Top Hotel Trends Right Now: Hospitality Industry Transformation (2023)
The hospitality industry has seen some radical shifts in recent years. Brand consolidation, increasing focus on sustainability, and the rise of Gen Z travelers, just to name a few. Some hotel trends were driven by the pandemic and might not stick around. Others are here for the long haul.
In 2023, the hotel industry is changing the way properties operate and serve their guests. From renewable energy to new hotel designs, alternative lodging, and everything in between, hotels are adapting to meet the changing needs and preferences of travelers.
One of the most significant trends in the hotel industry is the increasing focus on sustainability. Many hotels are implementing eco-friendly practices, such as using renewable energy sources, reducing waste, and conserving water. This trend is driven by both consumer demand for environmentally responsible accommodations and the hotel industry's commitment to reducing its carbon footprint.
Another trend that is becoming increasingly popular in the hotel industry is the rise of alternative lodging options. We’re not just talking about Airbnb and the sharing economy anymore, by the way. Even big brands are jumping on the extended stay train in a bid to attract digital nomads, remote workers, and multi-generational travelers.
We’ll get into all of that and more in this article. Keep reading til the end, because I’ll also offer some quick takeaways on which future trends in hospitality industry you may want to jump on (like, right now) and how.
What are the top three trends in the hospitality industry?
The most important hotel and hospitality industry trends you should pay attention to involve:
Technology
Design and architecture
Traveler preferences
Why is this important? Don’t forget, the hotel industry is a significant contributor to the global economy.
In 2022, national RevPAR reached a record high in the US, and hotel fundamentals there continue to improve in 2023, as record-low unemployment, modest consumer debt, wage increases, and remote work have bolstered both lodging demand and rates (Source: CBRE).
Now, it’s impossible to write about hotel trends without mentioning the “C” word. Globally, all industries were impacted by the coronavirus, for better or for worse. But hospitality? These businesses were among the hardest hit.
After all, hotels and restaurants rely on person-to-person interaction. (You know… the very definition of hospitality.)
To stay afloat, hoteliers had two options: Shift your services and hotel marketing strategies or close your doors, perhaps for good. This kind of pressure resulted in levels of creativity we don’t often see in a rather stubborn, sometimes slow-to-innovate industry. Now that we’re a few years removed, we have a better idea of which hotel trends post COVID will actually stick around.
First, we’ll dig into these three key areas of change in hotels. Then, towards the end of this article, we’ll look at bigger-picture trends in hospitality as a whole.
Hotel Trends: Technology
Technology continues to transform the hotel industry, from the way guests book their stay to the way they interact with hotel staff.
Hotels are experimenting with new technologies such as AI-powered chatbots, mobile check-in, and keyless entry to enhance the guest experience. Technology is also being used to personalize the guest experience, with hotels using data analytics and artificial intelligence to provide customized recommendations and services.
Here are the latest trends in technology all hotels need to know about.
1. Artificial Intelligence
Artificial Intelligence (AI) is expected to play a significant role in the hospitality industry in the coming years. In the first six months of 2023 alone, we’ve seen tools like ChatGPT and Midjourney absolutely explode in popularity. The use cases are mind-boggling.
So where to even start?
The use of chatbots for customer service, voice-activated assistants in hotel rooms, and facial recognition technology for check-ins are just a few examples of how AI is being implemented in the industry. AI will not only help hotels to streamline their operations but also provide a more personalized experience to the guests.
Waaaaay back in 2018, eHotelier predicted that sales of digital assistants would rise from 1.8 million to 15.1 million by 2020.
Now, according to Statista, the number of digital voice assistants in use worldwide is actually in the billions — with forecasts suggesting that number will hit 8.4 billion by 2024.
(That’s more than the entire world’s population, by the way.)
Consumers are used to using voice-activated devices like Amazon’s Alexa and Google’s Assistant at home. It’s only natural they’d expect to use them while traveling.
Powered by artificial intelligence, digital assistants minimize the need for in-room objects that have a high degree of “touch” traffic — like phones, remote controls, and even doorknobs. Hotel guests can use digital assistant devices to order room service and operate the TV, using simple voice commands.
Guests can also use these devices to check the weather or find local experiences, all using a simple voice search. In this way, digital assistants can actually enhance the hotel guest experience.
On the other end, hotels can use AI tools to streamline operations, automate repetitive tasks, and improve efficiency.
That means everyone gets to enjoy fewer bottlenecks with guest service requests, which (generally) leads to happier guests.
2. Mobile Apps (and more specifically, Mobile Check-In)
Mobile apps aren’t exactly new to the hotel industry, but mobile check in has become increasingly popular in recent years.
