The unprecedented change that the hotel and accommodations industry is experiencing has captured the interest of market analysts across the globe. An industry that was once almost entirely dependent upon holidays is now experiencing high demand throughout the year, thanks to the latest technological innovations and increased investment in the hospitality sector.
Use of mobile technology
Like most industries, the hospitality sector has embraced mobile technology by rolling out their own mobile apps and creating features like loyalty and reference rewards. Apart from providing good services for guests, mobile technology helps hotels effectively manage guest cycles and provide seamless connectivity for their customers.
Inclusion of shopping experiences and other services
The hotel and accommodation business is no longer limiting itself to just room service. In order to increase customer loyalty, many hotels are now providing supreme shopping experiences for their customers. They are selling premium products and offering additional services such as spas and salons to enhance the experience and encourage customers to spend more time in the hotel.
Consolidation of online travel agencies and hotel companies
Though the relationship between travel agencies and hotels is nothing new, the mushrooming of online travel agencies has resulted in increased consolidation of the two entities. Not only has this lead to a steady flow of guests for hotels and accommodation houses, travelers are benefiting from a much more streamlined booking experience.
Taking personalization to the next level
Highly customized service is no longer just an option, but something that every company must provide in order to stay relevant. There has been an increase in the use of analytics in order to create traveler profiles based on the information available online or from social media platforms. One of the best examples of this is IHG’s use of social media analytics to deeply understand customer preferences and provide highly personalized experiences. This strategy has not only enhanced their brand value, but has also boosted their customer base.
Automation of services
Many major hotels are switching to automated services. Now guests can easily check-in using their internet-enabled devices and smartphones at self-service kiosks and traditional front desks. This helps businesses save on manpower and have the freedom to invest in other service areas. Marriott and Hyatt both provide automation service for their guests.
Additionally, as the world becomes more connected, more people are travelling. Travel has become an important component of both business and leisure time. With air travel prices being slashed and an increase in the number of health and wellness tours, the global hotel and accommodation industry is witnessing high demand across the globe. Analysts at Technavio predict that the global hotels and accommodation sector will grow steadily and record a CAGR of over 5% by 2020.
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