Hotel 2034: Four Decade-Defining Trends for Hospitality Industry Leaders

When you think about staying in a hotel in 2034, what comes to mind? Robots delivering room service, or perhaps a VR headset replacing the traditional TV???

While some of these futuristic changes are indeed on the horizon, there are other ways hotels will transform over the next decade—and in many cases, these changes have already begun.?

Let’s take a closer look at the current state of the hotel industry and explore the main factors we believe will shape its future.?

Global Hotel Industry Outlook 2024

The Coldwell Banker Richard Ellis’ 2024 Global Hotels Outlook report paints an optimistic picture for the hotel industry this year:?

• U.S. hotels expect a 3% increase in revenue per available room. This growth stems from rebounding international travel and a strong showing in both the business and leisure segments.??
• The Caribbean and Mexico are benefiting from a surge of U.S. tourists and a lack of new hotels opening.??
• Europe is seeing an uptick, especially in domestic and short-distance leisure travel.??
• Asia Pacific aims to match its pre-pandemic tourism numbers by December.??
• Luxury hotels and resorts are set to lead the pack in most markets.??

However, rising costs could eat into profits. While each region has its quirks, the overall trend points to a hotel industry that’s bouncing back and adjusting to how people travel in 2024.?

… But What Does the Future Hold for Hotels?

We have compiled this list of four future trends for hoteliers, drawing from independent research as well as insights shared by Andreas Tscherning, COO International of Louvre Hotels Group, and Arnaud de Saint-Exupéry, Hyatt Area Vice President for UK & Ireland and General Manager of Hyatt Regency London – The Churchill.?

1. Technology Transforms Guest Experiences

“Automation and AI will play a more and more important role in the industry both back of house and front of house, at hotel or corporate level,” said Andreas Tscherning. And he’s not alone in thinking that.?

Most hoteliers (81%) believe technology will be necessary for hotel success in the next five years. A 2022 Statista study found that on-demand entertainment access was the most likely technology to be implemented by 2025, with 45% of hoteliers planning to adopt it. Virtual reality consoles in rooms were the least likely to be implemented.??

Tscherning also provided an overview of how hotels can use new technologies to improve the guest experience and their operations. He said, “Guest data can be analyzed to provide personalized recommendations and services during the whole guest journey, with virtual assistants used throughout. Automation will allow front office tasks to be performed more seamlessly with fewer errors, while AI is useful in revenue management. The Internet of Things should be integrated into guest rooms, and energy savings can be enhanced through AI-powered building management. Robotics can be used for tasks like room service, and VR and AR have applications before and during the stay. Mobile technology and the integration of AI and blockchain are also important across hotel operations.”?

These findings align with a HotelTechReport survey, which revealed that hoteliers see technology’s main benefits as improving operational efficiency (39%), transforming guest journeys (31%), improving business agility (15%), and innovating for the future (13%).

However, with great technology comes great responsibility. Fifty-six percent of guests worry about the security of their personal information when using hotel technology. And nearly a third of hotel chains have experienced data breaches.?

While these statistics show a clear trend towards technology adoption, some hotels are taking it to the extreme. The Henn-na Hotel in Japan made headlines in 2015 as the world’s first robot-staffed hotel. Although this approach faced challenges (they had to “fire” half their robot workers in 2019 due to inefficiency), it displays the potential for automation in hospitality.?

Many hotels are adopting more practical tech solutions, like AI-powered chatbots for customer service. Hilton’s “Connie,” introduced in 2016, can answer guest questions and provide recommendations, freeing up human staff for more complex tasks.?

Arnaud de Saint-Exupéry shares his perspective on technology’s role in shaping the future of the hotel industry: “Technology is already playing a significant role in shaping the hotel sector; something I don’t anticipate will change any time soon! It’s exciting to see the potential for synergies between technology and other defining themes, such as wellbeing. This is something we at Hyatt are primed to leverage, already utilizing technology to elevate and personalise guest experience.”?

De Saint-Exupéry goes on to explain how Hyatt is using technology to improve the guest experience: “The World of Hyatt app is helping to define digital hospitality by providing guests with premium comfort and convenience features at their fingertips. Guests can check in, check out, text the concierge, order in-room dining and other services, and even request hospitality items to be delivered to their rooms, all from the app.”?

Speaking about the MICE (Meetings, Incentives, Conferences, and Exhibitions) sector, de Saint-Exupéry notes the growing influence of wellbeing: “This demand for wellbeing has also filtered through into MICE, with customers looking for a holistic wellness experience before, during and after an event. One way that Hyatt is accommodating this is through Together by Hyatt, a platform which embeds wellbeing, support, technology, and sustainability into event bookings. Together by Hyatt provides everything from wellbeing enhancements that provide an elevated and intentional experiences, to bespoke event experience guides, sustainability fact sheets, and even technology tools designed to simplify, save time, and make event planning and booking seamless.”?

