Trends driven by the Experience Economy and shift in traveller patterns
At the time of writing, there are 96 days left in 2023. It feels like only yesterday when everyone was abuzz over new travel and hospitality trends for the year – social marketing, a rebound in footfall, the Metaverse… now, with a quarter of the year left, brands and key players in the industry are charting maps for the year to come.
As such, leading design firm in hospitality and other related sectors, WATG is shedding light on five noteworthy trends that are set to paint the landscape of Asia Pacific’s hospitality industry in 2024 and beyond. As the world witnesses a resurgence in travel, consumer preferences are evolving, signaling a heightened demand for responsible yet purposeful experiences. This shift in awareness and lifestyle choices is driving changes in how hospitality stakeholders define and deliver on their brand promises.
Guy Cooke, Associate Principal and Studio Director of Advisory Services at WATG Singapore, offers his observations on the five trends poised to shape the hospitality industry in the coming months.
Luxury brand collaborations embrace the ‘Experience’ Economy
According to WATG, the fusion of luxury fashion and lifestyle brands with the hospitality sector is gaining prominence. This trend capitalises on the ‘experience’ economy, aligning these brands with the aspirations and lifestyles of High-Net-Worth Individuals (HNWIs). Examples include the emergence of pop-up beach clubs like Fendi Puente Romano and Dior Bali, exclusive suites within renowned hotels such as the Bentley Suite and Dior Suite at St Regis NYC, and the establishment of entire luxury hotels like Bulgari, Armani, and Baccarat. Collaborations, such as the partnership between Bulgari and the newly opened JW Marriott Jeju Hotel & Resort in Jeju, South Korea, highlight this trend.
Additionally, brands like Louis Vuitton are hosting luxury jewelry exhibitions in unique locations, as seen with the “Deep Time” exhibition held at Rissai Valley, a Ritz-Carlton Reserve in Jiuzhaigou, China.
Private members clubs target the ‘Daycations’ sector
A trend is emerging where hotels are blurring the lines between traditional hospitality and private clubs, catering to the local community’s preferences. These establishments offer a range of amenities designed to create a club-like experience for ‘daycationers.’
WATG points out that the subscription-based model of these clubs provides hotels with diversified and stable revenue streams compared to transient trade. Hotel brands like Rosewood, Six Senses, and Aman are opening private clubs within urban hotels to attract local residents. Simultaneously, traditional private members clubs are innovating to target specific market segments, incorporating guestroom components or ‘retreat’ concepts away from urban settings.
Branded ecosystems expand guest experiences
Hotel operators are extending their services and brands beyond traditional hotels, venturing into adjacent lifestyle concepts, explains WATG’s Cooke. This expansion includes branding and operating various complementary components within urban mixed-use developments, such as residences, wellness hubs, serviced offices, and private members clubs.
Accor, for instance, has launched Accor One Living, a dedicated service line focusing on the development, operation, and branding of mixed-use spaces. This approach aims to create cohesive experiences under a single brand, catering to various users, including guests, onsite residents, and the local population.
Additionally, hotel operators are entering the non-hotel leisure market by managing standalone vacation rentals, superyachts, and private jets.
Scaled-up accommodation becomes a permanent fixture
According to Cooke, the post-pandemic trend of multi-generational and blended travel is influencing the demand for larger accommodation options within resort settings. Hotels are increasingly considering this market segment, with larger villas becoming a more significant portion of their inventory.
These villas are being enhanced with family-friendly amenities and flexible designs to cater to diverse travel groups. This trend aligns with the growth of branded residences, creating a mutually beneficial scenario in terms of cash flow and end-user demand.
Innovative amenities redefine expectations
As the experience economy matures, the hospitality sector is engaged in an “amenities arms race” to stand out. Developers are investing in imaginative concepts that capture the imagination and put destinations on the map. Leveraging the unique context of each location, including natural assets and local cultural themes, is central to creating one-of-a-kind amenities that meet growing expectations for authenticity. Collaborations with third-party specialists, brands, and celebrity-endorsed concepts are adding new dimensions and visibility to destination offerings. From kids’ clubs and sports facilities to wellness programs, cultural experiences, and dining options, each new resort requires innovative thinking to curate exceptional guest experiences.
Cooke commented, “As the hospitality landscape evolves in Asia Pacific, we must adapt to meet the changing needs of our clients, their guests, and the environment. Innovation is crucial to responding to market demands, enhancing guest experiences, and optimising returns for our clients. These trends not only guide our clients toward a more resilient business model but also shape our industry’s future, ensuring continued growth in 2023 and beyond.”
