What a year it’s been! While hotel acquisitions slowed down a little in 2019, we began to see some cool new types of mergers. Some were more creative and fun, and some made us all say, “Whoa, we didn’t see that coming!” Let’s take a quick look at three of the biggest hospitality trends I’m talking about:
- IHG, and Mr & Mrs Smith, the world-renowned travel club and boutique hotel specialists, announced their exclusive loyalty partnership which continues to show us the that hotel companies are into the loyalty game
- The CEO and CFO of Expedia were fired
- Airbnb acquired Hotel Tonight
These hospitality trends and events have had a direct impact on the way we do business and operate in our industry. And while nothing is ever certain, we expect similarly huge hospitality trends to shape 2020 and beyond.
I’ve been embedded in almost every facet of the hospitality industry for 15 years, which has given me a unique perspective. This year, I wanted to share my vision on what’s to come so you can stay ahead of the curve on what’s hot and happening in our world (spoiler alert: it’s super exciting).
Here’s a quick snapshot of the nine new and latest hospitality trends we’re predicting will impact 2020 and beyond:
- Fewer Ballroom Meetings (It’s Not a Bad Thing)
- More International Travel, for Less
- Hotels Begin Tapping Into Fresh Tech
- Developers Increase Pre-Construction Sales to Hospitality Companies
- Funky, Unique Experiences Reign Supreme
- Local Vibes Overtake All-Inclusive Resorts
- Membership Options Arrive In Style (And Are Here to Stay)
- Digital Nomads Are the New Norm
- Travel Agencies Maintain and Grow a Strong Foothold
I’m not a psychic, but when these hotel and hospitality trends come true I’ll take full credit. Tell your friends, family, and coworkers you saw it on the Luxpitality blog first.
1. Fewer Ballroom Meetings (It’s Not a Bad Thing)
Big company meetings are trending away from ballroom settings. Cities across the U.S. have a plethora of boutique, hip, and trendy hotels that offer venues to host meetings. However, they’re not stuffy, boring ballrooms with banquet food anymore: those have zero character.
I’m talking about those sexy hotel rooftop bars, killer business events and retreat spaces, and craft dining options. Companies and groups are looking for the event hotels that embody the lifestyle and culture they foster every day at the office.
You’re going to see more companies look at, and book, alternative spaces that are much more urban chic and provide more flexibility when it comes to catering. Not only that, these options tend to be more cost effective and help companies build a truly tailored, unique experience.
It’s not entirely bad for the hotels because these spaces sit empty a lot, so they aren’t driving potential revenue. Imagine how you could repurpose these spaces—especially if they’re on the street level—with a high paying tenant, or turn it into another hot local culinary experience. Hell, you might be able to even repurpose the space by building more rooms or establishing coworking spaces.
2. More International Travel, for Less
International flights are more affordable than ever, and will likely continue to remain at lower rates thanks to platforms like Scott’s Cheap Flights and Hopper. The democratization of kickass deals makes it so anyone can book a trip without breaking the bank.
Most notably, we’re seeing this with fresh, low-cost carriers in Europe like Norwegian and WOW Air. This has also pushed American-based airlines to follow suit and offer more affordable options, and also just more options in general, to international destinations “across the pond.”
3. Hotels Begin Tapping Into Fresh Tech
Plain and simple, there’s an untapped gold mine of technology that can power some serious automation at hotels and, by extension, make guests’ lives so much easier. We think that in the next year and beyond, you’re going to see more hotels adopt these tech solutions to drive revenue, market their in-building amenities, and delight guests with special offers.
Savioke built a robot that brings items to your hotel room, but what about other tech that exists? What would it look like if you walked past the hotel lobby bar and a geo-tagged area sent you free drink coupons? How can on-demand services like Postmates or Uber Eats partner with hotels for delivery options? You’re going to see hotels start answering questions like this and reach entirely new demographics because of it.
Beyond that, as new content streaming services take center stage (ahem, Disney +), hotel guests will want to bring their shows and movies on trips with them. To that end, you’re going to see hotels install Apple TV, Chromecast, or other streaming boxes in their rooms. Some have already gotten on board with this trend, but it’s going to gain even more momentum in the next year.
4. Developers Increase Pre-Construction Sales to Hospitality Companies
Apartment builders in vibrant cities are rapidly jumping into the hospitality game, allowing both home-sharing and hospitality companies to purchase entire floors or wings before construction ever begins. Not only that, the financial commitment from these third-parties as they pre-buy space helps subsidize the cost for developers to build the actual building.
