Introduction to hospitality Industry

Hospitality means extending a welcome to travelers or offering a home away from home,
and the word is derived from the Latin word “hospes” meaning visitor or stranger. The
hospitality and tourism industry is a vast sector that includes all the economic activities that
directly or indirectly contribute to, or depend upon, travel and tourism. This industry sector
includes:

• Hotels & Resorts

• Restaurants & Catering
• Night Clubs & Bars
• Travel & Transportation
• Tourism
• Spas & Wellness
• Cruise Liners & Bus tours
• Events (Private, Business, Cultural & Sports)

• The History of Hospitality & Tourism

• Hospitality is one of the oldest businesses, going way back to the innkeepers and
taverns of biblical times. Tourism, on the other hand, is a more recent invention
which began in Europe, with Switzerland being one of the first countries to develop
special accommodation and services for travelers.
• In the late 1800’s, the concept of leisure tourism and hospitality spread across
Europe, bringing flocks of wealthy travelers to Switzerland. It began with visitors
seeking cultural and natural exposure on guided tours in the Swiss Alps, train rides
and wellness tourism. Palace-style hotels, thermal baths and ski resorts became
icons of luxury tourism in Switzerland.
• This new generation of wealthy guests had higher expectations for comfortable
accommodations, convenient services and fine dining. The leisure travel
phenomenon gave birth to hospitality management schools: EHL was founded as
the first hotel management school in 1893 in Lausanne, and it has pioneered in
hospitality education since then

What is Hospitality and Tourism Management?

Hospitality management is a broad career field that provides many opportunities for
international career progression. In the core of the hospitality industry alone (hotels, events,
restaurants, etc.) graduates with a hospitality degree can become managers in a variety of
departments and sectors, or choose to specialize in one area.
The career paths are as diverse as the industry, and with so many new hospitality concepts
and innovation changing the industry, the career paths will continue to grow and evolve with
technology and trends of the 21st.

The Hospitality industry is the industry that is responsible for providing primarily food
services and accommodations in places such as hotels, resorts, conference centers and
theme or amusement parks. The catering industry, which overlaps with the hospitality
industry, primarily provides food services to institutions (such as schools, hospitals, or
governmental operations), private industry (such as corporate cafeterias or motion
picture studios), and private parties. And also in a much boarder view, non-commercial
institutional provide food and lodging.

Concept of Hospitality industry

What is the Hospitality Industry?

So, what is the Hospitality industry? First, it is important to define what we mean by the
hospitality industry. After all, it is a broad field and while most people have a basic idea of
the types of businesses that count as hospitality brands, a far smaller number are able to
provide a coherent and satisfactory explanation of what the industry is, and what it is not.

Put simply, the hospitality industry refers to a variety of businesses and services linked to
leisure and customer satisfaction. A defining aspect of the hospitality industry is also the
fact that it focuses on ideas of luxury, pleasure, enjoyment and experiences, as opposed to
catering for necessities and essentials.

The Difference Between the Hospitality Industry and the

Travel Industry
The hospitality industry and the travel industry are closely connected, but there are also
some subtle differences to be aware of. On a basic level, the travel or tourism industry is
concerned with services for people who have travelled away from their usual place of
residence, for a relatively short period of time.

By contrast, the hospitality industry is concerned with services related to leisure and
customer satisfaction. This may well mean offering services to tourists, but it can also
include the provision of services to people who are not tourists, such as locals enjoying
their free time, or people coming to an area for reasons other than tourism.

Sectors Within the Hospitality Industry

1) Accommodation
The accommodation sector of the hospitality industry is concerned with providing
customers with a place to stay, on a temporary basis. It is most commonly associated with
the tourism industry, where people book holidays or trips and require lodgings, but the
accommodation sector also caters to local people seeking a short break from their
everyday routine, or those who require temporary accommodation for almost any other
purpose.

