Hotel Trends: 2023 Guide on the Latest Hotel Industry Trends by RoomRacccoon

“The only constant in life is change,” and that couldn’t be more accurate for business owners. With the likes of technological advances, socio-political factors, and the economy, there’s a lot to keep up with.

Luckily there's a way to keep track of all of the trends you need to have on your radar. Our recommended HMS partner, RoomRaccoon, has rounded up the biggest and best trends for the hotel industry in 2023 – so that you don’t have to!

1) Contact-Free Check-In & Check Out

 One of the key trends to emerge from the Covid-19 pandemic was contactless check-in. This enables a guest to get to their hotel room quickly and smoothly. Their journey needs to be mapped out every step of the way - quite literally!

Hoteliers must consider every contact point if the contactless check-in is to be successful. And hoteliers are not alone in this. In 2023 there is now software to help and serve the hospitality industry.

Some examples of digital features for a streamlined guest experience include keyless entry, digital ID scanners, and online check-in. While hotel trends may come and go, hotel brands should pay attention to this development. Technology truly waits for no one. We can forecast that contact-free check-in is not going to check out anytime soon.

2) The Freedom of Flexibility

 The hotel industry understands and recognizes that travelers need flexibility. And it’s never been more critical than now. In terms of immediate and last-minute bookings, guests need flexibility to be an essential aspect of their experience. Post Covid-19 the travel purchase journey has changed significantly. It’s safe to say that as far as hospitality trends go, this is a trend that will endure.

Approximately 38% of travelers say free cancellation or rebooking is vital when booking last minute. In addition, 35% of the same travelers agreed that easy cancellation and rebooking processes are of utmost importance.

Does your hospitality business have the capacity to accommodate guests who value flexibility? Looking forward, it should be a central area of focus for the hospitality industry.

3) Spotlight on Safety & Hygiene

 The travel restrictions of Covid-19 are gone but not forgotten. Guests expect the same contactless experience from those circumstances and the hygienic practices that come with it.

The hospitality space is no stranger to high standards of cleanliness, but the pandemic indeed highlighted hygiene practices. So, why does this matter for 2023? As a hotelier, your hotel brand reputation depends on guest experiences.

In order to continue impressing, your hotel business needs to be a cut above the rest. Cleanliness is key regardless of whether guests are visiting traditional hotels or vacation rentals. Luckily, with RoomRaccoon, you can handle all of your housekeeping in the property management systems (PMS). 

RoomRaccoon also offers a fully integrated housekeeping management software RaccoonHousekeeping, which allows you to plan and organize all housekeeping operations. This helpful feature is contactless with a mobile website application to streamline tasks and project management.

4) The Rise of Hotel Smart Rooms

 A smart technology room allows your guests to enjoy a flawless stay. With smart rooms, hotel guests can experience an easy check-in system as well as a simple checkout. This improves guest experience and makes hotel staff lives easier!

In the hospitality industry, when the hotel guests are happy, so are the hotel owners. By automating mundane processes, customer experience will improve significantly.

One of the emerging hotel trends is smart hotels — this may be more prevalent in major cities or the luxury segment. Hotel rooms now have access to digital room keys, digital hotel design, and more awesome features in recent hotel trends. 

The travel industry is constantly changing and adapting to tech developments, and these digital integrations prove just how far it has come.

5) The Millennial Moment

 Millennials are making their mark in the hotel industry. Many hospitality trends and changes have come about from their experiences with the hotel industry. Millennials are at the forefront of spending their hard-earned cash on vacations. And they don’t hold back when it comes to ‘treating themselves.’

According to GWI’s recent travel report, “Just under 1 in 5 millennials say they look for top range options when booking a vacation, and around 3 in 10 millennial vacationers say they tend to buy the premium version of products, making them a key segment for luxury travel operators to target.”

With this insight, hospitality businesses can count on the millennial market for economic stimulation. Why is this important for hoteliers to understand? Hospitality businesses can tailor their marketing messaging to this audience segment and create packages that suit their travel preferences.

6) Domestic Travel – Do Travelers Prefer Staycations?

 While international travel is ramping up significantly, domestic travel has held its own. We are all familiar with the unprecedented worldwide travel restrictions. And for the first time in certain generations’ lives, the door to global travel was slammed shut.