And once the building is open, the companies who bought-in tend to furnish, market, sell, and maintain their units better than a long-term tenant. Plus, building owners enjoy working with these companies who are essentially individual tenants who own multiple rooms, as opposed to 15 individual tenants in individual rooms—can you blame them?
This way of doing business is the next big thing for those who don’t have the resources to build a full-blown hotel, but are still experts at finding the right traveler and selling to them.
5. Funky, Unique Experiences Reign Supreme
Beyond just accommodations, Airbnb allows users to book local experiences like cooking classes or secret tours. However, we’ve noticed people want to take this further with off-the-beaten path experiences mixed into their accommodations.
I’m talking about glamping and airstream trailers or nesting in treehouses. New sites, like Lucky Find Hospitality, are popping up to provide experiential travelers with these funky and unconventional opportunities.
Think about how your corporate retreat would build unprecedented levels of trust and camaraderie among your team if you took a challenging hike through the jungle, or went rock climbing in the desert. And once it’s all wrapped up, you head back to a lodging that opens them up to something truly unforgettable.
6. Local Vibes Overtake All-Inclusive Resorts
We see similar experience-related hospitality trends thriving where resort destinations are concerned as well. People are still booking trips to resorts, which isn’t going to change anytime soon.
What is changing (for the better, we think) is what people want to do at these destinations. They’re looking to get out of the all inclusive, tourist vibe and experience life as a local.
This means getting out of their comfort zone, posting it on their Instagram page, and remembering their experiences for life. It’s an entirely new subset of traveler who we’re calling the “Experiential Traveler.”
In many ways, the rise of this demographic can be attributed to the memory of one who lived experiences better than almost anyone, Anthony Bourdain (we love you brother, rest easy). Pay attention to the gifts people give and receive this holiday season, you’ll likely notice a huge uptick in this kind of gift.
7. Membership Options Arrive In Style (And Are Here to Stay)
The membership economy is everywhere in our daily lives, and it was only a matter of time before it crept into the luxury hospitality industry. It’s going to keep growing, but we’re totally fine with that because it’s amazing.
Look no further than Inspirato and what I call the new age timeshare model, and for good reason. You pay a monthly membership fee, but instead of staying in a hotel you get a badass mansion for up to 60 days. I’m not kidding, you’ve got to check this one out.
It’s still in a sort of infancy in our industry, but the model has a solid value prop for members. You can travel the world for $2,500 per month which, by the way, is less expensive than the cost of living in most major cities like San Diego, Los Angeles, San Francisco, and New York City.
8. Digital Nomads Are the New Norm
Being a digital nomad used to be considered kind of odd. Now, thanks to coworking accessibility and the fact that you can run an entire business from your smartphone, it’s the norm. It’s not mission-critical to be in the office every day sitting in a cubicle.
Instead, people live and work out of one location for a few months before packing up and moving on to the next great city. It’s a way for workers to establish their independence and see the world, and they’re looking for accommodation options that meet the standard of their lifestyle.
Without a doubt, this new workforce is going to continue growing, especially as more people shift to a freelance model of self-employment. We’ve even got one of our very own spending the next three months in Amsterdam.
9. Travel Agencies Maintain and Grow a Strong Foothold
With all the booking options available to people at their fingertips, it can be easy to assume that travel agencies are a thing of the past. Assuming that is a critical error. Mr. and Mrs. Smith, Design Hotels, and Tablet, along with many other emerging companies, have pushed innovation in this sector forward and adapted into a new wave of travel agency. They create their own unique programs that allow the travel experts to, well, still be the experts.
We’ve seen how committed they are to their clients, providing perks from room upgrades and spa treatments all the way to cash back on your stay. Not only that, they’ve got portfolio hotels that are right on par with what today’s young, trendy consumer wants.
It’s going to be an insanely exciting year, and we can’t wait to be there with you every step of the way. We’d love to talk with you if you’re ready to become part of the Luxpitality family or book your next incentive trip or company retreat.
My hope is that highlighting these new trends in the hospitality industry will help you travel the way you want. Your trips, whether for work or for fun, are a direct reflection of you and your experiences. Create the best possible outcome for yourself, your partner, or your company.
Image Credit: Mr. & Mrs. Smith