Bed & Breakfasts

Bed & breakfasts, also known as B&Bs, are small establishments, which offer overnight
stays and breakfast in the morning. Most B&Bs owners live in the property, while guests are
provided with a private room and, in most cases, they will also have a private or en suite
bathroom. However, bathroom facilities are sometimes shared.

Hotels
Arguably the most obvious form of accommodation that falls within the hospitality industry,
hotels cater to people who require overnight or longer-term stays. Aside from offering
lodgings, they tend to provide various other services, including room service, housekeeping,
and facilities for eating and drinking.

Motels
Motels are similar to hotels, but are specifically designed for use as overnight
accommodation by motorists. With this in mind, they are generally situated at the roadside,
and will have free car parking facilities. Unlike hotels, however, motels usually offer little in
the way of additional services or amenities.

Hostels
Hostels are a form of communal accommodation, where multiple guests will usually sleep
in a shared room, with the guests effectively renting a bed. Bathroom and kitchen facilities
are usually shared and hostels offer less privacy than hotels. Yet, they are usually
significantly cheaper, making them a solid option for those with a low budget.

Resorts
A resort is similar to a hotel, but it will provide a wider range of facilities and amenities. This
means that guests are able to access sleeping facilities, food and drink facilities,
entertainment facilities, shopping facilities and other amenities without needing to leave the
resort. Many resorts also offer all-inclusive pricing.

Serviced Apartments
Another form of accommodation that shares similarities with hotels, serviced apartments
are self-contained units, which are supplied for either short-term or long-term stays. These
apartments will typically be fully furnished, will contain a kitchen, and may include various
hotel-like services, such ass laundry and cleaning.
Time Sharing
Finally, time shared accommodation is a type of accommodation where ownership or usage
rights are shared between multiple people. It may be a house, condo, or similar type of
property and each owner will typically be allocated a particular time of the year where they
will have right of use.

2) Food & Drinks

While food and drinks are necessities, most food and drinks services also fall under the
hospitality industry umbrella, due to the fact that they offer people a way of spending their
leisure time and disposable income, as well as an opportunity to socialise and enjoy an
experience. Again, the food and drinks sector caters to a wide range of customers,
including tourists, locals, ex-pats and passers-by.

Restaurants
Restaurants provide customers with food and drinks services, with the food either being
eaten in the establishment, or taken away for consumption. This section of the hospitality
industry includes fine dining restaurants, takeaway restaurants, fast food restaurants and a
variety of other restaurant types.

Catering
Catering services are food services provided within a particular site, or in a more remote
location, where food and drink are not necessarily the main service provided. Examples of
this include catering provided at parks, arenas, stadiums, hotels, event venues and on
certain forms of public transport.

Bars & Cafés

Bars and cafés provide customers with options to go out, socialise and enjoy food and
drinks. They also tend to be a more casual option than most sit-in restaurants. Cafés
generally focus on coffee, tea and light snacks, while bars tend to prioritise alcoholic drinks
and soft drinks, and may also offer additional entertainment.

Nightclubs
Nightclubs are one of the main ways the hospitality industry caters to people in search of
night-time entertainment. They serve alcoholic drinks, are kept open until late, and often
place an emphasis on both music and dancing. Many nightclubs have specific themes and
they may cater for locals, as well as visitors or tourists.

Tea & Coffee Shops

Tea rooms and coffee shops provide a similar function to cafés, primarily serving varieties
of tea and coffee, as the name suggests. With that being said, tea and coffee shops are
often individual room within larger buildings, such as hotels, and they may also sell
products to be taken away, such as tea bags and coffee beans.

3) Travel and Tourism

It is important to understand that the hospitality industry and the travel industry are closely
linked. Many of the services that are classed as travel industry offerings are
also hospitality offerings, because they are linked to leisure, customer satisfaction,
pleasure, experiences and the use of disposable income. Importantly, the cross-over
between the tourism industry and the hospitality industry centres on services, rather than
end-products.

