January 22, 2021 - NEWS

Top 5 hospitality industry trends for 2021

September 2, 2020 - NEWS

Not All SSL Certificates Are Created Equal

With 2020 behind us, some interesting trends have emerged for the hospitality industry in the year 2021. Applying these trends to your business could help improve your overall brand and could help you better meet your customers' needs.

Let's take a look at the most notable trends for the new year.

1. Technology will help hotels and other hospitality businesses create contactless experiences.

Businesses are going to need to find a balance between in-person customer service and remaining contactless, considering the emergence of the Coronavirus.

That's where technology comes in. While implementing technology can be expensive, it is worth the investment because guests won't be staying at your business if they don't feel safe.

Some of the technology hotels and other businesses are already using include the following:

Simulation technology to design seating areas to accommodate the maximum amount of people
Online restaurant reservations to avoid contact with hosting staff and guests
Kiosks for guest registration
Smart cards or phones for keyless room entry
Voice activated devices for controlling the technology in the room
Automatic messaging to help answer guest questions
Mobile applications for easy check-in and engaging content
3D food printing for contactless dining and cost effectiveness
Robots and other A.I. technology to serve and help guests
Virtual reality for a realistic tour of a room or place

And the list goes on. Technology is already a huge part of 2021 and will continue to grow as hospitality businesses realize that technology gives them a leg up on their competition.

2. Travelers are looking for nontraditional places to stay with flexible cancellation policies.

Most people haven't been able to leave their homes too often in 2020, so in 2021, they're looking for an escape that's going to be memorable and unique. In fact, Vrbo found that 71% of Millennials (anyone born between 1981 and 1996) "would rather stay in a non-traditional rental."

"Unique experiences that give back to local communities in meaningful ways are in demand, as are niche properties, adventurous holidays and relaxation retreats," according to EHL Insights. "Customers request extreme personalization, unique experiences and so on."

According to Booking.com, "The focus on flexibility will also remain at the forefront, with 46% of travelers considering refundable accommodation a must-have for their next trip."

Figure out how to make a guest's stay different from the norm. Have a bed and breakfast that's just like other B&Bs on the market? Switch it up enough that people looking for you can tell your brand and unique offerings from a glance. This may take quite a bit of time and effort to accomplish, but as a result, your brand will likely flourish.

You'll also want to offer a flexible cancellation policy to cater to people who are still unsure about what 2021 will bring. This will help them feel more comfortable booking with you.

3. People want to vacation closer to home and for shorter lengths of time.

Because of the COVID-19 pandemic, people are taking on a more wait-and-see mentality when it comes to vacationing, which means they're less willing to travel farther distances. Many vacationers would rather stick close to friends and family to save money and to avoid the risk of flying out of the country.

Vacationers are also renting for shorter amounts of time, so they can see more of the world while working from home. The people who partake in this trend are considered digital nomads.

Zillow has seen an increase in furnished rentals with contracts for less than six months. This is most likely due to bed and breakfasts and other hospitality businesses being unable to fill their rooms with vacationers, so they have turned to residential housing. Or these short term contracts are to fulfill the needs of the digital nomads.

Either way, you should think about how you can meet the vacation needs of local travelers until nationwide travel is more accepted.

4. Hospitality businesses will need to adjust their accommodations to meet the needs of each generation.

Each generation has different needs, which are constantly changing. Determine your general age range or target audience. Then try to meet that target audience's needs by looking at their typical traits, in relation to the hospitality industry, below.

Generation Z - Born mid 1990s to mid-2000s

Comfortable with technology
Value personal freedom, practicality and change
Not brand loyal
Make purchases both in brick and mortar stores and online but prefer to online shop
Research products before purchasing

Millennials (Generation Y) - Born between 1981 and 1996

Use technology to do manual tasks
Voice their complaints on social media
Prefer to stay at "lifestyle" hotels (intimate, modern, vibrant, loyalty perks)
Vacation in nontraditional ways (as previously mentioned)
Present their travels on social media

Learn more about how to appeal to millennials here.

Generation X - Born between 1965 and 1980

Adopted trends relating to sharing with others
Prefer to look for more information about companies and products by themselves
Are less reliant upon online information
Value hard work and individualism

Baby Boomers - Born between 1946 and 1964

"Great diversity in people's health levels, psychological well-being, socio-economic status, social, family and ethnic minority status," according to a 2020 article published by the Journal of Population Ageing
Considered the richest generation
Prefer to take leisure trips after retiring
"More interested in self-education, fun and entertainment, and treat tourism and recreation as the prize that they deserve for their previous work life which was full of personal sacrifices," according to the Journal of Population Ageing

5. Outdoor vacationing will continue to grow, especially if the vacation is considered sustainable.

As previously mentioned, people have been forced indoors for a lot of 2020. That's why outdoor vacationing has been doing so well this year. Outdoor recreation, especially recreation that is sustainable, allows people to get away from their stifling homes at a cheap price.

