Welcome to this module about trends in the hospitality and tourism industry.

In this session,
we are going to explore the trends from the supply side.
Observing the trend is important because they shape marketing.
In fact, successful marketing has to either create the trend
or follow the trend.
Successful marketing does not ignore the trends.
By the end of this module,
You should be able to describe the trends in the hospitality
and tourism industry from the supply side,
and, more importantly,
analyze the marketing issues from the supply-side perspective.
I say from the supply perspective,
It means from the supplier’s perspective.
The environment where the hospitality and tourism industry is operating
is changing faster than ever before
and it’s important for hospitality and tourism marketers
to keep up with the trends impacting the way they do business.
We notice these key trends among suppliers:
Technological evolution,
Digital channels,
Loyalty,
Alternative accommodation,
Health and wellness,
and Sustainability.
Let’s look at technological evolution.
Suppliers of course know that
people are constantly connected to the digital world.
Therefore,
the challenge is to make sure
that the technology really enhances guest experiences,
and do not adopt technology
that makes things more complicated.
Innovation in the technology sector has been blazing ahead at a rapid pace;
previously expensive technologies
are now more affordable than ever.
Suppliers like hotels use apps
to allow guests to check in
and manage their reservations
via smartphone.
Some hotels also use digital room keys
and digital payment
to provide more convenience to their guests.
Advancement in technology
like artificial intelligence
allows hotels to have real-time access
to guests’ preferences
to offer services to match individual guest’s profile.
Many revenue management systems
already use AI-based pricing,
that is, pricing algorithms
supported by artificial intelligence,
which determines the optimal prices
by analyzing a slew of historical,
forecast, and market data.
A.I. is likely to bring pricing optimization
to restaurants, spas, and other outlets too.
There are many revenue management system providers
providing solutions for hospitality and tourism companies.
Though these may be “trends” now,
they’re only going to become more commonplace.
All these technologies
provide guests with exciting new options
when it comes to booking,
paying for, and actually experiencing a hotel stay.
Hospitality and tourism companies
use robots to perform specific tasks.
For example,
hotels use robots for check-in
and to serve as concierges
to provide information to guests.
Robots are also deployed as housekeeping
and room service staff
to deliver meals or amenities to hotel guests in their rooms.
Some hotels and shopping malls
dispatch robots to disinfect public areas.
This is of particular importance
in helping hospitality and tourism businesses to maintain hygiene standards
so customers will feel safe.
Digital channels have become very important and influential.
Today
more than 65% of the searches begin on mobile phones
and continue on computers.
Time spent on smartphones
exceeds the time spent on computers.
Time spent using mobile devices
exceeds the time spent on watching TV.
Messaging, watching videos,
and accessing maps
are the most popular mobile-first activities worldwide.
As mobile devices offer flexibility
in terms of quick usage sessions
or on-the-go service access
whenever it is needed,
it is not surprising that
online usage is shifting towards mobile.
Google is the most visited website
with over 89 billion times in January 2022.
Google dominates the search engine market
with close to 92% of market share
in January 2022.
95% of the Google Search is on mobile.
Each day
Google processes over 8.5 billion searches per day.
1 billion questions have been asked on Google Lens.
Now,
the online world is slowly
shifting to voice-based search.
Together with the growing importance of digital channels,
we see a consolidation of OTAs
and disruption of the tourism ecosystem.
All these suppliers are made possible by the digital channels,
posing new challenges for traditional tourism companies.
Metasearch engines are gaining importance
in the hospitality and tourism industry.
Metasearch engines,
also known as hotel aggregators,
are websites that combine travel data for interested users.
They are price comparison websites
that compare hotel rates
from different sources across the internet,
OTAs
and directly from hotels.
This creates a faster and easier process for guests
to find and compare hotel prices
and ultimately make their booking decision.
The key difference is that
metasearch engines don’t sell their own hotel inventory.
Metasearch engine is not a booking channel.
It is merely a platform
through which booking channels can market themselves.
Metasearch engines are popular among travelers,
making them one of the most powerful online distribution channels.
New tourism suppliers pose challenges for traditional tourism companies.
There are online concierge services
that help you book and arrange exploration
before you arrive at a destination.
There are self-guided tours that help you get familiarized before arrival.
Some of the companies have created a superapp for travel
and leisure which customers can discover
and book the best of what any destination has to offer.
The app allows travelers to look for new offers
such as hotels and staycations, car rentals,
attraction passes, and other travel services
including health and safety advice and information
and travel-related insurance.
And we can expect many more such suppliers coming into the industry.
Loyalty.
Suppliers are finding disparity
between loyalty benefits and what customers want.
Consumers are finding it difficult to redeem for loyalty points.
Suppliers find that there are inadequate metrics
in measuring loyalty.
