As the hospitality industry evolves, several key trends continue to reshape how hotels operate and compete. While originally written in 2017, many of these trends have become foundational to modern hotel management.
1. Technology Will Continue to Be the Big Thing
54% of hotels acknowledged a desire to increase spending on technology, especially in payment and data security, guest room tech, bandwidth, and mobile engagement. Cloud technology adoption for real-time distribution and minimising manual errors has accelerated dramatically.
Hotels are leveraging game-changing technologies — IoT, virtual reality, smart control apps, and interactive displays — to take the guest experience to the next level.
2. Revenue Intelligence Will Become More Important
Hotels have limited inventory and usually struggle with higher room utilisation and pushing average room rates. The use of big data, analytics, and intelligence products to predict customer behaviour, provide personalised experiences, and improve yield management has grown significantly.
Hotels are implementing tools that help accurately estimate occupancy and attract optimal pricing for every room, accounting for low and peak periods, weather conditions, and local events.
3. Mergers and Acquisitions Gain Momentum
Consolidation in the hospitality sector has continued — from major international chain acquisitions to OTA mergers. International chains continue to expand in India, and domestic brands are adding new properties, setting the pace for more deals.
4. Cashless Payments Continue to Rise
Digital payment adoption has accelerated across the hospitality sector. Hotels that offer multiple cashless payment options attract more customers, including international tourists who benefit from not dealing with currency exchange hassles.
5. Direct Online Booking Competition Heats Up
The tug of war between hotels and OTAs to earn a bigger share of online bookings has intensified. While OTAs offer convenience, smaller and independent hotels lose 20–30% of revenues via commissions. Hotels are increasingly promoting direct bookings through loyalty programmes, special campaigns, and better booking engines.
Hotels have the best knowledge of their property, food, and local culture compared to OTAs — highlighting these features on their websites and social media is key to winning the direct booking battle.
These trends have only accelerated since they were first identified. Hotels that embraced cloud technology, revenue intelligence, and direct booking strategies early have gained a significant competitive advantage.
