What Is Shaping the Future Of The Hospitality Industry?

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Posted on: 18/11/2021

The hospitality industry has taken its fair share of hits over the past few years and is still in its recovery period. What is to be commended is the agile adaptivity hospitality went through to continue to keep customers safe and critically remain open during the pandemic. 

New processes and technology had to be introduced overnight to ensure the continuation of service and resulting offers not only followed pandemic guidelines but also met (and in a lot of cases exceeded) customer demands. A great example of this is the increase in door-to-door food service during the lockdown periods.

The COVID-19 pandemic will continue to influence our social behaviours and what consumers will value and look for when enjoying hospitality is continuing to evolve. 

The industry is resilient, overcoming crises is not a new thing. They’re constantly having to review and refresh their customer experience, introducing innovative technology to provide new and exciting services. If anything, it has shown us how we should look to this industry to discover what is shaping the future of end-user service and technology as they turn uncertainty into leading methods.

Consumers have and will continue to evolve in their decision-making and buying power, the only way to succeed is to prepare for these upcoming demands and make changes ahead of time, and most importantly, competitors too!

So what factors are currently shaping the future of the hospitality industry?

Digitalisation with VR/AR

You can’t ignore the recent news about the implementation of technology to improve the customer experience. Whilst the new augmented reality Metaverse from Facebook has been making headlines, VR and AR have already started to be incorporated into the way in which hotels market themselves to their customers. Whereas traditionally, hotel choices are made from professional photos on a website, now VR hotel tours allow customers to get a real feel of what the hotel is like. This advancement brings the wow factor to consumers and those who can see what they are paying for – including walking through what their exact room would be, are more likely to part with their money.

Similarly, the ability to incorporate and manipulate your surroundings is likely to become standard practice. Whilst it is very common at home, hotel rooms are starting to implement voice recognition through Google Assistant, Alexa or Siri. 

Next-gen AR based rooms will also allow guests to make their experience unique and tailored to them. However, with the current climate, such innovation may be initially cost-prohibitive to implement, but those brands who decide to invest may see greater returns on their investment sooner due to customer loyalty and enhanced experience expectations.

Robotics

An initiative between Hilton Hotels and IBM has looked to improve the concierge process. Rather than waiting for a human, simple concierge processes are being taken over by Connie.

What Is Shaping the Future Of The Hospitality Industry?

Whilst this type of initiative may take a while to catch on, particularly with older customers who want human interaction, those customers who want the convenience of speed and are happy to embrace the move away from traditional thinking could lead to more Connie’s popping up at Hilton Concierge.

Apps

Apps have been around for customers for a long time but now are becoming more important for holistic journeys and are starting to provide the ability to control and improve guest experiences and their surroundings. As a result, many customer-facing services are becoming technology-assisted, from contactless payments, biometrics, voice control to mobile check-in, food ordering and even having room keys held within the app.

These technological trends are swiftly becoming sources of competitive advantage as consumers seek an efficient and contact-free service. Before you consider implementing technology to enhance your hospitality experience, it’s always important to consider if it will benefit your end-user, from the customers to the staff. 

With bigger and better technology-led processes, you are future-proofing your business, keeping ahead of competitors and providing value to the end-user before you’re forced into adapting from consumer demand. 

Learn more about our Digital Transformation consultancy services.

Changing Customer Demands

As previously mentioned, the rising demand for extreme personalisation and unique customer experiences are on the rise. In addition, consumers now make purchasing decisions with more consideration, assessing the impact a product or service has globally.

As customers have stayed longer at home over the past years, the demand for online services and online transactions has risen. They now expect fast service, exclusive promotions and competitive prices. 

It is important to understand your customer and their ever-evolving needs and demands as they shape the future of your business. It’s a daunting, but huge potential to tap into your customer wants and then adapt your products or services to delight.

Having the right plans in place can help your business to adapt to the future trends of hospitality. We also recommend putting in place or reviewing your contingency plans to ensure you can future-proof your business. Our Business Analysis services can help you to bridge between your business ideas and business capabilities. 

Learn more about our Business Analysis consultancy services.

Hospitality Consultancy with Tratech

New technology is transforming the way consumers interact with brands, before, during and after their stay or visit. By introducing innovative technology, hospitality businesses can provide their customers with greater convenience, control and customisation. 

To revive the hospitality industry, customer comfort, security and confidence need to be restored. As we still move out of the pandemic, the industry will certainly continue to face more levels of change. Success will depend on how hospitality businesses respond to these key changes and trends poised to shape the future of the industry.

Tratech Consulting is a different type of consultancy, we specialise in IT consultancy for the Retail, Hospitality, Manufacturing and Supply Chain industries. With deep experience across technology transformation, business analysis, design, implementation, data migration and support, we are ideally placed to help customers solve the whole problem. Get in touch today!