10 Hotel Trends to Watch in 2021
The economic downturn of last year gave Hoteliers the opportunity to rethink and reset their
sales and marketing strategies for 2021. My name is Melissa, and in this video we will
take a tour of the top 10 Hotel Trends to watch in 2021.
Number one: Greater Industry Focus on cost-effective Sales & Marketing Strategies
Our ongoing Hotel industry survey shows Hoteliers are strongly focused on optimizing the direct
channel, thus decreasing commission payments to 3rd party distribution channels. When you
consider the direct channel has been the most resilient in 2020, outperforming the likes
of Booking and Expedia, it’s easy to see why this is the case.
Number two: Increased Hotel Direct Bookings to Regain Control of Distribution
The direct channel continues to outperform all other third-party distribution outlets.
In fact, our market trends analysis from our 2020 - Year In Review Edition of the Hotelier
PULSE Report shows the Direct channel generated 74.6% of total nights booked in December 2019.
Furthermore, the majority of our Hotelier PULSE survey respondents expect direct bookings
to increase in importance over the next 12 months.
Number three: Hotels Ramp Up Direct Interaction with Guests
Now, more than ever, guests require increased communication-related at all stages of their
travel experience. Staying connected with past and future guests and building a strong
brand relationship is critical during these uncertain times. Hotels will likely continue
to promote exclusive offers and perks to loyalty members throughout 2021.
Number four: Local Tourism is a Crucial Market Segment for Hotel Recovery
With international travel still largely on hold for the foreseeable future, our ongoing
Hotelier PULSE Report shows increasing numbers of hotels are reshaping offers around the
local market. Furthermore, the majority of Hoteliers expect domestic travel to be the
strongest contributor to their recovery.
Number five: Changing Restrictions Increase Market Agility
Hoteliers must continue to increase agility to respond to ever-changing measures, restrictions,
and markets. Where possible, flexible cancellation policies should continue, as people are still
anxious about how the pandemic will evolve. Hoteliers should also consider new market
demands. An example of this is increased car travel due to flight restrictions. Hotels
should consider offering free parking and other perks that cater to this market.
Number six: Increased Personalization for Customers
Research by Google and Phocuswright reveals that nearly six in 10 travelers believe brands
should deliver personalized services. The same study shows nearly 40% of consumers would
pay extra for receiving more tailored information and experiences. In addition to focusing on
more direct contact with guests, Hoteliers continue to customize communication for allocated
market segments during this time, engaging leads and returning guests.
Number seven: Soft Brands are rising in Popularity
Research by Hotel News Now shows that Soft Brands are expected to rise significantly
in popularity over the next 5 years. In turn, soft brands will continue to see a big interest
spike from small independent hotels to become franchisees, so the numbers of conversions
may skyrocket in 2021 and beyond. A good example of this trend is the Small Portuguese Hotels
soft brand we launched in 2020, where there are now more than 150 members nationwide.
Number eight: Greater focus on Contactless Experiences
Contactless communication gives hotels the power to adhere to both the socially distanced
travel landscape while offering unique individual touches that are synonymous with an unforgettable
hotel stay. For this reason, hotels will continue to focus on delivering contactless experiences.
Number nine: Increased Outdoor and “Hinterland” Travel Experiences
After spending so much time indoors due to lockdowns, more people are craving wide-open
spaces and the great outdoors. Nature is calling, and nature travel continues one of the biggest
2021 travel trends. And with studies showing that direct contact with nature greatly improves
mental health and reduces stress, 2021 will likely be the year where more consumers turn
to nature for peace and healing, exploring “hinterland” destinations.
And finally, number ten: Stable Pricing with Alternative Revenue Streams
History suggests hotels that hold the line on price tend to recover faster from recession.
Take a look at these Research results of over 67,000 hotels over a 7-year period between
2001 (after 9/11) until 2007. The study, conducted by Cornell University and STR shows that regardless
of price segment, hotels that priced above competitors increased RevPAR, while those
who priced below experienced RevPAR shortages.
Hotels should consider diversifying offers and revenue streams (if only to cover maintenance
costs), in order to uphold competitiveness and price integrity in the upturn. Two areas
seeing increased demand are: Gift Vouchers - to be redeemed at a later date and Food & Beverage outlets
- through take out and delivery.
While the future remains uncertain, trends that have emerged during the crisis are likely
to continue well into 2021. Given how the direct channel continues to outperform all
others, we expect that increasing numbers of Hoteliers will continue to enhance focus
on strengthening their direct sales strategie. Hoteliers will also need to ramp up direct,
contactless, and personalized interaction with guests.
Get in touch with our team if you would like to find out more about the latest trends in
the hotel industry, and how we can help you adapt to new market demands.