There is a trend towards integrating loyalty programs
into the overall tourist journey,
and not just the flight or hotel accommodation.
There is also a trend that hospitality and loyalty programs
are becoming more lifestyle programs
by partnering with companies in the sectors of food and beverage,
health and beauty,
fashion,
entertainment and leisure,
banks, and insurance companies
to offer a wider array of benefits and options for members
to accumulate and redeem points.
In other words,
there is a need to integrate and work with various suppliers
across different sectors
to make the loyalty program more relevant to the members.
Today’s travelers have a myriad of options for accommodations;
besides traditional hotels,
they can choose between vacation rentals,
hostels, serviced apartments,
treehouses, underwater hotels,
mobile hotels, co-living spaces,
As people travel more frequently
and for longer durations
- and as platforms like Airbnb
allow any accommodation provider
to reach a large audience online
- the characteristics of accommodations themselves are changing.
Before long, “alternative accommodations” will not be strictly an alternative,
but be part of the mainstream.
With a great consciousness towards health and wellness,
we see more suppliers offering spas,
sports and recreation and fitness programs,
and healthy food and beverage options to their customers.
Some hotels have room lighting that changes color
by following the human biorhythm.
Guests can use an app to personalize and control the light
to tailor-made to their individual needs,
the rhythm of the day, and their mood.
Hotel guests demand clean indoor environment.
Hotels are using advanced air purification systems
for their guest rooms and public areas.
Air purifiers can drastically reduce the potential airborne transmission
of viruses and bacteria,
disinfect the air, and remove micro-particles
including allergens and pollutants.
This certainly helps improve the indoor air quality.
This trend will continue as travelers become more
and more aware of the impact indoor air has on their health.
When hotels are installing air purifiers,
they are not just installing the physical facility
but installing trust as guests and staff
will have a more enjoyable experience
knowing that they are breathing healthy air.
Management will have a new type of leverage
for marketing assets and efforts.
Sleep is paramount to people who are concerned about wellness.
A good night’s sleep in the hotel can make the guests feel recharged,
optimized their body performance and immune function.
Hotel groups like Four Seasons Hotel Hong Kong
introduces the Sleep well program
featuring a selection of services and amenities
to enhance the guests’ experience and achieve quality rest and deep sleep.
These services include a dream diet,
sleep consultation,
bath and foot massage ritual,
and singing bowl sound therapy.
The concept of sustainability affects suppliers a lot.
Sustainability is a multi-faceted term
to indicate initiatives that preserve a particular resource.
To address sustainability,
one needs to address the three main pillars:
people (social responsibility),
planet (environmental protection),
and profit (economic prosperity)
– that is the triple bottom line.
Economic sustainability refers to practices
that support long-term economic growth without negatively impacting the social,
environmental, and cultural aspects of the community.
This is obviously an important concern of the suppliers
as they need to be responsible
to the investors and shareholders
to ensure their businesses are profitable and economically viable.
Apart from economic sustainability,
suppliers are also concerned with socio-cultural sustainability,
that is, whether they are accepted by the community,
whether they are part of the culture.
Suppliers are concerned with environmental sustainability,
whether they are contributing to conservation,
depletion of resources, and carbon emission.
Suppliers pride themselves in pioneering green businesses;
whether their design and procurement policies
comply with green practices,
whether they have policies protecting the environment,
whether their waste management practices are environmentally friendly,
whether they use renewable energy as opposed to fossil fuel.
By advertising a brand’s or a business’ sustainable practices and activities,
they can gain an upper hand in attracting more customers.
On the other hand,
companies need to be strategic and careful
when using the sustainable development goals as a tool
to actualize benefit for the society in a sustainable manner
instead of using it as a marketing tool for "greenwashing",
which will hurt the brand's image in the long run.
As sustainability must be a global and multi-stakeholder effort,
the United Nations (UN) launched their Sustainable Development Goals (SDG) in 2015,
as 'the blueprint to achieve a better and more sustainable future for all'.
The 17 goals aim to 'address the global challenges we face,
including those related to poverty,
inequality,
climate,
environmental degradation,
prosperity,
and peace and justice.
The SDGs act as a guideline for hotels to consider
how each of their operational functions
(such as engineering, housekeeping,
front office, and sales and marketing)
can contribute to the attainment of the goals.
The SDGs can help hospitality and tourism companies
define their aspirational purpose,
inspire stakeholders at all levels,
and increase shareholder value in the long run.
All in all, hospitality and tourism suppliers have to deal with these trends.
For marketing to be successful,
ask yourself
to what extent you are riding on these trends.
I trust by now
you are able to describe the trends in the hospitality and tourism industry from
the supply side,
and, more importantly,
analyze the marketing issues.