Like every year, even 2022 is on the verge of ending. This year, after the chaotic 2020 and 2021, marks the return to normalcy after the Covid -19 pandemic, especially for businesses. The same is true for the hospitality industry as well. The industry is dynamic in itself, however, the pandemic has had such an impact that we cannot talk about the hotel industry trends in 2023, without mentioning Covid.
The Covid-19 Pandemic has been a major disruptor, causing a shutdown of the entire hotel industry for 2 years. However, since 2022, it has recovered and is back on track, even with a brief Omicron scare. However, many hotel industry trends have emerged, which hoteliers will have to look out for in 2023.
Let us discuss the 8 emerging hotel industry trends in 2023 to look out for. Some of these trends have been occurring due to the Pandemic. In contrast, others have been the consequence of an overall progression of the hospitality industry, which has been present for several years before the Pandemic.
1. Post Covid Recovery
The Covid-19 pandemic had put a long pause on the Tourism and hospitality industry for 2020 and 2021. The year 2022 has been a recovery year for the tourism industry, which will continue in 2023 too. Revenge tourism will still be a thing for the upcoming year. Many hotels have the opportunity to capitalize on it.
International Tourism will especially be a beneficiary of the hotel industry trend in 2023 since this industry had suffered the most for the preceding 2 years. Overall, the hotel industry can expect an optimistic 2023, continuing from 2022.
2. Digital Nomads
Any discussion on the hospitality industry will be incomplete without mentioning digital nomads. The pandemic has made companies and professionals realise that they can work from home, or anywhere with a laptop, fast wifi and cellular connectivity. One of the major hotel industry trends in 2023 will be the continuation of the growth of digital nomads, people who want to work, enjoy and explore, all at the same time.
Hotels are now trying to create a holistic environment for the digital nomads, will all the amenities required for a comfortable stay. Hotels need to go big on high-speed wifi, informal working spaces and common areas for remote workers to relax and enjoy their work. The rising trend of Apart hotels can cater to this trend.
3. Direct Bookings Vs OTAs
For a decade or so, OTAs had been a dominant channel of revenue for hotels. The convenience provided to the guests, and the ability to list properties based on location, type and other requirements made OTAs indispensable for hotel bookings. Hotels had to compromise by giving booking commissions to the OTAs.
However, hoteliers are now rebelling against this trend by offering the option for direct bookings to their guests. Direct bookings are offered through hotel websites, social media platforms and calls. Due to the Covid pandemic, hotels now want to recover their lost revenue. Direct bookings are of the major hotel industry trends in 2023.
Many have realised that direct bookings are the best way to gain more revenue compared to depending on OTAs. The pandemic has forced the hotel industry to become more efficient regarding revenue since they didn’t get any business for 2 years. Hotels can increase direct bookings by promoting their website, social media platforms and Google Ads campaigns.
4. Personalized Customer Experience
The previous generations were content with standardized guest experiences based on certain categories - budget, mid-range and luxury. Nowadays, Millennials and Gen Z travellers want to experience something new and personalized. Humans have their own personalities and tastes, no doubt.
However, the emerging hotel industry trend in 2023 is that guests are now demanding accommodations that cater to their tastes, and are unique from the run-of-the-mill offerings. The emerging trend of boutique hotels has been a testament to it. Airbnb has also capitalized on the market by offering unique short-term homestay experiences.
New Gen customers are now looking for authentic and experiential travel experiences. To target this segment hotels need to:
Offer uniquely designed rooms, preferably theme based.
Offer common spaces that are designed to enhance the guest experience of new-gen travellers.
Offer unique amenities, food and beverage options
Offer localised activities and experiences, that are unique from the standard deals.
5. Wellness Tourism
Wellness tourism is an emerging hotel industry trend in 2023, especially after the Covid-19 Pandemic. People have now become health conscious and want to ensure that they stay fit. Along with fitness, people have also understood the importance of relaxation, and physical and mental well-being.
Hotels are adjusting to this trend by providing fitness amenities for their guests, along with spas, and other relaxation amenities. Having a gym has become an essential ingredient of hospitality.
6. Hotel Technology
Since 2020, hotels have adopted various hotel technologies to reduce contact and save up costs. These include PMS systems, revenue management systems, contactless technologies, Point of sale systems and more. However, there will still be a gap between the technologies and the adoption rate.
For example, larger brands are adopting technology more readily compared to those smaller, independent brands. In 2023, hotels will need to have major investments in technology to have an edge over their competitors.
7. Staff Shortages
Due to the Covid Pandemic, there is major staff shortages in hotels. 2 years of zero business has made the staff migrate to other job opportunities. The hospitality industry is known for its hectic work hours and lack of work-life balance. Many prospective employees are now looking for remote work, and hence, the hospitality industry isn’t even an option for many.
This can cause stress and strain on existing employees, who always face the brute of staff shortages. Going forward in 2023, hoteliers need to take the mental health and the condition of their staff into consideration.
8. Diversified Hotel Operations
The pandemic years have taught the hotels the importance of branching and diversifying. They cannot be dependent on one stream of revenue. For example, hotels can gain additional revenue if they offer their space for various activities such as events, recreational activities etc. Here are some of the area's hotels can enter:
Leasing out co-working and meeting spaces temporarily.
They can expand into real estate and property development.
Make hotel gyms open for public use.
Partnering up with local services such as restaurants and bars to build relationships.
Hoteliers need to keep a track of emerging hospitality industry trends in Mind as they prepare for 2023. With so many hotel industry trends in 2023, you have ample space to experiment and implement the ones that work for you the best.
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