The Hospitality Industry 2019 Review 2020 Hotel Trends to Watch - September 2019 - HubSpot
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The Hospitality
Industry 2019
Review
2020 Hotel Trends
to Watch
September 2019
1. Introduction -
What did the Industry
Contents Expect from 2019
Introduction
What did the Industry Expect from 2019
Status of the Hospitality Sector in 2019
What to Look for in 2020 - The Trends
Conclusion
Trends provide us with the insight we need to see what is hot and what is not
even setting a spark alive for travellers and the hotel industry. For independent
hotels, which are not supported by huge corporate entities, they are essential for
tracking how a business needs to adapt to keep up with the rest of the industry
and future-proof the business.
Trends, forecasts and data are ways of predicting how short-term developments
will evolve into medium and long-term progress. While there are distinct global
trends, it is the way segments in the market react and address these that
impacts the revenue opportunities and guest experience. Ultimately pushing
through trends is not enough, it’s the guests that accept something new and
following consumer expectations is just as important.
Which is why savvy businesses, whether independent luxury hotels, serviced
apartments or giant international chains, always keep a keen eye on the latest
trends and how to implement them in their properties. Some of the trends that
were predicted for 2019 are found on the following page.
Lobbies Personalisation AI and Direct Bookings
Following the Starbucks effect, lobbies were Personalisation was correctly predicted2 to become OTAs might seem to have a stranglehold on the
expected1 to open out to become neighbourhood even more focussed. With modern technological industry but there are some signs that technology
social and business hubs rather than stale, dead capabilities, hotels are able to gather insights into could provide a way forward for smaller operators
spaces where people just queue for room keys. guest preferences and use them to tailor offers and to generate direct bookings. More AI-based booking
True to this vision, design trends have seen lobbies notifications. Integration of PMS systems with guest- engines like Avvio’s Allora are expected, which
transformed into innovative hubs with flexible facing technology such as mobile apps are providing promise 25% more direct bookings.
spaces where people can be alone or feel part of a an increasingly exceptional guest experience that is
group. These carefully designed neutral spaces can driven by acquired data. Although this trend hasn’t really come into its own in
be transformed from a downtime area, to creative 2019 with OTAs still dominating the bookings market,
workspace to lecture hall as the lobby evolves This is all due to consumer expectations of a mobile- it is one to watch out for as AI technology develops
through a typical day. first culture. Gone are the days where travellers will and proliferates. AI is now being integrated into
wait until they have time to logon to their computer, systems to automate basic manual tasks and make
Technologies such as digital room keys, automatic if it’s not available by mobile it’s not part of their updates faster and more efficient. AI is embedded in
in-app check-in, digital concierge terminals and thinking. For 76% of travellers their smartphone is revenue management systems to optimise rates and
wireless charging, have helped transform the lobby the most important travel companion (Openkey).3 distribution across all channels, and within chatbots
from a tedious admin area to a creative social and to engage with guests in a human-like way to answer
neighbourhood hub. queries and drive bookings.
It’s just a matter of time before we become
comfortable with the role of AI, just as we have gone
1
http://www.hotelnewsnow.com/Articles/292527/Lobbies-still-a-focal-point-for-hotel-design-in-2019
2
https://www.criton.com/news-hub/the-top-hospitality-trends-for-2019/ mobile-first.
