International hospitality is a different type of industry. There has long been no innovation in this area, but the advent of technology based on economic demand has changed dramatically. Airbnb & # 39; the change on stage was indicative of this change, along with the rise of boutique hotels. Soon, the chains of traditional restaurants began experimenting, growing, acquiring and agreeing to innovate strongly.
This brings us to today’s hospitality scenario. Although the industry is still fierce, inextricable and fierce competition, the path to success is now diverse. There is no one that applies to all formulas and hotels no longer have to subscribe to the hard and fast rules. Technology plays the role of a great equalizer, as well as allowing the smallest players to fight for survival.
Throughout the world, the travel, tourism and hospitality sectors remain the key to economic development and employment. In an economy that is becoming a market for affordable transport and a blurring of borders, it is reasonable to assume that travel and tourism remain a major sector for the foreseeable future.
Consider the following statistics:
- In 2016, Travel and Tourism contributed $ 7.6 billion to the global economy and supported 292 million jobs.
- This revenue generation accounts for 10.2% of the world.
- Of all jobs, 10 have been assigned to the Travel and Tourism Industry.
- 77%, leisure travel made up for people's spending. By comparison, 23 percent of business and business travel accounted for the remainder.
- Domestic travel (72%) was higher than international travel.
- Total contribution to GDP increased by 3.1% in 2016.
- By 2027, this sector will account for 11.4% of global GDP and contribute more than 380 million jobs worldwide. Of course, this indicates that the sector is outperforming the world economy.
There is no doubt that companies like Airbnb are competitive with hotels in certain segments of the market. This assumes that part of the business can be an add-on, as travelers make longer (and even longer) trips than they have to. However, it is important to note that private accommodation has changed consumer expectations on a basic level, depending on what a hotel is and where it is located.
The competition of the hospitality industry is due to two aspects:
- Technological adaptation
- Changing the customer profile
Adaptation of technology
As I said before, technology has taken advantage of the playing field and has spurred many aspects of the industry, including branding, communication, and outreach. In particular, there are three specific trends
the hospitality industry will be reshaped in the coming years. Look at each one individually.
A first mobile approach
In new markets around the world, one million people are expected to connect worldwide. Most of them will be customers to get their cell phones on their bikes for a living. Hospitality and travel companies have no other choice but to invest in engagement and retention strategies for mobile and mobile first guests.
In any case, the customer is always looking for & # 39; custom & # 39; Leveraging experience and innovative mobile technology, AirBnb and Uber will be key to brand differentiation and experience. Hotels will need to provide reserve features, lightning fast operations and other touch points to their customers during their mobile phone journey for the convenience of their customers.
Internet access for both non-native and non-native natives is only meant to increase connectivity. With the proliferation of devices and apparel connected to the market, hotels will need to innovate in terms of new ways of interacting and engaging with consumers. Virtual reality visits, high-reality interactions, robotics and AI will boost the market and allow for more travel experiences.
Machine Learning, Big Data and Analytics
Getting into big data allows you to create a vast and personalized experience for each consumer. Many marketing campaigns can be leveraged, and keep track of reasonable numbers to improve growth and optimization.
It also speeds up service processes such as customer service, feedback collection, email automation and customer engagement. In addition, increasing and decreasing the scale of the business can be facilitated by the company's goals.
Changing customer profiles and brand experience
The tourism industry is witnessing a shift in the psychographic and demographic profiles of travelers. With Gen X travelers coming, they will be around for millennia, because expectations and lifestyle are completely standard for industry performance.
Customer experience is now a hallmark of major brands. It will also drive customer loyalty, and referrals and hotels will be needed to synthesize direct, personalized and complex loyalty plans that have never been addressed before.
It also extends to the experiences you create and personalize. Home away from home & # 39; the concept refuses luxury homogenization, which was a tried and tested paradigm of the past.
Now, providing unparalleled service, rooting the local climate in addition to providing the usual hotel space, has become an important factor. The demand for millions of organic food and sustainable options also creates further vulnerabilities in terms of risks and food security, which hotel owners must control.
Travel brands do not pay attention to non-travel brands, providing a higher level of service. Amazon, Starbucks and Uber are the names of thousands of big accounts, and competition will increase as customers expect from all service providers, especially as players in the hospitality industry.
Which brings us to the final point – marketing for this young consumer. Hospitality sales, if any, are different from other consumer goods. Tangible and intangible products must be sold by the player. Success, then, in marketing services & # 39; instead of just buying it for the consumer. It is important to create the right brand image that drives trust, and also conversion.
Consistent brand identity is also becoming more important as customers have fronts to engage with your brand. Your active presence on social media is very important as a portal for customer engagement.
Customers can better analyze and evaluate it, including TripAdvisor and Yelp. Reviews and recommendations from a friend or influencer were suddenly very important to growing sales. In addition to providing a steady flow of revenue, repeat customers can influence themselves.
Leveraging all the tools and technologies that come with digital marketing is not only a matter of time, it is much cheaper and is well suited to customer preferences. Email and content marketing are closely linked to SEO and invisible branding online. Most of these marketing efforts focus on creating, preserving and maintaining the brand identity and image. Keeping customers engaged with new age best marketing practices will not only provide you with invaluable experience, it will take you beyond your competition.
The sector is very profitable at the moment, with tremendous growth and good investment. If you do not play well or you are a new player in the industrial industry, taking all these points into consideration will give you a significant competitive advantage.