Hospitality Insights: 2023 recap and 2024 predictions, part two

Welcome to part two of Mews Hospitality Insights. We hope you enjoyed part one, where the star-studded cast from Microsoft, Lamington Group, Generator / Freehand and NHL tried to answer the question on every hotelier’s mind: What’s in Store for ’24?

If you haven’t had the chance to catch up, we got you – just hit the button below.

In part two, we're joined by some of the industry leaders from Deloitte, McKinsey, Forbes Travel Media and HotelTechReport. From recruiting talented hoteliers and making AI work for you to using data to improve everything from performance to guest satisfaction, there's so much inspiring content to explore. 

Read on for a speaker-by-speaker breakdown of their top takeaways from the year and their 2024 predictions. 

Richard Valtr, Founder, Mews 

What are Richard’s learnings from 2023?  

• • Europe’s impressive performance. Despite some initial concerns, Europe exceeded expectations in 2023, showcasing robust performance in RevPAR and occupancy rates. The region showed resilience and strength in the face of ongoing global challenges.
    
    
  • The Choice / Wyndham saga. The hostile takeover hinted at potential shifts and the intensifying competition in the extended stay market, creating a compelling storyline within the sector. It revealed that some companies are willing to make bullish strategic moves to position themselves for growth. 
    

What’s Richard excited about for 2024?  

• A further increase in demand. The year ahead looks promising, with an optimistic outlook fueled by recovering travel demand, stable employment rates, and strategic industry adaptations. Hospitality will certainly face some challenges as geopolitical tensions persist, but overall, Richard expects to see a positive trajectory in occupancy rates and revenue.
  
  
• Personalized recommendations. Although ChatGPT's travel recommendations have become integral for holiday planning, they still lack nuance. In 2024, Richard expects to see tailored suggestions based on individual preferences and historical data. There's immense potential in more precise segmentation – per brand or customer segment – to deliver insightful, context-aware advice.

Adam Britton, Group Product Manager, Mews

What are Adam's learnings from 2023?

• • Revenge travel. There's been a surge in spontaneous and often extravagant travel experiences. This trend reflects a pent-up desire for exploration and leisure, resulting in a higher frequency and intensity of travel activities.
    
    
  • AirPlay in hotels. Apple's foray into the hospitality sector was a groundbreaking move. Convenience, time saving, and friction-free service were the main drivers for enabling guests to seamlessly share content from their iPhone or iPad to their guest room TV.   
    
    
  • Staffing shortages. Disillusioned by pandemic-related challenges, many hospitality professionals sought employment elsewhere and never returned. Unfortunately, the scarcity of talent has affected the quality of service. The Product team at Mews is solving this challenge by pioneering user disengagement, which lets hoteliers do more with less.  
    

What's Adam excited about for 2024?

• Guest-facing technology. From booking to departure, it's all about offering streamlined and personalized interactions. AI-driven solutions – seamless check-ins, digital concierge services, and customized recommendations – will set a new standard for modern, tech-savvy travelers.  
  
  
• An enhanced booking experience. Adam's team is working on seamless, context-aware interactions throughout the reservation process. They aim to create a personalized and efficient booking journey, including suggestions based on guest preferences and exclusive deal offers. Higher convenience equals higher guest satisfaction.

Joanne Dreyfus, Leader of Transportation, Hospitality and Services, Deloitte 

What are Joanne's learnings from 2023?  

• An intent shift. Long stays are influencing how people choose hotels. Since remote work trends and project-based stays drive a large chunk of this demand, guest requests are becoming more specific – flexible workspaces, local experiences, fully-equipped kitchens, and more. Hotels have yet to catch up with offering these kinds of spaces and experiences.  
  
  
• Distressed M&A. Joanne expected more hotels affected by economic challenges to sell assets at discounted rates. For various reasons, strategically acquiring distressed hotel assets to navigate market fluctuations and position them for future growth hasn't taken off in 2023.
  

What's Joanne excited about for 2024?

• Sustainability. Joanne hopes to see more travelers advocating for eco-friendly practices and responsible tourism. Many guests already select hotels based on staff diversity, community engagement and eco-initiatives. Their push for sustainability can also prompt hotels to implement green initiatives, from energy-efficient practices to waste reduction.  
  
  
• Guest personalization. AI-powered guest personalization in hotels could be a game-changer. Hotels have all the tools they need to provide sophisticated customization throughout the guest journey. Tailored recommendations, services, and amenities are the first steps in ensuring guest satisfaction and loyalty.  
  
  
• Paris 2024 Olympics. The influx of athletes, spectators, and officials will create a surge in demand for accommodations, dining, and entertainment. As hotels, restaurants, and local businesses are gearing up to boost revenue, one thing's for sure – the Olympic extravaganza will be the one to remember. 
  

Gregory Naidoo, Chief Evangelist and Development Officer, Mews 

What are Gregory’s learnings from 2023?  

• Hotel security. Data breaches pose severe risks for hotels. Stealing personal details and financial data leads to potential identity theft and fraud. To prevent this, hotels should embrace robust cybersecurity measures to safeguard guest privacy. Otherwise, they risk undermining the trust and reputation of their brand.  
  