3
https://www.criton.com/news-hub/30-mobile-marketing-stats-for-hotels-in-2019/
2. Status of the Hospitality
Sector in 2019
1 - Global Traveller Traffic 2 - The Hotel Economy 3 - Traveller Expectations 4 - Guest Preferences 5. Investment in Tech
With ongoing traveller number According to industry data the Travellers are increasingly CBRE’s annual Trends in the According to The Hospitality
growth driven by a broader reach UK hotel market continued to prioritizing value over cost, Hotel Industry 2019 looked at Technology Sentiment Survey
of inbound travellers from new grow with the sector enjoying according to Travelport’s Global respondent data as far back as Report 2019 hotels are increasing
markets like South America and an increase in profit per Digital Traveller Research 20198 2007 to see the changing trends their technology investment with
Asia, and outbound travel flat available room. The UK Hotel - they are also expecting more in the hotel market. The report guest experience and the overall
lining the UK market is expected to Market Tracker Q3 2019 reports from their booking experience found that food and beverage technology stack taking centre
grow through from 2019. Hoteliers that London’s performance is with trust being a major issue revenue has marginally increased stage. Yet, hotel executives remain
that are ready with the right outshining the regions. especially due to the influence of over the last decade marking the concerned about whether they
technology to service more diverse review sites. Travellers are also change in expectations as guests have the internal talent to achieve
guest expectations will thrive and Although a weaker pound expecting travel providers to be look for less formal and quicker their IT goals and innovate the
continually improve the delivery continues to support inbound more tech-savvy, So much so, that dining experiences. Furthermore, guest experience. Priorities are
of the guest experience from leisure travel, protracted 45% of guests (up 9% on 2018) technology has had a massive being set with budgets ringfenced
booking to post-stay. negotiations around Brexit are reported being frustrated when impact on revenue sources to focus on digital growth, hotels
not helping business travel. PwC’s they can’t access their booking with the use of smartphones see guest experience (47%) as
Having reached 8.8 billion in 2018, Hotels Forecast 2019 expects information 24/7 on their mobile and tablets - guests are looking key followed by improving their
global traffic is forecast to double trading growth to flatten due device for seamless integrated digital tech stack (26%), with distribution
by 2037. Over the long term, it is to economic uncertainty, weak experiences at the cost of hotel lagging in significance this year
projected to grow at an annual business travel demand and revenue. (12%)
rate of 3.7%, reaching 19.7 billion the influx of new rooms on the
by 2040.4 market.
Main system due for replacement:
Inbound travel volume was UK 1.6% YOY GOPPAR6 Only 18% now book solely on cost. Operations tech replacement: 32%
projected to grow 3% in 2019 Europe: 3.9% YOY GOPPAR Compound annual growth rate (2007 - 2018)
Concern over digital talent: 61%
Q3 Average Room Rate Change7
1.7% Food and Beverage 1.1%
5.3%
Telecommunications -17.9%
42% of
travellers want IT budgets
Movie Rental -12.6% are on the
to personalise
their trip with rise by 43%
extras Retail -2.3%
-0.9%
Expected UK travel market growth Parking 3.4%
London Regions
for 20195
4
Airports Council International (ACI) World’s annual World Airport Traffic Forecasts (WATF) 2019 7
https://www.hotelnewsresource.com/pdf19/HVS102819.pdf
5
Phocuswright research report U.K. Online Travel Overview 2019 8
https://marketing.cloud.travelport.com/Global-Digital-Traveler-Research-2019
6
Hotstats October 2019 https://www.htrends.com/trends-detail-sid-107763.html
Systems Connectivity
3. What to look for in 2020 -
Trends and Predictions
Greater connectivity will be a trend that greater personalisation and more targeted
accelerates and deepens. In the past the marketing, leading to more conversions
hotel industry has been slow to connect its on offers, discounts and upsells, providing
various systems such as PMS, CRS, CRM, PoS enhanced revenue.
and the host of other applications that keep
hospitality businesses running. This is due to Even with open APIs, businesses need
legacy systems that were not built to connect to create the connections between
or share data with other programmes, and systems, either through their in-house IT
required costly integration solutions. teams or by outsourcing to technology
providers. However another promising
Today this is beginning to change. With form of integration will continue to grow
the strategic insight and revenue potential in popularity – networked ecosystems of
of big data, technology providers are connected software that businesses can buy
increasingly looking to work together. into. Mews has a hospitality app store that
Digital Guest Experience Application Programme Interfaces (APIs) are allows businesses to select and essentially
the connective tissue that enables different plug and play applications for instant
systems to integrate and these will continue integration. And SiteMinder has recently
to grow in importance. Open APIs, rather opened its Hotel App Store as a similar
In 2020 we can expect more power and as well as post-stay feedback, loyalty and than just tailoring a connection to another service. Expect such integration solutions to
control put into guests’ hands via mobile marketing can all be controlled on a single specific programme, give systems the proliferate and prosper in 2020 and on into
apps. With most big-brand chains now platform, their own mobile device. potential to integrate with a wide range of the future.
