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Hospitality Industry

Top 10 Trends in the Hospitality Industry in 2024

January 10, 2024 •

15 min reading

What are the latest trends in the hospitality industry? As a testament to its resilience, agility and innovative spirit, this article reflects today’s increasingly dynamic hospitality industry in terms of its long, medium and short-term evolution. Discover the industry's adaptability and forward-thinking approach, shaping its trajectory in the face of challenges and opportunities, while staying attuned to the latest hospitality trends.

Best-selling author, Will Guidara, claims “We are entering into a hospitality economy” – suggesting that what underpins the essence of hospitality, (service excellence, human interaction, personalization and the co-creation of memorable experiences), is actually what many sectors of industry are desperately in need of today.

As we charge at break neck speed towards an ever-more digitalized society , the hospitality industry stands out as the successful hybrid that balances the implementation of tech innovation for improved operations whilst preserving the human need for connection, authenticity and real-life discovery.

With statistics predicting a healthy expansion of the sector (e.g., the bleisure and wellness markets on the up, room demand set to reach an all-time high, booking.com as the most valuable tourism brand in the world, and new positions opening up in the sector), we can confirm that the hospitality industry is poised for a significant transformation in 2024.

So what new trends are emerging? Driven by interlinked factors, including technological progress, evolving consumer preferences and a deeper focus on sustainability, hospitality businesses can capitalise on emerging opportunities to enhance guest experiences and position themselves for long-term success.

10 hospitality trends 2024 - Elevate experiences, embrace evolution

Workforce empowerment: Transforming challenges into opportunities
Artificial intelligence and technology: Choosing the best tech to revolutionize hospitality
Culinary experiences: Putting experiences, authenticity and the senses first
Bars and drinks redefined: Adding creativity and design to the drinks' menu
Fine dining: In need of reinvention but full of potential
Fine wine prices: Navigating the fluctuating vineyard market
Rising interest rates: The impact on hotel property values and transactions
Green hospitality: Beyond sustainability to net positivity
Data-driven decision-making: Data-analytics for optimum personalization
The power of social media: Crafting authentic narratives

1. Workforce empowerment: Transforming challenges into opportunities

Over the past two years, the industry's biggest challenge has not been attracting customers but rather finding and retaining staff. To address this issue, many hotel groups have begun to make improvements, and there has never been a better time for newcomers to the industry to negotiate better working conditions and salaries.

Today, many hotels offer their staff free or low-cost accommodation , increased wages and reduced peak-time working hours. They also invest in training programs to motivate staff and allow mobility up the corporate ladder. Empowered employees not only have a positive impact on how guests feel and their decision to become repeat guests, but also help attract other employees to build a cohesive, high-quality workforce.

2. Artificial intelligence and technology: Choosing the best tech to revolutionize hospitality

As Chat GPT celebrates its first birthday, we can only surrender to the fact that, like it or not, we have entered into an AI-accelerated world, and consequently, the pace at which the industry adapts has become a pressing issue. But which forms of AI best harness hospitality stakeholder outcomes?

Contactless services: Effortless technology, impeccable stay

Embracing contactless technologies is about redefining the hospitality experience to cater to modern travelers, not just adapting to the pandemic-driven shift toward touchless interactions. Contactless services simplify the guest journey by reducing wait times and physical contact points. Mobile check-in, digital keys and voice or tablet-controlled room automation allow guests to move seamlessly through the hospitality experience. The citizenM hotel brand has pioneered this minimum-fuss check-in and room experience with a hugely successful UX-friendly app.

Other popular tools such as WhatsApp allow hotel staff to remain in constant contact with customers during their stay, respond immediately to requests and thus provide bespoke services. It also streamlines operations by reducing the need for face-to-face interactions and human error, improving service delivery and lowering the burden on a scarce workforce. In line with contactless services , hospitality companies need to prioritise data privacy and security, putting solid safeguards in place to protect guest information against cyber threats.

Technology-driven innovation: Beyond boundaries

At the heart of technology innovation is the ability for managers and employees to centralize information at all times. Migrating to a fully cloud-based solution is a first but essential step . This enables real-time sharing, better service orientation and personalisation of the guest experience, improving all hotel departments.

Robotic systems (as used in the Henn-na Hotels in Japan) optimise processes and increase efficiency in back-of-house operations such as housekeeping or F&B outlets, reducing staffing requirements and allowing managers to respond to problems in real-time and with accountability.

The use of augmented reality helps with staff onboarding, allowing new employees to be put in real-life situations and trained before even entering a room. Pedagogically speaking, as practiced at EHL in the Virtual Housekeeping class, AR provides a more interactive and complete learning environment. Augmented reality also allows hotels and airlines to market themselves in an ad hoc style - an innovative and sustainable approach. Potential customers can better immerse themselves in the facilities and make more informed decisions.

Hyper-personalization: Tailored moments, lasting loyalty

In a world of commoditised practices, guests are increasingly looking for personalized experiences that cater to individual preferences and aspirations . In the hospitality industry, hyper-personalisation means relying on technology-based micro-segmentation to tailor each guest interaction to real-time needs and behaviours. For example, eliminating 'deadlines' such as check-in/check-out/F&B closing times, knowing whether a customer wants to be accompanied through check-in or do it contactless, personalizing room temperature, lighting and amenities or tailoring F&B options promptly and accurately. At Fauchon l'Hotel in Paris clients suggest the menu and define their portion sizes. From a hotel perspective, this enables better dynamic pricing strategies, higher guest-spent for experiences, or tailored loyalty programmes with commercial partners.

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3. Culinary experiences: Putting experiences, authenticity and the senses first

The desire to experience rather than simply consume means that experiential dining has today evolved in new ways. Hotels are now required to offer a range of dining options to cater to different customer tastes and, when correctly done, can become a culinary destination where the restaurant is at the heart of the experience and not just an extension of the hotel. A good example is the Grand Resort Bad Ragaz in Switzerland which boasts seven restaurants, three bars, a bistro, a café and a sushi takeaway, (plus an array of Michelin stars and GaultMillau points), unsurprisingly making it a mecca for traveling gourmets.

Experiential design can also allow customers to taste food in a multi-sensory environment that stimulates all the senses, not just the taste buds (e.g., Ultraviolet by Paul Pairet in Shanghai ). Some hotels have started to provide experiences even on a smaller and more dynamic scale. E.g., They offer four-hand dinners (an invited chef cooks with the in-house chef), organise kitchen parties (clients eat in the kitchen), or have a front-cooking area. Specialist cooking classes can complement this. The key here is to offer a unique experience like how to make your own gin, cook local food , or bake bread with the experts.

Another trend relates to children . A menu of unimaginative, standard food à la burger and chips is no longer enough; parents want their children to eat healthier, globally-inspired food with high-quality ingredients. Adding world food or plant-based products and packaging them in innovative ways will make for happy families likely to return.

A final significant trend in the food sector is off-premise dining and digitalisation. Although customers have returned to eating in restaurants since the pandemic, a large proportion mix on- and off-premise dining. Restaurants need to cater to this clientele to increase revenues, as takeaways are no longer limited to fast food but also exist for traditional and even fine dining. This means that restaurants need to reorganise their workflows and operations to cater to in-house diners and delivery, alongside designing appropriate, creative, high-quality packaging and optimising delivery or collection methods to be easy and inexpensive without competing with traditional delivery platforms.

This can also include ghost kitchens focusing only on food production for delivery and takeaway. Post-Covid, ghost kitchens have become an increasingly popular trend in the restaurant industry with statistics showing that they are projected to be a $157 billion market by 2030. As of 2021, there are over 100,000 ghost kitchens operating worldwide .

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4. Bars and drinks redefined: Adding creativity and design to the drinks' menu

Today's bars need to stand out by offering unique drinks paired with a special, Instagrammable atmosphere to create an immersive experience for their customers. E.g., Ashley Sutton Design Bars are known across Asia for their ability to transport guests to enchanting, immersive worlds, offering not just a place to drink but an entire experience that stimulates the senses and sparks curiosity.

