Looking Forward: Hotel Industry Trends to Watch Out For in 2023 (2024)

After a tumultuous couple of years, 2023 is finally granting some reprieve and normality across many industries, hospitality being one of them. The world is slowly returning to familiar paths, and organisations are finally able to focus on what they do best once again.

The hospitality sector was one of the most impacted areas during this pandemic because of restrictions on travel, halting their ongoing trends. Now that things have started moving forward however, these dynamic developments will start appearing in full force soon enough!

The emergence of new trends are often propelled by the altered habits and preferences of consumers, innovative technology, and pioneering business models. Therefore, many industries have had to adjust to the “new normal” in order to stay afloat. This is especially true for the hotel industry, which has been undergoing substantial shifts as a result of this pandemic.

In 2023, we will certainly see some interesting changes and trends within the hospitality sector that are likely to have a lasting impact on how hotels operate in the future. Here are some of the top trends to look out for:

What’s on the trend for 2023?

As the current trends hold strong into 2023, we’ll get to experience refreshing innovations in sustainability, tech and travel convenience. To give you a glimpse of what’s coming this year, here is an overview:

  • AI and Automation
  • Experiential Travel and Wellness
  • Innovative Amenities
  • Data Digitisation and Improved Payment Systems (e.g., Preno PMS)
  • A Blend of Business Travel and Travel for Pleasure
  • Pop-up Hotels and Subscription Services

In 2023, trends in the hospitality industry are set to revolutionise travel for both travellers and those involved with businesses related to it – so let’s take a closer look at what they have in store!

AI and automation trends

Artificial Intelligence is making its way into everyday life more than ever before, and it’s transforming the hospitality sector as we know it. Smart hotels are embracing AI to automate a variety of processes, from ordering food and drinks to managing room bookings and guest services.

For example, mobile-friendly check-in and checkout services is becoming increasingly popular. Guests are now able to complete the process from their smartphone or other device, or even at a contactless-kiosk, reducing the need for human contact. Post Covid-19, this type of service is ideal for a health-conscious society as it helps minimise contact and risk of infection.

This trend is expected to grow in 2023 as many hotels will be looking for ways to capitalise on this convenience factor.

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Experiential travel and wellness in hospitality

Wellness tourism is on the rise, as more people look for ways to take care of their mental and physical health. This trend has been amplified even more with the pandemic, as people are now looking for ways to incorporate wellness elements into their vacations.

Hotels are taking a cue from this by providing more wellness-based services and amenities, such as spa treatments, meditation classes and yoga retreats. In addition to this, hotels are also introducing more sustainable practices that focus on the health of their guests and employees.

For example, many hotels are now providing locally sourced, organic food in their hotel resturants. Hotels are also offering wellness excursions as part of their package deals, such as nature hikes and eco-friendly activities. These offerings help to add value to the experience, offering guests a chance to relax and rejuvenate.

Innovative amenities in hospitality

Hotels are always on the lookout for ways to get an edge over their competitors, and one of the best ways to do this is through offering unique experiences to their guests. This means introducing innovative amenities such as virtual reality rooms, escape room experiences and even self-driving cars.

Hotels are also getting more creative with their amenities by providing things like electric bicycles for rent, local tours, cooking classes and more. 2023 will also see an expansion of “smart” features in guest rooms, such as automated lighting and temperature controls that can be adjusted with one’s smartphone or voice commands to a smart speaker.

These differentiating factors make the hotels stand out among others in the industry and help create memorable experiences for their customers.

Digital data systems and payment trends

To be on top of trends in the hospitality industry, going digital is the single most effective way to beat your competitors. Data systems are already going the digital way and information systems are adept at handling everything from guest bills to recording particular preferences of guests. In this way, running hotels becomes more efficient, less time-consuming and prevents human error.

For example, hotels use Preno PMS to automate their hotel management operations, eliminating the need for manual data entry. It streamlines processes such as reservation bookings, check-ins/check-outs and reports on key performance indicators so that you can focus on creating memorable experiences for your guests.

Offering guests an easy and effortless experience should be your utmost priority. With voice-based assistants (Alexa, for example), voice-assisted payment systems will be the trend soon. This will happen in a number of languages so that travellers from different parts of the globe can efficiently communicate.

Bridging the gap between travel and work

With work being done remotely in a number of organisations, technology has had to innovate itself to meet the demands of this new trend in work life. Seeing as many people have to travel for work, trends in the hospitality industry are driven by the need to create a tranquil experience for working professionals.

In 2023, hotels will introduce the more co-working spaces to provide an enhanced and comforting experience for their guests staying longer. The co-working spaces will be equipped with high-speed Wi-Fi networks and soundproof walls so that guests can work in peace. Through this hospitable, comforting environment, travelers can relax and feel welcome regardless of their location.

In keeping with the theme of comfort, there will also be more emphasis placed on providing comfortable bedding and ergonomic furniture as well as healthier food options to keep the stress at bay.

Pop-up hotels gain more traction

Pop-up hotels are already gaining a lot of traction due to their convenience, affordability and mobility. This trend is likely to continue into 2023 with more people looking for short stays in different places.

These mobile establishments can be set up almost anywhere, ranging from conferences and music festivals to co-working spaces and temporary events. Furthermore, they offer a unique experience as the setup and atmosphere of every pop-up hotel is different.

A good example of this are Sweden’s Icehotel pop-up hotels which are built in the winter season and constructed from ice of the Torne river in Jukkasjärvi. They offer guests a unique experience that they won’t find in any other kind of hotel, and are only available for a short period of time.