Global travel restrictions presented the opportunity for avid explorers to consider domestic travel options. And the popularity of domestic travel is here to stay, and it’s not one of the hotel industry trends that will fall away. You can read a great article on how to capitalize on the staycation boom.

GWI’s new travel report states, “Domestic vacations are showing no sign of slowing down. Around 90% of consumers say they plan to take a domestic vacation in the next 12 months.” Relaxation is at the top of mind for consumers around the world.

 While the Covid-19 lockdowns may have fallen away, their clutch on the macro environment is still very much in place. Consumers across all markets want holidays that are relaxing and stress-free.

If you’re after direct bookings, you may want to localize your marketing efforts this year. Your local clients may seek vacation rentals, group travel accommodations, or cultural experiences. It’s time to zoom in on niche markets in your area. An untapped market of potential guests may be waiting to discover your incredible property.

7) The Dominance Of Deals

 While millennials may splurge, many hotel customers always hunt for the best deal online. GWI reports that “over 1 in 4 travelers say deals influence their destination choice”. These specials or discounts could derive from a hotel website, online travel agents, or even a hotel app.

The hospitality industry is no stranger to creating special offers. The digital revolution has enabled hoteliers to set up deals easily and quickly. Every hospitality business must learn how to create effective package deals and how to use discount codes wisely. Hotel marketers will have great insight into what hotel guests are looking for when booking a vacation based on sales promotions.

Hospitality industry trends are everchanging, but deals will always be a dominating factor. It’s within human nature that consumers want to feel that they are saving money — even if the sales promotion prompted travelers to spend what they wouldn’t have. By investing in a multifunctional hotel POS system, you can simplify and streamline all of your hotel payments.

8) What is Bleisure? Learn About Business Meets Leisure

 One of the latest hotel trends is the newly coined term - “bleisure.” And as the name suggests, it encompasses business travel and leisure travel. While this term may sound unfamiliar, the practice promises to become increasingly familiar.

Business travelers are accustomed to going through the entire booking process, so why not add some extra days! Travel Pulse published, “A whopping 89% of people plan to add personal vacation time to their business trips in the next year”. So how can you prepare for the abundance of business travel?

Having a dependable and efficient point of sale (POS) software will enable you to increase your revenue. Many business travelers are looking for convenience while on the move. They’ll order room service often and eat in hotel restaurants. 

A restaurant and bar POS software will ensure ‘bleisure’ guests have an enhanced customer experience and improve your revenue management.

9) Spotlight on Sustainability

 Sustainability has been top-of-mind for emerging generations. The attention may shift between a variety of global causes. However, guests still value a hotel that respects and implements sustainable practices.

If your hotel positively impacts its local community or environment, you will likely become one of the most popular destinations. So, what makes a hotel sustainable?

According to Forbes, “A great way to do this [sustainability] is through the use of greener products and energy-efficient appliances.” Every small step towards sustainability counts. Prospective guests are more discerning in their purchase choices.

And this includes spending money on hotels. Hotel companies need to take into account that the new guest experience is from the booking process to the final moment of checking out.

From hotel room modifications to overall hotel improvements, sustainable decisions will ensure your guests have peace of mind during their stay. Not only will it make guests happier, but your hotel will also have a positive impact on the environment.

Do you need help figuring out where to start? Read more on 10 ways to increase sustainable hospitality.

10) Dynamic Revenue Management – What Is an RMS?

 In the hospitality sector, revenue is integral to a hotel’s success. Revenue management is a system that provides hoteliers with a more efficient way to manage their rates. With markets changing rapidly and constantly, automated revenue management allows hoteliers ultimate control.

RoomRaccoon has a fully-integrated RMS called RaccoonRev that ensures optimized revenue results. This RMS allows your hotel to view and compare rates among three of your top competitors. RaccoonRev affords you a competitive advantage! So that your hotel rooms sell for the best rate. The system provides accurate and timely data on room rates. Because the more you know - the better!

What are a few benefits of adding an RMS to your hotel’s arsenal?

• Increase your occupancy
• Maximize revenue per available room (RevPAR)
• Reduce any lost revenue opportunities

11) Highlighting Health While Traveling

 Many hotel guests enjoy a healthy lifestyle. And they want to continue this lifestyle choice while on the road! Wellness tourism is projected to expand even though it is a relatively new trend. This concept goes way beyond a well-equipped hotel gym.