Travel Agents
Essentially, travel agents serve to sell travel products to customers, on behalf of suppliers.
They will often receive a commission for successful sales and can be a convenient option
for inexperienced travellers, providing them with advice on the best travel products for their
particular needs.

Tour Operators
A tour operator offers a combination of travel and tour products, combining them into a
package, which is then sold to customers. This might, for instance, include travel to a
destination, transfers from a hotel or train station to a hotel, as well a number of trips,
activities or experiences throughout the customer’s stay.

Online Travel Agencies (OTAs)

Online travel agents, or OTAs, perform many of the same functions as traditional travel
agents, albeit over the internet. However, the use of online platforms means customers
often have access to a greater level of self-service, with the OTAs helping users to search
for the travel products that best suit their requirements.

Cruises
Cruises are voyages on cruise ships, undertaken for pleasure, rather than for the sole
purpose of transportation. A cruise may have various stops along the way, but passengers
will spend the vast majority of their time aboard the cruise ship, which will provide them
with lodgings, entertainment, catering and more.

Car Rental
Car rental services cater to customers who require short-term access to a car. In many
cases, these services are used by tourists travelling to other parts of the world, although
some locals may also wish to rent a car, especially if they do not have regular access to
one, or if they require a larger number of passenger seats.
Casinos
Finally, a casino is an entertainment establishment, which provides customers with
opportunities to gamble. These gambling opportunities are predominantly offered via luck-
based games. In addition to the gambling component, many casinos also stage live
performances, offer food and drinks, and are connected to hotels.

Historical Evolution of Hospitality industry

• It was around 40 BC according to experts when hospitality services for

social and religious gatherings were quite a common phenomenon.
• It was about this time that Greeks came up with thermal baths that were
designed for recuperation and relaxation.
• These thermal baths are said to be the origin of what we know
as modern-day Spa.
• Then came the Romans who provided accommodation for travellers on
government premises. Here, comfort and entertainment were the names
of the game.

19TH CENTURY: INDULGENCE OF LUXURY INTO THE

EVOLUTION OF HOSPITALITY INDUSTRY
In the early 1800s, “Inns” were the only lodging facility available for the tourists. A lot
of Inns were established prior 19th century. But, lodging was not just about bedding
and resting facility anymore. They started providing food and drinks to the travelers.
And soon the element of luxury started to blend in. This gave birth to hotels. Hotels
emerged as more sophisticated facilities which provided better rooms and dining
areas. The year of 1829 is considered as a landmark in the timeline of the American
hospitality industry. It was the year when an American architect Isaiah Rogers designed
and constructed the first luxury hotel “Tremont Hotel” in Boston, Massach usetts. It
was the first hotel with private attached bathroom and lock on the doors. It used a
steam-powered pump to lift up water to the storage tank on the roof. “Tremont Hotel”
had set a benchmark for the luxurious hotels in those days. The hotels and I nns then
on started giving more importance to services to stand out different than other hotels.
They kept improving their services and facilities. At the later stage, hotels started to
have bars. And soon the bars became an important selling point for the hotels. The
architecture and aesthetics of the hotels were improving alongside. There were more
multistory hotels and they had the beautiful exterior to stand out different from other
hotels. Soon it was a trend for well -decorated ceilings and beautiful crystal
chandeliers.
 20TH CENTURY: BEGINNING OF MODERN
HOSPITALITY ERA
Hospitality, which was rather a part of the culture, emerged as a huge business
opportunity. A lot of people are approaching Architectural Design Firm to change the
Hotel Design Architecture by incorporating more and more facilities. Innovations in
transportation systems enabled more and more people to travel. Some people saw the
opportunity and jumped into the hotel business. That is why in the early to mid 20th
Century, a lot of giant hotel chains started doing their business. The industry had
become more competitive than ever. In the year 1919, Conard Hilton opened his first
hotel in Texas. Later on, Conard also bought the Ellsworth Statler’s chain of hotels in
the year 1954. Marriot (est. 1927), Sheraton (est. 1937) and Hyatt (est. in 1957) also
emerged as giant players in the industry.
There is an interesting story behind why Kemmon Wilson started Holiday Inn series of
hotels and inns. Once Kemmon Wilson had gone for a holiday to Washington DC with
his family. He had to pay extra for his five children in all the hotels they stayed in.
Kemmon found the accommodations very expensive and uncomfortable for families.
So he decided to start his own hotel. That is how the first Holiday Inn started in the
year 1952. Holiday Inn went on to set better hospitality standards. Their main focus
was to build family-friendly hotels. With their first hotel built in 1952, Holiday group
went on to build its 1000th Holiday Inn in the year 1968. It was indeed a phenomenal
growth for any hotel brand in those days.

