FRANCHISE TRENDS IN 2023

Hospitality experts agree that the industry has changed drastically post Covid-19, and the franchising space is no exception. Jad Shamseddin, COO of Aleph Hospitality, outlines the franchise trends and challenges that are likely to define 2023.

willing to book online, check themselves in and out of hotels, order room service or rides through mobile apps, which eventually leads to a higher degree of dependence on technology. The rapid growth of disruptors has forced brand owners to rethink expansion strategies, relying on partnerships to grow brands through franchising.

Innovation of processes, redefinition of the customer journey and introduction of new technologies will help brand owners capture a bigger market share.

Shortage of financial resources to obtain a brand

Over the past couple of years, financial institutions have almost stopped financing any new hospitality projects or renovations due to market uncertainty. Today, while lenders are somehow more flexible, they are likely to impose stricter terms and conditions, which translates into a negative impact on new-build growth and a reduction in hotel transactions. For brand owners, this means lack of growth, forcing them to seek franchisees with access to existing hotels that can be branded quickly under a franchise agreement. This is a growing trend among brand owners who are racing to introduce soft brands, like Radisson Individual, Voco and Delta.

Increased tech demand for franchise owners

The hospitality industry is often slow to adopt new technologies and processes. This is the ultimate bottleneck faced by hoteliers who wish to stay one step ahead of guest demands but simply lack the appropriate technology to do so. Franchisors will be expected to offer mobile, cloud-based technology that is becoming essential to the success of any hotel brand and, in turn, franchisees. User-friendly platforms allow franchisees to effectively manage their properties. Next-generation technology allows properties to benefit from increased efficiency, staff productivity, enhanced response times for guest services, revenue optimization and data-driven insights, among other things.

Hotels that offer cutting-edge technology are fulfilling guests’ preferences, which include an increased focus on public safety and cleanliness. Moving forward, hotel brands must provide the optimal technologies to be able to hold onto a profitable and competitive advantage, keeping hotel owners happy and ensuring repeat visits by guests.

alephhospitality.com