providing an app that offers control over all software. This sharing of data will allow for
aspects of the guest journey from pre to post Not only does this provides greater
stay, 2020 will see increasing uptake of the customer choice and satisfaction but also
same technology for smaller independent gives businesses the opportunity to provide
luxury and boutique properties. targeted notifications, upsells and offers,
ultimately increasing revenue.
Brands are increasingly recognising that
mobile is not just another channel but Expect to see this trend spread throughout
the channel – a fundamental part of our the industry to independent hotels, hostels
lifestyles that is at the centre of everything and serviced apartments, even camping and
we do. With 76% of travellers saying glamping facilities.
their smartphone is their most important
travelling companion9, and 70% having done
travel research on their smart devices10, the
requirement to tap into this all important
platform has never been greater.
The days will soon be gone when guests
are inconvenienced by having to interact
76%
with different human and technological
touchpoints throughout their journey
– tablets for check-in, TVs for hotel
information, folders with printed hotel
guides, cards for room service and landlines of travellers say
for booking extra services. Now the whole their smartphone is
journey from booking to check-in, ordering their most important 9
https://www.criton.com/news-hub/30-mobile-marketing-stats-for-hotels-in-2019/
services, information, queries and upselling travelling companion 10
Ibid
Facial Recognition and Voice-enabled Technology
Voice technology is already making waves in via facial recognition software similar to
in the hotel space and will see increased that used in airports. And the FlyZoo Hotel in
implementation in 2020 and beyond. Hangzhou now has facial recognition entry
to lifts and rooms. In a similar hands-free
By replacing all those separate old-school vein, Starwood hotels are trialling beacon
devices cluttering up bedsides, like alarm technology, which would unlock room doors
clocks, Bluetooth speakers, landline phones when a guest with their smartphone is
and huge printed hotel directories, in-room nearby.
voice assistants like Alexa consolidate large
numbers of services and data into one Expect more of these technologies as they
device. continue to be refined. And although robots
haven’t proven an unmitigated success in
They also collect and store customer- hospitality environments, we can expect
request data for valuable business insights to see them trialled and trialled again as
and increase the potential for upselling developers seek to hone the technology. Sustainability and Healthy Food
by offering targeted offers in response to
customer requests. They free up staff from
repetitive tasks and queries to engage in the
warmer side of guest interactions and offer Sustainability is a travel trend that doesn’t Recycling will be another growing concern
a simple and intuitive go-to platform for all look to be going away any time soon. With with big chains like Marriott replacing single-
queries, requests, FAQs and information. 79% of travellers saying that hotels with eco- use plastic toiletry bottles with re-fillable
With 79% of hoteliers reporting voice-
enabled technology investment plans this
79% friendly values are valuable to them12, and
66% happy to pay more to environmentally
versions, and hotels increasingly looking to
place recycling bins in guests’ rooms.
year11, it’s not hard to see how this trend will committed companies13, the value of
continue to gain momentum. sustainability isn’t just to the planet but the Food waste too will be increasingly recycled
bottom line too. in an attempt to reduce the 35% that hotels
Likewise, other hands-free technologies waste14. Composting will increasingly look
will also play an increasing role. Facial of hoteliers reporting Digitalisation and technology are key drivers like an attractive proposition, enabling
recognition has seen initial uptake, especially voice-enabled technology here, cutting down on paper usage by kitchens not only to save on waste removal
in China where Marriott guests can check investment plans this year digitalising information wherever possible costs but to enrich the soil of their own herb
through mobile apps or in-room technology and vegetable gardens to produce hyper-
like tablets and voice assistants. Even digital local, low-cost, seasonal and healthy food for
room keys help stop the use of harmful the menu.
plastics that make up key cards.
