Travel and Hospitality — An Industry Detour

Say goodbye to the travel and hospitality industry as you know it, as our ever-growing expectations for more takeover and the industry enters another wave of innovation. The rise of AirBnB disrupted the traditional industry model by leveraging the sharing economy with surpassing success, but now consumers have yet again set a new benchmark. The result? Much broader, unique hospitality brands eager to remain at the forefront of cultural relevance.
Here at the projects* we love working within the tourism industry and send our content experts to every corner of the globe to shoot brand masterpieces. The rest of the office isn’t jealous at all. Here’s a cheeky sneak peek of an exciting campaign we’re currently working on with New Caledonia Tourism and local artists Crooked Colours. I’m glad that wherever they are, there is clearly a reliable source of coconuts to keep them refreshed #islandlife. Make sure to keep an eye out for when the content rolls out.
To stay ahead of the ever-changing cultural dialogue and consumer demands, brands within the travel and hospitality industry are taking exciting risks and creating successful initiatives globally. Studies have shown that 82% of corporate leaders report that their customers have higher expectations than three years ago, whilst 60% admitted that it has become more difficult to please their customers (1). The consumer battle is on with hotel chains now preparing to please a new wave of consumers known as the “post-millennials” and tourism brands truly pushing the traditional boundaries of what they can provide. Here’s a breakdown of some of the brands leading the way and trends to look out for in an industry’s detour towards greater relevance.
A New Hospitality Experience
I’m sure we can all agree that the constant conversations surrounding generations X and Y are becoming dated. Gen Z, also known as the “post-millennials,” are the new kids on the block who will soon be wielding their buying power of $44 billion (2). And you thought Millennials held all the buying power — wrong. The first members of gen Z are making their transition to fully fledged consumers this year and travel is extremely important to this global-minded and diverse demographic. To cater for this new generation of travelers, services that offer elaborate technology and elevated experiences are first and foremost.
Earlier this year Marriott Hotels demonstrated a game-changing transformation and launched an innovation lab at its Charlotte property — one of the fastest growing urban centres. This new beta hotel is an experiment for a new form of hospitality that Marriott hopes to create, with the mindset that the local community is as essential as the hotel guests. The hotel features live “beta buttons” throughout, enabling guests to give feedback at any point of their stay. Rather than pitting their brand onto the generic hotel restaurant against a burgeoning local culinary scene, Marriott also have created a permanent restaurant lead by local chefs. Other concepts include on-demand workouts in a high-tech fitness centre, curbside check-in and a small wine shop offering wines at retail price, with the successful initiatives intended to be rolled out at all Marriott properties. Outside of the hotel chain realm, start-up brands such as Nomi Beauty are also offering guests at participating hotels on-demand hair and makeup services that are billed straight to their hotel account, through their app. Now we can all live like a Kardashian with our very own glam-squads conveniently available at the tap of a button.
“The demographic of our guests is changing, and it’s very important to stay in dialogue with them…” — Mike Dearing, Marriott Managing Director Charlotte

From Showroom to Hotel Rooms
Continuing to breakdown the barriers of retail spaces, lifestyle brands are also being welcomed into the hospitality sector, hoping to reach consumers by offering more than just towels and robes. Don’t get me wrong, I love a good hotel robe, but after a while the novelty wears off and you realise that every hotel starts to feel the same. It’s not enough anymore to just have a place to hang your clothes and sleep. People now want a curated experience that’s intimate, charming and aesthetically unique. Chain retailer West Elm, has cut out the middleman and have announced that they will be making the natural step of opening their own hotels in the US to offer a new consumer experience. All rooms are designed and furnished entirely by West Elm, and guests are able to purchase pieces either through the chains app or via their website. What’s even more impressive is that they will be crafting each hotel to reflect the identity of its host city, by enlisting local tastemakers to bring cuisine, traditional decor and culture into the space.
DNA Tourism
It is still in its infancy, but genetic heritage tourism is definitely something I think we’re going to hear more about as the year goes on. The concept captivated the wider public when search engine Momondo caused a social media frenzy with a campaign that offered people DNA tests to determine which parts of the world their ancestors came from, and then offered to take them to those places (see the video below). A Momondo spokesperson reported that in the days following the video’s release, traffic to their website increased 43–45% (3). Urban travel community, The Nomadness Travel Tribe, conducted a survey of their 14,000+ members on DNA testing and associated travel and found that 30% of members had used a DNA kit to determine their ancestry and 6% were actively planning a trip based on their findings (3). If we’re looking into experiential tourism, the next big thing may just be custom-made guided tours built entirely on a person’s or family’s DNA results. Now we can truly “find ourselves” through travel. Classic.
Do It For The Gram

We live in a world now where Instagram is used as a search engine for travel destinations, and the shareability rating they offer is one our main concerns. For the past week I have been smacked in the face with European summer holiday photos, and it has only reinforced my urge to drop everything and go to yacht week in Croatia with an Aperol Spritz in hand. Studies have shown that 84% of millennials and 73% of non-millennials are likely to plan a trip based on someone else’s holiday photos or social media updates (4). This urge to post the perfect travel shot has pushed brands further than ever before to provide novel experiences. Take the Null Stern Hotel in Switzerland, which has successfully had breakthrough in a crowded industry with their open-air room concept that perfectly redefines the “hotel” experience. Despite having no walls, ceiling or toilet close by, the brand’s “zero star” notion has hundreds of travellers paying $335 a night to stay amongst the Swiss Alps. Their success has now led them to have plans for an additional 25 “rooms” across different Swiss Alleys. Shutup and take my money!
It’s certainly an exciting time in the travel and hospitality industry and here at the projects* we are inspired by the number of brands who are taking risks to stay ahead of their consumers. However, when taking risks to remain relevant in a crowded industry it is important to prioritize and understand the primary audience in mind. We believe that the good ideas live at the intersection of brand, audience and cultural insights — that’s when magic happens. Whether it’s a demand for more personalization, technology or shareable experiences, the experiential prospects in the industry are only going to become more innovative. If you’re interested in how to have a more meaningful connection with your audience through brand bravery, authenticity and relevance, let’s talk.
References
- http://content.blitzagency.com/hubfs/landingpage_content/TravelResearch2016byBLITZandAMP.pdf
- https://www.forbes.com/sites/ibm/2017/01/12/move-over-millennials-generation-z-is-the-retail-industrys-next-big-buying-group/#70067b492f0a
- https://skift.com/2016/10/25/dna-testing-becomes-a-heritage-tourism-hook-for-black-travelers/
- http://content.blitzagency.com/hubfs/landingpage_content/TravelResearch2016byBLITZandAMP.pdf
- https://www.forbes.com/sites/jimmyrohampton/2017/03/26/does-social-media-make-millennials-want-to-travel-more/#cc902425c17d
- http://www.garconalamode.com/garconalamode/2016/10/21/marriott-the-live-beta-hotel-experience
- http://www.cntraveler.com/story/the-nomi-beauty-app-will-send-a-stylist-straight-to-your-hotel-room
- http://www.travelandleisure.com/hotels-resorts/americas-top-brands-hotel-openings
- https://www.pcma.org/8-ways-west-elm-hotels-is-revolutionizing-the-hotel-industry/
