5 Hotel Industry Trends Hospitality Commerce Companies Can Utilize

The global hospitality market, by all accounts, is booming. Hospitality spending expanded from just under $4.4 billion in 2022 to $4.7 billion in 2023 and is projected to grow to $5.8 billion in the next three years. 

Digital-savvy guests are looking for more than a comfortable bed and a place to hang their hat. Travelers want unique, personalized stays that reflect their preferences and needs. In the luxury and lifestyle segments, guests are focused on finding uniquely special travel experiences. 

According to Hotel Dive, these luxury guests are increasingly gravitating to properties offering “different, experiential, memorable, and desirable” options. This often involves extended stays of 30 days or more. As we wrap up 2024 and head into the new year, we unpack five new trends in the hotel industry that commerce companies need to know about. 

The Latest Trends in the Hotel Industry

1. Personalization has reached hospitality 

Guests evaluate hotels based on how well they anticipate and meet individual needs. Hotel Technology News reports that nearly half of guests are more likely to return to a hotel that personalizes their experience. Hotel brands are responding by implementing advanced personalization technology that goes beyond simply addressing guests by name. What does this look like in practice? It includes customizing room settings, providing relevant recommendations, and personalizing search results when guests book.

Modern personalization platforms like Monetate analyze guest data across multiple touchpoints, then tailor the booking and in-hotel experience using this available data. For example, hotels can now configure recommendation strategies based on factors like availability, booking history, and real-time behavior. Hotels using personalization technology report increased guest satisfaction and higher spending. Providing personalized experiences can increase hotel revenue by up to 15% according to Deloitte since guests are willing to pay more for the experiences enabled by personalization technology.

2. Smart hotel technology takes over guest rooms

Smart technology integration like voice-controlled room features and mobile room keys are becoming a normal—and expected—hotel experience. Properties are incorporating Internet of Things (IoT) devices that give guests unprecedented control over their environment. Voice-controlled room features, automated check-in systems, locks, thermostats, and blinds are among these IoT offerings.

IoT-enabled rooms offer convenience and efficiency by giving guests control of various tasks and processes like temperature and entertainment from an app on their phone. As people increasingly incorporate smart technology in their homes, they now expect similar conveniences during their hotel stays.

3. Technology augments staffing shortages 

Staffing shortages are an ongoing issue in the hospitality sector, with 75% of hotels experiencing them according to the American Hotel & Lodging Association. Increasing wages, perks like free or reduced-rate rooms and flexible hours, and upskilling programs are attracting talent back to the industry. Since this issue is expected to continue, technology is also being used to fill the talent gap, helping properties do more with fewer people. 

Hotel experience platforms alleviate the burden on staff with features like mobile check in, mobile tipping and “smart” checkout. AI further supports hotel staff by providing easy access to guest information and enabling guests to self-serve with features like AI-powered chatbots. 

4. Travelers are embracing bleisure 

The traditional hotel stay—focused primarily on a comfortable bed and basic amenities—no longer cuts the mustard with business travelers. There’s been an increasing demand for business + leisure  (e.g., “bleisure”) experiences.  With bleisure travel projected to reach $731 billion by 2032, this presents a tremendous opportunity in the industry.

Hotels are differentiating themselves through local partnerships, indigenous cuisine, and distinctive entertainment programming. Some properties partner with luxury brands—like BWH Hotels’ collaboration with Dry Bar for premium hair care. Others focus on providing exclusive access to local experiences. 

5. Meaningful environmental action 

Simple sustainability measures like encouraging towel reuse is yesterday’s news. Guest are demanding more meaningful environmental action and hotels are complying with comprehensive environmental initiatives. This includes eco-friendly products like “green tech” that bake sustainability into hotel operations. Green tech examples include smart thermostats, solar panels, LED lighting, slower-flow showerheads to conserve water, and less plastic (e.g., compostable straws and cutlery.)

Properties like The Europe Hotel & Resort in Ireland are at the forefront of the sustainability movement. They have their own farms that include produce, fish, and livestock. Some hotels offer cooking classes that focus on green initiatives like reducing food waste or using vegan and vegetarian recipes. Hotels are also adopting more sustainable building approaches that include eco-friendly construction, energy-saving waste management approaches, and using technology to automate and scale things like reducing water usage across multiple properties.