5 Trends Driving The Hospitality Industry And What They Mean For Property Management

Travel and hospitality continue to inch back to and above pre-pandemic levels. While economic woes still loom, travel is one area where budgets are seeing an increase as consumers push ahead with vacation plans.

Yet, although travel is back on the menu for many guests, the hospitality industry must continue to adapt to meet new traveler expectations, optimize property operations and find ways to recoup revenue. As a disclosure, my company Solonis is one provider of property management solutions.

Let's look at some of the most prominent travel trends this year—and how property management leaders can best rise to these challenges.

1. Rises in rates are bringing rises in expectations.

Hotel room rates continue to increase amongst inflation and high demand, with a 54% rise from January 2022 to January 2023. These high prices are likely at least partially responsible for the considerable drop in guest satisfaction last year.

Customers are paying more but aren’t receiving more. While rising operational costs make it difficult for hotels to increase the monetary value of a stay, there are plenty of low-cost solutions to make guests feel like they are getting more bang for their buck. But property management leaders must get creative.

To provide that extra touch of hospitality, leaders should ensure to personalize messaging and leverage customer data. Consider offering discounts to guests who book their stay well in advance. Partner with local businesses to offer welcome gifts with a sense of charm. Throw in a free coffee or breakfast pastry — complimentary mini-spa service. Send guests local event calendars ahead of their stay.

The human touch is the gold standard of great hospitality—use this as an opportunity to get creative.

2. Hybrid work is enabling an uptick in hybrid trips.

Business travel is showing further signs of recovery, with small but continued rises in travel rates despite economic pains. But the office is a different place than it was three years ago, with far more professionals working remotely or in hybrid environments. This workplace flexibility has led to a growing number of guests combining work and play during their stays. Property management leaders must be prepared to meet the needs of both.

To cater to these dual types of guests, hotels should pay particular attention to timing when it comes to different needs. During the week, especially during business hours, more travelers will need strong Wi-Fi connections. Guests may seek out quiet, calm spaces to hammer out the 9-to-5, so adding more seating to lobbies and cafes can be beneficial. Extra conference rooms and event spaces can double as makeshift office spaces.

Consider adding common work perks for guests, like free coffee and snacks. Then, when the clock strikes five and guests are off the clock, switch to experiences and amenities that can help them unwind. Host happy hours with discounts on light bites or drink specials. Consider spa happy hours for guests who’ve been in meetings all day. Advertise weekend activities throughout the week to guests to generate excitement.

3. Self-service and mobile tech are a must.

One of the most enduring guest trends from the pandemic is the desire for self-service. Mobile reservations and contactless check-in/out were industry lifelines in 2020, and consistent demand from guests shows they aren’t going anywhere. Despite hoteliers lagging on delivery, this year’s "Lodging Technology Survey" showed 100% of respondents either offered or planned to offer mobile reservations and mobile check-in/out for the first time, signaling a “get a move on” for hotel holdouts everywhere.

This does not mean that front desk service is on the verge of dying out. In fact, less than 25% of respondents in the same survey believed the front desk was even at risk. The important takeaway from the demand for self-service is that guests like to have options. Incorporating these services can also help alleviate strain from staffing shortages by reducing the front desk workload, enabling staff to be more attentive to face-to-face guests.

4. The focal point of travel today is the experience.

While the “where” has always been a large focus of travel, what we do when we get there has gained a lot of traction in recent years. Whether it’s a lingering sense of disappointment from canceled plans quarantine or greater awareness of what the world has to offer, 88% of travelers plan to seek out local experiences at their next destination.

Whether travelers seek unique eats or something to soothe their souls, hotels are well-placed to act as local guides for whatever experiences their guests seek. Partnering with local businesses is a great way for guests to learn about the area while getting creative with guest engagement. Nearby breweries or wineries can take over the hotel bar for monthly guest tastings, local chefs can hold cooking classes on regional flavors and properties can host seasonal pop-ups for businesses—the possibilities are endless.

5. Leaders must continue to promote green awareness.

More and more travelers are starting to think about the environmental impact of their trips. According to Expedia’s "2022 Sustainable Travel Study," 65% of travelers want to use more sustainable lodging or transportation on their next trip. Higher prices and the foregoing of convenience have long been cited as obstacles to sustainable travel—but consumers are willing to sacrifice a bit of both if it means making a better decision for the planet.

From ditching single-use plastics to reducing water consumption, there are plenty of ways hotels can demonstrate their commitment to the environment to their guests. But when it comes to what guests want, information comes first. The first step to greener travel is making informed decisions, and travelers are relying on hospitality businesses to be more upfront with them, which could include the evaluation of their own impacts.

Society holds a deeper appreciation for travel than ever before.

Today's travelers want to maximize their stay in every way possible, from seeing more to staying longer. Properties that focus on adding value — whether that’s time saved or services offered—will be the ones guests remember and revisit most.

Source: Forbes