Get Ahead of the Game: Top 3 Hospitality Trends to Navigate 2023

Personalization - Customers don't just want it, they won't settle for anything less than it

Personalization is the new black in the customer service. Tech giants like Amazon and Netflix have not only schooled us on how to make data work for us, but they've also set the bar high for personalization in every industry. In a world where customers are flooded with options and information, standing out in the hospitality industry means going above and beyond with personalized experiences. It's not just about greeting guests by name at check-in, it's about tailoring every aspect of their experience to their individual needs and preferences. Thanks to technology, hotels now have access to all the data they need to make this happen. But, beware, if you don't give your guests the personalized experience they crave, they'll be disappointed, and that's not the kind of statement you want to make.

McKinsey's latest research is like a neon sign flashing 'Personalization Matters!' - 71% of consumers expect it and 76% get frustrated y when it's not delivered. But here's the real kicker, companies that are growing at a rapid pace make 40% more money from personalization than those that are just chugging along. Translation: a lack of personalization can be a real financial buzzkill for your business.

Personalization is a real game-changer in the hospitality industry – and it’s made of technology and spiced up with human touch. Investing in a powerful CRM tool covers the ‘technology’ element- smart features consolidate all your customer data in one place and empower you to create special offers based on hyper-segmentation. The predictive analytics (powered by AI algorithm) can help you spot guests with certain booking patterns, predict when they're likely to book, with whom they travel, and what their preferences are. When executed correctly, personalization can deliver a ROI on marketing spend five to eight times greater, and can increase sales by 10% or more, according to HBR research. But, let's not forget the human element, the hospitality industry is all about hosting and engaging with guests. By training and motivating your employees to deliver the same level of service and personalization, hotels can transform from just a place to stay to a creator of memorable experiences and exceed guest's expectations.

Business or pleasure- More are blending both!

The age-old debate of "business or pleasure" has been given new life in the post-pandemic world, as more and more travelers are choosing to blend the two. The rise of virtual meetings has shown us that not every business meeting requires a cross-country flight or hours on the road, it can be just as effectively replaced by a single 'Join the meeting' button on Teams. As the world starts to open back up, business travel is making a comeback, and when combined with leisure activities, it's becoming a desirable option. The trend of "bleisure" (business + leisure) has been around for a while, but post-pandemic expectations and habits are raising the bar. Hotels are now offering more amenities that cater to this blended segment of guests, and destinations and brands are starting to see the potential in this trend. Whether you call it bleisure, bizcation, or workcation, one thing is for sure - it's opening up a world of possibilities for the travel industry.

As Expedia Group discovered in their study, 60% of corporate guests tack some fun on the top of their professional obligations and wrap it up into the one trip, and more than a half of bleisure travelers spend the same amount or more on a bleisure trip versus solely leisure, and most save for bleisure travel. As the business travel industry bounces back from the pandemic, it's evolving into a new form that caters to the needs of modern consumers. Remote work has given travelers more flexibility, while economic conditions have put a squeeze on budgets and encourage people to get the best out ther business trips, along with raised awareness of work-life balance. The latest research from the Global Business Travel Association predicts a surge in spending and a full recovery to pre-pandemic levels by 2024. Now's the time to seize this emerging opportunity and make sure your business is ready to cater to both the carefree leisure traveler and busy business traveler.

Reduce, Reuse, Recycle: The rise of sustainibility

Sustainability in the hospitality industry is becoming increasingly important as travelers become more conscious of the impact their travel choices have on the environment. Being eco-friendly is not a rocketscience, but can definitely launch you among the stars! Responsible hotels attract responsible guests, and who wouldn't want to stay at a hotel that's doing its part to save the planet?

Recent researches on hospitality sustainibility are kind of a pointing finger out to all those segments we can’t (no longer) ignore. But, don't fret, there's still time to turn over a new leaf and become a sustainable superstar and here are a few figures you should bare in mind:

• With energy consumption accounting for 3-6% of its operating costs and being the source of 60% of its carbon dioxide emissions, hospitality industry has a significant impact on the environment, according to analysis on Energy Use in Hotels.
• Research on water waste reveals that hotel room can go through about 1,500 liters of water each day, that is way more compared to the water used by people living in water-scarce destinations.
• UNESCO research shows that hospitality industry is responsible for producing an staggering 2.87 million tonnes of plastic annually and hotels can play a major role by choosing sustainable materials in their operations.
  
• The hospitality sector is estimated to be responsible for roughly 18% of all food waste generated annually, making it crucial to take action to decrease both the costs and negative effects on the environment, according to Sustainable Hospitality Alliance.
  

It’s pretty much clear now- going green in the hotel game is no longer just a trend, it's a necessity. From managing your energy and H2O, to reducing waste and sourcing responsibly, hotels need to step up and take action.  Not only will it make Mother Nature happy, but it'll also attract eco-savvy guests who want to make a difference. So, let's do our part and save the planet for next generations.

To gain further insight into the latest trends and practical advice on how to tackle them, download our complete report, Top 3 Hospitality Trends to Navigate 2023, and find out how to embrace new trends and stay at the top of the game. Whether you prefer the written word or the tones of the audio version- we got you covered!