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Key hospitality trends for 2015

noImage Melanie Luff

hotel reception

Recent years have seen a substantial change in customer behaviour within the hospitality trade.

With mobile booking, low cost travel, and price comparison websites (coupled with an age of economic uncertainty) consumers are changing how they book and what they want for their precious pound.

In a Forbes article, Howard Roth claims that ‘travel and tourism makes up 9% of GDP’ and that the industry is the ‘world’s largest employer’, responsible for an approximate 1 in 11 jobs.

Roth regards the industry as a rapidly growing sector, with rising potential and a predicted 75 million more jobs created in the next decade.

The industry is transforming to meet shifting demographic demands. Notably, it is evolving to cater to the fastest growing consumer in the hospitality industry - the ‘Millennial’ (18-30 year olds) - and driving innovation in a faster, self-service, tech-orientated customer experience.

Tech revolution

The modern travel consumer wants to book online, check in online, order food and drink online, read reviews online, share their experiences with their friends and family online and - ultimately - if they are unhappy they will complain online.

Unsurprisingly, the preferable way of doing all of these things will be through a phone or tablet. 

Senior vice president of Hilton Worldwide, Chris Silcock, in an interview with Skift magazine said:

‘We have the opportunity to re-imagine the hospitality experience, combining the physical and the digital’ due to the new ‘connectivity levels, the adoption of the smart-phone, [and] the data that is available’ alongside ‘people’s willingness to share data’.

Innovations in interior design

The mobile revolution is also driving trends in interior design. Traditional lobby spaces, established with a waiting room design are now becoming cultural hubs.

These multi-functional areas are now being designed with the social, recreational, business, and technological needs of the customer in mind.

Many offer comfortable, modern furnishing, access to Wi-Fi as well as providing food and drink which enables customers to socialise, hold business meetings or browse the internet – depending on their specific requirements.

The majority still have a conventional check in desk / information point – however some companies are pioneering airport style auto check in machines.

Catering to the price conscious

In the aftermath of the recession people are still value conscious and competitive pricing is essential to gain a share of the market.

Caroline Bremner, global travel and tourism manager at leading market researcher Euromonitor, says:

With the much touted end of conspicuous luxury in the West, coupled with general wealth and the global meltdown, groups and businesses have revived their interest in value for money’

The growing ‘Groupon culture’ is saturated with promotions and offers with an immediate value for money appeal, meaning people no longer have to pay the premium price for the luxury they want.

Once considered a luxury, these services are now easily accessible to consumers with the click of a button.

Boutique on a budget

This recent wave of 'cheap but chic' accommodation is driving trends towards the budget market.

Leading commercial property agent GVA considers that the type of property asset is changing not only to meet the customer demands but also to meet the demands of the property market.

With approximately 5,300 new bedrooms predicted to open in the next two years, ‘much of this new supply is in the budget sector’, and investors are now looking for operational efficiency in properties with ‘over 100 bedrooms’.

A recent report by GVA claims that ‘not only is the number of beds and hotels increasing, so too is the quality’

Becoming a favourable option, budget no longer means the stereotypical cheap and cheerful quality, as mid- range hotels are having to rethink their prices in order to compete.

Subsequently this is leading to rise of the ‘Poshtel’ – ‘affordably-priced hostels that have been giv[en] a luxury facelift and are giving boutique hotels a run for their money’.

Real time marketing

Keeping up to date with a strong online presence is essential. User generated websites and social media are becoming an increasingly important marketing tool, as more and more people turn to their laptops, tablets and smart-phones.

Investing in visual media and mobile friendly websites can help on a number of levels, enabling companies to build brand awareness and a good reputation, establish authority, and the gain trust of potential customers.

Integrating wellbeing

In a progressively health conscious society, many are still preoccupied with maintaining their virtuous lifestyles away from home. A shift can be seen towards a kind of ‘wellness tourism' with consumers seeking health savvy establishments. 

Stocking healthy foods is an easy way to cater to this growing market trend, as well as organising fitness classes or thinking about installing a gym.

Last year Marriott hotels launched their “Travel Brilliantly” campaign, a traveller inspired concept allowing the public to submit their own ideas.

In first place was young entrepreneur Anjana Kallarackal, who came up with an innovative new ‘foodie’ solution.

She wanted to pioneer healthy vending machines, after being frustrated with the lack of healthy, fast food available in most hotels.

Inspired by Anjana’s pitch, Marriott O’Hare in Chicago recently partnered with Farmer’s Fridge, a health orientated start up from Chicago.

Through introducing their healthy vending machines, they turned Anjana’s idea into a reality; substituting fizzy drinks, chocolate bars and ice cream with healthy, organic alternatives – and it is proving to be a popular alternative.

However this isn’t to everyone’s taste – so there’s no need to completely swap the burgers for quinoa and kale just yet.

Think about what will work best for your hospitality business. You don’t have to let the latest trends define your business, but they could help you fast-track and keep one step ahead of the competition.

 

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About The Author

Mel wrote for all titles in the Dynamis stable including BusinessesForSale.com, FranchiseSales.com and PropertySales.com as well as other global industry publications.

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