Gone are the days of a simple wine list and international beer and spirit brands. Bars and restaurants need to specialise and cater to an international clientele with evolving tastes. A dedicated beer menu with local craft beers, wines from specific vintages and terroirs with a narrative, eclectic spirits collections (after whisky and gin, look out for rum in the coming years), and fresh hyper-locally sourced juices are what customers want.

Mixology has been around for some time, but offering mocktails and non-alcoholic food pairings is also becoming essential due to stricter alcohol laws and healthier lifestyles driven by Gen Z and millennials. Faux booze has gone mainstream and now it’s not just a case of ‘dry January’, but mocktails all year long! Cocktail and mocktail innovations should go beyond traditional recipes to include unique ingredients, techniques and presentation styles (e.g., Bar Benfiddich in Tokyo ) and be taught to customers in mixology classes.

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The effect of economic uncertainty on hotels, restaurants and fine wines

5. fine dining: in need of reinvention but full of potential.

The pandemic has unexpectedly affected consumer behaviors: they now organize themselves on short notice, have become increasingly spoilt for choice and no-shows are today the norm . More and more restaurants are responding by asking for a credit card at the time of reservation. But this only treats one of the symptoms without solving the problem. "A full house one day, but only four tables occupied the next" , is an observation that led Antoine Lecefel to shut his restaurant – sadly one of many fine dining establishments to do so.

Inflation and declining purchasing power play a part, but more generally, the fundamental problem lies in the inability of fine-dining restaurants to reinvent themselves. Unlike hotels and other players in the hospitality industry that increasingly compete with them through ambitious and innovative culinary projects, they have to contend with limited financial and human resources. They have neither the capacity to implement and manage a proactive strategy nor the means to invest in cutting-edge, highly experiential concepts. Initiatives such as Eatrenalin , which create a unique experience by combining gastronomy, décor and entertainment, offer a glimpse of this changing industry and the new competition facing traditional players.

Solutions? A strong, contemporary concept plus a business-oriented management that understands consumers, connects with them and is thought through from the outset to generate margins and create synergies and/or economies of scale. The Igniv chain is a shining example of this, driven by an extraordinary chef and based on the principle of “we love to share”, Andreas Caminada has created a unique and fully coherent concept, the success of which is now being rolled out in various locations, all of which have been rewarded with rave reviews from customers and expert guides.

6. Fine wine prices: Navigating the fluctuating vineyard market

Another challenge facing restaurants is cellar and wine list management. Restaurants with limited financial resources may even wonder whether fine wines still have their place on their menu . Indeed, fine wine prices have risen almost exponentially since the Global Financial Crisis of 2008. But here, too, the situation appears to have changed.

A year ago, fine wine prices were at record highs. Demand for rare, artisanal wines from regions with long-standing terroir reputations was at its peak. One could go on about Burgundy, but many other examples are as revealing. For example, the Châteauneuf-du-Pape Réserve cuvée from Rayas, worth between 150 and 200 euros (for young vintages) less than a decade ago, has soared to reach and exceed the 2’000 euro mark. At this point, voices suggested that this was normal; inflation should also positively impact the prices of fine wines. But there is no reason this should be the case: demand drives prices, not production costs. Fine wines attract wealthy people, collectors and investors. For them, the resources that can be invested in wine depend on economic conditions and financial markets. The latter have fallen sharply since the beginning of 2022. Not surprisingly, wine prices have followed the same trend.

The most spectacular move was in Burgundy wines. Prices had become so high that these wines had detached from the rest of the market. Just a year ago, many wines from the 2019 vintage were selling for several thousand euros a bottle. One wondered whether these wines had permanently changed their status and would never be traded at lower prices again. Today, the trend has abruptly reversed, and it appears more like a speculative bubble that has begun to implode. Time will tell. The fine wine market offers an almost perfect setting for this kind of phenomenon: herding behaviour is common, and, in the end, price levels depend not on financial arguments but simply on what people are willing to pay for a bottle.

7. Rising interest rates: The impact on hotel property values and transactions

As we have seen with wine, economic conditions considerably impact on the value of tangible assets. The same applies to real estate . The market proved relatively resilient last year, thanks to the ability of hotels to pass on (sometimes more than proportionally) higher costs to their customers, while maintaining high occupancy rates. The increase in RevPar thus more than offsets the rise in discount rates.

Today, consumers having finished dipping into their COVID-19 savings and interest rates remaining high, the very long upward cycle in hotel property values has ended. What remains as a stabilising factor is the fact that the pipeline of hotel projects is thin. In other words, supply is likely to stagnate over the coming years and should thus not contribute to aggravating the supply-demand imbalance. Nonetheless, we can expect pressure on prices. Refinancing transactions will further exacerbate this, which will take place on far less favourable terms over the next 12-24 months. As is always the case in this type of environment, we can expect forced sales, sometimes at substantial discounts to current valuations.

Another consideration is sustainability . The residential real estate market is becoming highly selective, making it hard to rent and make profitable properties with an unfavourable environmental record. This trend has already begun and will likely intensify, affecting commercial real estate in a major way. In other words, hotels that have not been renovated and adapted to today's standards and expectations will likely suffer more than proportionately.

Other trends that have been, still are, and will continue to shape hospitality

8. green hospitality: beyond sustainability to net positivity.

After a period of harvesting low-hanging fruit, hospitality groups are increasingly looking for more innovative and meaningful ways to implement, measure and communicate their sustainability practices . In the F&B industry, local sourcing has become standard in many outlets. However, it has now started to scale up more by offering better traceability of products (e.g., The Europe Hotel in Ireland has its own farm with livestock, fish, and produce ). In addition, guests are increasingly being educated on sustainable practices, e.g., cooking classes on how to use the entire ingredients and avoid food waste. It is no longer about doing good but rather showing customers how to do good.

Hospitality groups are also increasingly adopting sustainable building techniques and are generally trying to adopt a 360-degree strategy that allows them to be sustainable from the first brick up to the operation (e.g., the Beyond Now Network where industry experts have joined forces to transform hospitality businesses into environmentally friendly, efficient and profitable enterprises). Some are going even further, not content with being net zero but aiming to become net positive, exemplified by ‘regenerative tourism’ practices .

9. Data-driven decision-making: Data-analytics for optimum personalization

"Information is the oil of the 21st century, and analytics is the combustion engine" (Peter Sondergaard, senior vice president and global head of Research at Gartner, Inc.). The current trend is moving away from simply collecting data to engineering and analysing the vast amount of data efficiently into actionable decisions and gaining an edge over competitors.

Today's successful early-adopter hospitality companies have a data-driven business model . For example, through its platform, Booking.com has extensive knowledge of guest and hotel behaviour, which it can use in real-time to adapt its offers and displays and negotiate better deals with hoteliers. The Marriott International hotel chain uses data analytics to personalize guest experiences, with their loyalty program as a major source of data collection.

Data is reshaping hotel marketing, allowing hotels to better monitor guest satisfaction and desires to personalise experiences and better target the customer base . Finally, it enables hotels to increase revenue through more accurate yield and revenue practices by better forecasting demand and thus offering more dynamic pricing strategies.

10. The power of social media: Crafting authentic narratives

This consistent trend is entering a new phase of maturity. First, marketers need to find more innovative ways to capture the attention of customers who are constantly bombarded with messages. With their short video content, the rise of TikTok and Instagram seems promising. It allows the sharing of stories to enhance the storytelling of hospitality outlets (e.g., the customer becomes part of the act through employee or behind-the-scenes videos).

Second, the use of influencers has gained traction in the industry. On average, businesses generate $6.50 in revenue for each $1 invested in influencer marketing . Here, marketers need to find the needle in the haystack with influencers who have enough reach and best fit the hotel's values and story.

Third, with advances in technology and the many options available, marketers need to accurately measure the impact of their social media efforts and finetune the message accordingly. They also need to balance customer and organic content creation and paid or free content. Overall, the cost of social media must be commensurate with the benefits, be professional, authentic and follow a clear strategy in line with traditional marketing efforts.

Master in Hospitality Management

Key takeaway from ehl's hospitality industry trends 2024 - crafting experiences, influencing lives, and paving the way to tomorrow.

