EHL Hospitality Business School announced the release of a study conducted jointly by Dr Jean-Philippe Weisskopf and Dr Philippe Masset, revealing the trends shaping the hospitality industry in 2024.
Here are a few key takeaways from the study:
- Over the past two years, the industry’s biggest challenge has not been attracting customers but rather finding and retaining staff.
- Hyper-personalisation in hospitality is key which means relying on technology-based micro-segmentation to tailor each guest interaction to real-time needs and behaviours.
- Post-Covid, ghost kitchens have become an increasingly popular trend in the restaurant industry with statistics showing that they are projected to be a $157 billion market by 2030.
- A final significant trend in the food sector is off-premise dining and digitalisation.
- In the age of social media, bars need to stand out by offering unique drinks paired with a special, Instagrammable atmosphere to create an immersive experience for their customers.
- After a period of harvesting low-hanging fruit, hospitality groups are increasingly looking for more innovative and meaningful ways to implement, measure and communicate their sustainability practices. In the F&B industry, local sourcing has become standard in many outlets.
- The use of influencers has gained traction in the industry. On average, businesses generate $6.50 in revenue for each $1 invested in influencer marketing.
“This study reflects the hospitality sector’s dynamic evolution and its role in our increasingly digital society” says Dr. Weisskopf. “It’s about balancing tech innovation with the undiminished human need for meaningful connection and authentic experiences, and how this will translate in this year’s top developments”.
“In today’s global hospitality landscape, it is difficult to confine ourselves to an annual update. Certainly, several general trends have been in place for years and continue to evolve, but by and large, this once cozy industry is constantly innovating and reinventing itself” adds Dr. Masset.
The research identified 10 pivotal vectors of change, out of which leading trends will emerge:
Workforce empowerment: Transforming challenges into opportunities
In the face of a staffing conundrum, hotels are rewriting the narrative by empowering their workforce. The study outlines that free accommodations, increased wages, and tailored training programs are not just perks; they are building blocks for a resilient, high-quality workforce. The ripple effect? A positive impact on guest experiences, loyalty, and the allure that draws new talent into the industry.
Artificial Intelligence and technology: Choosing the best tech to revolutionize hospitality
With the rise of ChatGPT and generative AI, the hospitality industry accelerates into an AI-driven era. The study says that contactless services enhance the guest experience, from mobile check-ins to room automation. Behind the scenes, cloud-based solutions and robotic systems streamline operations, offering a glimpse into the future where technology and human touch harmonize seamlessly.
Culinary experiences: Putting experiences, authenticity and the senses first
According to EHL’s research, dining goes beyond sustenance; it’s an immersive journey. Hotels now offer a diverse range of culinary experiences, from multi-sensory environments to interactive cooking classes. Children’s menus evolve, mirroring global trends towards healthier, globally-inspired options. Off-premise dining and ghost kitchens embrace the future, catering to a mix of in-house diners and digital connoisseurs.
Bars and drinks redefined: Adding creativity and design to the drinks’ menu
In 2024, bars transform into immersive ‘destinations’, offering unique drinks in Instagrammable settings. The study outlines that specialised menus featuring local craft beers, narrative-rich wines, and inventive mocktails align with evolving consumer preferences. Mixology classes are becoming a norm, with faux booze transcending ‘dry January’ into a year-round celebration of unique ingredients, techniques, and presentation styles.
Fine dining: In need of reinvention but full of potential
EHL’s paper suggests that the pandemic prompted a shift in fine dining dynamics, demanding adaptability and innovation. Restaurants now grapple with short-notice reservations and the rise of no-shows, pushing for credit card guarantees. The Igniv chain exemplifies success through contemporary concepts and consumer-oriented management. A strategic approach to reinvention has become not just a hallmark, but a necessity in terms of survival in today’s culinary landscape.
Fine wine prices: Navigating the fluctuating vineyard market
The study points out an interesting fact – fine wine prices go on a ‘rollercoaster journey’, impacted by economic conditions and investor sentiment. Burgundy wines, once soaring in value, now witness a reversal, questioning the sustainability of inflated prices. Restaurants are also grappling with cellar management, deciding whether fine wines still hold a place on their menus in the midst of economic uncertainty.
Rising interest rates: The impact on hotel property values and transactions
As interest rates rise and consumers exhaust COVID-19 savings, the era of continuously climbing hotel property values is coming to a close. Refinancing transactions become challenging, and are potentially leading to forced sales at discounted prices. EHL emphasises that sustainability is also becoming a key player, influencing the market’s selective nature and the fate of hotels not meeting modern environmental standards.
Green hospitality: Beyond sustainability to net positivity
Harvesting low-hanging fruit has evolved into a quest for innovative sustainability practices. Local sourcing is expanding with an emphasis on traceability, and EHL’s study suggests that guests have become active participants in sustainable practices through education. For context, The Beyond Now Network is an example of a 360-degree sustainability strategy, propelling hospitality businesses toward net positivity and regenerative tourism.
Data-driven decision-making: Data analytics for optimum personalisation
It’s no secret that data is a highly precious and sought-after asset, driving successful hospitality businesses. EHL’s study outlines that early adopters are leveraging data analytics for personalised guest experiences and targeted marketing. Booking.com and Marriott International, for instance, have showcased the power of data-driven business models, adapting offers, displays, and loyalty programs in real-time for a competitive edge.
The power of social media: Crafting authentic narratives
Social media has matured into a storytelling powerhouse. Short video content on TikTok and Instagram captivates customers, offering a glimpse behind the scenes in their favourite food spots and preferred accommodations. According to the study, influencers play a pivotal role in the hospitality ecosystem, generating revenue and aligning with hotel values. Marketers are delving into metrics, balancing organic and paid content, ensuring professionalism, authenticity, and a clear strategy that complements traditional marketing efforts.
As we move further into 2024, the study makes it quite evident that this industry not only adapts to change but is innovating its own identity. From workforce empowerment to data-driven decisions, each trend propels the hospitality sector into a future where personalised experiences, innovation, and sustainability take center stage.
For a comprehensive look at these trends, read the full study here.