Cars became extremely popular in the mid 20th century. Intercity traveling became
more convenient because of the well-connected network of roads. These factors
favored the growth of Motels. The word motel is made up of “Motor and Hotel”. Motels
were small 10×10 Ft wooden cabins for the travelers to take rest during the night
journeys. These motels were built alongside the main highways to host more and more
people who might want to take rest for a few hours or stay overnight during their
journey. The concept of the motel was well received and they grew exponentially in
numbers in a later stage. The motels were affordable and convenient and that is the
reason why the concept of Motels was well received.

21ST CENTURY: TECHNOLOGICAL INTEGRATIONS IN

THE EVOLUTION OF HOSPITALITY INDUSTRY
While it all started with providing only a place for sleep ing, the traditional hospitality
industry has evolved to become what we see today. Despite all the changes the industry
saw, the customer has always been the center. It is consistently evolving to become
more advanced. In this new century, the hotels reach ed the new heights, literally. Some
of the tallest hotels were built in the 21st century. The technological advancements in
the Engineering Design Services made it all possible. Hotel Fairmont Makkah and Burj
al Arab are some examples of it.
Founded in the year 2008, Airbnb opened up a new segment in the hospitality
industry. It acts as a marketplace connecting people who wanted to rent their property
with those who want to rent it. Since more and more people are traveling for business
or for leisure, this gives them a very convenient and affordable option. Also, there has
been seen a great hike in the number of solo travelers globally. These solo travelers
not much bothered about the amenities. They don’t mind sharing spaces. They love
meeting and interacting with locals as well as fellow travelers. And that is why
concepts of youth hostels and home -hospitality have become new trends. The Internet
helps a lot to such hospitality businesses. People can see the availability, photos, and
reviews from other users. Today, we can browse through all our possible option for
staying in any part of the world. We can know about services and amenities. Not only
we can reserve our stay but we can also pay in advance. The recent trends in the
evolution of hospitality industry favor the construction of hotels which has a classic
historic touch integrated with modern services.

The hotel industry has always contributed largely in terms of revenue for any healthy
economy. The modern hotel industry in 1960 valued around $3 Billion, which crossed
the mark of $25 Billion in the year 1990. These numbers went down due to attacks of
9/11 and recession in the early 2000s. But the industry and its people stood strong and
got back its lost pace soon in the new decade. Today, the hotel industry is worth more
than $500 Billion providing jobs to 4.5 million people.

Global context of Hospitality Industry

What macro trends are driving growth of

hospitality and tourism?
1. The global economy growth has created positive momentum in the sector by
contributing to the overall income per capita.

Since 2009, the global GDP has constantly increased at an average pace of almost two
percent per annum, leading to a growing demand for both international and domestic travel
spending. Whilst the Covid-19 pandemic led to a shock -3.12% decline in GDP in
2022 according to Statista, 2021 figures and subsequent projections for 2022 and beyond
will average out losses from that year.
2. Airfares have consistently become more affordable over the last three decades,
but will this last?