  
• The urge to merge. Gregory was surprised to see just a handful of soft-brand hotels merging into larger luxury brands. This strategic move allows soft brands to leverage the reputation and resources of larger entities while maintaining their distinct identity. In 2023, however, there wasn’t much movement in that sector.  
  
  

What’s Gregory excited about for 2024?

• Digital ordering. Guests want the convenience of ordering services, meals, and amenities through mobile apps or in-room tablets. This tech-driven approach streamlines the guest experience while allowing hotels to enhance efficiency and cater to modern travelers. All while diversifying their revenue.  
  
  
• Better loyalty programs. Gregory sees much room for improvement. Personalized rewards and exclusive experiences are nice, but guests want to claim their benefits sooner rather than later. Instant gratification will redefine hotel loyalty programs.
  

Stuart Greif, Executive Vice President, Chief Strategy, Innovation & Operating Officer, Forbes Travel 

What are Stuart’s learnings from 2023?  

• Social commerce. Platforms like Hopper are leveraging social media channels for travel bookings, reviews and recommendations. Centralization allows for a seamless experience where users can explore, plan, and book their travel arrangements directly through social platforms.  
  
  
• Sustainability. Kind travelers, as Stuart calls them, are influencing how hotels approach sustainability, from green practices to energy efficiency. The industry is shifting, too – Amazon is increasingly influencing sustainability practices in hotels by encouraging eco-friendly initiatives and responsible sourcing through its supply chain.  

What’s Stuart excited about for 2024?

• Major lifestyle shift. Facing a housing affordability crisis, younger travelers are redirecting their spending towards travel and experiences. For hoteliers, this is a chance to start offering enriching experiences and cultural exploration alongside a place to stay.  

• Optimized costs. Stuart expects AI to optimize cost structures through streamlined operations and enhanced efficiency. As AI-driven platforms evolve, they pose a disruptive force that could challenge traditional industry giants like Kayak, compelling them to innovate and adapt. 
  
  
• Remarkable hospitality. The gap between hospitality and accommodation is wider than ever. Stuart appreciates how Mews, along with other industry disruptors, unlocks the flexibility of hotels and powers remarkable hospitality. He expects hoteliers to start thinking differently about time, guests and visitors, creating new experiences and offers that drive extra revenue.   
  

Del Ross, Senior Advisor, McKinsey and Company 

What are Del's learnings from 2023?  

• • Hotel brand positioning. Hilton's launch of Spark and IHG Hotels & Resorts' launch of Garner showed a huge shift in hotel brand positioning. Rather than letting go of hotels that are no longer a brand fit, the stakeholders chose to convert them and keep that franchise revenue. 
    
    
  • Corporate travel. North America saw a substantial increase in corporate travel activity. Global sales organizations started actively pursuing medium-sized companies. Stuart sees an unaddressed gold mine in a corporate travel volume that has yet to be sold.   
    
    
  • Shrinking operating margins. Hoteliers must face the reality of the rising costs of labor, energy and financing. The distribution costs have also been rising because of the incredible resurgence of OTAs fuelled by leisure-driven recovery. Finding efficiency and using data to design schedules and track productivity seems to be a promising remedy.
    

What's Del excited about for 2024?  

• The rise of data. Del predicts this would be the first big year where hoteliers use data to guide decisions across the board. To a large extent, another year of exceptional results prevented better data adoption in 2023. He expects a data revolution to take root across nearly every aspect of our industry in the coming years. 
  
  
• Airbnb's credit card. This strategic move would unlock exclusive rewards, discounts, and benefits, creating a more integrated experience for frequent Airbnb users. The co-branded credit card would strengthen customer loyalty and incentivize continued engagement with Airbnb's platform. 
  

Jordan Hollander, Founder, Hotel Tech Report

What are Jordan's learnings from 2023?  

• Guest experience platform. Historically, it's been hard to scale guest experience applications. The past year saw innovative solutions emerge that combined upselling, guest messaging and contactless check-in into a centralized, revenue-driving tool.  
  
  
• HR technology. Jordan sees people as hospitality's most valuable asset – hoteliers must invest in them and bring them in. It's not an administrative task – it's strategic. Jordan expected hotels to respond to talent shortages by getting more creative with branding. However, there's a lot of space for improvement in that area. 
  

What's Jordan excited about for 2024?  

• More consolidation. Jordan predicts there won't be as many new technology companies. Instead, he thinks that the existing companies with access to data will pull ahead of the pack and that we'll see more consolidation amongst tech companies. Besides making the companies stronger, they'll be able to deliver more value to their customers, which is great news for hotels.   

• Search engine updates. With the rise of AI, our standard ways of finding information online will almost certainly change. Hotels especially need to carefully watch that space because there could be a moment when Google changes customer acquisition strategies. 

The insights don’t have to end here. Touching upon multiple topics explored in this webinar series, our guide, The Best Ways to Reimagine Your Hotel Spaces, is a must-read for any hotelier looking to thrive in 2024.