Wellness travel encompasses a wide variety of activities, but for now, we’ll focus on physical health. All hotel operations should be aware that a large percentage of guests prefer healthy options.

From vegan cuisine to gluten-free options, guests now demand more. You can create a host of wellness geared packages for your hotel. Specially crafted hotel packages can increase your hotel’s RevPAR and guest satisfaction.

Health Package Example:

 Premium Health Package

This package allows you personal access to our VIP gym and top personal trainers! This also includes a full-body massage voucher and access to saunas. You can also select a dietary plan for the duration of your stay with us.

12) The Wonder of Wellness Tourism

Wellness goes broader than physical health. The Global Wellness Institute defines it as the active pursuit of activities, choices and lifestyles that lead to a state of holistic health." So as a whole, wellness integrates mind, body, and soul in the endeavor to increase overall happiness and wealth.

What is the difference between medical tourism and wellness tourism?

The Global wellness institute delves into the differences:

(image source)

What does this have to do with the hospitality industry? One report states, "GWI predicts that this market will soon reach a huge $919bn; this will represent around 18% of all tourism globally." Hotels, B&Bs, chalets, and more can capitalize on this overall consumer focus.

Similar to health packages, complete and all-inclusive packages are perfect for this trend. The wellness spectrum is broad and accessible, so the options are up to you. Let's take a look at some of the wellness activities you could include in your hotel offering:

Examples of wellness travel activities:

• Yoga retreats
• Meditation classes
• Reflection groups and activities
• Spa vacations
• Writing retreats
• Culinary experiences

13) The Corporate Comeback

 While virtual reality, artificial intelligence, and online meetings are all the rage - there's still a place for in-person events. M&IT (meetings and incentive travel) reports, "Spending on events and brand experiences within the corporate sector is expected to rise by as much as 83 percent according to the Annual ICE Report."

Digital solutions enabled cross-country communications when we needed it the most. With the help of augmented reality filters, Zoom could literally place you back in your office. But what if that's not what people crave in a post-pandemic world?

The verdict will undoubtedly be split, but one thing is certainly true. Hotels need to consider the corporate comeback in anticipation of 2023.

With the probability that many hoteliers could neglect the market for in-person meeting space, your accommodation will have a competitive advantage. The corporate sector has substantial capital to spend at hotels due to the nature of their business needs.

As the shockwaves of Covid-19 settle, entrepreneurs and employees are equally excited to get back to business. And a large part of that will be corporate travel.

What do business travelers require from hotels?

• Corporate conferencing events (large venues, bulk catering, room hire)
• Dedicated meeting rooms (medium venues, catering)
• Private digital meeting rooms (small venue, high-speed wi-fi)
• Employee vacation rewards (room hire & room service)
• Leadership retreats (medium venues, catering, activities, room hire & room service)
• Corporate workshops (large venues, bulk catering, group activities)

14) Niche Hotel Concept Offerings

The internet affords consumers the world at their fingertips. This has made guests more discerning with their travel. It's easier than ever to find the vacation of your dreams, no matter how niche the request is. Guests need more than just a bed and breakfast in 2023. Every hotelier needs to be able to answer a straightforward question, "what is my hotel's unique selling point (USP)?"

A USP will set your hotel apart from competitors and bring in your desired target audience. And all of this directly translates into more revenue for your business. Certain hotels capitalize on experiential travel. Tropical Islands Resort in Germany is an excellent example of this, offering an 'indoor water park' just 60km from the bustling city of Berlin.

(Source: Grand Daddy Boutique Hotel)

Decor and storytelling can also communicate your USP. Grand Daddy boutique hotel created seven designer airstream trailers as unique rooftop accommodations. Not the typical guest room! This unique selling point offers a truly memorable guest experience. The most important thing to remember when crafting your hotel's USP is that it must be relevant and authentic to your brand.

15) Increasing Online Opposition

Websites are arguably one of the most important aspects of a hotel's digital presence. A website is the first touchpoint for new customers in the consideration phase of searching for a vacation.

