Top Predicted Hospitality Industry Trends For 2015
By Christine Kern, contributing writer
Hotels need to be ready for changes in travel needs
A Deloitte study, “Hospitality 2015: Game Changers Or Spectators,” addressed five major points of the future of the hotel business: changing demographics, market segmentation, technology, staffing, and sustainability, and stated that these trends would continue to grow in important for the industry.
According to the study, “The next five years will herald the era of a consumer-led brand focus for the hospitality industry. Consumers are changing faster than ever before in both attitude and behaviors.”
A recent article from 4Hoteliers has also addressed some of the top predicted trends for 2015, including the importance of marketing to the millennial segment; a renewed focus on customer service; a rise in international visitors; booking more profitable business; implementation of innovative technology; embracing the sharing economy; rising political uncertainty; reputation management as a priority; the importance of real-time marketing; and health and wellness trends that influence customers.
Combining the findings from the Deloitte study with the predictions of the 4Hoteliers article, it is obvious that 2015 will be a year of changes for the industry.
“The value of brand to the consumer, the growth in emerging markets, the importance of consumer-facing technology, and the sourcing, development, and retention of human capita have helped shape the hospitality industry over the past five years,” the Deloitte study reads. “These, along with the growing importance of the sustainability agenda and exogenous events and cycles are the key trends that will define success in the market place in 2015.”
One key element of growth will come from international travelers, as both sources predicted. Currently, the U.S. Department of Commerce projects an annual growth rate of approximately 4 percent in international travel, amounting to over 80 million visitors. One factor that is helping to spur these numbers is the recent “10 year visa” agreement between the U.S. and China that allows Chinese travelers greater access to the United States. Chinese travelers spend an average of 7 days on their trips to the U.S., and spend an average of over $1,000 per day, on top of accommodation costs, while traveling abroad, according to 4hoteliers.
And while the 4hotelier article stresses the marketing to millennials stating that they have become the largest growing segment in the hospitality marketplace, Deloitte suggests that the Baby Boomers will actually have the greatest impact on the industry, stating that by 2015 this generation is forecast to own 60 percent of the nation’s wealth and account for 40 percent of its spending. To attract this generation, the hospitality industry must appeal to their “forever young” attitude and desires for experiential travel.
Technology, with customer-facing abilities and the “high tech, high touch” approach, is definitely at the forefront of the industry, according to both sources. The hotel industry will need to balance the personalization and independence of the new high-tech travelers.
And brands continue to try to distinguish themselves by tapping into the health and wellness trends of its patrons. From health food options, to providing high tech running routes, to branding themselves with “Be Well” and other slogans, hotels are working to use the concerns of their customers to attract their business.