The tourism industry is booming. The number of travelers is increasing globally, and the Average Daily Rate (ADR) continues to rise. While the raw figures are positive, the way we travel is changing.
- Shorter trips: Travelers are opting for shorter vacations, resulting in a shorter average stay. With inflation, prices are higher, but the average traveler's budget remains the same. However, holidays or getaways are still a necessity, so shorter trips are the solution for most travelers.
- Rise of bed and breakfasts: this type of accommodation is gaining ground in both urban environments and traditional sun and beach destinations. The food and beverage (F&B) experience is part of the exploration, and travelers are more curious and eager to try different restaurants and alternatives outside of the hotel. This contrasts with the traditional all-inclusive traveler.
- Rethinking the all-inclusive: this model, once very profitable for hotels, is losing its appeal. High price competitiveness and the rising cost of raw materials due to inflation make it less attractive. Online travel agencies dominate short trips (getaways), while tour operators are losing market share in city destinations. Hotels are trying to increase direct sales to avoid high commissions from tour operators.
What does this paradigm shift mean?
The industry is facing a new scenario:
- Need to adapt: Hotels and tourist destinations must adjust to the new preferences of travelers, offering personalized and short-term experiences. The focus is on the quality of the experiences, even if they are short.
- Search for alternatives: the all-inclusive model must reinvent itself to remain competitive or give way to new accommodation and board formulas. In city hotels, the business model is clear: focus on accommodation or bed and breakfast and avoid the complexities of F&B.
- Opportunity for bed and breakfasts: This type of accommodation has the advantage of flexibility and proximity, aspects increasingly valued by travelers.
In short, the tourism sector is undergoing a transformation. Those who can read new trends and adapt to them will be the ones who emerge successfully from this change.
To learn more about the topic, I recommend consulting the following reports:
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