As technology evolves, the possibilities for website building are expanding exponentially. Your hotel's website can be as immersive and detailed as you'd like. Or it could be as minimalistic and straightforward as you'd like.

 Because website creation is more accessible than ever, online competition has been heating up. Technology now allows virtual 3D tours of locations, and some hotels even use virtual reality.

The latest digital trends within the hospitality industry have empowered guests to make informed travel decisions. Hoteliers now have the power to curate and manage their online image due to various powerful website builders.

Your website's first job is to sell your hotel's USP to the website visitor. CXL reports that new users form an opinion on your website within 50 milliseconds. This demonstrates just how little time you have to win over a potential guest and how vital website design is. 

A task once exclusively for developers or coders has been turned on its head. Building a website has been simplified into a front-end task, where design aspects can be edited visually. We've rounded up some of our favorite website builders for you!

Best Website Builders

• Squarespace
• Elementor
• Wix
• Room Raccoon’s Hotel Website Builder
• Divi WordPress page builder

16) The New Way to Camp – Why is Glamping So Popular?

Glamping, also known as glamorous camping, is one of the latest trends for vacationers. As we've discussed, niche hotels, for example, sports-themed hotels, are rising in popularity. But Glamping is not simply niche. It's an entirely new offering!

According to Google Ads, approximately 165,000 people search for 'Glamping' every month in the USA. And this is quite literally what travelers are actively seeking out online.

An excerpt from Allied Market Research Glamping Market Report states that "The global Glamping Market Size was valued at $2.68 billion in 2021, and is projected to reach $7.11 billion by 2031, growing at a CAGR of 10.5% from 2022 to 2031."

You may be wondering why Glamping has expanded so rapidly and why it will continue to grow. And the answer leads back to one of our previous trends, wellness tourism.

Recently, travelers have been intent on escaping from reality and reconnecting with nature. Glamping offers both a luxurious and dynamic capacity. For some, the prospect of struggling to set up camp is enough to deter an entire camping trip.

With Glamping, the average traveler has access to an elevated camping experience without any of the hassle or physical effort. With the offer of a peaceful and healing vacation, Glamping has a genuinely unique selling point.

17) All Eyes on Events

Events are taking off with public opinion shifting to a more social and receptive mindset. And as a hotel, this is the perfect opportunity to capitalize on your space! 

Areas that can be easily adapted are ideal for hosting events or renting out event space. Many hotels have dedicated spaces such as conference rooms, restaurants, gardens, or pool areas.

It is vital to remember that any event you host at your hotel should align with your brand's image. Any planned event should attract the clientele you would like to have to book a stay at your hotel. Let's have a look at some examples of events you can host at your hotel.

Events you can host at your hotel

• Live singing acts
• Author's reading & book signing
• Themed lunches or dinners
• Comedy nights
• Product launches
• Branded events
• Workshops for skill development
• Art exhibition pop-ups
• High tea
• Wine tasting

18) Community and environmental initiatives

Consumers are increasingly interested in hotel brands' impact on the ecosystem and the community. Your hotel or B&B does not have to move mountains, but there should be a visible effort to create a positive impact. 

Prospective guests are more selective than before. Your hotel has a brand to build and uphold in order to maintain a satisfactory occupancy rate. Social responsibility improves the brand image, provides good publicity, and of course, benefits people and the planet.

Environmental initiatives could start with removing single-use plastic from your beverage stock and replacing them with bottles or cans. Even something as basic as offering a variety of recycling bins can make a big difference - to your guests and the environment.

Community initiatives for your hotel include hosting blood drives, community meetings, neighborhood clean-ups, or a food drive collection point. Any community plans will depend on the scope of your property in terms of finance, staff, and time capacity.

19) Gathering Google My Business Reviews

Google My Business (also known as GMB) is a free powerful digital platform for your hotel. It is not categorized as one of the many mobile apps. It is instead connected to one of the most popular search engines in the world. You're probably already familiar with GMB as it features most businesses you will search for on Google.

GMB provides a platform for all the necessary information on your property. From useful links, price comparisons, contact details, images, and reviews. Many businesses need to start using their GMB listing to its full potential. We're going to provide some essential tips that will improve your GMB profile so that your hotel listing is optimized for more bookings!