In today’s hospitality landscape, it is difficult to confine ourselves to an annual update. Certainly, several general trends have been in place for years and continue to evolve, but by and large, this once cozy industry is constantly innovating and reinventing itself. It is not just adapting to customers. It is creating its own momentum, helping to shape the society and economy of 2024 and beyond.

From computer games to popular films and TV shows, the hospitality industry impacts our daily lives more than we realize. As a sector that thrives on personalized, immersive encounters, it caters not just to our desires for leisure, travel and memorable life experiences but also influences the way we interact, socialize and dream.

Associate Professor of Finance at EHL Hospitality Business School

Associate Professor at EHL Business School

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Marketing Management in the Hotel Industry: A Systematic Literature Review by Using Text Mining

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1. Introduction

Due to the continuous evolution of marketing theory in the hotel industry during the past decade, more and more relevant studies have been conducted. Whether they are related to theoretical innovation or the evolution of marketing tools, the hotel industry has made many changes in terms of marketing. However, there have been many relevant studies on hotel marketing, and the related knowledge system is still fragmented. To understand the knowledge context of hotel marketing, past studies have tried to review the relevant literature from different perspectives. A previous review by Bowen and Sparks [1] focused on hospitality marketing and reviewed eight major journals from 1990 to 1997 and provided future research directions. Oh [2] reviewed the development of hotel and tourism marketing research in eight journals from 2002 to 2003 and provided future research directions. Svensson et al. [3] selected six journals in the field of tourism and hospitality based on journal rankings and reviewed the empirical characteristics from 2000 to 2007. Dev et al. [4] reviewed the research on hospitality marketing published in Cornell Hospitality Quarterly over the past 50 years and used citation analysis to find the most influential articles published in Cornell Hospitality Quarterly every 10 years. They found that during the 2010s, the changes introduced by electronic media continued, the most notable of which was the decline of printed media and the rise of social media. Yoo et al. [5] examined the progress of hotel marketing research in terms of subject areas, industry applications, and methodologies over the past decade, and they identified significant trends in hotel marketing research.

To date, the previous literature in hotel marketing highlights the contribution of future directions [2] and finds the most influential articles in specific journals [4]. However, there are still research gaps to be addressed. First, most studies were from before 2015 and few review articles on hotel marketing have been published during recent years [1,2,3], especially regarding the marketing tools that have undergone tremendous changes. For example, data-oriented marketing [6], digital marketing [7,8], social media marketing [9], online celebrity marketing [10], and sustainable marketing [11,12] have all emerged recently. It is necessary to conduct a comprehensive review of the development trends and marketing tools in hotel marketing in recent years. Second, although past studies of hotel marketing have focused on hospitality journals, the number of journals and articles used was low, which led to undergeneralized findings and misleading outputs [1,2]. This research reviews 27 tourism and hospitality journals included in the Web of Science (WOS) database from 2010 to 2020; these journals contain 4000 articles. Compared with previous related studies, this research is superior to past research in terms of the number of articles included and the year of publication. Furthermore, in the highly competitive environment of the hotel industry, discovering the context and trends in the relevant literature is of great help to researchers and practitioners. Third, bibliometrics were mostly used in the previous review articles. This research uses text mining to conduct literature analysis. Using text mining and topic modeling, this study extracts concepts and dimensions from a large set of articles automatically and systematically. This analysis method is particularly suitable for finding unbiased and content-oriented patterns in complex situations.

Most of the previous studies in this field only described the development of hotel marketing or focused on specific topics, and they failed to develop a comprehensive framework for hotel industry marketing. Furthermore, few review articles on hotel marketing have been published in recent years, especially regarding the marketing tools that have undergone tremendous changes. For example, data-oriented marketing, digital marketing, social marketing, and online celebrity marketing have all emerged recently. Therefore, it is necessary to develop a framework that can be used by hotel practitioners for marketing in the future. In addition, for academics, reviewing the literature can also reveal the current trends in hotel marketing and thus provide directions for future empirical research.

The previous review articles on hotel marketing were mostly published before 2015, and there are less than 200 of them. This research reviews 27 tourism and hospitality journals included in the Web of Science (WOS) database from 2010 to 2020; these journals contain 4000 articles. Compared with previous related studies, this research is superior to the past in terms of the number of articles included and the year of publication. Furthermore, in the highly competitive environment of the hotel industry, discovering the context and trends in the relevant literature is of great help to researchers and practitioners.

In terms of analysis tools, bibliometrics were mostly used in the previous review articles. This research uses text mining to conduct a literature analysis. Using text mining and topic modeling, this study extracts concepts and dimensions from a large set of articles automatically and systematically. This analysis method is particularly suitable for finding unbiased and content-oriented patterns in complex situations [13].

In view of the above information, a broader stance needs to be taken when examining this topic. The purpose of this study is to provide a comprehensive overview of the literature on hotel marketing management. Moreover, this study aims to illustrate the above-mentioned perspective regarding hotel marketing management. Through the research in this literature review, companies can better understand how to achieve organizational goals through hotel marketing management. In addition, researchers can consider the results of this study to identify future research trends in hotel marketing management. Finally, this study utilizes text mining, which allows for higher reliability and validity of the results [14,15].

2. Theoretical Background

Research on a given topic over time through incremental learning is the cornerstone for future research directions [16]. A specific topic usually needs a clear definition to avoid any confusing interpretation. In marketing management, in response to the recent changes in the industrial environment and consumer preferences, marketing strategies and marketing tools have evolved. According to Kolter’s definition, while Marketing 1.0 is based on product features, the core of Marketing 2.0 is customer satisfaction. and Marketing 3.0 is based on product features and customer satisfaction with the addition of people. Due to this added value, companies that successfully achieve Marketing 3.0 usually attract a group of fans. The most important aspect of Marketing 4.0 is how the development of digital innovations has changed marketing. The superstructure that originally controlled part of a firm’s resources in the past has gradually been diluted by more horizontal power. In this world, when the power of a community surpasses that of individuals, customers become stronger, and they are more vocal and unafraid of large companies or brands; additionally, they love to share everything, whether good or bad. Social circles become the main source of influence, and they are far better than external marketing communication methods. Therefore, new marketing models such as word-of-mouth marketing [17,18,19,20], social media marketing [21,22,23,24], online celebrity marketing [25], and experience marketing [26,27,28,29] have emerged.

The sources of big data are many faceted, including mobile transactions, internet traffic (e.g., clickstreams), social media, and user-generated content. These data are recorded on purpose through sensors and transaction records [30]. The purpose of big data analysis is to generate new insights that can meaningfully make up for the shortcomings of traditional statistical data, surveys, and archive data sources, and they are in real time. The use of Google search queries to detect social epidemics is a classic example of the application of big data analytics [31]. As demonstrated by Boyd and Crawford [32], big data analysis redefines the composition of knowledge, leading to changes in epistemology. Thus, rather than being viewed as a uniform method, big data analysis can be regarded as a new research paradigm that uses a variety of analytical tools and makes inferences about reality from large amounts of data. Although big data analysis cannot be used for hypothesis verification, it is possible to explore new models or predict future trends by analyzing data [33]. Although big data is regarded as a new method of knowledge creation, the problems that may produce spurious correlations cannot be ignored. Therefore, scholars calling for the adoption of big data methods must also rely on theory [32].

3. Methodology

Literature review research has three elements: developing methods in a systematic way, providing detailed analysis procedures, and ensuring comprehensiveness by providing a spectrum of relevant research. In this way, other scholars can use the same method to replicate a given study [34].

According to Tranfield et al. [35], we identified published studies on hotel marketing management. There are three steps in this process: planning the review, conducting the review, and reporting and disseminating the results. These steps have been used in many review articles [36,37]. Figure 1 shows the research process.

3.1. Planning the Review

During the planning stage, the subjects in the literature were examined at a high level for meaningful operational definitions and the main concepts related to the hospitality field. This stage of the process was repeated until the results reached convergence.

3.2. Conducting the Review

The tasks related to conducting the review included a literature search to evaluate and extract the most relevant articles for synthesizing the research framework [35]. This stage can be subdivided into the following stages.

