New Oracle-Skift research study reveals tech and consumer trends shaping hospitality

In the wake of the pandemic, hospitality operators’ top priorities are recapturing revenue and elevating guest experiences to win back consumers. But paving the path forward, now more than ever, requires keen insights into the changes occurring in the marketplace: What do guests really want? What moves are your competitors making? How is technology reshaping the industry? To answer these questions and help accelerate hospitality’s recovery, Oracle Hospitality partnered with travel industry firm Skift to publish the just-released, global research study, Hospitality in 2025: Automated, Intelligent… And More Personal. The project surveyed more than 5,000 consumers and 600 hoteliers across nine global markets (United States, United Kingdom, Germany, France, Australia, Japan, Singapore, Brazil, and Mexico), eliciting perspectives from both audiences to reveal the major trends and business initiatives most likely to influence hospitality in the next three years. It sheds light on key topics such as technology’s role in simplifying work for hotel associates, embracing new service models for greater profitability, and using artificial intelligence to deliver exceptionally personalized guest experiences. Among the key findings: 73% of consumers want hotels to offer technology that minimizes contact with staff and other guests. 74% of consumers are interested in hotels using AI to deliver more relevant offers. 65% of hoteliers said incorporating new technologies for staff best describe their strategy to weather labor shortages and attract new talent. 36% predict that the future of hotel revenue management will be underpinned by unbundling room rates – similar to the “basic economy” vs. “economy plus” model on airlines. Cloud technology’s role in shaping hospitality The key takeaway is neatly summarized in the report: “There’s no going back to business as usual. From technology demands to purchasing behaviors, the consumer has changed in the past two years. Hospitality operators have to invest now to ensure that they’re anticipating and meeting guests’ needs for the future – and justifying the rapidly increasing rates consumers are paying for hotel rooms.” That message was echoed by Alex Alt, Oracle Hospitality’s senior vice president and general manager. “Whether a hotel organization has two properties or 2,000, guests are looking for the highly digital, self-service experience they have come to expect in other parts of their lives, from banking to ordering food. For hoteliers to meet these demands, especially with constrained property staffing, they need systems that will enable them to quickly adapt, “plug in” new services, and better and more efficiently serve a diverse group of travelers.” Winning guest loyalty According to the World Travel and Tourism Council, travel and tourism are forecasted to reach $8.6 trillion this year – just 6.4% behind pre-pandemic levels. Likewise, hotel bookings are on the rise in many major markets, and in some cases, such as the U.S., even exceeding pre-pandemic levels. These statistics bode well, but it’s imperative to understand consumers’ new expectations. For example, according to the study’s findings: 45% said on-demand entertainment access that seamlessly connects to their personal streaming or gaming accounts is their #1 must-have during their stay. 77% of travelers are interested in using automated messaging or chatbots for customer service requests at hotels. 43% want voice-activated controls for all amenities in their rooms (e.g., lights, curtains, door locks.) Furthermore, the report provides evidence that consumers are eager to embrace “a la carte pricing” with 87 percent saying they would be likely to book a hotel that allowed them to pay only for amenities that they use. Embracing the power of artificial intelligence Perhaps, most interestingly, consumers seem to be less apprehensive about sharing personal information – especially if doing so enhances their trips. Nearly 20% said that privacy and security of the personal data they provide to hotels and other travel providers “keeps them up night.” However, 55% said they were only “somewhat concerned,” and these consumers indicated they are willing to make trade-offs and trust that companies are using their information responsibly. Aligning with such consumer trends, hoteliers cited the following as their highest business strategy priorities in the next three years: 51.5% plan to use AI/analytics for personalised marketing/offers. 48.3% intend to use AI/analytics for personalised customer service. “Thus far, personalisation has been relatively superficial, limited to recognizing by name, making generic offers, and perhaps capturing a few basic preferences,” Alt said. “The next frontier will be deeper understanding of guest preferences, and then operationalizing those preferences with bespoke offers and tailored experiences. This is made possible by deep integration between loyalty systems, property systems, and brand mobile apps.” Commissioning the research project goes hand in hand with Oracle Hospitality’s mission to develop technology solutions that help create the most memorable moments for guests and empowers staff. From cloud-based solutions that orchestrate hospitality’s myriad initiatives to automation that drives incremental revenue growth, Oracle Hospitality is focused on allowing hoteliers to achieve more with less. Get the report. By Louise Casamento, Senior Director of Marketing, Oracle Hospitality