The hospitality industry faces a need for continuous innovation to cater to diverse travelers from all around the world. They have to offer a wide range of options for the clients to meet their varied needs and expectations. It includes providing quick services for business travelers while prioritizing comfort for luxury seekers.
According to a survey conducted by Eventbrite and Harris Poll recently, almost 78 percent of the millennial generation preferred to spend on experiences rather than on material things. However, the figure dropped to 59 percent in the case of boomers. As a result, the disruptive business models of the hospitality industry face the need to evolve with the changing generation.
Several accommodation platform providers have already embraced innovation, namely Airbnb and HomeAway. Airbnb offers personalized local experiences, connecting travelers with local guides for cultural, culinary, adventure, and sports activities. For business travelers, Airbnb for Work offers self-check-in and work-friendly living spaces for individual or groups. It is also designed to provide team-building activities for company retreats.
Urban hotels are evolving to cater to the tastes of the younger generation, prioritizing the experiences offered to them. They choose locations with vibrant social spaces favored by locals as well as travelers, offering a wide range of activities and experiences. It includes rooftop bars, local ingredient-based restaurants, yoga and pilates classes, dance parties, film screenings and much more to enhance the client experience.
The environmental and sustainability issues addressed by the millennial generation are driven further by Gen Z, necessitating the adoption of sustainable and eco-friendly practices in the hospitability industry. Many businesses are blazing the trail toward sustainability, replacing luxury associated wastefulness with eco-friendly and socially responsible practices. It includes providing drinking water in glasses on site and growing organic produce to eliminate the use of plastic materials.
The technological innovation has resulted in the integration of chatbots, the internet of things (IoT), artificial intelligence (AI), and smart devices among other technologies in the hospitality industry to anticipate the needs of the travelers and better serve to their requirements. With the adoption of technology, the hospitality industry is closing the gap between the online and offline channels to offer enhanced customer experiences and drive sustainability.