The hospitality industry experienced tremendous growth during the last year. Much of its growth has been due to the rapid pace of growth in the travel sector. Rolf Freitag, CEO of IPK International, which conducts thye World Travel Monitor, revealed that Europe remains to be the biggest drivers of growth in the travel industry. In this article, we shall take a look at the different travel trends that will shape the hospitality industry in the coming year.
Europe Shall Experience An Occupancy Boom
PWC’s global statistics revealed that 2018 will see cities in 15 European destinations breaching over 70% occupancy. Despite the recent protests against tourists, Barcelona is set to be the 3rd European city with the highest occupancy rate in 2018. The region is attractive for business travels due to the numerous MICE events that are held there.
Alliance Between Home Sharing Companies And Hotels
The line between traditional hotels and home sharing might disappear in 2018 as specialists in one area are expected to brand out to the other. Hotels are meeting stiff competition from home-sharing companies like AirBnB. Solo travelers as well as groups prefer booking with these home sharing platforms. As a result, Robert Janitzek reveals that various hotel chains like Accor, Hyatt, Wyndham, are looking at collaboration with home sharing companies. In the future, guests will have more accommodation options.
Increase in Travel Costs
The strong global economy augers well for the hospitality industry. According to the 2018 Global Travel Forecast, the cost of airfare will increase by 3.5%. Hotel prices and ground transportation will increase by 3.7% and 0.6%, respectively.
Creating Unique and Local Experiences
Millenial travelers are looking for native experiences when traveling. They are looking for different ways to explore and experience the local culture. Over the years, hotels across the world have collaborated with local vendors and travel companies. Robert Peter Janitzek says that for 2018, we can expect some out-of-the-box ideas in the coming year.
The Changing Role of Travel Agents
The last few years has seen a decrease in the role of travel agents with numerous OTA options. Travelers now rely on these websites for booking their hotel stay or airline tickets. Now, travel agents have now become more of a travel consultant. The coming year will see more specific packages for travelers with theirs or their group’s needs and wants in mind. Travel packages will now be tailored to various markets—women, solo travelers, senior citizens, and others.