Thanks to lower fuel prices, carrier competition and the rise of low-cost airlines. While
these are not happy news for the airline industry, which is using ancillary fees to increase
profit margins, it benefits travelers who can get more from their purchasing power. However
the emerging global energy crisis could put a halt to such a trend and airlines could pass on
the price hikes to the consumer, which will in turn impact consumer travel behaviour.

3. Corporate travel is yet another contributor to the healthy outlook and is projected
to keep growing.

In China and India, the growth of business travel is particularly steep due to the relentless
pace of economic expansion in this part of the world.

4. Hotel operators are seeking to expand their portfolios through targeted

acquisitions of smaller regional chains.

Mergers and Acquisitions activity in hospitality has somewhat cooled over the last
few years, with operators seeking to expand business in a more controlled way.

What major challenges is the Hospitality

Industry facing?

1. The threat of climate change

The threat of climate change will adversely impact many major tourist destinations.
Threats resulting from climate change, safety and security issues, as well as unprecedented
migration streams are tomorrow’s game changers. The main challenges for the hospitality
industry are the lack of predictability and the magnitude of such events – and how fast the
industry can react and adapt. Hybrid operations might be one of the hospitality industry’s
possible responses to increased risks.

2. Industry consolidation
Corporate consolidation has led to increasing concentration of size and power among the
top players. Hotel operators will seek to expand their portfolios through targeted acquisitions
of smaller regional chains. While the ultimate goal is to create value through cross-
organizational synergies, this development also comes with downsides, as the management
of structures with a diverse selection of geographies and a plethora of brands generates
more complexity and threatens to increase overall rigidity.
Hilton remains the world’s most valuable hospitality brand, with its value up by a 35%
despite the Covid-19 pandemic.

3. New competition from tech and digital players

Are major technology firms such as Google or Facebook threatening to replace hotel brands
by offering technological solutions and creating novel markets to attract new types of
customers? Thanks to their control over all types of data related to customer behavior both
off- and online, tech behemoths could oust traditional incumbents into niche markets.
Companies that fail to identify their niche are at risk of becoming mere revenue generators
for technology companies. Some big enough brands may survive, but their business will
get tougher.

4. Skilled talent shortage

As the accommodation and restaurant industry is creating jobs at the fastest rate of any
sector in the economy according to the International Labor Organization, fuelling this growth
with the right skilled labor is yet another concern for owners. Attracting and retaining
younger generations of hospitality professionals will require a lot of flexibility and
attention from hoteliers in the future.

Covid-19: Impact on the Hospitality industry

The impact felt by the Hospitality industry was massive due to factors including, the
migratory nature of the hospitality work force and the pause on global travel, tourism and
restaurant services. But does the leisure and tourism workforce need to be rescued?
Considering the industry contributed 10,4% of global GDP pre-pandemic, supporting one in
ten jobs on the planet, we can affirm that the tourism industry is one of the principal job
providers. Furthermore, business recovery is expected to be slow: the UNWTO has
estimated a 20-30% global decline in international tourist arrivals.

This pandemic introduced many variables that overhauled the prospects of the
hospitality industry. Due to the uncertainty of the changes in customer needs after the
pandemic, hotels need to review their existing service offerings so as to adapt to the
changes in:

• Customer experience
• Customer perceptions
• Shift in consumption patterns
• Quality asset management

On the human side many hoteliers and hospitality businesses were forced to streamline
their workforce to adapt to lower demand. The difficulties lie in attracting back the skilled
hospitality workforce who may have found work in other sectors. The answers may be found
in ensuring better working conditions for staff, including higher base pay, sick and holiday
pay and ample time off in order to be competitive in a overstretched jobs market.

Hotels, bars, restaurants, spas, etc... put in place many sanitary adjustments that increase
the cost function of the supplier and many continue to do so today as the consumer
expectation has adapted to this new sanitary world.

