One of the worst effected industries to the COVID-19 Pandemic has been the hospitality trade. Once the threat of the virus began to diminish and things slowly started to achieve a semblance of normalcy, questions from both investors as well as those involved in the industry began to wonder if a recovery was possible and, if so, how long would it take for hotels to reach pre-pandemic levels of occupancy.

Although the present analysis is based on a small window of time, many say that the hospitality trade is expected to make a fairly robust return. In just a short period of time there is a trend for recovery.
• Brands are still king of the hill in the U.S.
• Hotel occupancy will be strong during the summer
• Hotel real estate investment above pre-COVID levels, but not doing as well as other sectors.
• Leisure travel destinations are doing well
• Plans for new hotel construction remains strong

Developing Trends In The Hospitality Sector In The Wake Of COVID

The COVID-19 Pandemic has influenced the way business is and will be done in all facets of the economy including the hospitality sector. The pandemic has caused new trends for the hospitality sector that makes it easier to make reservations, created new ways to promote hotels, expanded the target market through a sharing economy, provide an extended experience for travelers through the use of virtual reality and other technologies, and more.

Online Communities

The development of online communities has changed the way the hospitality sector is reaching out and interacting with present and potential customers. Companies have developed new websites, social media networks are onboard and travel websites including TripAdvisor are offering new methods to book rooms and promote the trade.

Sharing Economy

The sharing economy has become a major factor in hospitality. For those who haven’t heard of the concept, the sharing economy involves short-term person-to-person transactions that permit the sharing of assets and services. The development of such businesses as Airbnb has opened up the hospitality business to the rental of private cabins, beach houses and homes expanding the experience of leisure travel vacations.

Studies have shown that Airbnb has been quite successful even during the worst of the COVID pandemic. A report from the company indicates that from June 5 through 7, 2020, three months after the pandemic exploded in the United States, gross bookings for the company increased in year-over-year terms. The report also showed that there has been an increase in booking for cottages and cabins. This suggests that vacation travelers are seeking out more secluded accommodations as a result of the pandemic.

Voice Search

Voice search that utilize artificial intelligence is making it easier for travelers to discover, learn about, and book trips to new destinations. It is said that hospitality companies that upgrade their websites with AI technology will increase their conversions and connect to qualified leads.

Sustainability

A larger segment of the hospitality sector is exploring green acts to lessen negative environmental impact. This is good for the planet and for business because it attracts like-minded travelers to specific hotels. In addition, it appears that consumers are more willing to spend more for products and services from companies that follow a sustainability policy.

Virtual Reality

One of the biggest emerging technologies in the U.S. today, virtual reality, also known at VR, allows hotels to expand their customer experiences, offer hotel tours, and making booking so much easier.

Although some people are not aware of this technology, more than 42.9 million people in the United States has used it.

Mobility Technology

Hotels and resorts are now leveraging mobile platforms for their most loyal guests, for customer branding, advertising, cross selling and marketing. Mobile apps are essential for a hotel’s chance to increase booking and promote its services. In 2023, the number of mobile Internet users is expected to be more than 295 million. Mobile devices now account for more than 48 percent of worldwide web page views. As many as 81 percent of Americans now own smartphones, an increase of 35 percent since 2011.

Personalized Guest Experience

The Internet is swimming with personal data on travelers that are giving hotels the opportunity to personalize their services to ensure the best vacation experience. Now hotels can anticipate customer needs, send them offers and customize their stay.

Niche Markets

The overabundance of customer data has encouraged hotels to explore the possibility of expanding into niche markets, which attracts a smaller customer base with different desires than the larger market. For example, hotels are appealing to professional and amateur musicians and offering access to music studios with state-of-the-art equipment. This could prove to be important when demand for rooms wane.

Conclusion

The COVID-19 pandemic has opened up all sorts of challenges for the hospitality business. The lack of a steady clientele during the height of the pandemic and the fears and anxieties that now discourage many from traveling due to the extent of the pandemic has caused companies involved in the hospitality sector to push the envelope and explore new ways to turn negatives into positives.