Pop-up hotels are a great way to get people excited about travelling, while also offering experiences that differ from what they’d get at conventional hotels.

Rise of subscription based loyalty programs

Retention of guests is one of the major challenges faced by the hospitality industry. To address this, hotels are increasingly turning to subscription-based loyalty programs.

Unlike traditional loyalty programs that depend on points and rewards, these new programs allow customers to pay a monthly fee in exchange for discounts or special services. This could include access to exclusive amenities, discounts on food and beverages or even complimentary room upgrades.

Subscription-based loyalty programs are a great way to retain customers and provide value for money. In 2023, more hotels will be implementing this trend in an effort to increase customer loyalty and attract new guests.

Sustainabilitycontinues to be an important trend

Hotels are constantly looking for ways to reduce their impact on the environment and sustainability is one of the most important trends in the hospitality industry. In 2023, hotels will be taking steps to become more sustainable by utilising green technologies such as solar power, renewable energy sources and water conservation systems.

Other initiatives include the installation of LED lighting, use of recycled materials and energy efficient appliances. This will not only reduce their environmental footprint but also save money in the long run.

Overall, the hotel industry is constantly evolving and 2023 promises to bring a lot of interesting trends and changes. From co-working spaces to pop-up hotels and sustainability initiatives, the hotel industry is sure to deliver an engaging experience for its guests in the coming years.

For now, hotels must remain vigilant by keeping up with the latest trends and adapting to the ever-changing needs of their customers. This will ensure that they remain competitive in the market and continue to provide an excellent service to their guests.

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Looking Forward: Hotel Industry Trends to Watch Out For in 2023 (2024)

FAQs

What is the trend in the hospitality industry in 2023? ›

In 2023, hotels will introduce the more co-working spaces to provide an enhanced and comforting experience for their guests staying longer. The co-working spaces will be equipped with high-speed Wi-Fi networks and soundproof walls so that guests can work in peace.

What is the outlook for the hotel industry in 2023? ›

Summary. The hospitality industry has much to look forward to in 2023 as travel demand continues to grow faster than expected over the last few years. Consumer research reveals that leisure and group business travel remains strong and new workplace trends allow people to travel more as they can work from anywhere.

What does the future of the hotel industry look like? ›

In the 2030s, the best hotels will offer highly personalized guest experiences, sustainable travel options, and attractive employee opportunities. How will hotel operators use new technologies, respond to travelers' changing needs and preferences, and become more sustainable?

What is the prediction for the hotel market? ›

The World Travel & Tourism Council (WTTC) anticipates the industry's contribution to global GDP to hit USD 9.6 trillion by 2023, surpassing pre-pandemic levels. This travel boom forecasts a projected CAGR exceeding 5% for the hotel market over the next five years.

What is the biggest challenge facing the hospitality industry? ›

The hospitality industry is facing a cost of living crisis with steep increases in raw materials, energy, staff salaries and rent, all of which has a knock-on effect on the prepared food and drink costs.

What is the hotel market trend in 2024? ›

The trend of higher-end hotel outperformance will continue in 2024, with luxury and upper-upscale RevPAR expected to increase by 3.8% year-over-year and 3.7% year-over-year, respectively.

What is a current trend in lodging hotels? ›

The integration of smart technology within guest rooms is an ongoing trend aimed at enhancing the overall guest experience. This includes equipping guest rooms with smart devices and voice assistants that enable guests to control room elements through voice commands or smartphone apps.

How do you think hotels will be different in the future? ›

What hotels of the future will look like
  1. Interactive walls and spaces will be commonplace in the hotels of the future. ...
  2. While many hotels already focus on sustainability and eco-friendliness, future hotels will be completely sustainable. ...
  3. Rooms enabled with smart features will be the standard in hotels of the future.

Is the hotel industry growing or declining? ›

While other accommodation options like Airbnb have become extremely popular, hotels are still a huge business globally, and in 2023 the hotel and resort industry market size worldwide reached 1.5 trillion U.S. dollars, showing an increase over the previous year.

What is the outlook for the hotel sector? ›

With debt being materially more expensive, hotel values continue to adjust for those seeking to acquire hotels and use leverage. Hotel transaction volumes by value across the market have slowed in 2023, with a 43% variance for the first half of 2023 vs 2022.

Are hotel prices falling? ›

The downward revision for potential hotel rates complements this week's inflation data, showing U.S. hotel rates declined 1.7% from a year ago — a major reversal from the coronavirus pandemic recovery when hotel rate increases were a leading driver of overall inflation.

What is the US hotel market outlook? ›

Both occupancies and room rates are expected to experience only marginal growth in 2025, with an expected year-over-year, below-inflationary increase in RevPAR of 0.7 percent – reaching approximately 117 percent of pre-pandemic levels.

Which is a current trend in hospitality? ›

The current trends in the hospitality industry we'll be looking at today are: Business combined with leisure travel, a.k.a “bleisure travel” Sustainable travel. Contactless check-in.

What does the future hold for the hospitality industry? ›

The hospitality industry is poised to continue to grow and shows signs of tremendous recovery and expansion once traveling possibilities reopen.

What is the accommodation trend in 2023? ›

The two major accommodation trends for 2023 are deep personalization and enhancing the guest experience through self-service tech. After all, 73% of travelers want to book rooms in hotels with self-service tech available.

What is the future of the tourism industry in 2023? ›

Global tourism arrivals will increase by 30% in 2023, following growth of 60% in 2022, but will remain below pre-pandemic levels.

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