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The hospitality guest of the future



The hospitality industry is constantly trying to keep up with ever-changing consumer demands. Some of the key factors driving the change include generational shifts, technology developments, increased ESG compliance requirements, more demand for personalised experiences and finally the blurring of lines between business and leisure travel.

Shift in corporate travel patterns

Since the pandemic, there has been a shift in attitudes towards corporate travel and hybrid working patterns. Inflationary pressures coupled with higher operating costs have put pressure on companies to minimise corporate travel costs. Many businesses have realised that they can limit profit erosion by reducing employee travel and associated expenses. As a result, some hotels have seen high levels of performance across non-luxury properties due to the rise of a new type of business traveller focused on affordable accommodation. The lines between business and leisure demand continue to blur, with an increase in occupancy rates seen on Sundays due to travellers who are often working remotely on Fridays and Mondays, extending their stays over weekends.

Technology enables the luxury experience

The growing trend in luxury travel is for an all-inclusive, seamless and personalised experience with the searching, booking and payment steps all taken care of. Luxury travellers also seem to show a preference for the integration of digital interaction into their journey. As such, luxury travel brands need to present a consistent, authentic brand experience at each digital and in-person touchpoint of the guest journey. Furthermore, using technology to tailor services to the unique demands of guests will be expected, for instance, by calculating average wait times for food delivery at airports to notify passengers who might be rushing to catch a flight. Personalisation of experiences utilising artificial intelligence (AI) technology can make a significant difference in guest satisfaction, but it is also important to allow travellers to make their own choices regarding how they want certain services to be delivered. The consumer is shaping AI and vice versa, and it is up to hoteliers to adapt.

Changing demographics mean different expectations

Traveller segment types are also changing, driving the need for a wide variety of offerings. Deloitte’s Future of Consumer research found that women are expected to hold an estimated 60% of wealth in the UK by 2025 and 25% of Gen Zs expect to change their gender at least once. There is also the impact of an ageing population. The average age of a UK citizen in 2021 was 41 years, 24% higher than in 1970 (33 years). As the wealth gap between generations widens, older generations who have more financial resources are increasingly having to support their less well-off children. This means they have less time and money to spend on travel. However, those who do travel are more likely to include their extended family in their plans, leading to a new trend of multigenerational travel. Technology and data analytics can help hoteliers better understand their guests, but it’s essential to note that there is no one-size-fits-all solution. Before implementing any technology, it is crucial to understand the specific needs and preferences of different types of hotels and their guests.

The guest of the future is incredibly diverse. Having access to granular guest data is central to satisfying their unique needs. While many hotels still focus on overnight guests, we will continue to see the shift of focus away from overnight stay and onto the local community who might use the lobby to work, long-term stays and those wanting access to facilities like the hotel gym on a monthly membership.  Richard Valtr, Founder, Mews

With consumer expectations quickly and frequently changing, it is vital to remain agile to cater for evolving needs. Revisiting strategies frequently and experimenting with emerging trends can help best understand the needs of future travellers. At the same time, it is also important to keep responding to the more traditional needs of consumers as well as trying not to dilute the brand offering. Budget hotels, for example, are focusing on providing a good breakfast to drive higher Average Daily Rates (ADR) and investing in advanced revenue management tools to increase Revenue Per Available Room (RevPAR), while some city-based luxury hotel brands are extending their food and beverage offerings at fair prices to attract non-resident visitors.

The guest of the future lies among the rise of much more granular segments, subsegments and micro-segments, with businesses expected to focus their offerings on satisfying the unique needs, desires and priorities of those guests.

Key takeaways :

  • Business travel is evolving, with a focus on cost-cutting and increased interest in hosting events
  • The luxury sector is growing rapidly; however, the experience is not always seamless, leading to an increased interest in all-inclusive super luxury holiday offerings.
  • Investing in technology to offer personalised experiences can boost guest satisfaction. However, it is essential to have a clear guest interaction strategy that balances profitability across all touchpoints.
  • Creating agile strategies that cater to future travellers and adapt to new market trends is crucial for the industry.
  • The use of AI is becoming increasingly prevalent in the hotel industry, with the potential to improve guest experiences and streamline operations. It is important to ensure that while adapting to technological advancements, the fundamental needs of the industry and its guests are not compromised.

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