Covid-19 took the world by surprise and has had a drastic effect on the industry. Many
hospitality businesses didn't survive this turbulent period whilst many surviving hospitality
business owners have been left in poor economic positions. However, those that have
emerged from the pandemic have a new found respect for employee welfare, have new
processes and technologies, and have a greater level of readiness for when another
disaster should strike

Hospitality management in Indian context

India's Hospitality Industry

Perhaps, the one thing that is going to take you by surprise and also deeply touch you on your India
tour is the warm hospitality of Indians. A ready smile on the face, always willing to go out of the way
to help somebody, exuding genuine happiness upon meeting a person - these are some of the
common traits you will find in maximum Indians. The Sanskrit adage, "Atithi Devo Bhava," meaning
the guest is truly your god dictates the respect granted to guests in India. So it's understandable why
the tourists visiting India want to come back again & again.

The hospitality industry in India is, thus, very strong. Even if you choose to stay in a hotel, all care will
be taken by the management to make you feel at home. However, if you wish to know what real Indian
hospitality is, then it will be better if you stay at the house of a native. If you already have a friend or
an acquaintance in India, it's all the more better. Indians like to serve various types of tasty mouth-
watering local cuisines to their guests. So it shouldn't be surprising if right upon entering a house you
get aroma of sizzling vegetables.

Most Indians live in a joint family so often you will find the in-laws, uncles, cousins and others staying
together. Saying Namaste to a guest is integral to guest hospitality in India and you can expect every
member to greet you this way only. The womenfolk form the backbone of traditional hospitality. Apart
from taking full care of all their family members, they never ever let a guest go away unfed or unhappy
from their home. Indian women are great cooks and can scurry up delectable dishes in no time.

As soon as the guest arrives, the women of the house serve him water and then ask any preferences
for food or drink. Infact, you will be surprised to find that even strangers on the road are so friendly
and hospitable. If you ask them where a certain shop or place is located, chances are people will not
only give you the direction, but also accompany you your destination, especially when the place is
nearby. Indian people feel that their guests must be given proper warm hospitality, which certainly
requires extreme care and attention.
 The culture of heartfelt hospitality is one of the most
significant characteristics of India. People in India pay highest
regards to their guests and value hospitality. In fact, the people in
India live by the popular saying, “Atithi Devo Bhava,” which
means that the guest is God's own reflection.

Palace in India

India is sometimes thought of as a poor economy; however, recently in the last several years the
Indian economy has expanded considerably. The economy has started to grow as well as the
personal wealth of its people. This domestic success has created the need for more restaurants,
hotels, and entertainment venues for travel. However, the domestic side of tourism isn't all that
makes India's hospitality market share so large.
India is a country with a long history, and historically many people visit the country
for spiritual reasons, bringing in visitors from all over the world. Additionally, the country has 32
national heritage sites bringing in history buffs, and a wide variety of nature reserves and parks for
those looking for adventure. The variety of available sites makes India a popular choice for many
visitors. This has inspired many hotel chains like Marriott to start working with India to create more
hotels within the country. What helps this endeavor is that there are a lot of empty buildings in India,
so businesses coming in do not have to spend money to build a new hotel. Instead, they take old
buildings, clean them up, and make them new again. The rehabilitation of the old is cheaper, and
also helps gentrify areas.
Other areas in the hospitality industry come from businesses that have outsourced their work to
India, because the wages are so much cheaper. This brings in business people who are meeting
and working with the international companies, thus strengthening the industry.