Healthy food will, in itself, be a huge trend
Energy and water conservation measures in 2020. With wellness tourism growing
will continue to grow, especially in areas with at twice the rate of global tourism15, and
resource shortages. Guests will increasingly wellness travellers spending between 50
be expected to contribute through simple and 180 percent more than their average
things like reusing towels and forgoing counterparts16, hotels that can capitalise by
bottled water, and will appreciate properties providing, healthy, fresh, local and seasonal
that request this. produce in delicious and creative menus will
find themselves well ahead of the game.
11
https://www.hotel-online.com/press_releases/release/is-your-hotel-budgeting-for-voice-technology/
12
https://www.criton.com/news-hub/ebook-7-eco-friendly-and-sustainable-initiatives-for-conscious-hotels/
13
Ibid
14
https://www.criton.com/news-hub/ebook-7-eco-friendly-and-sustainable-initiatives-for-conscious-hotels/
15
https://skift.com/wp-content/themes/skift/img/megatrends-2019/Skift-Megatrends-2019.pdf
16
Ibid
The Impact of Google Travel and Importance of Direct Bookings
Conclusion
Google has not only launched its own Hotels.com further down the page, while
dedicated travel website including flights, forcing them to spend more money on paid
hotels, packages, and trip-planning tools, it advertising.
has integrated this with Google search and
Google Maps to give its own services priority With such control over the marketplace,
search rankings, siphoning off quality traffic. expect Google’s influence to grow
even stronger next year and beyond,
This trend is already having a huge impact perhaps even pushing one or more of its
on big name competitors like Expedia and travel competitors to crisis point. These
TripAdvisor and is set only to continue in the competitors will be forced to respond by
coming year. Both companies have recently focussing more on direct bookings and
reported losses in traffic from Google, with brand advertising. For small independent
TripAdvisor claiming it is largely responsible hotels the motto, ‘if you can’t beat them join
for drops of 7% in revenue and 28% net them’ might need to be adopted. Making
income in its third quarter earnings17. This is sure properties are featured on Google Hotel
because Google is prioritising its own flight Ads might be just as, if not more important,
and hotel ads, pushing the free ads of top than appearing on the big OTAs like Expedia
competitors like Booking.com, Trivago and and Booking.com.
Whatever happens to individual trends in 2020 and beyond, one thing is certain – the
adoption of technology and digitalisation will be one trend that continues to go from
strength to strength. Giving guests choice and control over every aspect of their stay,
personalising services and marketing, saving on costs and resources, increasing revenue and
driving continued success, there is little doubt that technology will continue to be the trend
that everyone can bank on.
For smaller businesses and independent properties, keeping up with the big chains can
be one of the most unrealistic expectations of the industry. But technology is helping to
create a level playing field where the smallest boutique hotel can offer the same level of
digital customisation, personalisation and service as the world’s most powerful chains, while
maintaining a strong individual brand of its own.
Brand identity is key to independent hotels’ success, and technology helps maintain it by
providing a greater level of tailored and personalised services, by more relevant one-to-one
delivery, and by streamlining systems and processes to drive efficiencies and provide useful,
relevant data.
Customer-centric, mobile-first tech will be the new luxury in 2020 and, unlike many more
traditional forms of luxury, it won’t come with a prohibitive price tag.
17
https://skift.com/2019/11/07/googles-travel-gains-levy-pain-at-tripadvisor-and-expedia/
Our technology will enable you to compete with global hotel chains.
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Talk to us today for more information on how to increase your direct
(repeat) bookings, maximise your TRevPar and deliver a truly great
guest experience.
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