These trends have been recently defined by Cathy Enz, Professor In Strategy and The Lewis G. Schaeneman Jr. Professor of Innovation and Dynamic Management at the School of Hotel Administration at Cornell University. These trends were written for analytic hospitality executives, and not all of the trends are explicated here, but those that are, are below and deal with travel, guest experience, hospitality, and in general how life is changing in the hospitality world. As Pursuitist readers pack their bags for 2015 travel, here are some trends to ponder.
Millennials — The New Power Segment – Exploration, interaction, and emotional experience is the hallmark of Millennials, the fastest growing customer segment in the hospitality industry, expected to represent 50% of all travelers by 2025. With the rise of the number of millennial consumers, businesses will need to be more transparent and tech savvy, with a strong focus on empathy and customer connection. Technology is essential for this demographic and they will expect technology to power check-in, payment, eating, and shopping. They will also actively engage in social media like Twitter, Yelp, Facebook, and TripAdvisor to complain. Millennials will expect a deeper link between tourism services and how they manage their everyday lives.
Foodies are a distinct subset of this market looking for a gourmet experience at reasonable prices. Culture buffs, LGBT and multi-generational travelers are also looking for unique and novel experiences. Over half of Millennials stayed at independent hotels last year, 20% more than baby boomers.
Taking Control of Personal Health And Well Being While Traveling – Taking charge of personal health will expand. Monitoring and adjusting health will become more important as technology moves onto the body and consumers take greater control of their health. Tracking internal biochemistry and personal fitness data will result in more engaged and empowered personal health, and telehealth (remote consultation) will allow for higher quality and more personalized care. Air purification, energizing lighting, a yoga space, in-room exercise equipment, and vitamin infused shower water are just the start.
Technology Driven Self-Sufficient Travelers – Innovative technologies on a mobile platform will be expected as more individuals rely on digital concierge services. Mobile check-in and seamless connectivity across platforms and devices is now expected. With geo-location software easily available, selling locally with a focus on content marketing is expected. Integrated outlets, USB ports, and wireless technology integration with hotel TV systems are basic. The iPod docking station is passé, but simple clocks are back in.
Sustainability and Resource Constraints – Eco-friendly practices are becoming the norm, and most hotels must have an attractive “green policy”, as travelers expect hotels to have some type of environmental program in place. Renewable energy resource and innovative projects will shape the future of resource use.
Disruption and the Sharing Economy – Emerging new business models including peer-to-peer networks life Airbnb, Uber, and Lyft, multi-sided platforms such as Google and eBay, or free business models such as Skype and Flickr will change the business landscape. As peer-to-peer networks expand and grow they will become more professional and pose stronger direct competition to traditional travel services. Further, the growing popularity of meta search engines like Google and Microsoft and the rapid growth of firms like Kayak may alter the user experience, define the mobile experience, lead to consolidation and impact partnerships with OTAs and hotels.
Fewer People and More Data – As more travelers prefer technology to human beings, bypassing the front-desk, using a digital concierge, and saying good-bye to bellmen and other traditional positions could be in the future. Rethinking Recommendation Engines will allow guests to obtain “good service” on an array of travel needs once handled by the hotel.
Bon Voyage!
