In modern history, 2020 was the most disturbing year. As the outbreaks changed the ways people live, work, and travel which need many years to recover completely. However, this 2020’s impact will keep the hospitality trends evolving beyond 2021.
Based on the predictions of property owners, managers, and partners, far from being normal, these changes will continue even after 2021. Here are our hospitality industry trends for 2021.
In the second half of 2021, slowly people will start traveling more. As this pandemic hit continues to break our industry, we will get some ray of hope in the upcoming days. Once vaccines get their reach, travelers are expected to explore more like before normally in the mid of 2021.
According to McKinsey & Company, air traveling demands will not work the same until 2024, and hotel demand will return to the pre-COVID-19 situation by 2023 only.
We can’t foresee that every type of travel will return to its normal in a short time. As prediction tells, leisure travel will become normal first, then slowly people may travel in small groups such as people they were quarantined with.
Moreover, People are more likely to wait to set their travel on the road and in the air. We could see that nowadays people encourage local trips which will transfer onto long-distance travel by mid-2021 hopefully.
We can find there is a massive change in consumers booking habits and the mode of payment exchange. If we analyze that, there is uncertainty and poor experience prevailing with booking platforms, consumers don’t prefer making payments upfront.
There is a need for flexibility with payments since travelers need to protect their money. As travel plans keep changing, consumers are less likely to invest their money at risk.
Many online traveling agencies charged consumers for canceling reservations, and it may lead to direct bookings further.
Also, property owners have become more cautious with cash deposits, to spend money before the arrival of guests. As a result, short booking windows will continue to grow beyond 2021 exponentially.
Online travel agencies as well as other booking channels were facing a hard time. The UN World Tourism Organization reports, 58-78% of complete year decline in international tourist arrivals.
This sudden and crucial decline in travel made many of the well-established companies stay and keep analyzing their core competencies.
For example, Airbnb, replaced 25% of their workforce to scale operations that fail to support their host business including, transportation, hotels, and luxury residences directly.
Expedia also has transferred more into its core OTAs, which includes a decrease in marketing expense and personnel.
This is highly beneficial for both consumers and property owners, as marketing costs also decreased along with competition. As there is low cannibalization, these OTAs are centralized on certain other channels that drive consumers to fewer websites.
On December 10, Airbnb transformed into public and we can expect this short-term rental change to continue for the next few years or even more. Being a public company, Airbnb could gain its standards more on their listings which lets other competitors face the consequences.
Moreover, 2020 paved the way for standard operating procedures. As the hotel busy and traditional accommodations need to follow more laws and protocols for its operations.
And, there is a huge concern over hygiene, safety, and standard of services, as this pandemic gave limelight for it.
As Airbnb marks its permanent position in the travel industry, which will ultimately boost new levels of standardization in the market. However, it will drive out the small business owners as there are so many barriers to consider.
Property management companies and multi-unit hosts will be operating just like before with certain more updated standards and procedures. When this standard rises, Airbnb will gain more trust, and consumers will also be benefited.
By analyzing the views of many property owners, hoteliers, and managers, we have found that 2020 impacts will change the perspectives of persons we are staying with.
As many international travelers were more likely to share their rooms and accommodation, also many businesses partnered with their competitors to uplift their business community.
Many hotel industries tried to focus on the key aspects to attract this guest into their property and led businesses to become more creative.
For example, Knik River Lodge in Alaska, which took initiatives to attract non-Alaskan guests, and tied up with a local radio station for creating an Alaskan road trip. Which attracts guests to visit the remote cabin village and it's totally worth their level of creativity.
Its clear that every change is uncertain and we have to be equipped to face the reality always. As we don’t know what’s coming in near future, we have learned to expect unexpected things. However, hospitality trends keep changing rapidly every day, every week, or by every month.
For 2021, these are the popular hospitality trends that we have analyzed so far. When this global pandemic ends, hospitality professionals and travel industries will witness the rise of a new era. At this end of the pandemic hit, travelers will be much more excited and willing to experience new adventures across the globe.