1. RISE OF NEW-AGE WELLNESS RESORTS
Experiential and immersive travel experiences such as yoga, workouts, biking, nature trails, and trekking retreats, with gastronomic delicacies from very elaborately curated health food menu options, meditation with global fitness and wellness gurus along with local community involvement are going to be a newer area for resort development, very different from the current label of wellness resorts.
2. BLEISURE TRAVEL WILL BECOME EVEN MORE POPULAR
Bleisure travel, also known as blended travel, is becoming popular in India. As a result, it is critical that the hotel sector, particularly traditional business hotels, recognize the opportunity and create special packages and offerings by incorporating more leisure elements into the experience to attract corporate guests looking to extend their trip. Providing customized experiences to meet the evolving needs of the business traveler will give them reasons to stay longer, helping the hotel sector to generate more revenue and guest loyalty.
3. PERSONALIZATION WILL INCREASE
In response to shifting guest expectations, particularly in the upper upscale and luxury segments, hotel companies will move away from standardized hotel offerings. Additionally, the adoption of smart technology will enable hotels to anticipate and personalize guest experiences based on the combined data from their prior visits. As a result, personalization will increase in all areas of the guest experience, from marketing promotions to service offering to in-room experiences, giving guests memorable experiences and helping hoteliers differentiate themselves from the competition.
4. GROWTH OF MEDICAL TOURISM
The relaxation of international travel restrictions and the falling rupee is expected to increase medical tourism in India. As per the Invest India website, the country aims to become the world’s top medical tourism destination, tripling its revenue to US$13 billion in four years. During the pandemic, hotels and healthcare facilities, the two key stakeholders in this growing segment, successfully collaborated to provide quarantine services. The two sectors should now build on this success to provide medical travellers with a seamless medical tourism experience.
5. REIMAGINING F&B BY PARTNERING WITH BRANDED RESTAURANTS
Hoteliers should reimagine F&B by leasing spaces to standalone marquee restaurant brands on a revenue-share model, which can be beneficial for both parties. Restaurant operators can benefit from the hotel’s captive clientele, location benefits, and brand image, while hotels get an opportunity to elevate the customer experience by becoming a ‘destination’ for both hotel guests and locals, resulting in higher F&B revenues and profitability.
6. LEISURE PROPERTY DEVELOPMENT WILL GROW IN INDIA
Most of the hotel development in India in the last decade was focused on the key business destinations as a significant proportion of hotel demand stemmed from corporate or business travelers. Moreover, the lack of infrastructure and seasonal nature of leisure travel made this segment less lucrative for hoteliers. However, this mindset is witnessing a shift, and several hotel chains are increasing their leisure hotel development pipeline to tap into the growing demand. Moreover, leisure travelers usually stay longer and utilize more services at the hotel compared to business travelers and hotels in leisure destinations are also likely to have higher average rates than business hotels, making the investment more attractive.
7. GLOBAL HOTEL CHAINS WILL EXPAND THEIR BRAND PORTFOLIO IN INDIA
Bullish about the growth prospects of the Indian economy and the hotel sector, international hotel chains are expected to introduce newer brands from their global brand portfolio in India, to strengthen and expand their distribution and presence in the country. Marriott, for instance recently introduced its lifestyle hotel brand Moxy in India, while IHG unveiled its conversion-friendly brand voco. Other global hotel chains are also expected to follow suit as growth slows in developed countries and as a rapidly developing country, Tier 2, 3 & 4 cities open up in India.
8. NET-ZERO HOTELS WILL BE THE NEXT STEP IN SUSTAINABILITY
Despite increased efforts, the Indian hotel industry’s sustainability initiatives are still limited to hotel operations. Simply removing single-use plastics and reducing housekeeping is no longer sufficient to attract the growing number of environmentally conscious tourists. Hotels are often criticized for their conspicuous consumption, so a concerted effort to reduce consumption and waste across the board is needed, which will also help change public perception of the industry. So, the industry should now consider incorporating green technologies and resources into construction so that hotels have net-zero energy consumption from the start of their life cycle. Net-zero hotels can help to make travel more environmentally friendly by allowing guests to enjoy luxuries without feeling guilty.
9. Finally, hotels will also consider employing gig workers and multi-skilling hotel employees to address the staffing issues in the sector, which have increased post the pandemic. Employing gig workers can help manage staffing needs during busy and lean periods, optimize staff-to-room ratios, and reduce hiring and training costs. Meanwhile, multi-skilling will allow employers to optimize labor costs, improve efficiency, and increase operational flexibility, while also increasing employee loyalty and motivation, which can help companies retain their human capital in today’s fiercely competitive environment.