"After being isolated for months, travelers will look to embrace the purest elements in 2021," Scott Dunn Chief Marketing Officer Andre Rickerby said.

According to the CBRE 2019 Campground Industry Trends report, "Overall, the camping industry is strong and long-term demand appears robust." Outdoor recreation had a revenue of around $887 billion in 2018.

Additionally, the CBRE mentions in its report, "Those who start camping early in life tend to continue camping the rest of their lives," which could also explain why outdoor vacationing did well this year.

The RV Industry Association reported in a 2020 article that 46 million Americans plan on vacationing with an RV within the next year. The same association found that RV shipments are projected to climb by around 20% in 2021.

Forbes reported on research that found campsite bookings are soaring by 500% in 2021.

According to Booking.com, "More than two-thirds (69%) of travelers expect the travel industry to offer more sustainable travel options, and travelers will consequently visit alternative destinations to avoid overcrowding (48%)."

If your destination is both outdoor, seclusive and sustainable, you might want to market those benefits heavily.

Let's recap the most important hospitality trends for 2021.

In Conclusion

In summary, the five trends you should consider for your hospitality business include:

1. Technology will help hospitality businesses to create a contactless experience.
2. Travelers are looking for nontraditional places to stay with flexible policies.
3. People want to vacation closer to home and for shorter time periods.
4. Hospitality businesses will need to adjust their accommodations for their target age group.
5. Outdoor vacationing will continue to grow, so outdoor hospitality businesses should market their exclusivity.

We hope this information can help you to meet your guests' needs and help your business grow.

Sources

CBRE. (2019). "Campground Industry Trends."

Coleman, A. (2020). "How The Hospitality Industry Is Preparing To Do Business After Lockdown." Forbes.

Dabija, D.; Bejan, B.; Tipi, N. (2018). "Generation X versus Millennials communication behaviour on social media when purchasing food versus tourist services." Marketing and Trade.

Dimock, M. (2019). "Defining generations: Where Millennials end and Generation Z begins." Pew Research Center.

Donovan, N. (2020). "Booking.com predicts the top trends for the future of travel." Booking.com.

EHL Insights. "2021 Top Hospitality Industry Trends."

Gazdik, T. (2020). "Summer Road Trips Planned By 31% Of Americans." MediaPost MarketingDaily.

Gelfeld, V. (2016). "Travel Research: 2017 Travel Trends." AARP.

Grotte, J. (2018). "Future Challenges of the Hospitality Industry." Journal of Tourism Research.

Hampson, L. (2020). "These are the top travel trends for 2021, according to experts." Evening Standard.

Konsumpcji, K. B. (2017). "New consumer trends adoption by generations X and Y – comparative analysis." Uniwersytet Ekonomiczny w Katowicach.

Ledsom, A. (2020). "Campsite Bookings Soar 500% for 2021: Where's Best to Reserve Now?" Forbes.

Patterson, I., Balderas, A. (2020). "Continuing and Emerging Trends of Senior Tourism: A Review of the Literature." Journal of Population Ageing.

Pellechia, T. (2020). "Reopened, The Hospitality Industry Will Pivot To Technology, Says One Industry Service Provider." Forbes.

Rastegar, K. (2020). "Temporary Changes In Travel Result In Increased Demand For Short-Term Rentals." Forbes.

Ristova, C., Dimitrov, N. (2019). "Digitalization in the Hospitality Industry: Trends that might Shape the Next Stay of Guests." International Journal of Information, Business and Management

Rodriguez, S. (2020). "Zillow data shows owners of vacation rentals are now looking for longer-term renters." CNBC.

RV Industry Association. (2020). "46 Million Americans Plan to Go RVing."

Salazar, A. (2018). "Hospitality trends: opportunities and challenges." Worldwide Hospitality and Tourism Themes.

Skyvka, A., Dovgun, I. (2017). "Hospitality Industry Trends: Technology and Customer Experience." National University of Food Technologies.

Werenowska, A., Rzepka, M. (2020). "The Role of Social Media in Generation Y Travel Decision-Making Process (Case Study in Poland)." Knowledge Management, Trust and Communication in the Era of Social Media.

Zsarnoczky, M. (2018). "The Digital Future of the Tourism & Hospitality Industry." Boston Hospitality Review.

SEE WHY RESNEXUS IS TRUSTED BY THOUSANDS OF PROPERTIES

SCHEDULE A TOUR

CALL US 385.292.1518

SEE WHY RESNEXUS IS TRUSTED BY THOUSANDS OF PROPERTIES

SCHEDULE A TOUR

CALL US 385.292.1518