Trends in the hospitality industry have shifted rapidly in recent years. In fact, few industries have experienced more turmoil since COVID-19 than the hospitality space. Changes in inflation and consumer preferences, coupled with lingering effects from the pandemic have forced companies to adapt.
David Corsun, director and professor at the Daniels College of Business’ Fritz Knoebel School of Hospitality Management, says these factors create a new landscape for hospitality companies. Hospitality businesses are phasing out things like daily housekeeping in favor of new industry trends such as personalized experiences and tipping, Corsun said.
As we look forward to the future, here are six hospitality trends that Corsun is keeping an eye on.
1. New technology enables personalization
In both restaurants and the hotel industry, Corsun said the introduction of robotics, AI, and service automation (RAISA) have been crucial to creating improved guest experiences and cost savings.
“Operators are looking to RAISA to combat labor shortages and significantly higher labor costs coming out of COVID,” Corsun said.
This might look like an automated hotel check-in kiosk or AI-powered chatbots to communicate with guests. In the restaurant industry, it could appear as food preparation robots or an AI ordering agent to streamline operations for the drive-through window.
As the accuracy and popularity of this technology grows, Corsun expects to see AI assist with personalization for potential guests. He thinks this is a focal point for the industry moving forward, as the special nature of customized experiences will garner long-term loyalty for returning hotel and restaurant guests.
2. Travelers Prioritize Health and Wellness
Just because you’re on the road doesn’t mean you want to leave your healthy habits at home. Corsun said health and wellness matters more than ever to travelers and diners.
“People are seeking experiences that enable them to maintain good habits they have developed at home,” he said.
This might show up on a restaurant menu or in the health amenities for hotel guests. Whether on vacation or a business trip, customers are looking for a frictionless experience to remain on their health journey.
Resorts around the world have taken notice of this trend, implementing new ways to rest your mind and body while on vacation. Conde Nast Traveler recently shared its best wellness retreats around the world, with resorts featuring unique bath experiences, facial treatments, yoga retreats and much more.
3. Increased Focus on Environmental Sustainability
It isn’t just a global political issue; environmental sustainability is a real concern for consumers. The desire for sustainable travel impacts their spending habits, Corsun said. Consumers want to know that the places where they’re eating and sleeping are aligned with their sustainable beliefs.
A recent Deloitte survey found that half of global consumers are worried or anxious about climate change, and consumers are increasingly making purchases based on ethical or sustainability related concerns.
“Today, sustainable practices are essential to the health and resilience of any business, not to mention that of the communities they operate in. Sustainable hospitality will be key to the future of travel and industry leaders should ensure the sector minimizes its impact while maximizing its positive influence on consumers, communities, and the planet,” Deloitte wrote in the report.
4. Bringing Cultural Experiences to Consumers
Corsun added that he’s also starting to see signs that social and cultural sustainability matter to consumers. This refers to the preservation of cultural beliefs and practices and their inclusion in hospitality experiences.
Look at the Alila brand of hotels as an example. The Hyatt subsidiary is matching environmental sustainability with cultural connections at its Southeast Asian properties. At some of Alila’s locations, guests are invited to curated dinners with local families where they learn the local food and customs authentically.
“This is precious, authentic interaction for the guests, as well as a means of showing respect to the villagers and developing ties with them,” said Alila founder Mark Edleson in 2020. “Reaching out respectfully to the community is a crucial step on the road to sustainable tourism.”
5. The Rise in Alternative Food and Drink Options
Stemming from health and sustainability, Corsun expects the rise of plant-based protein offerings to continue. And you don’t have to be against eating meat to order this.
“Non-vegetarians and vegans are eating these products, even seeking them out,” he said.
The Denver metropolitan area has built a strong environment for vegan food, with many restaurants offering plant-based options. Whether you’re in the mood for a burger, pizza or Indian food, Denver has plant-based options.
Corsun said robust, non-alcoholic beverage programs are a must-have for hotels and restaurants as well. With both wine and beer consumption down across most age groups, it’s important to crease a diverse menu that appeals to all consumers. Corsun says non-alcoholic cocktails are the answer.
“Across all groups, there is a move toward less alcohol consumption, making NA cocktails an important part of any beverage program,” he said.
6. Consumers and Employees Demand Ethical Workplaces
Whether you’re a student focused on hospitality or just someone who likes to travel, Corsun has advice on what to expect in the future. Much like the industry itself, employees must be nimble.
“The ability to be flexible and adaptive is going to be crucial for career longevity,” he said. “Understanding organizational culture and leadership will be increasingly important given the industry’s labor issues.”
And while automation and technology can create efficiencies, Corsun encourages managers to remember where their operation’s true value is.
“The labor challenges the industry continues to face, despite the rebound from COVID-19 contraction, have ratcheted up the need for employers to create humane workplaces in which people earn a living wage,” Corsun said. “The challenge now and for the future is balancing these needs with owners’ return on investment. Figuring this balance out will be a required skill.”