Data paints a positive picture for the year ahead in the global hospitality market. With continued demand for leisure travel and the reopening of China to tourism after several years, global hotel occupancy is on the upswing in 2023, with many markets surpassing pre-pandemic occupancy levels according to Amadeus Demand360 data as of June 1.
Yet it’s important to
acknowledge just how much things have changed - the hospitality industry of
2023 is not that of 2019.
The pandemic will continue to
reverberate, reshaping the industry and traveler preferences in ways that would
have been impossible to predict just three years ago. New Amadeus research shows today’s consumers
have high expectations and want more personalized, flexible, and sustainable
journeys. They want promotions and offers tailored for them, a wide range of accommodation
options to choose from, and technology to enhance and remove friction from
their trips.
How can hospitality organizations best adapt to
accommodate long traveler wish lists and evolving tastes? We believe it’s through an ecosystem approach, combining content, insights, and
choices across hotels, mobility, and travel protection. This will enable
the most comprehensive set of options to be available to travel sellers to
drive sales and for travel providers to maximize revenue – with the traveler
set to benefit. Here’s how.
Building connected journeys – change is coming
Travel sellers are a vital
link between travelers on one side and travel providers on the other. When
travelers choose to work with agents, they expect to receive high quality offers
tailored for their budget, purpose, group size, time frame, and desired
destination. In order to meet client expectations, travel sellers are searching
for the widest range of content and insights possible. Sellers are increasingly
relying on data to explore booking, pricing, and occupancy trends, as well as
tools to help them maximize productivity – for example, allowing travelers to
see all bookings for an entire trip in one place. By making the travel
experience easier for their clients, sellers can increase satisfaction and
revenue, and drive return business.
As travel sellers adapt to
new ways of working to support traveler needs, so too are hotels, mobility, and
insurance providers. Known for being historically fragmented with “traditional”
offerings, these sectors are now poised for rapid growth as they rethink their
business models to unlock new opportunities.
Car rental companies are
increasingly looking to modernize their practices – introducing technology to replace
time consuming paper check-in forms, old-fashioned key fobs, and lengthy queues
at rental locations. With sustainability also becoming a high priority for
travelers, the sector is responding by offering information on the carbon
emissions of each booking using dynamic data.
Multimodality is another
significant growth area for the mobility space as travelers want all
transportation options at their fingertips. The latest innovations go beyond
car rentals to offer bookable ride-shares, electric scooters and bikes, ferries,
helicopters, and other on-demand services. A recent study commissioned by Amadeus
estimates multimodality could add 500 million travelers and €30 billion in
additional revenue in Europe alone through 2030.
To provide peace of mind in
an industry that carries a measure of uncertainty, travelers are also keen to
add travel protection to their trip. They want relevant products and services
offered to them that plainly explain what is covered. Clear, concise policies
are gradually replacing lengthy documents few read, leaving travelers with no
doubts on where they stand. Some insurance providers are even taking their
support up a notch to offer interactivity during the trip. In the event of a
disruption, a claim can be automatically launched and virtual cards offered to
the traveler to remove stress from the situation.
Similar to mobility,
insurance is another area of hospitality no longer considered “one size fits
all”. Insurers can now use a range of metrics –
including day of the week, booking class, season, group size, destination
airport, and more – to create a unique offer to a traveler, one calibrated to
meet their specific needs. Flexibility is key as providers work to cater to
last-minute changes and new offerings beyond
basic air travel insurance to coverage for hotel and car reservations, illness,
weather related delays, even ‘cancel for any reason’ policies.
Finally, hoteliers face
strong headwinds in meeting the changing needs of travelers throughout their
journey – whether it’s the pre-arrival phase, on property, or post-stay. In
order to capture the attention of travelers and travel sellers alike, they are
doubling down on their demand generation efforts to avoid being outperformed by
their competitive set. Hoteliers are taking a close look at their technology
stack – moving away from standalone solutions to integrated offerings that can
help them improve sustainability, revenue and marketing strategies, optimize
their presence across distribution channels, and enhance onsite operations –
both for housekeeping and event staff, as well as for the traveler through
exciting digital enhancements.
Whether it’s corporate,
leisure, or group travel, guests want the option to experiment with a hotel’s
cutting-edge technology – app-based room keys, mobile payments, voice
on-command technology, contactless room service, and more. These digital
experiences not only surprise and delight but deliver memorable stays as they
replicate the comforts of home for many.
Clear demands for change can
be heard across the hospitality industry in the post-pandemic era, and
companies are rapidly stepping up their response. From travel sellers to travel
providers, businesses are abandoning historical practices in favor of providing
seamless, flexible, and personalized offerings with the traveler in mind. They
are increasingly adopting sustainable practices, offering digital experiences,
and looking to maximize productivity through the latest technological advancements.
It will take collaboration
from many players to bring the experiences of tomorrow to life. But integrating hotels with travel protection and mobility in the
short term will allow the sector to create new experiences and deliver the best
possible service to our shared customers.