He further elaborates on the technological aspects of this platform: “As part of this, our state-of-the-art event experience guides are designed to provide customers with everything they need to plan and execute successful events. From collaborative software to help customers design professional, customized room diagrams and seating, to streamlining the communication process by providing the answers to 95% of our customers’ questions.”?

But perhaps the most promising future application of technology outside of AI and machine learning in the hotel industry is Smart Rooms. And here, Tscherning’s company, Louvre Hotels Group, really shines. The new Campanile Smart Lyon hotel, under Louvre Hotels Group’s “SMART INSIDE” label, offers a highly technological and connected hotel experience for guests. Its main features include:?

• A web app that acts as a digital concierge, allowing guests to control various aspects of their stay without needing to download an app. Through the web app, guests can check-in autonomously, call the elevator, adjust room settings like lighting and temperature, access a digital newspaper/magazine library, and order food from the connected bar-restaurant.?
• In-room robots that can respond to guest needs through the web app’s online concierge service.
• Connected TVs that allow guests to share and watch content directly from their smartphones.??

De Saint-Exupéry provides an example of how technology and wellbeing are intersecting in the hotel industry: “One trend I have been particularly interested in is sleep tourism, which is estimated to grow by nearly 8% and by over $400 billion between 2023 and 2028. A brilliant example of this crossover is Park Hyatt New York’s Sleep Suite by Bryte, which features a smart bed to help guests fight off jet lag, fall asleep more quickly, and stay asleep longer as the mattress adjusts to relieve pressure points and control its firmness throughout various sleep stages. It also includes a multisensory relaxation and wellness experience that pairs calming sleep-inducing audio with soothing motions within the mattress to help guests sleep.”?

Hotel executives need to accept that technological innovation is no longer optional in the hospitality sector. And it must be done thoughtfully and securely. Success in the future will likely belong to those who can balance high-tech conveniences with high-touch human interactions.?

Curious about the Future of Hospitality? Discover Three More Decade-Defining Hotel Trends!

You've just explored the first of four trends from our white paper, "Hotel 2034: Four Decade-Defining Trends for Hospitality Industry Leaders." But there's so much more to uncover.

Learn how three additional trends will reshape the hotel landscape by 2034 and discover strategies to prepare your hotel chain for the future.

Read or download the complete white paper now by clicking here.

About the Contributors

Andreas Tscherning has served as the Chief Operations Officer International of Louvre Hotels Group since 2017.?

Tscherning is a Swedish national and a graduate of the Lausanne Hotel School. He has worked in the hotel industry since the mid-1990s in Switzerland and Africa, with prior roles at Sheraton and M?venpick.?

Tscherning joined the French based Louvre Hotels Group in 2008 as General Manager of the Golden Tulip Kumasi City in Ghana, later taking on roles at the Paris headquarters overseeing operations in the Mediterranean, Europe, and internationally. Louvre Hotels Group has a network of more than 1,700 hotels, from 1 to 5 stars, in 60 countries across the world.?

Arnaud de Saint-Exupéry is the Area Vice President for UK & Ireland and General Manager of Hyatt Regency London – The Churchill. His career with Hyatt began in 2008 when he took his first General Manager assignment at Andaz London Liverpool Street, the first property of this new brand. In 2013, Arnaud moved to Japan, where he successfully opened Andaz Tokyo in June 2014.?

With his extensive experience in the UK luxury hotel market, Arnaud returned to the UK in 2016, joining Hyatt Regency London – The Churchill as General Manager and Area Vice President for Hyatt Hotels in the UK & Ireland.?

In this role, he oversees the management and strategic development of the luxury Hyatt Regency London – The Churchill, as well as eight additional properties in the UK. These include Andaz London Liverpool Street, Great Scotland Yard Hotel, Hyatt Regency Birmingham, Hyatt Regency & Hyatt House Manchester, and Hyatt Place West London, among others.??

About the Author

Milos Tucakovic is a Managing Partner at Stanton Chase Belgrade. He is also Stanton Chase’s Consumer Products and Services Global Sector Leader.??

Milos has almost two decades of executive search and leadership advisory experience, and prior to this accumulated nearly 30 years of human resources and management experience.??

Milos is a member of the Serbian Association of Managers and Knowledge Committee of Serbia. He also lectures on management at the College of Hotel Management in Belgrade.?