Navigating the Future: Next Steps for Hospitality Brands
At the 2023 Hospitality Design Expo, I learned the hospitality industry is on the cusp of a thrilling transformation. As architects of change — designers, builders, operators, and marketers — are in a unique position to harness the power of emerging trends. Technology is a strong ally in this journey, a catalyst that can help craft unforgettable, distinct experiences that resonate with travelers.
Emerging trends in hospitality
The hospitality industry is witnessing a shift towards the ‘casualization’ of society and a redefinition of luxury. This shift is changing the way we think about guest experiences. Brands like Hyatt and Marriott have had record years in the last two years. Hyatt announced a new brand to cater to a different market segment — Hyatt Studios, their first upper-midscale brand in the Americas.
Resorts and all-inclusive offerings are experiencing a meteoric rise. One brand added 5000 rooms in Cancun last year alone. This indicates the changing preferences of travelers seeking more comprehensive, hassle-free experiences.
Space tourism is also on the rise. Star Lab is launching in 2025. Hilton and Voyager Space are leading the charge to provide astronauts and space tourists unique experiences in space. A testament to the industry’s innovative spirit and its ability to adapt to emerging trends.
Wellness-integrated travel is another trend that’s gaining traction. Travelers are becoming more health-conscious. Hotels and resorts are incorporating wellness elements into their offerings. This extends beyond spa services to wellness-focused dining options, fitness facilities, and mindfulness activities.
The prevalence of lifestyle creep, where standard of living demands increase as discretionary income rises, is playing a role. This is leading to increased expectations and demands from guests. Pushing hotels and resorts to continually innovate and improve their offerings.
The race for brand loyalty
Understanding the market and its nuances is key to creating unique experiences. Gen Z, with the lowest level of trust but the highest rate of traveler, presents a unique challenge and opportunity. Winning their trust could mean a premium for brands. We’re seeing less than 30% of the public showing no loyalty to a specific brand. There is a significant opportunity to capture customer attention and build that brand loyalty.
The brand story, the customer hook, and the memory are vital elements of brand identity. They influence customer decision-making and help create unique experiences. Travelers are in a world flooded by brands and choices. To differentiate, brands need to not only look at trends and style, but also the history of architecture and use it to to create experiences. Experiences that go beyond just fabric and chairs.
Shifting customer needs
The industry is shifting away from traditional services. A 2,000 room hotel might no longer needs room service. There is outside services guests can use to have every restaurant at their finger tips. Customers are telling us that laundry and dry cleaning no longer needs to be part of the product anymore.
The concept of the hybrid hotel is emerging. The is a rise in adaptive guest rooms. The blurring lines of indoor and outdoor, zoning, planning, and brand ethos are shaping the future of the industry. Catering to guest’s needs at each part of the day, including co-working opportunities, is gaining traction. Guaranteeing connecting rooms, being pet-friendly and providing contactless services are becoming the norm.
Innovation planning must start now
Sustainability is becoming a core value in the hospitality industry. There is a heavy focus on water, wattage, waste at the property level. Innovative solutions like PoE — Power over Ethernet lightning is a growing trend, EV charging and solar energy are huge. All these are forcing brands to rethink property infrastructure.
Digital twins, virtual replicas of physical objects, systems, or processes can play a key role here. They can simulate and test different scenarios in a risk-free environment. Improving planning and decision-making.
A peek into the future of hospitality
The future of hospitality is a vibrant blend of innovation, personalization, and sustainability. It also points to a seamless blend of physical and digital experiences.
Beyond photos and videos, virtual metaverse spaces can unlock many benefits. Benefits across the design, renovation and exploration of properties. Virtual spaces can extend the reach of hospitality businesses, offering immersive experiences that complement real-world travel. They can simulate teleportation to locations around the world in real-time. This can eliminate the major inconveniences of travel. Web-based and virtual reality experiences offer a “try before you buy” option. Travelers can preview accommodations and destinations before they book or can revisit after they’ve been. Architects and builders can walk through virtual worlds of their blueprints and designs prior to building. Helping with decisions in the creative process.
Generative Artificial Intelligence can up the ante in personalization. It can curate tailored guest experiences by generating human-like authored content for guests at scale. It can marry hotel and guest information in smart ways. Consider hotel information such as amenities, surroundings, location, and reviews. Now, think about guest insights on interests, preferences, and household information. If we put those together, dynamic personalized narratives can be created from a marketing standpoint. This approach not only enhances the guest experience but also increases the likelihood of prospective guests making a booking. This fusion of AI with hospitality opens up new avenues for personalized engagement and business growth.
Blockchain technology can also play a key transformative role in the space. For travelers, it offers more choices and control, with access to a broader range of travel options without intermediaries. Also for allowing secure management of personal data. For brands, it can help foster customer loyalty and innovation. Blockchain can open up a whole new level of unique loyalty programs and customized services.
Where to from here
As we step into the future of hospitality, it’s clear that the industry is in a state of rapid evolution. To stay ahead, brands need to be proactive and strategic in their approach. By harnessing the power of emerging trends and technologies, we have the opportunity to redefine what it means to provide exceptional guest experiences. This is not just about keeping pace with change, but about leading the charge, setting new standards, and pushing the boundaries of what’s possible.
My advice to designers, builders and operators — Don’t miss out on the potential of these technologies. Be curious, test and learn. Don’t just watch the trends. Act now to stay ahead of competition, create powerful experiences for your partners and customers, and be a pioneer in shaping the future of the industry.
I’m dedicated to helping businesses understand and leverage these advancements. My goal is to provide you with the knowledge, insights and inspiration needed to make informed decisions about how these technologies can enhance your internal and customer-facing creative process. The outputs? Strategic plans for your products and services to better resonate with your customers and partners. Any questions, please feel free to contact me.
John Duffield
john@johnduffield.xyz
(Title image prompt: A large suite of a beautiful bright modern style hotel resort with large windows, the room is filled with mid-modern century danish furniture, opening onto a beach lagoon. The room is globally well illuminated and the photograph is taken with a Canon EOS 5D with a wide aperture lens set to F/8 and ISO set to 400.)