3.3. Sample Selection

We began to collect documents from the Web of Science database (WoS) in October 2020. The criteria that we used are as follows: The article needed to have been published in English, the article needed to have gone through a peer review process, and the research domain was limited to tourism and hospitality. A total of 4000 research articles were collected. In the second step, we employed the abstracts of the documents as our screening criteria. We only selected articles that mentioned marketing, hotels, and hospitality in the abstract. There were 417 studies left at this stage, which is the total number of articles that were analyzed through text mining.

3.4. Research Synthesis

This stage integrated the word segmentation results from our examination of the abstracts into possible topics. In this stage, we mainly used the quantitative content analysis method (QCA) for text exploration [38]. The employed research tool uses Python. The advantage of using Python is that there are ready-made kits that provide the relevant quantitative indicators and allow us to verify the quality of our results and replicability of our findings. Since there are other machine learning packages for Python, we could further analyze our results and present them visually.

In the first step of text mining, we excluded stop words, punctuation marks, and other meaningless symbols, as well as common roots and high-frequency words such as “this”, “is”, “research”, “paper”, and “analysis”. Text mining provides a quick, labor-saving, and accurate way to extract the keywords from the topics of all the documents; however, the disadvantage of this method is that we could not perform further classification. Therefore, after completing the word segmentation and term frequency matrix, we presented and explained the results through a cluster analysis and our judgment of industry domain knowledge and expert experience.

Agrawal et al. [39] pointed out that finding association rules is an important data-mining subject, and there have been quite a few studies using association rules to solve data-mining problems. An association rule is mainly used to determine the relationship between items or features in the database. For example, in the shopping process, if you buy item X and also buy item Y, there is a relationship between the two items. It is useful for decision-makers to have this information. Therefore, analyzing random data and finding out the synchronization relationship is the purpose of the association rule algorithm. In this study, the following association rules were defined [40].

3.5. Reporting and Dissemination

The third step used descriptive statistics to present different views and topics in the literature. Figure 2 focuses on the mainstream research presented in the field of hotel marketing management from 2010 to 2020.

4. Findings

This study used QCA to identify the most frequent terms in the literature. The frequencies and percentage of terms that appeared in the articles are shown in Table 1, and the Term Frequency–Inverse Document Frequency (TF-IDF) was used to identify the words that occurred the most frequently and that were relevant to the context [41]. As expected, “hospitality” and “tourism” were among the most frequently occurring terms. Surprisingly, “brand” and “experience” were among the top 10 most frequently occurring terms, which shows the high level of academic interest in brand management and experience marketing in the hotel industry [26]. The term frequency list also revealed that social media marketing is a mainstream marketing tool in the hotel industry [42]. In terms of the measurement of marketing performance, service quality, loyalty, and satisfaction were still the critical indicators used in most studies [43].

In this study, the top 50 TF-IDF weighted terms were subjected to a two-stage cluster residual analysis (Figure 3). After a hierarchical cluster analysis method was applied, the number of clusters was two, three, and four, and the total residuals decreased by 9%, 5%, and 4.6%, respectively. When the number of clusters was five, the total residual error decreased by 2%. For the top 50 terms, the average interpretation degree of each variable was 4.6%. Therefore, by increasing the number of clusters from four to five, the degree of explanation increased by less than 4.6%. Therefore, we believe that the number of clusters can be set to four while performing the second stage of cluster analysis with the K-means approach. Therefore, during the second stage of cluster analysis, the number of clusters was directly set to four, and K-means cluster analysis was performed.

After the cluster analysis was used to divide the terms into four clusters, each cluster was listed according to the TF-IDF weights of its terms. In Table 2, we show the number of words with high TF-IDF weights as well as the number of articles and their proportions in each cluster. We also used word clouds to visualize the results of each group, which are given in Figure 4, Figure 5, Figure 6 and Figure 7. Figure 8, Figure 9, Figure 10 and Figure 11 showed the relationship between keywords, the thicker the path, the stronger the relationship between the two keywords. The larger a word in a word cloud is, the higher the weight of the TF-IDF of that word. For cluster 1, the number of articles was 98, representing 23.5% of all the articles. The words with the highest TF-IDF weights that appeared in this cluster included “tourism”, “hospitality”, “management”, “tourist”, and “destination”, in that order. There were 122 articles in cluster 2, accounting for 29.25% of the articles examined. The words with high TF-IDF weights that appeared in this cluster included “strategy”, “tourist”, “experience”, “market”, and “hospitality”. In cluster 3, there were 104 articles, accounting for 24.94% of all the articles. In cluster 3, the terms “service”, “performance”, “hospitality”, and “management” had the highest TF-IDF weights. Cluster 4 had 94 articles, accounting for 22.54% of all the articles. The words with high TF-IDF weights in cluster 4 were “consumer”, “brand”, “intention”, and “behavior”.

After clustering, we performed the association rule algorithm to explore the associations between the words in each cluster. As shown in Table 3, we selected the rules with 100% confidence in each cluster. In cluster 1, hospitality was regarded as the consequence variable, and the words related to this term with 100% confidence included “brand”, “framework”, “process”, “tourism”, and “strategy”. In cluster 2, strategy served as the consequence variable, and the only term associated with this term with 100% confidence was “market strategy”. In cluster 3, service was the consequence variable, and the words associated with this term with 100% confidence were “product”, “behavior”, “tourist”, “experience”, “quality”, “hospitality”. In cluster 4, consumers was the consequence variable, and the terms related to this term with 100% confidence were “online review”, “benefit”, and “innovation”.

5. Discussion

This study reviewed the hotel marketing management research published in 27 hospitality journals from 2010 to 2020. The results indicate that 417 published articles were related to hospitality marketing.

5.1. Theoretical Contributions

Firstly, this research is the first attempt to review the articles on the hotel industry. In the past, there have been retrospective articles on the hospitality industry; however, their scope included restaurants, catering, and other related industries. In this research, only relevant literature on marketing topics in the hotel industry was reviewed, and the results better describe the trend of marketing research for the hotel industry than other reviews and can serve as a better reference for this industry. This study found that hotel marketing management research from the past 10 years can be divided into four major categories: marketing framework, marketing strategy, service, and consumer behavior. Articles on marketing framework discussed hospitality marketing [4], consumer value [44], and social media [45]. Future researchers who want to write retrospective documents can refer to our work to find a specific group of articles. If hoteliers want to learn more about a single marketing topic, they can refer to related articles. In marketing strategy, social media marketing and sustainable marketing have been common marketing strategies in recent years. For example, Hsu [46] used Facebook to develop digital marketing strategies for Taiwanese restaurants, Leun et al. [42] used message theory to explore social media marketing among hotels, Xiong and Hu [47] examined viral marketing and discussed discount strategies in restaurants, and Sellers-Rubio and Calderón-Martínez [48] discussed the relationship between brand strategy and advertising expenditure. Hussain et al. [49] found that sustainable marketing assets have positive and significant effects on market performance. In addition, service is still the key to successful hotel marketing. For example, Chang [50] discussed the relationship between servicescape and customer behavioral intentions. Choi et al. [51] used the stressor–strain–outcome model as the basis to verify the relationship between emotional exhaustion, customer orientation, and service recovery performance. Ma et al. [52] found that hotel service engagement significantly informed subsequent product purchases. Understanding consumer behavior through big data has also been a research trend in recent years. Kim et al. [53] explored the gender and expertise differences in consumers’ motivations for reading hotel online reviews. Li et al. [54] investigated the effectiveness of meta discourse and interpretation in dealing with negative reviews using two important linguistic features. Mariani and Predvoditeleva [55] examined the impact of cultural traits and perceived experiences in the context of Russian hotels’ online review ratings. Second, most of the previous review articles only focused on specific marketing issues—for example, smartphones in tourism and hospitality marketing [56], personality [57], sustainability strategies [58], and brand management [59]. This research not only focused a specific topic but also addressed the entirety of hotel marketing management. Through such a comprehensive review, we can better understand the overall picture and evolution of hotel marketing. Third, the previous review studies on hospitality marketing were conducted a decade ago [5]. The time period for this study, namely, between 2010 and 2020, could fill the gap in the literature regarding this decade. Finally, the previous retrospective articles on tourism and hospitality mostly employed bibliometrics [5,59]. This research is the first to adopt text mining to review articles. The advantage of using text mining is that data can be more comprehensively collected and analyzed. Moreover, due to the use of word segmentation, additional details can be found in the examined research.

