Personalization, mobile ordering tech, Alexa, cybersecurity, and other innovations will shape the guest experience in top chains and resorts.
The year 2023 has witnessed a continuous transformation in the hotel industry, where technological innovations have played a crucial role in redefining the sector to offer exceptional guest experiences.
Both major hotel chains and leading resorts recognize the need to adapt to the evolving landscape, undertaking the challenge of creating environments that not only accommodate but also align with their customers' consumption habits.
As we enter 2024, the anticipation of significant changes in the hotel industry is evident. STAY, at the forefront of Guest Experience innovation, has identified and embraced these trends, presenting a decalogue of innovations.
For many of them, there are already features and products allowing our clients to stay up-to-date. Other trends have been instrumental in the development of new tools that we will introduce in the coming months.
Let's dive into them!
Direct bookings through chain websites and reduced dependence on third parties
In recent times, major hotel chains have been making significant efforts to increase the percentage of room bookings managed through their websites. There are many reasons for this, but one of the fundamental ones is to increase revenue per available room.
In the case of direct bookings through chain websites, the entire reservation amount goes directly to the hotel, unlike when these bookings are managed through platforms like Booking, Expedia, or similar.
To achieve this, many international hotel chains are enhancing direct booking channels and offering exclusive deals, personalized incentives, or robust loyalty programs.
These factors contributed to 29% of customers preferring direct bookings in 2023, according to Hospitalitynet.org.
Personalization and experience adaptation
If one had to choose a keyword for hotel trends in 2024, it would be "personalization."
All major chains and reputable hotels agree. Data analysis and the ability to tailor offerings to guests based on their preferences, tastes, and consumption patterns will transform the industry.
A guest experience that can adapt to each customer is a dream that seemed unattainable in the past but is becoming achievable today. Through the wow effect and surgical adaptation to guest desires and preferences, the experience will improve, leading to loyalty for hotels embracing this trend.
56% of travelers admit they would become frequent guests of a hotel with a personalized experience, according to the State of Personalization Report 2023 by Twilio Segment.
Imagine a guest finding a custom pillow based on their preferences from previous stays or being greeted with a welcome cocktail because the hotel knows their favorite drink. These are just two examples of how data analytics, a focus of STAY through various PRO features, will maximize the guest experience.
The power of dynamic guest apps
Dynamic guest apps are a pivotal aspect of the 2024 guest experience. Their evolution into dynamic apps allows you to differentiate and adapt content in real-time, in seconds, based on any special event or service. Whether it's Halloween, a sports convention, or a sudden rainstorm at a resort forcing a schedule change, you can instantly and seamlessly adjust.
Dynamic guest apps offer limitless front-end configurations, enabling you to relocate services, products, and utilize various visual elements based on the type of guest at your hotel. If a sports convention is happening, you can prioritize visibility of the gym, spa, or juice bar on the front end within seconds.
Is it Valentine's Day? In seconds, you can readapt the app to visually evoke this special day and highlight romantic dinner services on your app's home page.
That's why STAY is launching a revolutionary tool in a few days, allowing each of our clients to customize their guest apps as they wish, with infinite possibilities and in real-time.
Labor shortage requires technology support for F&B
It's the great challenge of the hotel industry: overcoming the labor shortage, especially in the Food and Beverage (F&B) sector.
According to a Deloitte study, 53% of hoteliers have a workforce representing 25-74% of their pre-pandemic staff.
It's a significant problem because in high-end hospitality, no wait times are non-negotiable, and the ability to serve 24/7 is also non-negotiable.
However, what to do when there aren't enough people to attend to your clientele? Technology comes to the rescue. STAY’s Mobile Ordering has enabled chains and resorts to use it to:
- Cut the ordering process by more than half
- Reduce waiting times
- Increase revenue by offering F&B 24/7
- Increase revenue by offering F&B in previously underserved areas
- Improve the quality of life and daily tasks of their staff
Through QR codes and NFC technology, hotels have overcome this crisis, improving waiting times, revenue, and guest satisfaction.
An example is the success story of the luxurious Kimpton Vividora in Barcelona, using STAY. This smartphone-based ordering technology doesn't only apply to serving in bars or terraces but also extends to room service.
Integrated payment gateway, Google Pay, and Apple Pay
In recent years, hotels prioritize a contactless guest journey, incorporating features such as online reservations and self-service options. Linked to all of this are the contactless payments.
The increasing adoption of contactless payments, projected to exceed $10 trillion by 2027, presents hotels with an opportunity to embrace technology and meet the demands of digital users.
The growth is expected to primarily come from mobile wallet apps like Apple Pay, Google Pay, and PayPal, with a forecasted 221% increase in contactless payments over the next three years.
Reputation management (online and during the stay)
It's no surprise in 2023; online reputation is a crucial aspect for any chain, resort, or hotel.
How guests rate you will determine your success as a hotelier. Therefore, guest satisfaction surveys play a crucial role.
That's why STAY asks, why wait for the guest to leave to know what worked during their stay and what could be improved?
And that’s why we introduced Instant Feedback, a real-time survey tool that allows you to receive customer opinions while they are still in your hotel, enabling you to act when something isn't going as it should.
Privacy and cybersecurity
Perhaps the least spectacular or visible trend for 2024, but arguably the most important. Any reputable chain needs to ensure the security of its guests' data because the opposite could lead to a reputational crisis, the opposite of what a major chain or resort seeks.
In an increasingly vulnerable world to such security breaches, having technology providers with dedicated departments for data protection against possible external attacks is crucial.
At STAY, we know this and have been reinforcing this aspect for years, providing peace of mind to our clients.
Voice searches: Alexa is the new game changer
Who hasn't asked a device like Alexa from Amazon to play a Taylor Swift song or tell them the outside temperature while in bed?
Hotels have realized that for guests to feel at home, they need to find the comforts they enjoy daily.
Therefore, in 2024, the way guests interact with hotels and their services is set to change.
Imagine ordering a room service burger through voice commands.
We can't reveal much more; stay tuned for the early months of 2024, but through STAY and collaboration with Amazon, this will be possible for our clients, chains, and resorts already using our Guest Experience OS.
Sustainability, a consolidated trend
It's not a new trend, as 2023 was the year when chains and resorts predominantly agreed not only to be sustainable but also to appear so.
Social demands, especially from younger generations, require a drastic reduction, tending toward the disappearance of paper in the guest's customer journey.
STAY's clients, like Dreams Nature Resort in Cancún or Westin Reserva Conchal in Costa Rica, are saving one and a half tons of paper per year thanks to their corporate app.
These policies are crucial for many clients who admit that sustainability plays a crucial role in their decision-making when booking a hotel.
In conclusion: a dynamic landscape driven by technology and personalization
In conclusion, the trends shaping the hotel industry in 2024 reflect a dynamic landscape driven by technology and a deep understanding of evolving guest preferences.
From the emphasis on personalization and direct bookings to leveraging technology for F&B services amid a labor shortage, the industry is adapting to meet the changing demands of guests.
The integration of contactless payments, real-time feedback, and voice-activated services like Alexa further exemplify the commitment to enhancing the guest experience.
Additionally, the continued focus on sustainability and the introduction of customizable guest apps underscore the industry's dedication to innovation and guest-centric solutions.
💫 As we step into 2024, these trends not only anticipate significant shifts but also pave the way for hotels to differentiate themselves and thrive in an ever-evolving hospitality landscape.
