Noesis “Hotel in 2032” Report summarises the global hospitality sector and the current and upcoming trends in the hotel in the next decade.
The effects of the pandemic have altered the way we travel. Travellers are becoming more concerned with their travel choices these days. Following the pandemic, various trends such as workcation, staycation, co-working spaces and so on have emerged. The “Hotel in 2032” report from Noesis Capital Advisors, India’s leading hotel advisory firm, offers information on an overview of the global hospitality sector and the current and upcoming trends in the hotel in the next decade. It also includes some exquisite analyses of the hospitality market from industry leaders.
Based on the “Hotel in 2032” report, between the period of 2022 and 2032 travel and tourism will contribute to the worldwide economy at an average annual rate of 5.8%, which is more than double the 2.7% average annual growth rate of the global economy. It is predicted that by the end of 2022, the contribution of this sector to the overall economy will be increased by 71% in the Asia-Pacific region, thanks to a rise in domestic spending and the return of foreign tourists. The countries that are anticipated to experience a large increase in foreign visitor arrivals include Malaysia, Japan, and Australia. By the end of 2023, the travel and tourism industry in the Asia-Pacific region is anticipated to reach pre-covid levels. However, it is subject to if important source markets like China and Japan continue to impose restrictions on international travel.
The millennial generation and generation Z are driving change in the hospitality business and it is important to understand their expectations. The incredibly tech-savvy and adaptable Generation Z (born between 1997 and 2012) are leading to changes in travel preferences in this digital age. For this generation, four out of five methods for planning a trip are online-based channels; thus, a shift from multichannel marketing to omnichannel marketing will be more effective. As a result, the hospitality sector must adapt to these developments. This generation is the first digital natives; They value experiences over things / material objects, giving rise to trends such as staycations and workcations.
The report goes into detail about the foregoing trends, staycations (stay-at-home vacations that don’t involve much travelling) are estimated to be 15% more cost-effective than traditional vacations involving travel. According to NOESIS survey, 84% of hospitality leaders foresee staycations as a recurring trend in the coming decade. People are drawn to such trends because staycation offers convenience, less planning, specific activity experience and lesser risk of cancellation. In the report, it is also discussed how work-from-home concepts have now become work-from-anywhere thus giving rise to the trend – Workcation. One survey found that 62% of employees believe working remotely increases their productivity.
Another emerging trend is co-working spaces, where employees from various companies share space, providing a sense of community, creativity and flexibility. This market has a growth rate of 14.8% with an estimated value of $24 billion by 2030 and even hotels are taking advantage of this trend to expand and utilize available space for business travellers by providing services such as strong WIFI infrastructure, food, stationery and workspace during the day. One of the many hotels that have adopted the co-working model is Roseate Hotels and Resorts. The report goes into great detail about many other intriguing developments, including technology, dynamic workforces, subscription-based services etc. Subscription-based services are a result of the current trend of remote working for those looking for an ‘office away from home.’ On the other hand, the F&B market is expanding, and hotels can benefit from subscription-based food/delivery services, particularly for the current generation Z guests who demand highly personalized service. The Indian Hotels Company Limited (Taj Hotels) established “Qmin” their online culinary and food delivery platform just three months into the beginning of the pandemic and today it is present in over 20 cities across multiple platforms. The global online food delivery services market is projected to expand rapidly at a CAGR 9.8% and the current global market valuation is US$ 38.2 billion.
One of the most recent trends following the pandemic is the hospitality industry needing to focus on a dynamic workforce, where the generation z’s expectations are drastically beyond what learning a starting position in a hotel can provide. Lower wages along with unpredictable work hours and weekend night shifts, neither of which are particularly enticing to a new graduate. According to the World Travel and Tourism Council, the industry is anticipated to generate 126 million new employment opportunities between 2022 and 2032, with the Asia-Pacific region expected to generate 76.9 million of those opportunities, as well as 64.8% of all new travel and tourism-related jobs globally. The report makes a few recommendations, including permitting flexible work schedules and remote work, offering rewarding jobs, appealing employee benefits, and expanding career options inside the sector.
The study also highlights the significance of crucial design changes in the modern hotel industry. In the next few years industry will see a “Hypo-allergenic room concept, with enhanced HEPA filter technology”
As rightly said by the CEO of NOESIS Capital advisors, Mr Nandivardhan Jain “In the future, hotels will be integrators with a new function: providing guests with a unique hotel experience tailor-made to their preferences for each visit.” We can be certain that hotels will experience rapid growth in the near future.