5.2. Practical Contributions

This research provides some practical implications for hotel operators. First, more and more studies are being conducted on the application of big data in marketing management, especially the monitoring of social media and the analysis of online reviews through text mining. By conducting text mining, hotel operators can discover new market segments [60], implement membership marketing [61], conduct word-of-mouth marketing [62], enhance customer satisfaction [63], and increase purchase intention [63]. Although big data analysis tools have been widely used in other industries, the use of big data by hotel operators to support marketing decisions still needs to be strengthened. Furthermore, hoteliers can increase their customer value by creating unique experiences. Lahouel and Montargot [26] adopted strategic experiential modules and service encounters to discuss how luxury hotels can provide children with a memorable experience. Lee et al. [64] used big data and business intelligence technology to study the impact of customers’ multi-sensory service experience on customer satisfaction through cognitive effort and emotional evaluation. Finally, since consumers are gradually shifting their information sources from mass media to social media and online communities [10], hoteliers can use social media to enhance sustainable marketing [65].

5.3. Limitations and Future Research

The research limitations of this study are as follows. Some influential research on hotel marketing may only be written in books or published in non-SSCI index journals, and conference articles are not included in this research database. Furthermore, this research refers to articles that include “marketing”, “restaurant”, and “hospitality” in the abstract. This omitted the study of closely related constructions or constructions that serve as the basis of marketing research. Moreover, we did not search for keywords related to management, business, or other fields. Using these keywords to search for management and business journals and build a database, one can collect more research on marketing management applications in different industries, but this research would not necessarily have been applicable to the hotel industry; thus, this article only focused on articles in the hotel field. Future empirical research can focus on marketing at different levels of an organization. Research on a specific level provides the ability to draw conclusions in a specific context, as well as an explanation of the actions and practices of roles and responsibilities at a specific organizational level. In this context, existing marketing theories play a critical role because they provide a valuable starting point for understanding the specific level of hotel marketing. We believe that we should explore the value of existing theories that represent hotel marketing on a multi-perspective and cross-functional level. This would enable the hotel marketing management field to overcome overspecialization and fragmentation and establish a good theoretical foundation, and continue to open up innovation and develop constructive ideas.

6. Conclusions

This study reviewed the literature on marketing management in the hotel industry from 2010 to 2020 in an attempt to summarize research trends and suggest directions for future research. In contrast to the bibliometric approach often used in the past, this study performed text mining and an analysis of 417 papers, and we performed the association rule algorithm to explore the associations between the words in each cluster. Through cluster analysis, we found that marketing management research can be divided into four groups, namely, literature regarding marketing reviews and frameworks, marketing strategies, services, and customers. By using the association rule algorithm, we further explored the associations between the words in each cluster. Finally, based on the results of this study, we suggested directions for future scholarly marketing research.

Conceptualization, J.-S.H., C.-H.L., S.-F.C., T.-Y.Y. and D.-C.H.; methodology, T.-Y.Y., C.-H.L. and D.-C.H.; software, T.-Y.Y. and D.-C.H.; validation, J.-S.H., C.-H.L., S.-F.C., T.-Y.Y. and D.-C.H.; formal analysis, T.-Y.Y. and D.-C.H.; investigation, J.-S.H., T.-Y.Y. and D.-C.H.; resources, J.-S.H., C.-H.L., S.-F.C., T.-Y.Y. and D.-C.H.; data curation, D.-C.H.; writing—original draft preparation, D.-C.H.; writing—review and editing, J.-S.H. and D.-C.H.; visualization, D.-C.H.; supervision, J.-S.H.; project administration, J.-S.H.; funding acquisition, J.-S.H. All authors have read and agreed to the published version of the manuscript.

The authors would like to thank anonymous reviewers for useful suggestions and the Ministry of Science and Technology of Taiwan for financial support [Grant number: MOST 109-2511-H-158-004].

Not applicable.

The authors declare no conflict of interest.

Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Figure 1. Steps of the literature review process.

Figure 2. Number of publications per year.

Figure 3. The relationship between the ratio of the cumulative number of words and the cumulative word frequency ratio.

Figure 4. Word cloud for cluster 1.

Figure 5. Word cloud for cluster 2.

Figure 6. Word cloud for cluster 3.

Figure 7. Word cloud for cluster 4.

Figure 8. Web chart for cluster 1.

Figure 9. Web chart for cluster 2.

Figure 10. Web chart for cluster 3.

Figure 11. Web chart for cluster 4.

Most frequent terms in the literature.

	No. Cases	% Cases	TF-IDF
hospitality	249	0%	49.65
tourism	138	0%	46.74
service	134	0%	39.13
consumer	106	0%	34.89
strategy	143	0%	28.15
management	121	0%	30.89
brand	65	0%	28.46
intention	77	0%	26.75
performance	64	0%	28.71
experience	75	0%	26.06
tourist	61	0%	24.28
behavior	75	0%	22.37
social_media	46	0%	23.69
quality	62	0%	21.97
market	69	0%	21.28
perceived	66	0%	19.11
managers	77	0%	17.48
loyalty	38	0%	18.04
destination	46	0%	17.89
environment	52	0%	16.75
marketing_strategy	70	0%	15.38
satisfaction	49	0%	17.18
empirical	73	0%	13.82
price	35	0%	14.47
product	50	0%	13.30
communication	42	0%	13.07
framework	48	0%	12.95
perceptions	45	0%	11.67
benefit	43	0%	11.31
effectiveness	30	0%	11.24
revenue	28	0%	12.22
process	43	0%	10.65
international	38	0%	11.17
attributes	31	0%	10.12
food	25	0%	10.54
website	21	0%	11.24
innovation	21	0%	10.40
trust	25	0%	10.22
online_review	21	0%	10.60
employees	28	0%	10.26
characteristics	42	0%	10.15
accommodation	24	0%	10.62
decision	26	0%	9.71
knowledge	36	0%	9.58
internet	24	0%	9.01
interviews	30	0%	9.56
advertising	22	0%	8.36
segments	26	0%	9.14
engagement	20	0%	9.34
attitudes	25	0%	8.51

Terms with high TF-IDF in the clusters.

Cluster	Terms with High TF-IDF	Percentage of Articles (%)
1	tourism, hospitality, management, tourist, destination, strategy, experience, framework, consumer, service, environment, market	98 (23.50%)
2	strategy, tourist, experience, market, hospitality, social_media, perceived, loyalty, price, marketing_strategy, environment, effectiveness	122 (29.25%)
3	service, performance, hospitality, management, quality, managers, strategy, employees, experience, tourism, satisfaction, market	104 (24.94%)
4	consumer, brand, intention, behavior, hospitality, social_media, strategy, perceived, loyalty, tourism, online_review, trust, service, communication	94 (22.54%)

The results of the association rule.

Cluster	Consequent	Antecedent	Support	Confidence
Cluster 1	hospitality	brand	11.34	100
		framework	13.4	100
		process, tourism	17.53	100
		framework, tourism	11.34	100
		strategy, management	12.37	100
Cluster 2	strategy	marketing strategy	24.59	100
Cluster 3	service	product	10.58	100
		behavior	10.58	100
		tourist	10.58	100
		experience	18.27	100
		tourism, quality	10.58	100
		experience, hospitality	11.54	100
Cluster 4	consumer	online review	10.64	100
		benefit	11.7	100
		online review, innovation	10.64	100
		benefit, innovation	11.7	100

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The current research is a systematic review of the literature on hotel marketing management that provides evidence that hotel marketing management contributes to organizational performance and satisfaction, and provides insights into how hotel operators can successfully implement it. This systematic review of the literature is based on the analysis of 417 papers via a text-mining methodology. Through cluster analysis, we divided the literature on hotel marketing management into four clusters, namely, literature regarding marketing reviews and frameworks, marketing strategies, services, and customers. These results pointed to some potential directions for future research in each cluster. This research can benefit researchers studying the current topics in the hotel marketing management field and help them recognize potential research areas. Additionally, it enables hoteliers to understand the benefits and processes of hotel marketing and defines the key elements of implementing a successful marketing campaign.