Advantages
Advantages in the hospitality industry for India right now are varied. First, they have the educational
facilities to make sure they have skilled workers. Skilled workers usually means low turnover so
there is not a constant need to spend extra money to train new people.
Additionally, India has become recently popular for low-cost medical treatments. With highly
skilled doctors and the cost for medical treatments so low, it brings in people from all over the world
to have work done that they cannot afford at home even with insurance. Since medical procedures
can take time, it ensures that 'medical tourists' stay longer, which adds significantly to the revenue of
the country. The Indian government has actually realized the positive of this type of tourism and has
created a new visa which is easier to obtain for these situations.
What are the latest trends in the hospitality industry? It goes without saying that the
pandemic and ensuing economic downturn greater than the 2008 recession and chaos
caused by fluctuation in demand have had a significant impact on hospitality throughout
2020 and 2021 - no doubt with lingering effects. Some innovative responses to this
extraordinary situation like attempting to entice patrons back into food and beverage
outlets and assure holidaygoers that it is indeed safe to enjoy a hotel stay,
have accelerated existing hospitality industry trends and triggered lasting change.

Meanwhile, there has been a shift in society, partly due to changing values after the acute
phase of the pandemic. While in 2020 and 2021, the popularity of staycations, hygiene
protocols and contactless technologies - all now firmly embedded in the daily activities
of hospitality businesses - has risen sharply, some new trends are emerging.

An increased consumer awareness of all things sustainable, purposeful and health &
well-being has set new benchmarks for hospitality enterprises. EHL Insights presents to
you the current trends in the hospitality industry of 2022.

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The 10 trends that are shaping the hospitality

industry in 2022

1. Bleisure travelers & hotel work spaces

Working remotely has today become commonplace for many employees and is forecasted
to become more than just a passing trend. A shift accelerated by the global public health
crisis, an unprecedented number of high-profile companies – with big tech companies like
Twitter, Facebook, and Amazon leading the way – announced that they will adopt a hybrid
or flexible approach to working remotely. In 2021 alone, the percentage of workers around
the world that are permanently working remotely was expected to double.
This means that hospitality venues are being used as make-shift offices for bleisure
travelers, as well as locals seeking a change of work environment. This is a great
opportunity for hotels and F&B venues to capitilize on the trend and adapt their offering to
meet the needs and wants of this emerging segment; ample plug sockets, free high-speed
WIFI and great coffee are good starting points.

2. Holistic hospitality, health & well-being

Preventative medicine and self-care are undisputedly trending right now due to the COVID
pandemic. The wellness industry is transforming into a booming trillion dollar market and
hospitality venues are well positioned to take a large piece of the pie, especially those with
existing spa facilities.

In addition to the usual beauty and relaxation spa offering, there is rapidly growing demand
for health diagnostic technology and bespoke treatment plans delivered by experts
who conduct personal or group sessions to develop vitality, healing, stress management,
emotional balance, mindfulness and better sleep. Discover more spa trends for 2022 in
this article.

3. Digitalized guest experiences

Apps are increasingly important in the way hoteliers manage the services they provide to
their customers and can now control many aspects of the guest cycle and experience.
Needless to say, the trend towards digital and contactless services has gained new
momentum since 2020. Traditionally, customer-facing services are being given an overhaul
thanks to the more widespread use of technology-assisted options, such as mobile check-
in, contactless payments, voice control and biometrics.

Consumers who have become accustomed to unlocking their smartphones and laptops
using facial and fingerprint recognition will soon come to expect the same convenience in
accessing their hotel rooms. Unfortunately for the establishments looking to welcome them,
these upgrades may be costly to install and maintain. If you want to stay ahead of the curve,
we recommend you dig deep and make the investment.

4. Personalization
Today’s guests have grown to expect to be recognized and treated as individuals.
Establishments are going the extra mile to personally greet their guests, while tools such
as Mailchimp and Zoho have made personalized e-mail marketing accessible to the
masses, ensuring highly target audience-specific communications. Far beyond simply
adding the customer’s name to email greetings, data provides insight into past buying
habits, enabling hotels to tailor their offers and promotions, and automatically provide
similar services to previous stays.

Technological platforms such as CRM and CEM use big data to create one-to-one
interactions between the guest and the host at scale. AI-powered chatbots have proven to
be a customer service asset both during the booking process and in responding to recurring
questions.
Hotel operations more generally are increasingly shaped by the use of management
systems to monitor and optimize revenues, customer relationships, property, channels and
reputation. Not to mention the rising importance of integrated messaging, predictive
analytics, customer profiling and middleware, which seeks to connect any disparate
systems.

