which has helped to make them popular with travellers.
Smart Travel lists 10 interesting alternate lodging options like B&Bs, Academic rentals, Farm stays, House exchange and so on.
Airbnb has organised what was a rather unorganised sector on the boundary of the hotel industry.
Sooner or later the Hotel industry will have to accept alternative lodging as an integral part of the Hotel industry.
The divide between alternative lodging and the hotel industry is diminishing day by day. It is better to acknowledge this as one of the latest Hotel industry trends.
Maybe the Largest Hotel Chains in the world can invest in this fast-growing segment to gain a competitive edge.
11. Loyalty pricing
Loyalty pricing will be a big component in the travel industry in 2020. This hotel industry trend is set to be more personalised in the future.
More hotels and resorts are finding ways to get guests to book directly with the resorts.
Hotels have instituted campaigns that allow customers to enjoy the best deals possible.
Direct booking will this continue to find innovative ways in the future as well to attract direct travellers.
Customer Loyalty programs are once again gaining in importance.
Expect this to be a major force among the top hotel industry trends in 2020 and beyond.
12. Other Hot Trends in Global Hospitality and Hotel Industry
While global hotel data suggest that hospitality trends vary from region to region, here are blazing hot topics that will define the industry itself for quite some time.
Mobile gadgets and application will bridge the customer focus gap, enabling personalised guest services.
As you might expect, mobile transcends all aspects of the guest experience in hospitality and, of course, travel – with 75% of search, reservation, and booking, and 60% of revenues forecast to channel through mobile devices.
That’s according to a study by PWC, a trusted research and statistics bureau.
That implies that you need to stay on the mobile cutting edge to tap into a niche that includes Millennials, business travellers, mobile-centric travellers, and so forth.
DRM – What many industry pundits call Dynamic Rate Marketing will pitch a tent in the global hotel industry. And, is here to stay.
So, if you are one of those who keep searching for cheapest hotel rates online will have the duty cut short in future with more streamlined features on various travel portals.
It’s the technology that allows hoteliers to market their hotel rates on the fly. Did we mean that we already not have this in practice? Well, yes and now. The idea was there but the technology to support the same was missing. Not anymore though.
When the world is moving at a rapid pace, the Hospitality industry is setting trends in style. So, what’s in store for us in the future? Have a look at the future of the hospitality industry with a glimpse of what can be expected. Brace yourself for much more.
While these hospitality industry trends are already evident and the hotel industry statistics back up the projections. So far all good with the hospitality industry.
In this post, we have covered the latest hospitality industry trends that are set to change the hotel industry in 2020.
Today, due to various technological innovation and changes, the pace of change in the world of tourism and hospitality is ever increasing.
Hope you liked the Latest Hotel industry trends in 2020 and beyond.
If you are looking for anything else regarding the hospitality industry, please use the search box on the homepage.