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Tourism and Hospitality Marketing Research

First Online: 09 May 2021

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research on marketing in hospitality industry

Richard George 2

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This chapter looks at the role of marketing research in tourism and hospitality marketing. It begins with a discussion of the importance of research to the tourism and hospitality marketer. The chapter then provides a definition of marketing research, and an explanation of the differences between marketing research and market research. Further, it discusses the reasons for doing marketing research and outlines different types of marketing research commonly used in tourism. The chapter then discusses the stages of the marketing research process. The chapter concludes with an analysis of the marketing research activities carried out by E ast Coast Rentals , a small car-rental company based in Australia.

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George, R. (2021). Tourism and Hospitality Marketing Research. In: Marketing Tourism and Hospitality. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-64111-5_4

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The importance of Marketing in the Hospitality industry

Marketing will become increasingly important for hospitality businesses that are looking to grow. Learn 3 hospitality marketing strategies that you can use.

The hospitality and tourism industry is bouncing back in a big way after the pandemic, so it’s the perfect time to get the message out with some marketing strategies to boost bookings.

In 2023, creative content marketing will be more important than ever as image and video content continues to generate leads. Hotels that have a significant number of high-quality photos on their websites see a 15% increase in conversion rates, while websites with video content are 53 times more likely to come up in a Google search.

Data and Artificial Intelligence also continue to shape marketing strategy in the hospitality industry this year, while mobile bookings continue to grow in popularity and multichannel marketing expands to embrace TikTok and other trending forms of social media.

Marketing has always been essential in Hospitality with so much competition among operators.

Now as the industry reopens, it’s even more critical for hospitality businesses to invest in marketing and win back customers.

Hospitality marketing plays a crucial role in:

Finding customers to grow a new hospitality business
Building a loyal customer base for established brands,
Engaging in social media conversation.

Hospitality marketing strategies for 2023

Let’s take a closer look at hospitality marketing strategies for each of these three important outcomes in 2023.

1. Use of hospitality m arketing to grow a new business

A marketing strategy is an essential component of the business plan for any new hospitality business, no matter how big or small. Once the bricks and mortar are all in place, you need to make sure that the world knows your business exists and that it’s better than the local competition.

A typical hospitality marketing plan for a new business to expand its reach and find new customers will address key areas such as:

Unique Selling Points (USPs) and location in the market
Target audiences and market research on how to reach them
Design of an excellent website with a direct booking platform
Mobile compatibility of all your booking channels
Social media marketing strategy
A reputation management strategy, including policies on dealing with complaints
Advertising strategy and budget
Strategic Pay-Per-Click (PPC) and display ads
Email marketing plan

For any new hospitality business, it’s essential to get your first customers through the door and find ways to encourage them to share their positive experiences online. Research shows that 52% of individuals would never book a hotel that had zero reviews.

There are many different effective marketing strategies that new hospitality businesses can adopt to try and get their important first customers through the door. For example:

Offering rewards programs and discounts for new customers and for customers who write reviews is another way to grow your customer base and enhance online credibility.
Marketing towards locals and engaging with local communities is an essential way to generate interest, find return customers, and encourage word-of-mouth business.

For new hospitality businesses, social media content marketing offers a low-cost, high Return on Investment (ROI) opportunity to reach much-needed audiences. Roughly 6 in 10 customers make their booking choices based on information they find online: by putting attractive content on your website, blog and social media channels, you can use SEO, hashtags and links to draw traffic to your website.

Read on for more information on social media strategies and content marketing.

2. Hospitality marketing to build a loyal customer base

Repeat customers are the backbone of the hospitality industry, keeping many hotels, restaurants and bars going no matter what’s trending. They are a steady source of regular income regardless of market fluctuations, providing on average about 40% of the revenue of a typical hospitality business. On top of that, gaining a new customer is 7 to 8 times more costly than keeping an existing one.

Loyal customers also provide an important and completely free-of-charge service; word-of-mouth advertising to their friends and family. The importance of this can’t be understated; research shows that word of mouth is the most effective form of marketing, resulting in five times more sales than paid advertising.

There’s no substitute for offering really great service, food or overall experience when it comes to building and maintaining a loyal customer base. However, marketing also plays an essential role in helping even established hospitality brands to keep customers coming back.

Some key strategies in hospitality marketing to build a loyal customer base include:

Personalisation

Personalisation across all communications channels and interactions is an important marketing strategy for building customer loyalty. In an era when booking systems are impersonal and anonymous, it’s no surprise that people want personalised service and human interaction; a full 86% of consumers surveyed report that personalisation plays a role in their purchase decisions.

Effective strategies for personalisation in hospitality can take the form of:

Branded apps that allow for saved individual preferences and continuous communication across all channels
Tailored experience packages and personalised advice for hotel guests
Add-ons and options for personal choice
Building customer profiles
Empathetic social media engagement

Frequency and loyalty rewards programs

Programs that reward frequency and loyalty are common marketing strategies for hospitality businesses to engender customer loyalty. From a simple ‘buy ten get one free’ coffee card at a local cafe, to frequent flyer points and high-end luxury hotel rewards programs, these strategies are effective tools for customer retention. In fact, studies show that 69% of customers allow the presence of rewards or loyalty programs to influence their shopping decisions.

According to one marketing agency specialising in loyalty programs, they serve multiple functions for a hospitality brand including:

Protect market share from competitors,
Steal high-value customers from competitors,
Create an opportunity cost for using a competitor.

3. Essential Hospitality Social Media Marketing

Hospitality, tourism and social media form an interdependent triad for many hospitality businesses and customers in 2023: 74% of travellers use social media while on vacation, 89% of millennials post to social media while travelling, and 85% of travellers book their trips on mobile devices.

Customers like to share their experiences, businesses like to be tagged, and potential new customers like to browse social media for tips and recommendations. It’s a win-win for everyone.

No matter what kind of hospitality business you are operating, a social media marketing strategy is compulsory. Hospitality consumers use social media to share their experiences, publish reviews, find recommendations, and express feedback directly to hospitality brands. Your business will be seen or discussed on social media, so it’s essential to engage in that conversation. An effective social media presence in hospitality leads to:

Increased reach to new audiences
More conversations about your brand
Higher engagement with customers
Better authority with ratings and review systems

There are several components to effective social media marketing for hospitality.

Content marketing across different channels : TikTok, Instagram, YouTube, Twitter, Facebook and blog posts are all common channels for marketing content that’s engaging, personal and on-brand. It’s effective for enhancing SEO, brand visibility and recognition, generating customer loyalty and 67% of marketers report that content marketing generates leads.

Regular engagement across channels: Engaging directly with customers in conversations on social media is an essential strategy for reaching new audiences and raising brand awareness through use of hashtags, links to other users and comments. It’s also important for engaging directly with negative publicity on social media from dissatisfied customers.

Influencer marketing: With word of mouth playing a significant role in booking recommendations, influencer marketing offers hospitality businesses a high Return on Investment (ROI) marketing opportunity. For the price of a meal or a room, your business could reach hundreds of thousands of new potential customers.

Responding to feedback and reviews from customers: In 2023, every single customer is a potential critic online. According to data from ReviewTracker, over 40% of hotel guests will leave a review if they have a positive experience and 48% of guests will leave a review after a bad experience.

These reviews do have a big impact on hospitality businesses. According to one survey by TripAdvisor, 81% of people frequently or always read reviews before booking a hotel. It’s important for hospitality businesses to take a productive and proactive role when it comes to customer reviews and feedback. The best strategies for responding are: listen to feedback, apologise and respond empathetically, provide refunds in a timely manner and offer rewards for a ‘second chance’.

Are you a hospitality or tourism professional and you want to learn more about marketing for the hospitality industry? Marketing forms a core subject of many hospitality courses and degrees on offer at Torrens University.

