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As some of Europe’s leading low-cost airlines anticipate record passenger numbers this summer, it’s clear that the ongoing cost-of-living crisis is not as strong a deterrent for holiday makers as first feared. In fact, according to data firm OAG, European airlines have set aside more than 800 million seats between April and October, and further data indicates that 84% of consumers are prioritising travel within their own personal budgets this year.
It’s extremely encouraging that the appetite for travel seems to be more voracious than ever, having been quelled in recent years due to the outbreak of and fallout from the pandemic, and the subsequent soaring costs across the board that have hit both businesses and consumers hard. While this has been difficult for many businesses across the industry, the impending and much-needed travel boom is set to significantly benefit hotel companies and owners who operate in the mid-scale market most of all.
But where exactly do the opportunities lie for the mid-scale market in 2024?
Making travel possible for all
Everything has become more expensive in recent months, whether that’s air travel, eating and drinking out or booking excursions, so the desire to find value for money has never been stronger. Those who would typically book a more exclusive upscale hotel are perhaps more likely to cut back, and those who would opt for an economy option are, in some instances, happy to spend a little bit more for a special stay where they want a memorable experience. This puts the mid-scale hotel segment in the sweet spot, presenting hoteliers with the perfect opportunity to capitalise on soaring demand.
For Wyndham Hotels and Resorts, where we appeal to a really large percentage of the market for whom luxury accommodation is either undesirable or out of reach, our mantra of ‘making travel possible for all’ feels more pertinent than ever before.
We know that our peers are looking at the mid-scale opportunities and our market share growth in 2024 will be challenged by several other brands seeking to enter and expand in the space. We are confident that we can hold strong as the leaders in this category, as we are already one step ahead, with a model that works for our owners, for their team members, and above all, for millions of travellers across the globe.
It’s all about the experience
A rising number of travellers – especially Millennials and Gen Z – are craving experiences, seeking out adventures and activities that will create FOMO amongst their friends on their social media profiles. They also want value for money, which is where the opportunity lies for the mid-scale hotel market, as it is best-placed to attract those looking to cut back as well as those looking to spend a little bit more on a hotel than they typically would.
It’s true that price will always be king, but guests are looking to get as much bang for their buck as they possibly can, so for the mid-scale market, it’s important to look beyond just bed and board – it’s more about providing an experience that will keep guests coming back again and again.
At Wyndham Hotels and Resorts, we will continue to focus on location, authenticity and relevance to local culture and destination. We want our guests to maximise their trip and therefore it is all about leveraging the unique experiences of a location to provide a memorable stay. We use clever design and relevant nods to the local culture through as many touch points as possible, whether this is by incorporating local cuisines or through products and artwork.
Great expectations
As the world diversifies and motivations change, today’s hotel guests have different expectations and requirements compared to those who have come before. Recent data from Deloitte suggests that 43% of consumers will change their behaviours around travel due to climate change.
We are, therefore, committed to providing places to stay that are socially, ethically, and environmentally responsible through our global sustainability programme, Wyndham Green. Through this, we endeavour to continue to provide travellers with greener stays, protecting the environment in which we live and work, and helping to provide a safer and cleaner future for all.
Focusing on growth
Mid-scale hotels are the future in key growth markets – such as Saudi Arabia, the wider Middle East and across Europe – as it is these hotels that help make travel inclusive, as opposed to exclusive, opening up brand-new destinations and experiences for travellers.
We see strong growth opportunities across our TRYP by Wyndham brand, which fits the niche of being a lifestyle-focused, mid-scale brand, and Ramada, the largest mid-scale brand in our portfolio. Both brands are particularly well-established in the Central and Eastern European region, which we expect to continue to develop in the future.
There is also an opportunity for us through our recent purchase of the Vienna House brand, which is the epitome of the modern, mid-scale hotel that provides impeccable quality at an inclusive price point.
We strive to provide our partners with a competitive edge, whether that’s through our suite of tools, distribution channels and general support – the Wyndham Advantage.
The year ahead is certainly going to be exciting for the mid-scale market, presenting hotel operators and owners with plenty of opportunities to deliver memorable experiences to guests, establish and build loyalty, and tap into emerging markets. It’s going to be fascinating to see the sector develop and flourish, and we’re proud to be at the forefront of it.
