“The economy seems poised to dodge a recession again this year, but that doesn’t mean it’s smooth sailing for hotels,” said Adam Harris, cofounder/CEO, Cloudbeds. “Travel patterns are changing, travelers are more price-sensitive and demand may soften. Under any market conditions, it’s the hoteliers who monitor the trends and data closely, act quickly to seize opportunities and offer a distinctive guest experience that will outperform the market.”
Emerging trends identified by Cloudbeds include:
Travelers trade up. Travelers are finding creative ways to upgrade their travel experiences amid high inflation, by leveraging money-saving hacks, swapping popular destinations for more affordable ones (according to Expedia) and relying on ‘Buy Now, Pay Later’ options (according to Atmosphere Research). Despite the rising cost of living, Skyscanner found 81% of travelers planned to travel the same or more in 2024 compared to 2023.
The experience is the destination. After years of post-pandemic binge-buying, consumers are moving on from collecting stuff to collecting experiences. Almost 70% of travelers say they are more likely than ever to travel to a concert outside their hometown (according to Expedia), while 47% of US travelers have booked a destination purely to visit a specific restaurant (according to Skyscanner). Meanwhile, Booking.com found more than half of travelers are keen to book a surprise trip where everything down to the destination is unknown until arrival.
Next-gen hoteliers upgrade their skills. As technology transforms the hospitality industry, next-gen hoteliers must adapt by acquiring a blend of technical, analytical and strategic skills to effectively leverage new tools and maintain a balance between automation and human interaction. The World Economic Forum suggests an estimated 42% of business tasks will be automated by 2027. In the hospitality sector, 91% of hotels globally use a PMS, 64% have a booking engine and 33% have a channel manager.
The new trends complement last year’s five key developments, which are set to continue this year: value-driven decision-making; the shift to virtual front desks; blended travel meeting hybrid hospitality; new technologies to disrupt travel search and inspiration; and a shift from focusing on amenities to guest experiences.
Tags: 2024 State of Independent Lodging Report, Adam Harris, Cloudbeds