See here for more information about studying a Bachelor of Business (Hospitality Management ).

Michelin Dapo

Hotel Market Research

Hotel market research offers nuanced insights into shifting guest demographics, emerging travel patterns, and competitive landscapes.

Hotel market research plays a critical role in hospitality companies’ decision-making process. It analyzes consumer behaviors and patterns, forecasts future trends, and enables businesses to develop customized strategies for their market.

As a result, hotel market research is a valuable source of information on consumer trends and the overall competitive landscape since the research findings and insights provide helpful information for strategic marketing and operational decisions.

Why Is Hotel Market Research Important?

Hotel market research provides consulting firms and their clients in the hospitality industry with vital information and data to accurately assess the potential viability of hotel development ventures. It enables clients to develop a business plan and estimate potential turnover. Likewise, it helps clients pinpoint changes in market trends, stay ahead of their competitors, and anticipate future trends in the industry.

Conducting thorough hotel market research also equips consulting firms with the data to make informed recommendations to their clients and mitigate risks. It minimizes the risk of financial loss and guarantees investments are driven to potentially successful projects in the target market.

Additionally, by gathering detailed information on consumers’ demographics, preferences, and purchasing behavior, consulting firms tailor their products and services to meet the needs of their target audiences better and help them gain a competitive advantage in highly competitive marketplaces.

Benefits of Hotel Market Research

Conducting thorough hotel market research demands an in-depth analysis of the competition at the local and global markets and opportunities and challenges.

Some of the critical benefits of hotel market research are:

Hotel market research supports companies in identifying and understanding their target market by gathering in-depth data on consumer demographics, behavioral preferences, and purchasing behavior.
It allows companies in the hospitality industry to customize their existing products and services more effectively to address the unique requirements of their target audiences.
It may result in higher customer satisfaction and increased revenues because of an accurate strategy based on the research findings.
The research enables companies to spot opportunities and threats in the hotel market, monitoring market trends and the competitive landscape, emerging competitors, changes in consumer behavior, and potential business differentiators.
Ability to mitigate risks by assessing the feasibility of a particular hotel project with a deep understanding of factors such as competition and current market demand.

Who Uses Hotel Market Research

Hotel market research is indispensable for hotel chains and management groups seeking to expand their footprint, optimize their portfolio, and enhance guest satisfaction. With a deep understanding of market trends, consumer preferences, and competitive dynamics, these organizations can make strategic decisions regarding property development, branding, and service offerings.

Independent Hotel Owners and Operators leverage hotel market research to gain insights into local market dynamics, identify niche opportunities, and differentiate themselves from competitors. By understanding the needs and preferences of their target audience, they can tailor their offerings to provide unique experiences and maximize guest satisfaction.

Investors and Financial Institutions rely on hotel market research to assess hotel projects and investments’ viability and potential returns. They can make informed decisions regarding asset acquisition, development financing, and investment strategies by evaluating market trends, demand-supply dynamics, and financial performance metrics.

Hospitality Consultants and Advisory Firms provide strategic guidance and expertise to industry stakeholders. By conducting in-depth market research and analysis, they assist clients in identifying opportunities, optimizing operations, and mitigating risks, thereby driving business performance and maximizing value creation.

Main segments in hotel market research

Hotel market research is often categorized into various segments based on the nature of the hotel such as:.

Luxury hotels: This segment covers high-end hotels featuring a comprehensive range of luxury amenities and services. The research on this niche involves understanding consumer preferences and spending habits to customize the offering to their expectations.
Extended-stay hotels: This target market comprises hotels that serve guests seeking to stay for an extended period, such as business travelers or digital nomads. Hotel market research in this segment concentrates on target market demographics and the overall economic landscape to determine the demand for hotel rooms.
Budget hotels: This sector encompasses hotels that target price-sensitive consumers and deliver essential services at affordable prices. Research in this segment focuses on reducing costs to offer services for travelers with limited budgets.
Boutique hotels: The boutique hotel segment covers hotels that offer customers a unique and tailored experience. Hotel market research for this segment concentrates on understanding the potential demands of future customers and their demographics to foresee their unmet needs.
Vacation rentals: This niche segment includes privately owned rentals such as Airbnb. The research in this segment focuses on understanding consumer preferences in a vast market with an extended offering.

Notably, the segments considered in hotel market research are not necessarily exclusive. Several hotel chains belong to various segments, which makes the research more complex. The study should analyze one or more of these segments depending on the scope.

When to Conduct Hotel Market Research

Hotel market research should be conducted strategically and regularly to ensure businesses stay ahead of evolving market trends and dynamics. Here are some essential occasions when conducting hotel market research that are particularly beneficial:

Market Entry or Expansion : Before entering a new market or expanding existing operations, businesses should conduct comprehensive market research to assess demand, competition, and regulatory requirements. This allows them to make informed decisions regarding location selection, market positioning, and investment priorities.
Product or Service Development : When introducing new products or services, businesses may conduct market research to understand consumer preferences, identify unmet needs, and assess market receptivity. This enables them to tailor their offerings to meet customer expectations and maximize market penetration.
Performance Evaluation : Businesses should conduct ongoing market research to monitor their performance relative to competitors, assess customer satisfaction, and identify areas for improvement. This enables them to refine their strategies, optimize operations, and maintain a competitive edge in the market.

Emerging Markets vs Mature Markets

In the hotel industry, understanding the distinctions between emerging markets and mature markets is crucial for strategic decision-making and market positioning:

• Emerging Markets : Emerging markets in the hotel industry typically exhibit rapid economic growth, urbanization, and increasing disposable incomes. Rising affluence fuels demand for travel and accommodation, presenting significant growth opportunities for hoteliers. However, emerging markets pose unique challenges, including infrastructure limitations, regulatory uncertainties, and cultural differences.

• Mature Markets : Mature markets, conversely, are characterized by stable economic conditions, established infrastructure, and saturated competition. In mature markets, hoteliers face intense competition for market share, prompting them to focus on differentiation, innovation, and customer experience to maintain relevance and sustain growth. While mature markets offer stability and predictability, businesses must continuously innovate and evolve to meet changing consumer preferences and stay ahead of competitors.

Regional Insights

North America :

The hotel industry in North America is characterized by a diverse mix of accommodation options, ranging from luxury resorts to budget-friendly motels. Major cities like New York, Los Angeles, and Las Vegas attract millions of domestic and international visitors yearly, driving demand for hotel accommodations. Trends such as personalized experiences, sustainability, and technology integration are shaping the hospitality landscape in North America, with hoteliers focusing on enhancing guest satisfaction and loyalty through innovative offerings and service delivery.

Europe boasts a rich cultural heritage and a thriving tourism industry, with iconic destinations like Paris, London, and Rome drawing visitors from around the globe. In Europe, boutique hotels, bed and breakfasts, and eco-friendly lodgings are gaining popularity, reflecting a growing demand for unique and authentic travel experiences. Sustainability and wellness are emerging as key priorities for European travelers, driving demand for eco-friendly accommodations, organic cuisine, and wellness amenities.

Asia-Pacific :

The Asia-Pacific region is witnessing exponential growth in the hotel industry, fueled by rising affluence, urbanization, and increasing connectivity. Dynamic cities like Tokyo, Singapore, and Shanghai are economic activity and tourism hubs, attracting business and leisure travelers. In Asia-Pacific, smart technology, cultural immersion, and experiential travel are reshaping the hospitality landscape, with hoteliers leveraging digital innovations and local partnerships to enhance guest experiences and differentiate their offerings.

Key Target Audience

Identifying the key target audience in the hotel industry is essential for crafting effective marketing strategies, enhancing guest experiences, and driving revenue growth. While the target audience may vary depending on factors such as location, brand positioning, and market segment, several primary groups typically comprise the key target audience for hotels:

Business Travelers : Business travelers represent a significant segment of the hotel market, comprising professionals traveling for meetings, conferences, and corporate events. Business travelers prioritize convenience, efficiency, and amenities such as high-speed internet, business centers, and meeting facilities.

