Top 5 hotel trends for 2016

It is good news for hotel industry in 2016. The coming year promises to be the most profitable year hotel industry has ever seen due to strong rate growth, minimal supply impact, low interest rates and oil prices and a somewhat minimal impact from disruptors/shared-economy. At Gruppo La Meridiana we know how important it is for you to maximize your business opportunities, so here are the key trends for hotel industry in 2016.

Increased importance of analytics

With enhanced analytical tools you are able to track pretty much everything. Not only can you see how much attention a certain ad campaign is getting, but you can see the geographic location of the users interacting with it, their age, and a general idea on their income. You can use this information to target your marketing efforts to your specific buyer persona; that way you will soon watch your ROI skyrocket.

Consolidation will intensify in the hotel industry

The economy enters mature stage and we will see more and more hotels consolidate, the trend that has already begun. The impact on guests and hoteliers will only be determined as this wave of consolidations plays out but for the immediate future, bear in mind that bigger is better.

Digital marketing will play bigger and bigger role

Research shows that the average user consumes more than 65 minutes of live video a day and this number is growing fast. Today’s generation looks at live streaming video the same way past generations viewed television. The future of knowledge and culture is in digital, not print. This means hotel industry’s marketing efforts should radically shift towards digital marketing.

Investment in Capex is highly recommended

2016 is the right time for capital investment. Money is still available and cheap which makes it possible to undertake major expenditures including renovations. This may not only be required by the brand but will also revitalize your hotel now and will take it through the next downturn. It is also worthwhile to remember that the sharing economy could have a material impact on lodging demand by 2017, which makes 2016 a perfect year to invest in Capex.

Keep youthful customers pleased

Millennials and those with millennial mindset are looking for hi-tech, hi-touch experience. They like a personalized, gourmet experience for a reasonable price and this has produced all new lobby designs in the hotel sector. Target those customers, give them what they want, which is personalized experiences that create value. Beware that this group is quick to criticize via social media so you will need to deliver a “wow” customer service to them.

These are just 5 of many trends and recommendations for 2016. If you are interested in what you can do to make your business grow and optimize your operations given the current economic outlook, contact Gruppo La Meridiana. We are happy to serve you with the latest trends, actionable insights and opportunities.