5. Experience economy & essentialism

Customers request both extreme personalization and unique experiences. This could very
well lead to the death of the travel agent and the rise of the independent traveler.

Travel guilt is real. Minimalism has reinvigorated the otherwise somewhat dusty saying “less
is more”. Travelers are decreasingly seeking lavish displays of wealth, preferring instead to
spend wisely, purposefully and make a positive impact on the world. Unique experiences
that give back to local communities in meaningful ways are in demand, as are niche
properties, adventurous holidays and relaxation retreats.

6. Asset management strategy

The asset-light approach has become prevalent in the industry. The separation between the
management of operations and real-estate assets now allows hospitality companies to
focus on their core business, thus improving efficiencies.

It however induces additional complexity and potential agency problems, explaining the
emergence of new types of jobs, such as asset managers. In addition, new job profiles
have emerged following the increasing complexity of the hospitality industry. In parallel, the
need for quantitative competencies (for forecasting, budgeting, etc.) has also increased.

7. Solo travel
In the age of mindfulness, many have embraced the meditative value of spending time
alone and venturing out into the big wide world unencumbered, interacting and making
friends to whatever degree suits. In an effort to make solo travelers feel comfortable,
barriers between hotel staff and guests are being lowered, interior design choices made to
evoke a sense of homeliness and an informal atmosphere cultivated. This, along with a less
stark divide between guests and locals, encourages a feeling of hotel community.

8. Sustainability
A hospitality trend that is both current and a hallmark of recent years: “sustainability” once
again assumes its position. A natural extension of avoiding disposable plastics, eliminating
unnecessary paper consumption thanks to opt-in receipts and reducing food waste, more
far-reaching ethical and environmental considerations are shaping decisions made at the
hospitality management level. Decisions about things as simple as which towel rails to
install during renovations have disproportionate repercussions when implemented at
scale. Simple eco-friendly switches include replacing miniature toiletries with larger, locally
sourced dispensers, choosing ethically produced bedsheets made from organic materials
and reducing energy consumption with smart bulbs, etc. Vegetarian and vegan options also
harbor well-known environmental advantages.

9. Virtual & augmented reality

Following on from the orientation towards visually appealing content, it seems only natural
that businesses in the hospitality industry should seek to capitalize on features such as
virtual tours, conjuring up a digital environment for consumers to picture themselves in.

Videos providing 360-degree views of restaurant ambiance, café terraces enveloped in

greenery or hotel beachfront locations, for instance, are just the ticket to make an
establishment stand out this year. As ever, keeping the access threshold low is key to
reaching as broad an audience as possible with virtual reality material: making content
accessible on a variety of devices, without the need for a VR headset.

Once on site, guests should be able to whip out their trusty sidekick – their smartphone –
and simply point it at real-world artefacts to summon up additional information. Augmented
reality uses graphical or informational overlays to enhance in-situ environments. Once they
have downloaded the respective app, guests can use this tool to access restaurant opening
times, reviews or interactive tourist information maps or even create user-generated
content.

10. Traveling less (& Staycations)

Travel restrictions in 2020 and 2021 have facilitated the rise of the staycation. Even with
international travel opening back up, between airline price hikes, Covid testing requirements
and the complicated bureaucracy involved in going abroad now, many deem foreign travel
either too expensive for a big family vacation or not worth the hassle for the weekend
breaks of the past. Hence, opting in favor of the staycation trend instead, or simply travelling
much less than pre-pandemic levels.

In fact there is a multitude of reasons vacationers may also be choosing to stay closer to
home, such as for environmental or budgeting reasons, with this year having seen a marked
uptick in holidays spent more locally. Lucky for those who live in an already tourism-rich,
picturesque country with a pleasant climate.