Adapting to Hospitality Market Trends in 2024 Hospitality Landscape

If you need to stay ahead of hospitality market trends, you must adapt—it’s essential to survive and succeed in the hospitality industry. Technological advances and behavioral change make tourism a fluctuating industry, and adapting to these trends is crucial for any hospitality business aiming to thrive in the competitive landscape in 2024. 

In this blog, we’ll discuss hospitality market trends deeply and adapt to them. 

Exploring Hospitality Market Trends in 2024

Speaking about the landscape of hospitality market trends projected for 2024, from consumer preferences to technological advancements, understanding the shifting behaviors within the market is important for your businesses to adapt and succeed.

Let’s explore the key trends shaping the future of hospitality.

Trends in Market Behavior

1. Conscious Travel to Responsible Tourism

There is a growing number of travelers choosing responsible and sustainable choices, driving a shift towards responsible tourism practices.

Recent market research forecasts a $335.93 billion expansion in the sustainable travel and tourism market from 2023 to 2027. Furthermore, searches for “sustainable travel” surged by 191% from 2020 to 2023, with 69% of modern tourists prioritizing sustainable tourism in 2023.

Regarding specific destinations, Bali witnessed a substantial increase in foreign tourist visits, reaching 6.31 million in July 2023, nearly tripling the figures from 2022. With 73% of travelers choosing accommodation providers that promote sustainability.

This highlights that demand for eco-friendly and responsible tourism options is rising. As travelers increasingly prioritize sustainability, you should embrace eco-friendly practices to meet this demand.

Free Resource: Sustainable Travel and Tourism Guide

2. Eco-Tourism with Green Initiatives

The eco-conscious traveler is on the rise, looking for hotels that implement green initiatives and sustainable operations. The surging inclination towards eco-friendly travel in Bali, Indonesian Minister of Tourism and Creative Economy revealed that approximately 90% of Bali’s visitors are interested in eco-tourism or environmentally friendly travel. This notable trend was highlighted during a gathering at West Bali National Park.

Here are several green initiatives guests can involved in when looking for an ecotourism activity:

• Reducing plastic waste
• Supporting local communities
• Protecting wildlife and habitats
• Promoting sustainable transportation
• Implementing green building practices
• Offering eco-friendly accommodations
• Supporting sustainable agriculture
• Promoting responsible tourism practices

3. Wellness Seeker

Wellness travelers love keeping up their healthy habits even when they’re away. This means eating well, staying active, practicing mindfulness, enjoying nature, meeting locals, and trying new things.

The wellness tourism industry is booming, bringing in about US$639.4 billion, as the Global Wellness Economy Monitor reported. This creates many business opportunities like yoga studios, gyms, healthy food shops, events, and cultural experiences.

As Bali is a popular destination for wellness seekers, there are plenty of places to do yoga and meditation or find deep spiritual traditions. You can offer the guest plenty of traditional healing practices to explore.

4. Vegan and Plant-Based Menus

GlobalData, a company that studies data and trends, says that vegan-friendly tours, trips, and travel apps are becoming more popular as the travel industry tries to recover from the pandemic.

In addition, the global market for vegan food was worth $14.2 billion in 2020 and is expected to grow to $31.4 billion by 2026. This shows that more and more people are interested in vegan and plant-based food options, which indicates that health-conscious and ethical eaters are on the rise.

As the demand for vegan-friendly options rises, hospitality businesses should consider offering more plant-based options to meet the preferences of health-conscious travelers.

5. Demand for Locally Sourced Food and Experiences

Tourists typically spend around 25% of their money on food and drinks while traveling. This can bring more money to a local community and help the local government earn more through taxes on these purchases. 

Market behavior trends show that travelers want authentic experiences. They are looking for food and cultural activities that come from the local area. This also means people are more aware of how food affects the environment and are choosing locally sourced options that are more sustainable.

Accommodating the hospitality market trends, offering authentic, locally sourced food and cultural experiences to attract travelers and boost revenue for the community.

6. More Personalized Service

Personalized service has become more important in the digital era. Offering customized experiences for each guest based on their preferences becomes undeniable.

