Many of us grew up on the precipice of a new digital era, an inflection point after which innovations seemed to multiply to uncover possibilities that our younger selves might have dismissed as fit for a more distant future – if we imagined them at all.
NB: This is an article from Flyr (formerly Pace Revenue), one of our Expert Partners
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In 2024, innovation seems to be waiting around every corner, and no industry is exempt from its influence and subsequent transformation.
The hospitality industry is now in an undeniably important state of flux: a widespread upheaval of legacy processes and platforms to make room for big tech and big ideas. Although hotel service will always have traditional roots and values, the quality of service – and how it is delivered – is ripe for technological enhancement.
When considering the entirety of the guest experience, from booking to on-property and post-stay, hotel operators and executives now have an incredible opportunity to exceed guest expectations and maximize revenue potential with the help of new-age tools and processes.
With this in mind, it’s more important than ever to become familiar with – and remain ahead of – the biggest booking trends and statistics expected to dominate the hospitality industry in 2024 and beyond.
- Direct bookings are expected to represent 50% of all online bookings by 2024. Hotels have long been (rightfully) wary of overreliance on bookings generated from online travel agencies (OTAs). After all, OTA bookings come at a cost, and hotels benefit significantly from cutting out the middleman and incentivizing guests to book directly. With an expected increase in direct bookings in 2024, hotels increasingly seek more direct communication and personalized experiences with guests. As such, hotels should maximize their direct booking channels with platforms that leverage the power of data-driven personalization.
- Revenue from hotel ancillary services is projected to grow by 10% annually until 2024. A growing interest in ancillary hospitality services presents an exciting opportunity for hotel executives to enhance their revenue streams by offering additional spa treatments, tours, and dining experiences. By curating unique and personalized ancillary services, hotels can increase profitability while providing a comprehensive and memorable guest experience.
- By 2024, 70% of guests are expected to prefer personalized offers. Guests today relish hyper-personalized experiences and tailored offers throughout their stay. With this in mind, hotel executives should leverage guest data to customize offerings and experiences to enhance guest satisfaction and drive loyalty.
- Artificial Intelligence (AI) in the hotel industry is projected to grow by 40% by 2024. Artificial Intelligence (AI) is rapidly transforming the hospitality industry—and it shows no signs of slowing down. Fortunately, using AI-driven platforms benefits both the guest and the hotel. AI-driven solutions can help streamline operations, personalize guest experiences, and improve customer service. Similarly, AI chatbots, virtual concierges, and predictive analytics can provide valuable insights and enhance guest satisfaction.
- Hotels that use AI for customer service see a 25% increase in direct bookings. AI is expected to transform the hospitality industry in many ways, but customer service stands to benefit the most from the application of AI. Using new technology, hotels can better maximize the efforts and talents of their staff while delegating specific tasks (such as customer service issues) to AI-powered tools that offer quick, effective service to guests.
- By 2024, 65% of hotel guests are expected to prefer hotels with smart room features. Many of us are now accustomed to using smart devices within our homes, so it should come as no surprise that many travelers now prefer to stay in hotel rooms that offer the smart room features they’ve come to love.
- Predictive analytics in the hotel industry is expected to grow by 16.5% by 2024. This emerging trend underscores a strategic shift towards data-driven decision-making across the hospitality industry. Hotels that recognize the value of harnessing predictive insights will benefit from enhanced operational efficiency, optimized pricing strategies, and an elevated guest experience.
- By 2024, 75% of hotels are expected to use AI for personalized pricing. The positive impact of guest personalization is already well understood – so why not use AI tools to personalize pricing? This trend is expected to revolutionize pricing strategies by empowering hotels to tailor rates based on individual guest preferences, historical behaviors, and real-time market dynamics.
- Hotels are expected to increase their investment in technology by 15% by 2024. By embracing tech-driven operational advancements, hotels streamline their operations, eliminate inefficiencies, empower their staff, and elevate the overall guest experience. In this way, a continued investment in technology becomes a key competitive advantage in the evolving hospitality landscape.
- By 2024, 60% of hotel bookings are expected to be made by millennials and Gen Z. Millennials and Gen Z travelers maintain a notably enthusiastic mindset towards travel. With their appetite for unique experiences and significant buying power, hotels can expect an influx of these travelers in 2024.
We may not be able to predict the future and all the inevitable changes that lie ahead – but by adapting and responding, hotels can differentiate themselves in a highly competitive market. Part of capitalizing on these emerging trends effectively requires a more advanced, modern approach to revenue management, which is where FLYR’s Revenue Strategy Platform comes into play.
FLYR’s AI-based solution uses machine learning algorithms informed by past and present data and market trends. This results in round-the-clock revenue optimization, keeping an eye on what’s happening in the market to generate the most competitive and confident positioning. By embracing FLYR’s next-level decision intelligence and business insights over outdated RMS methods, hotels can truly unlock the potential of data. This provides dynamic pricing and data-driven business decisions that drive sustainable growth and always offer the most attractive rates that keep guests coming back.