Tips for an optimized GMB listing

1. Ensure all business details are current and correct.
2. Check that all buttons (website, directions, save, call) are accurate.
3. Upload the best photos of your property to your profile (guests can also upload pictures via reviews, but it's vital to have professional images online).
4. Ensure that the "hotel details" section sells your hotel's differentiating factors (amenities) and highlights the main benefits for potential guests.
5. Remember to respond to all GMB reviews, bad or good. This helps to show that your brand cares about the guest experience. Even better? Encourage or incentivize guests to review your property on Google when they check out.
6. Go the extra mile by including a Q&A section so that prospective guests can browse frequently asked questions and their answers.
7. Post important updates via your business profile. This section of GMB is highly underrated and underused by most. Companies can post offers, events, and new information on their profile. As it is your owned media platform, this is essentially a free spot on your Google listing for advertising and announcements.

20) Riveting Restaurants and Rooftop Bars

In the age of Instagram and BeReal, consumers are looking for the perfect backdrop. Social media users have a distinct desire to show off their latest finds and their adventures. This extends particularly to restaurants and bars. It's becoming clear that hotel catering goes beyond diners and room service menus.

Travelers and consumers alike are craving memorable experiences, specifically aesthetically pleasing experiences. Your hotel does not need to break the bank to get into the game! It could be as simple as improving customer services. This alone can translate into good reviews for your hotel (via GMB or other platforms) and increase positive sentiment in word-of-mouth.

In terms of strategies, they range far and wide. Your restaurant or bar space will depend on what you'd like to achieve. Hotel brands must remember that any theme, decor, or experience must align with the brand identity. To become 'insta-worthy,' you could create signature cocktails, feature walls, witty signage, or have decor geared towards niche markets. We've compiled tips for creating the perfect space for social sharing!

How to create memorable space in your hotel

1. Focus on your hotel brand's goals and identity.
2. Utilize this insight to set the tone and concept for your space.
3. Ensure that your area has striking aspects, perfect for pictures.
4. Review the reactions to new additions.
5. Incorporate feedback and keep the space fresh with the latest trends.

Need more inspiration? Read this article on restaurant design ideas!

21) Short-Term Rentals & The Sharing Economy

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The hotel industry is ever-evolving, as is technology. The future of hotel technology will go far beyond aspects like voice search, augmented reality and mobile apps. With more consumers returning to regular travel, the demand for a vacation rental will continue to trend upward.

The increased demand for hotels, B&Bs and lodges will no doubt be influenced by the sharing economy. Airbnb first popularised the sharing economy, and the website and application is now a first-choice OTA for many travelers. We forecast an uptake in short-term rental services powered by consumers.

The model of sharing economy accommodation empowers both everyday property owners and travelers. Property owners have the opportunity to earn additional income, and travelers have a multitude of properties to choose from. So the question is, will Airbnb reign supreme, or will spin-off businesses be born? Only time can answer that.

Overall, the future of hotels will be deeply interconnected with plausible technological advances. Hotel operations will continue to be automated, and we foresee continuous improvements in these automation systems. In an ideal world, all manual processes for hoteliers will be streamlined by powerful PMS software.

22) Future Trends of Hotel Management Technology

The future of hotel management will also automate sales and payments. Hoteliers can benefit from an integrated point-of-sale system for their restaurants and bars. With laborious tasks such as physical payment input covered by a POS, hoteliers will have more time for their guests.

One of the most pertinent aspects of a hotel’s future is the ability to adopt and adapt. Travelers have access to a plethora of hotels and B&Bs online. If your hotel is not adopting new technology and adapting to new trends - it could get left behind.

So, looking to the future, hoteliers should be receptive to new tech and trends. Hotel automation exists to improve and optimize operations, which should be capitalized on. While changes can feel scary, in 2023, there are abundant resources and support for new technology online.

Bring on 2023 - The Year of Possibility!

The year of 2023 shows a promising space for growth in the hotel industry. 88% of consumers confirm that they will be planning a vacation in the next 12 months. This shows the ample possibility for every hotel business this year.

We hope you enjoyed our article highlighting the best and bravest hospitality industry trends. As hoteliers take on the year ahead, it is best to make the most of new technological opportunities and embrace change. Because with every small step of progress, hotels will be closer to reaching new heights of success!