Trends In The Business Travel Hotel Industry

The International hospitality industry has been one of the hardest hit sectors, if not the hardest, during the recent COVID-19 pandemic. However, it’s the recovery phase that is just underway. The new challenges are giving rise to new trends & ways of operating. These are some of the trends that are dominating the hospitality sector. It is a high expectation that the hotel costs will rise in the New Year, i.e. in 2023. The world will see more digital transformations, and automation is rising. Sustainability in the hospitality sector is considered a Top priority as sustainability is necessary after the shakiness seen in the last couple of years. Part of the challenges in the trends is the staff shortages that remain a hospitality industry challenge.

Finally, the WFH or Work from the Hotel environment is seen as a rising trend as it was well before the arrival of the pandemic. An environment that suits many people, especially those gearing up themselves for the conferences, working together & meeting up for company goals & looking to sustain in a Work from Hotel environment which is a highly wanted one for the future.

As we discuss the trends more closely in detail, we assume that COVID-19 is over in most parts of the world. Also, assuming that most countries are no more following the strict & used to be mandatory procedures for the sake of COVID-19 preventive measures, which include wearing masks & maintaining social distancing that has been practiced in the years of the pandemic.

THE HOTEL COSTS WILL BE ON THE RISE IN THE YEAR 2023:

The costs of Hotels in the Hospitality industry, especially in the continent of North America, will be on the rise in 2023. This is especially to cover the expenses & the losses from the period of COVID-19. The worldwide hotel rates are expected to rise in 2023, however, at a rate lower than in 2022 & these are stats according to American Express Global Business Travel Report.

This substantial increase in the cost is partly due to inflation, as generally, the costs have risen and also due to pent-up demand for in-person events.

Also, the prices for key hotel inputs such as energy, food and wages have increased obviously, which impacts the overall cost of a hotel stay.

The general rise in 2023 regards to the costs of hotels in the Hospitality sector is also highly dedicated to the increase in the cost of living in North America.

SUSTAINABILITY IS A HIGHER-LEVEL PRIORITY IN THE HOSPITALITY SECTOR:

Sustainability is found to be a higher-level priority in the hospitality sector in Canada & generally in the continent of North America. It is a target by 2030, i.e. in the next seven years; the hotels will need to reduce their carbon footprints by 68%. Apart from the carbon footprints, the lighting systems in the hospitality sector should be largely focused on energy efficiency & saving energy for the sake of saving costs. The targets that the Hotel & Hospitality Industry regards to bringing reductions in carbon footprints are more towards a dedicated effort regards to the Paris-Climate agreement.

STAFF SHORTAGES REMAIN TO BE A CHALLENGE:

It is the entire business travel eco-system that is suffering big time from the shortages of trained, skilled staff currently. The Hotel industry is looking forward to filling the many numbers of jobs that were lost during the COVID-19 pandemic that affected many sectors in the job industry. It is only in the United States of America that more than a figure of 115,000 jobs is opened in the hospitality industry alone.

In Europe, the situation is a bit different in contrast to what it has been in North America. Europe’s hotel industry is not only in a recovery mode from COVID-19 but also from geopolitical tensions, according to the stats from WTTC or World Travel & Tourism Council, which reports that approximately 1.25 Million jobs in the travel & tourism sector have remained unfulfilled across the European Union. This has resulted in the hiring of people who do not even have experience in the hotel industry.

DIGITAL TRANSFORMATION & AUTOMATION IS ON THE RISE: