Register to get 3 free articles
Register to unlock the article and receive our free newsletter. Join 26,000 other hotel leaders and stay in the know.
Want unlimited access? View Plans
Already have an account? Sign in
Following a tough few years the hotel industry is set to endure what could be a period of stagnation. With the cost of living crisis showing no signs of abating, the onus will be on hoteliers to boost their offering and give guests even more reason to spend money at their hotel.
Alongside this, loyalty will be a big theme of the year. Managing to get guests to come back after a successful first stay will help hotels to survive in what could be a tough year. Furthermore, technology is likely to continue to be a major factor in the success of hotels this year as more and more of them embrace the AI revolution and those in the sector continue to innovate around it.
William Cotter, founder and managing director at Net Affinity and Jane Pendlebury, CEO of HOSPA, give their thoughts on the year ahead.
The basics are not enough
The first prediction for the year from both Cotter and Pendlebury is that offerings outside of the basic room and board will become paramount as a way to continue being competitive.
Cotter believes that consumer preferences are moving towards things like hot tubs, private dining, and pet treats while Pendlebury believes that the hyper-personalisation that exists in high-end hotels will begin to filter down to hotels lower down the scale and may even extend into restaurants as well.
“As we enter 2024, the ever changing landscape of hospitality has encouraged heightened significance of ancillary revenue alongside traditional room revenue. By keeping abreast with the changing demands of their clientele, hotels can confidently design fulfilling experiences that surpass their initial expectations, which, in turn, will have a huge impact on revenue. With rising costs remaining persistent across the industry, it has never been more important to understand your guests and optimise revenue opportunities throughout their stay,” says Cotter.
“Hyper-personalisation is more common in high-end hotels, however, this is likely to extend to restaurants, with business owners now well equipped to use data-driven insights to drive targeted promotions,” Pendlebury adds.
The white heat of technology
Both also expect hotels to continue to adopt new technologies and to make their offerings more data driven as a way to reduce costs and increase efficiency.
The main innovation will likely revolve around the use of AI to gain insights into customer behaviour and to enhance the customer experience. AI-powered chatbots will become a big feature of the customer experience prior to arriving at the hotel while data will help improve their experience upon arrival.
“In 2024, we anticipate the industry will experience a surge in automation, offering increasingly personalised experiences through diverse and innovative technology. Cashless transactions and remote ordering are expected to become standard, enhancing operational efficiency.
“The integration of AI, IoT, VR, and AR will also make tremendous strides, with AI-powered chatbots and virtual assistants expected to become commonplace throughout the guest journey — whether it’s booking the room, navigating the hotel stay or communication once they have left. Keeping up with these trends will allow businesses to keep ahead of the curve and confidently benefit from enhanced, tech-driven services,” explains Pendlebury.
“In an increasingly digital age, it has never been more important to establish an effective tech stack for your business. With the market as competitive as it is, the hotels that carefully consider their technology solutions will have an advantage in 2024 — as there really is no one size fits all. Similarly, hotels will need to consider existing products and evaluate their use, ensuring they’re not draining resources or creating inefficiencies,” adds Cotter.
Loyalty is key
The last expected trend in the hotel industry for this year is the increased importance of loyalty. Many people will have less money to spend as a result of the current economic climate and as a result it will become more important for hotels to cling onto those who have money to spend on luxury experiences.
As Cotter explains, hotels will have to come up with innovative ways to foster this loyalty as it is not as easy as a stamp card from a coffee shop.
“Over the past couple of years guests have increasingly come to expect a personalised experience, which extends beyond being greeted at reception. Personalising the booking process and website experience can make a great first impression on your guests,” he says.
