Hotel Trends For The Future
Travelers today, whether for business or pleasure, rely on their smartphones for everything, from staying in touch with family and friends to monitoring bookings and even doing work. It’s obvious then that future hotel technology trends will focus strongly on the mobile experience to drive engagement with customers and increase revenue growth.
Recent data has shown that there are already more searches on mobile than desktop for select travel categories, such as family vacations and luxury travel. So, from the moment people begin to think about booking somewhere to stay, they are using their smartphones — but booking is just the beginning. Hotels need to leverage the increasingly powerful technology available to them to create customized experiences on mobile from the minute the hotel guest steps inside their door.
Millennials Make the Decisions Now
If there’s one trait that Millennials commonly share (across any demographic), it’s that they value experiences over material goods. It’s a common thread that drives millennial buying habits in their personal lives but it also changes common perceptions towards business travel.
Money Talks, Now it’s Bilingual
Internationally, most of 2016 proved to be a robust year for meetings, especially with the backing of a strong U.S. dollar. An American Express study forecasted that group rates would grow across North America, Europe, APAC, and South America through the entirety of 2016 (and by as much as 4.2% across the U.S and Canada). Across the globe, the middle class has doubled in the last 20 years, which means that properties in major cities will start expanding their comp sets overseas. Events that clung to cities like New York, LA, Berlin, and Hong Kong in the past, are now cozying up to new markets.
Old Threats Become New Partners
Airbnb offers over 2,000,000 places for guests to stay, and owns no real estate. That also means that some hosts didn’t have the permits to operate “micro-hotels” – until now. Major cities like New York and San Francisco are enacting new regulation that would require Airbnb to register some properties as traditional hotels, or face serious fines, and potential lawsuits. For the first time since home-sharing rose into ubiquity, they’ll compete with hotels on a more even playing field price-wise.
The Peak is Yet to Come
Cities like Nashville have experienced annual RevPAR growth since they came out of the recession, and experts are confident it can continue to grow through 2018. In Nashville, occupancy sits at a very healthy 74% with average daily room rates at $130. Hotels have already started reaping the benefits by reinvesting in construction and renovations, and it’s happening in new markets.