Hospitality industry revenue is expected to reach $550 billion this year (2016), while the industries revenue was worth over $450 billion in 2011. There are several hotel marketing trends that are set to take off and greatly impact the industry.
These range from the rise of the millennial traveler, to the interest in using mobile devices and apps to create more personalized services for guests.
In 2016, travelers will see hotel rates increase up to 8 percent and the millennial generation (those between 20-35 years age) will replace baby boomers as dominant travelers by the year 2017. As mentioned, mobile devices and apps will enable more personalized services for guests. More than half of travelers agree that their smart phones are important, even critical.
More than 1 in 3 travelers admit to using smartphones more when they travel than at home. Hotels with mobile apps like check-in and e-menu are a determining factor when travelers choose where they stay.
Software, mainly cloud computing, will be the new normal in 2016 and more than half of hotel bookings will take place online with hotels increasingly turning to new channels to grow room occupancy, hotels for example have been taking up social media as a means to engage with customers.
Almost 70 million Americans traveled abroad in 2014, up 10 percent from 2013. The top three destinations have not changed from the years past – Mexico, Canada, and Europe still lead the way as the first choices.
Channel managers efficiently manage the online distribution channels that their particularly property sells through. They allow smaller chains to give booking websites their most up to date rates, using a pool-type inventory module.
They give smaller chains two main benefits: the ability to sell as many rooms as possible through as many channels without overbooking. Also, there is reduced administrative costs by managing inventory and rooms rates from one central location. The ideal situation is when a hotel’s channel management program integrates with the property management system. It should offer live inventory (available rooms) or be able to close out any or all channels when occupancy shows they are needed.