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The Next 5 Years: Future Hospitality Industry Trends You Need to Know

The world is undergoing a major shift in decision-making and buying power, and it’s changing the hospitality industry. The only way to see continued success is to prepare for these inevitable changes.

So what’s coming up in hospitality in 2020, 2021, and beyond? We’ll show you.

1. Millennials have spoken: sustainability is the future for hotels

The takeaway

Today, hotel sales and catering professionals need to expand how they engage with millennial attendees on a few different levels. They’re focusing on:

  • Removing single-use plastics from their dining centers and restaurants

  • Monitoring use of water

  • Sourcing foods from local farms

Experts also say to start construction ASAP (if you haven’t already) on more effective multi-purpose spaces that promote health and wellness for a more holistic guest experience. These interior design upgrades take a while to complete but will surely be worth the payoff over the next 15 years or so.

2. Hospitality professionals need to think globally

The takeaway

Events and meetings no longer have to be local — international venues are hungry for more group sales, and attendees are more willing to travel than ever.

Properties in major cities will start expanding their comp sets overseas. Events that clung to first-tier cities like New York, L.A., Berlin, and Hong Kong in the past are now cozying up to new markets.

We often plan events locally, but the hospitality industry needs to start thinking internationally.

3. Old threats will become new inspiration

Airbnb now offers more than 4 million places for guests to stay, and recently announced an upcoming partnership with Century 21 that will officially place the travel giant into the real estate industry as a builder and seller of houses. In the past, hoteliers viewed companies like Airbnb as a threat. But things are changing, to their benefit.

The takeaway

Hoteliers have to face the facts that home-sharing isn’t going anywhere. But that’s no cause for alarm. By working in tandem with hoteliers, services like Airbnb can actually provide more flexibility to your group sales strategy or, depending on your location, pave the way for your own better versions of their offerings.

The next 5 years will result in a more balanced distribution of business between a more leisure-focused Airbnb, and hoteliers looking toward home-sharing as an overflow strategy to satisfy group demand. And as they continue to move into this new marketplace, hoteliers will soon find the advantages of being able to do what Airbnb does — only better.

4. Demand is still growing, and the peak is yet to come

Hoteliers are asking if demand will continue to increase. The answer is a resounding “Yes”!

“Be aggressive. Continue to move forward. We’ve never had this demand from all directions,” writes Jim Chu, Global Head of Development & Owner Relations, Hyatt Hotels Corp.

The takeaway

In growing markets, how can hotels capture that growth? These current hotel industry trends are a great start.

Check out the free guide to see how sales teams are optimizing revenue by focusing on higher value clients and bringing more predictability to group sales.