In response, hotels have been enhancing their mobile check-in capabilities to provide guests with a more seamless and convenient experience.
Some hotels are now offering mobile key access, allowing guests to unlock their room doors with their smartphones. Others are using mobile check-in to offer personalized experiences, such as recommending local restaurants or attractions based on guests' preferences.
In the last few years, companies like Marriott and Hyatt have rolled out a ton of new features designed to address changing customer preferences.
These days, hotel mobile apps allow you to do a lot of things, including:
Access your room through an electronic room key
Order room service or grab-and-go meals
Make additional requests to reception
Attend virtual fitness classes or workouts
Follow along with guided meditations (See: Hyatt’s collaboration with Headspace)
Get local recommendations and book attractions
With mobile app usage on the rise, guests can basically check-in and out of their hotel room with no need to touch or interact with anyone.
Adding my own two cents here, I recognize that many folks in the hospitality industry don’t like this. There’s no replacing actual human interaction. (And yes, I’ve griped about hotels using robots already.)
However, even pre-COVID, hotel companies were creating electronic room keys and adding more features to their mobile apps. They didn’t do this for no reason. Time-crunched customers already wanted to streamline their check-in experience then — and necessity demands it now.
The use of mobile apps in hospitality is not going anywhere. In fact, I’d wager a guess that even more creative and innovative uses for mobile will be one of the new hotel trends 2024 will bring. Watch this space.
3. QR Codes
QR codes (that’s short for “quick response” by the way) have fallen in and out of popularity for years. During the pandemic, restaurants all over the world embraced QR codes again.
As a marketer, I personally HATE QR codes. They’re ugly, clunky, and before 2020, not adopted widely enough to be worth your time and energy.
Then came COVID-19 and well, let’s just say, I got that one wrong.
QR codes create a touchless dining experience. Guests can simply scan a code using their mobile phone and access the restaurant menu, order food, and even pay their bill. No face-to-face order-taking, credit card handling, or check signing required.
Governments around the world adopted QR codes for a variety of public health reasons: Confirming your vaccination status… Verifying a PCR test while traveling… Checking in to a local business to help with contact tracing if a new case emerges… and so on.
As with most other hospitality industry trends on this list, the staying power of the humble QR code comes from the customers.
It’s safe to say we’re all pretty familiar with them now — and in many cases, have to use them to go about our daily life.
As long as customers expect to see businesses using QR codes, we can expect to see restaurants and other hospitality industry businesses continue using the technology in 2023 and beyond.
Hotel Trends: Hotel Design & Architecture
The impact of COVID-19 will stay with us for years to come. So it shouldn’t surprise anyone that the way we design physical spaces in the hospitality industry has to change, too.
The hotel business hasn’t shied away from major physical changes before — when customers demanded it.
Perhaps in response to the popularity of Airbnb and vacation rentals, we saw hotel brands proactively create more communal spaces for working and socializing, more emphasis on connecting physical spaces to the outdoors, more ways to incorporate sustainability best practices.
So let’s look at the latest architecture and hotel design trends.
4. Flexible, Multifunctional Spaces
According to architects, the future of hotels and hotel design is all about “multifunctional spaces.”
In addition to reimagining areas with contactless technology in mind (See trends #1-3 earlier on this page), hotel designers say the new priority is to create flexible, multipurpose spaces.
Designers say their concepts are “designed with an eye on the future,” but the reality is that these projects need to work right now, today. This means we can expect to see spaces designed to evolve with the ever-changing realities of public health, while answering to the current needs and preferences of guests.
Public areas will need to be designed to prevent bottlenecks and minimize contact, but give guests ample space to move around comfortably.
Design considerations also need to be made for changing traveler preferences.
We’ll cover this in more detail in the next section, but some key design trends include:
Lightweight, moveable furniture in public spaces which can be easily reconfigured based on guests’ needs
More communal spaces for socializing
Dedicated remote working spaces, like coworking areas in the lobby or upgraded work spaces in guest rooms
Since building (or even renovating) a hotel takes time, flexibility is one of the most important trends hotel designers are paying attention to right now.
5. Indoor/Outdoor Flow
We’re also seeing a big push toward spaces that open up to the outdoors.
Meetings, groups, and events, in particular, are eying multipurpose conference spaces that let attendees move freely between the inside and out.
Designer Danu Kennedy, from Parts and Labor Design, told Architectural Digest that hospitality brands will need to focus less on their interior offering — and more on exterior spaces. According to Kennedy, customers desire sunlight, fresh air, and nature, especially those who have been isolated in big cities.