According to a report by Bastenburgh Capital, 78% of travelers are more likely to choose places that offer personalized experiences. This indicates that trends in the hospitality market are leaning towards meeting the demand for personalized service from tourists.

So, as the hospitality market trends towards more personalized service, you need to cope with the trends and try personalizing your service. 

Read also: 11 Tips How to Increase Hotel Revenue That You Must Know

Trends in Technology

1. Guest Experience with Mobile Check-Ins

The convenience of mobile check-ins enhances the guest experience, providing a smooth start to their stay. Recent studies have found that 53.6% of travelers would like to see contactless check-in/out permanently adopted by 2025.

These features make it easier for tourists to enjoy their holidays, which is why technological trends will continue to increase to create the best possible experience for travelers.

With mobile check-ins enhancing guest experiences, adopting contactless processes aligns with traveler preferences. As technology advances, focusing on convenience will remain crucial for enhancing the tourist experience.

2. Convenience with Contactless Payments

The demand for contactless payments continues to grow, providing a quick and secure way to handle transactions. The contactless payment market is growing because people like the benefits of using less cash. It also gives more options for handling money and encourages investments in new ways to pay.

Here are some trends in contactless payments:

3. Integrating and Leveraging AI

Artificial Intelligence (AI) is revolutionizing customer service, from personalized recommendations to efficient problem-solving. However, Amazon Web Services (AWS) data shows that just 15% of travel and hospitality companies utilize AI at an advanced level.

In the current hospitality market trends, AI is being employed to personalize customer experiences in the tourism industry in various ways; here are several key points of using AI in hospitality industry:

• Personalized service or recommendations
• Chatbots and virtual assistants
• Real-time updates
• Dynamic pricing
• VR and AR applications
• Resource optimization
• Crisis management
• Assistive technologies

4. Visual Storytelling: Short-Form Video Content

Engaging short-form video content on platforms like Instagram and TikTok is a key marketing strategy in this hospitality market trend.

Short videos are particularly effective in capturing the attention of younger audiences, as they are more likely to engage with visual content on platforms like TikTok, Instagram Reels, and YouTube Shorts. 

Hotels and resorts utilize short-form video content to showcase their amenities and facilities. This offers guests a visual glimpse of what they can expect during their stay, highlighting features such as the bar, pool, lobby, restrooms, lounge areas, and dining spaces.

Additionally, virtual property tours provide viewers with an immersive experience of the hotel, guiding them through various areas, from the front door to the elevator and guest rooms. These videos allow potential guests to explore the property virtually, gaining a sense of its layout and ambience as if they were physically present.

5. Data-driven Marketing Campaigns

According to a study by Ascend 2, using data to guide marketing can greatly help hotels and resorts. It easier to get new customers by 45%, improve decision-making by 51%, and make offers and product launches more accurate by 66%.

Hotels and resorts can analyze customer data, such as age, likes, and actions, to create marketing campaigns that fit each guest group. In this evolving hospitality market, this can save money, improve operations, and boost their online reputation.

Some usual places to get data for marketing in the hospitality industry are:

• Customer interactions
• Website analytics
• Social media engagements
• Hotel Property Management Systems (PMS)
• Geolocation data
• Competitor data
• Feedback forms
• Loyalty programs

Read also: How to Invest in Technology to Improve Efficiency and Customer Service in the Hospitality Industry

What to Do on Navigating Market Shifts (Solutions)

To stay ahead of the game in hospitality market trends, there are actionable steps you can take. Firstly, embracing sustainability and personalization is key. Offer eco-friendly initiatives, wellness activities, and locally sourced experiences to meet the demand for responsible tourism and cater to health-conscious travelers. Secondly, providing personalized services is crucial. Customize dining options and wellness activities to cater to your guests’ preferences, enhancing their overall experience.

Additionally, embracing technology trends is essential. Over this hospitality market trends, implement mobile check-ins, contactless payments, and AI-driven customer service to streamline operations and improve guest satisfaction. Lastly, utilizing short-form video content and data-driven campaigns can be highly effective. Engage potential guests and foster loyalty by leveraging these marketing tools to showcase your offerings and gain insights into evolving consumer behaviors. By taking these proactive measures, you can position yourself competitively in the ever-evolving hospitality industry.

Frequently Asked Questions