What does 2024 hold in store for the hotel industry?
Will 2024 be any different? The answer to that is yes and no.
Some things will change and some won’t. In any event, those clouds of emotions that have been building up over the past, ranging from optimism, excitement, apprehension and unease, will continue to hover over the industry as we advance into 2024.
The role of Artificial Intelligence (AI) in reshaping hotel operations is becoming increasingly significant and AI’s potential implications will likely dominate centre stage. Top Management in most companies will gravitate towards viewing it as a powerful tool for reducing costs, as well as the impact AI can make with real-time offers to guests including its enhanced capability to drive revenues. At the lower end of organisational hierarchies, anxiety that AI can mean jobs lost will not abate – exacerbated by the International Monetary Board’s recent declaration that 60% of jobs in the developed countries could be soon lost, due to rapid technological advancements in AI.
Having moved past the post pandemic revenge travel era, travelers will focus on adventure or ‘deep immersion’ travel: seeking locations that exclude crowds and satisfies those deep-pangs for visiting lesser known far-off places. The German word Fernweh describes it aptly - it’s a kind of a “farsickness” as opposed to homesickness.
As they dream about their next escapade, travelers will look beyond superficial interactions with the local culture, choosing in-depth experiences - for example, tours led by indigenous guides and stays in lodgings that actively support sustainability.
Sustainability will be an ever-present topic of conversation, and a growing segment of conscious consumers will demand environmentally responsible choices from hotels. Climate factors will exert influence on travel decisions, including the fast emerging drift towards eco-conscious travel.
Expect climate to feature more in future to the point where some destinations may become a ‘no go’ because of heat waves, flooding or even wildfires – disrupting, traditional travel patterns that the industry has relied on for years.
Sleep, which irrespective of which generation guests belong to, and, is vital to rest and recharge, will assume greater importance as it aligns with overall guest satisfaction. Guests whilst seeking delight during their awake - time will expect enhanced sleep quality. Hotels will thus need to step up investment in superior sleep amenities, such as providing high-quality mattresses, etc.
The world of hospitality is about to get even more challenging with the digital changes coming our way in 2024. Changes to guest behavior during and after stays, particularly in respect of communication, will require hotels to adapt or perhaps perish, as more and more tech-savvy travelers (particularly millennials and Gen Z) begin to expect digitalized, flexible service options such as mobile check-ins and voice control, throughout their entire guest journey.
The staffing crisis despite slight post-pandemic improvement will continue in 2024, with hotels labouring to halt the revolving door cycle of replacing people with people. Consequently, inadequate training will obstruct efforts to provide personalised guest experiences. For most hotels barring the large brands, replacing people with systems will be unaffordable.
An election year with an unprecedented number of elections would likely spread global speculation about the economic impact and influence who travels and when?
One thing though will remain the same: there will be no dearth of trends to drive 2024 in several directions.
Shafeek Wahab – Editor, Hospitality Sri Lanka, Consultant, Trainer, Ex-Hotelier
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