This is another trend hotel architects need to pay attention to now, as I expect designing hotels in the future will require a lot more close attention to indoor/outdoor flow.
6. Sustainability
Many hotel companies were already making efforts to reduce their carbon footprint, pre-pandemic.
Architects predict, with optimism, that hospitality design is finally becoming more environmentally conscious. This is partly due to seeing how the stopping of air travel and tourism has had a positive impact on the environment.
Younger generations increasingly value sustainability and sustainable travel, letting their wallets do the talking by openly supporting brands and companies who follow suit.
When you think about “luxury,” what materials or finishings come to mind?
For Millennials and Gen Z, luxury is less about gilded chandeliers and more about experiences, free time, community, security, and self-growth.
This was all top of mind for the designers behind Birch, a new hotel concept just outside of London.
Birch is a prime example of how the concept of luxury has shifted through the generations. This unique hotel project focuses on the sustainable and thoughtful design which evokes emotion in a guest, rather than excessive indulgence.
This is one of the more interesting, current trends in hospitality industry consumer behavior — and it’s not likely to go away. Hoteliers wanting to attract the next generation of travelers should prioritize sustainability now.
Hotel Trends: Traveler Preferences
One of the most obvious new trends in the hospitality industry during the pandemic was the rising demand for domestic travel.
While I do see this being an important trend for some markets in 2023, keep in mind that this trends was largely driven by international travel restrictions. As more of the world gets vaccinated and borders start re-opening, I think demand for domestic offers will settle back down to “normal” or just-above-normal levels.
If you’re still focused on short-term recovery, check out my separate article on hotel staycation marketing ideas.
Looking forward to focus on future trends in the hospitality industry, let’s examine the traveler preferences I believe will stay with us, long term:
7. Wellness and Wellbeing
Research by MicKinsey estimates the value of the global wellness market at more than $1.5 trillion, with annual growth of 5 to 10 percent.
In its own (frustrating) way, 2020 forced us all to prioritize our health and wellbeing. But as far as hotel marketing trends go, the concept of “wellness travel” was already emerging long before then.
According to the Wellness Tourism Association, wellness travel is travel that allows the traveler to maintain, enhance or kick-start a healthy lifestyle, and support or increase one’s sense of wellbeing.
If that quote makes you scratch your head, don’t worry, I’m with you…
Basically, we all desperately need a break.
Who among us isn’t itching to relax and recharge after months of self-isolation or remote work or home-schooling young kids or… all of the above??
Think of it this way: Wellness can be whatever you do to take care of yourself, your mind, body, or spirit.
This can be a retreat that’s focused on connecting to nature. Or surfing. Or yoga. Whatever floats your boat.
This looser definition is why I think we’ll continue to see wellness travel grow.
Travelers from all walks of life will continue seeking out experiences that make them feel, well… well. Whether that’s splurging on a luxurious resort getaway or taking a quick break closer to home, we can all relate to that feeling of wanting to take care of ourselves right now.
8. Multi-Generational Travel
Multigenerational travel is an emerging trend of families (grandparents, parents, and children of all ages) traveling together as a group.
The “family vacation” as we know it is changing. Families are increasingly opting to embark on journeys together spanning multiple generations, seeking shared experiences and bonding opportunities.
This shift can be attributed to various factors, including the desire for intergenerational connection post-pandemic, the rise of blended families, and the growing emphasis on creating lasting memories through unique experiences.
Why should hotels pay attention to this?
Consider some recent stats from case studies on multigenerational travel:
85% of parents said they’re “very likely” to travel with their children in the next 12 months (U.S. Family Travel Survey via Skift)
46% of survey respondents said they’re planning to travel with family members beyond parents and in-laws (NYU Tisch Center for Hospitality)
Those planning multigenerational trips expect to spend an average of $6,500 on travel in 2023 (AARP)
Hotels have responded to this trend by offering a range of tailored amenities and services to cater to the diverse needs of multi-generational travelers.
These include spacious accommodations with multiple connecting rooms and shared living spaces, flexible dining options, more on-site activities for all ages, and specialized programs that foster interaction and collaboration among family members.
9. Remote Work and Business Travel
Remote and hybrid working has forever changed the face of business travel. (Quote me on that!)
With more professionals embracing remote work arrangements, the need for traditional business travel has been reevaluated. Many companies now prioritize virtual meetings and conferences, reducing the frequency of business trips.
However, this shift has also given rise to a new type of business traveler — the "bleisure" traveler — who combines business and leisure activities during their trips. As a result, hotels have adapted their offerings to cater to these hybrid travelers by providing enhanced amenities and services that blend work and relaxation.
