Trends in the hotel industry for 2023

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Trends in the hotel industry for 2023

Early market signs suggest that, despite rising expenses, the travel demand will probably remain high in 2023. People still have a lot of travel on their minds, especially in the US and Europe. According to market statistics, the number of nights reserved by US and British visitors is much more than it was in 2019 and is also costing much more.

In the hotel industry, flexible design is key

Hotels will choose how to utilize the space, thanks to the designs. In order to maintain our sanity during the last three years, most of us have had to be adaptable. The hospitality sector has also faced difficulties, including a pandemic, labor shortages, supply chain delays, and an unstable economy. So that they can be ready to handle the unexpected, architects and consultants are creating adaptable environments.

New hotel design and construction emphasize mixed-use spaces, with ground-floor retail shops, lower-floor hotel rooms, and upper-floor apartments. As needs and preferences change, the configuration allows liminal spaces between retail/hotel/rooms to shift. The hotel lobby has been transformed.

Hotel lobbies are also evolving into mixed-use spaces, focusing on communal use, open space, and even use as gathering spaces for conventions and events. Lobbies in 2023 will be designed for multiple purposes, such as serving breakfast and providing a coffee station or providing communal workstations with connectivity and a place to socialize with friends. The trend for a hotel’s public space is that it must do everything and be adaptable.

Creating designs for digital nomads

While people have always worked from home, the pandemic gave many of us a taste of “working from anywhere.” In the future, more and more of us will combine remote and on-site work. These digital nomads are more likely to book extended hotel stays and seek hotels that support their preferences and needs. Now that many of us are returning to travel, we are willing to pay more for a one-of-a-kind, authentic experience. Hotels that previously sought to design a brand, with one hotel looking very similar to another, are now creating what distinguishes a hotel from its competitors.

Keeping it local

Hotels are designed to emphasize and reflect what is unique to the local area to provide a more authentic experience. The design enables the hotel to establish its sense of place, resulting in a distinct identity.

While hotels strive to create such adaptable spaces, they must also be distinct. When it comes to a hotel stay, customers are looking for ways to stand out. If you own a hotel, consider “what do I offer that is unique?” Is it history, location, or style? Answer this question and incorporate it into your interior design, and you’ll be on to a winner.

Designs give guests the ability to choose how to use the space. Designers are also anticipating a broader range of hotel guests and needs. Hotel designers are enticing the “working nomad,” the business traveler extending her stay for personal time away, the destination traveler, and travelers seeking experiences in health and wellness as the market changes. The distinction between business and leisure travel is becoming increasingly blurred, resulting in various needs, behaviors, and trends. Architects and designers are being asked to design following these trends and to provide innovative solutions that make guests feel at ease.

Expanded green space

Green spaces, such as gardens and rooftop terraces, are designed by architects to provide communal experiences in outdoor bars, restaurants, and gathering spaces. Turning inside out creates new spaces. Studies show that spending time in nature makes people feel better for various reasons. Accept green as nature’s neutral. Green spaces are increasingly being incorporated into the design through green walls, indoor plants, and large windows to frame the natural environment as a focal point.

Combining work and vacation

Another area where lines are blurred is the “bleisure” traveler, who extends their business trip to allow for a few days of leisure time. Because health and wellness are top priorities for leisure travelers, some hotels have redesigned guest rooms to include a more extensive, spa-like bathroom area and in-room fitness and exercise equipment.

Wellness – It is becoming increasingly important to provide an escape

Designing for better well-being is one of the hospitality industry’s most influential and fastest-growing trends. Creating new multisensory experiences that allow people to immerse, pause, and reconnect with nature’s irresistible pull. Regenerative spatial compositions made of local and organic materials create the backgrounds. A quiet place, a place for meditation, or a place for training. A designated area for mental flight or self-care.

Destinations in emerging markets

Because of the emphasis on authenticity, architects design and build in destinations like Bosnia and Hercegovina, Montenegro, Albania and Croatia. Emerging destinations are those that are less well-known as desirable tourist destinations. They frequently gain popularity as a result of their distinct culture.

To combat rising costs, ADR will continue to grow

Most hotels in the region report that revenue in 2022 will still exceed revenue in 2019 by an average of 25 to 30%. This has all been driven by a significant increase in ADR. Throughout the year, pricing has been extremely high, owing primarily to high demand. Rising costs and inflation, rather than pent-up demand, will likely drive future price increases. Hoteliers are more concerned than ever about cutting costs.

Hotels are currently benefiting from group bookings and MICE business, particularly those historically relying heavily on the business travel segment. These bookings are expected to increase further in 2023, but whether they will reach pre-pandemic levels remains to be seen.

To increasing operational expenses, inflation, and an uncertain business environment, we anticipate hotels will continue to ramp up ancillary revenue strategies in 2023 and beyond, upselling and offering a variety of add-on services for guests to enhance their stays, such as room upgrades, in-house restaurant offerings, local experiences and excursion offers, car rentals, and airport transfers. Although OTAs have returned to more aggressive marketing tactics this year, direct hotel bookings remain significantly higher than pre-pandemic levels.

Many hoteliers appear to be emphasizing their direct channel to reduce commissions. With more direct bookings than ever, the next step will be holding on to the top spot. Guests are still contacting hotels directly, and hotels have the opportunity to convert these inquiries into more direct bookings.

In 2022, 94% of hotels were understaffed, with 47% severely understaffed, according to Hospitality Insights. As a result of employee burnout and underpaid labor, many hospitality employers have been forced to rethink their staff management strategies in recent years. High travel demand and persistent labor shortages will prioritize investing in automation while upskilling the existing workforce in more customer-focused attributes on the agenda for hoteliers in 2023.

Instead of constantly searching for the ideal employee, especially in middle management, hoteliers must work intensively on the training and production of their personnel. Education, courses, and additional motivation make it possible to replace vacant positions in middle management with motivated and young employees.

Amer Ćorić

Dubos Consulting Sarajevo

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