As I mentioned in the previous Design & Architecture trends section, many hotels now feature well-equipped coworking spaces, in addition to high-speed internet access, enhanced workstations in guest rooms, and flexible meeting areas.
Additionally, the hotel industry has witnessed an increased demand for extended stays as remote workers seek accommodation options that resemble a home away from home.
This change in business travel patterns has prompted hotels to rethink their strategies, ensuring they can accommodate the evolving needs of remote workers while offering a seamless blend of work and leisure experiences.
In response, multiple hotel companies are advertising remote work and travel packages:
Auberge Resorts Collection launched “Work, Learn, and Play” long-term stays.
Work From Hyatt packages emphasize working vacations in beautiful resort settings.
Folks in the United States can book a number of hotel “Schoolcations” anywhere from Palm Beach to Palm Springs, with all sorts of options in between.
In Miami, Florida, the local tourism bureau even created a Work and Learn Remotely Initiative with 30+ hotels participating. The hotels are offering everything you need for schooling on the go: poolside work stations, after-school camps, and private tutor access. (They even have specific locations set up for optimal Zoom lighting!)
In Latin America, Selina — a travel startup that caters to “digital nomads” — doubled down on its expansion efforts instead of backing off. Selina’s subscription travel packages include access to accommodation, coworking, and event programming in multiple locations.
Remote work is not going anywhere any time soon — especially now that so many office workers have had a taste of flexibility afforded to them through working form home.
If offering a remote work hotel package is feasible (and desirable) in your market, you should consider it.
Emerging Trends in Hospitality Industry and Hotels
What other trends should you pay attention to in the hospitality industry right now?
One that I’m watching closely is the proliferation of new hotel brands. Though it feels like this has been going on forever (we call it “brand bloat”), what I think we should pay attention to is a shift in the types of hotel brands being launched.
10. New Hotel Brands
Companies like Marriott, Accor, IHG, Hyatt, and others all seem to be exploding with new brand launches and acquisitions this year. One need only to peruse the “hotel brands” tag on Skift.com to see what I mean.
Extended stay seems to be the buzzword of the moment, followed by new economy options and more “soft” brands, typically curated collections of independent or lifestyle hotels.
Some new hotel brands launched so far in 2023 include:
Extended stay brands from Hyatt (Hyatt Studios), Hilton (Project H3), and Wyndham (ECHO Suites launched late 2022, but you get the point!)
As of writing, an unnamed “affordable midscale” extended stay brand from Marriott
Handwritten Collection (a “soft brand” of lifestyle hotels by Accor)
Spark by Hilton (also the company’s first economy brand)
That’s not even an exhaustive list, by the way.
So why is this happening and what does it all mean?
Hotel companies add brands due to various factors, including the customer's desire for consistent experiences, economies of scale in advertising and distribution, and increased bargaining power.
Brand creation is often driven by emerging trends and opportunities to fill market gaps. Think back to some of the hotel trends we’ve looked at in this article, like wellness, sustainability, hi-tech self-service, and multigenerational travel.
What’s next? How to benefit from current and future hospitality trends
So the travel landscape and the lodging industry are changing — does that mean YOU should be chasing after all these different trends in hotels?
Probably not.
You might want to think realistically about which changes are here to stay long-term, though.
While you’re at it, it’s never a bad time to go back to the basics and make sure you have your house in order to recover lost hotel business post-pandemic.
Here’s what I suggest:
Review your tech stack and systems — Make sure your property management systems are up to date and synced to your booking engine. Look at other ways you can use tech and management software to improve guest experiences and internal processes, then make room in your hotel budget for those investments.
Keep up with your customers online — Particularly when things are slow, it’s important to stay top-of-mind with future travelers. Utilize social media marketing, send out a regular hotel newsletter, and for sales and revenue management, touch base with clients and partners regularly.
Have a strategy for direct bookings — While demand is low or recovering slowly, prioritize brand awareness campaigns, then start gradually reaching back out to “warm” potential customers through email marketing and retargeting ads.
Final Thoughts
I first wrote about hotel marketing trends back in 2019 and well, those ideas look almost quaint in comparison.
Here we were, thinking about “shiny objects” in technology like augmented reality and virtual reality. Or digital marketing trends like influencers and pivoting to video… Little did we know, 2020 would come along and throw us all a major curveball.
That said, I do think recent years showed us that many of the hotel industry trends we see now will stay relevant in 2023, 2024, and beyond.
Our guests’ needs and expectations are evolving and as hoteliers, we need to keep up. Or better yet, try to stay a few steps ahead.
What do you think of these recent hotel trends? Did I miss any? Let me know in the comments below!