Leisure Travelers : Leisure travelers encompass individuals and families seeking relaxation, recreation, and cultural experiences during their travels. This diverse segment includes vacationers, weekend getaway seekers, and adventure enthusiasts. Leisure travelers value amenities such as swimming pools, fitness centers, spa services, recreational activities, and proximity to tourist attractions, dining options, and entertainment venues.

Group and Event Planners : This segment includes corporate event planners, wedding planners, tour operators, and conference organizers. Hotels targeting this audience often offer group discounts, customizable event packages, and dedicated event planning services to attract and retain group bookings.

Millennials and Generation Z : Millennials and Generation Z travelers represent an increasingly influential segment of the hotel market, characterized by their digital savvy, preference for unique experiences, and social consciousness. These tech-savvy travelers prioritize technology integration, personalized experiences, and social connectivity, driving demand for innovative concepts such as boutique hotels, co-living spaces, and experiential accommodations.

Luxury Travelers : Luxury travelers seek unparalleled comfort, exclusivity, and personalized service during their hotel stays. This segment includes affluent individuals, celebrities, and high-profile executives who demand the highest standards of luxury and sophistication.

Leading Players in the Hotel Market

In the fiercely competitive hotel market, several key players dominate the landscape, each with its own unique strengths, market positioning, and brand identities:

Marriott International : As one of the largest hotel chains globally, Marriott International boasts a diverse portfolio of brands catering to various market segments, from luxury and upscale to select service and extended stay. With iconic brands such as Marriott Hotels, Ritz-Carlton, and Sheraton, Marriott International commands a significant market share and enjoys strong brand recognition worldwide.

Hilton Worldwide Holdings : Hilton Worldwide Holdings is another major hotel industry player known for its extensive portfolio of brands catering to diverse traveler preferences and budgets. From luxury brands like Waldorf Astoria and Conrad to mid-scale and economy brands like Hilton Garden Inn and Hampton by Hilton, Hilton offers a wide range of accommodations tailored to different market segments and travel occasions.

Accor : Accor is a multinational hospitality company with a diverse portfolio of brands spanning luxury, upscale, midscale, and economy segments.Accor’s focus on sustainability, digital innovation, and guest experience enhancement positions it as a key player in the evolving hotel landscape.

Hyatt Hotels Corporation : Hyatt Hotels Corporation is renowned for its portfolio of luxury and upscale brands, including Park Hyatt, Grand Hyatt, and Andaz, as well as select service brands like Hyatt Place and Hyatt House.

Expected Results from SIS International’s Hotel Market Research

When businesses partner with SIS International for hotel market research, they can expect a range of tangible benefits and outcomes that contribute to their success in the hospitality industry:

In-depth Market Insights :

SIS International delivers comprehensive market insights tailored to each client’s specific needs and objectives. Through rigorous data collection, analysis, and interpretation, businesses gain a deep understanding of market trends, consumer preferences, competitive dynamics, and regulatory landscapes, enabling them to make informed decisions and seize growth opportunities.

Strategic Recommendations :

Drawing on extensive industry expertise and market knowledge, SIS International provides strategic recommendations that empower businesses to optimize their market positioning, capitalize on emerging trends, and differentiate themselves from competitors. Whether it’s identifying new market segments, refining product offerings, or enhancing customer experiences, our actionable insights guide clients toward sustainable success.

Enhanced Competitiveness :

By leveraging SIS International’s market intelligence, businesses gain a competitive edge in the hospitality landscape. Through benchmarking against industry peers, identifying areas for improvement, and uncovering untapped opportunities, clients are equipped to outperform competitors, maximize market share, and drive long-term profitability.

Risk Mitigation :

SIS helps businesses mitigate risks and navigate uncertainties in the dynamic hospitality environment. By monitoring regulatory changes, assessing market vulnerabilities, and anticipating potential challenges, clients are better prepared to proactively address risks, safeguard their assets, and maintain operational resilience.

Opportunities and Challenges

The industry is becoming increasingly competitive and a sector in an ever-changing environment. This is due mainly to travelers’ constantly evolving behaviors, perceptions, expectations, and purchasing decisions. This creates numerous opportunities and challenges for consulting firms conducting research and businesses developing strategies.

Opportunities

Technological advances: Technological breakthroughs have made gathering and analyzing data more affordable. It can potentially address some of the challenges of hotel market research.
Massive data analysis tools: The broader availability of AI solutions will lead to more accurate and timely information on consumer behavior and market trends. It can collect enormous amounts of data and provide valuable insights in minutes.
Predictive analytics: Emerging technologies allow forecasting analytics to predict future trends and patterns in the market to prepare accurate marketing strategies and future product developments.
Data collection is complex and information rapidly varies: Collecting reliable and consistent data is considered one of the most challenging aspects of hotel market research. It is often complicated because of the dynamic nature of the hotel sector, which is continually changing in response to consumer preference shifts, emerging technologies, and economic conditions.
The high volume of data to analyze: Analyzing and interpreting the data collected is an additional challenge. Data collection and analysis involve extensive data from numerous sources, which increases the complexity of the research and makes it difficult to draw meaningful insights and conclusions.
Keeping abreast of industry trends: Hotel operations are rapidly evolving and it is challenging to keep track of the latest trends and developments in the hospitality industry

Industry Attractiveness: Porter’s Five Forces Analysis of the Hotel Market

Porter’s Five Forces analysis provides a framework for assessing an industry’s competitive intensity and attractiveness. Let’s apply this framework to the hotel market:

Threat of New Entrants : The threat of new entrants to the hotel market is moderate. While barriers to entry, such as high capital requirements, economies of scale, and brand reputation, deter new players from entering the market, alternative accommodations and sharing economy platforms have lowered barriers to entry for specific segments.
Bargaining Power of Buyers : Buyers’ bargaining power in the hotel market is moderate to high. Buyers, including individual travelers, corporate clients, and online travel agencies (OTAs), can access various accommodation options and price-comparison platforms to negotiate prices and demand discounts.
Bargaining Power of Suppliers : The bargaining power of suppliers in the hotel market varies depending on the type of supplier. Key suppliers, such as food and beverage distributors, technology vendors, and service providers, may have moderate bargaining power due to the availability of alternative suppliers and competitive pricing.
Threat of Substitutes : The threat of substitutes in the hotel market is moderate to high. Alternative accommodations, such as vacation rentals, serviced apartments, and home-sharing platforms, pose a significant threat to traditional hotels, particularly in leisure and extended-stay segments. Additionally, advancements in remote work and digital nomadism may lead travelers to opt for long-term stays in alternative accommodations rather than traditional hotels.
Competitive Rivalry : Competitive rivalry in the hotel market is high. The industry is characterized by intense competition among established hotel brands, independent hotels, and alternative accommodations. Hotels compete on price, location, brand reputation, service quality, and guest experience to attract and retain customers.

Industry Attractiveness: SWOT Analysis of the Hotel Market

A SWOT analysis examines an industry’s strengths, weaknesses, opportunities, and threats. Let’s conduct a SWOT analysis for the hotel market:

Diverse Offerings: Hotels offer various accommodations, amenities, and services catering to diverse traveler preferences and budgets, appealing to a broad customer base.
Global Presence: Leading hotel chains have a global footprint, with properties located in key destinations worldwide. This enables them to tap into international markets and leverage economies of scale.
Guest Experience : Hotels prioritize guest experience, offering personalized services, innovative amenities, and memorable experiences that differentiate their offerings and foster guest loyalty.
Seasonal Fluctuations : Seasonal fluctuations in demand, coupled with cyclical economic trends, pose challenges for hotels in managing revenue and profitability throughout the year, leading to revenue volatility.
Dependency on Tourism: Hotels rely heavily on tourism and travel demand, making them vulnerable to external factors such as economic downturns, natural disasters, geopolitical tensions, and pandemics, which can disrupt travel patterns and occupancy rates.
Regulatory Compliance : Hotels must comply with a complex web of regulations and standards related to safety, security, health, and environmental sustainability, requiring ongoing investments in compliance efforts and risk management.
Emerging Markets : Growth opportunities exist in emerging markets with rising disposable incomes, urbanization, and increasing tourism demand, offering untapped potential for hotel development and expansion.
Sustainability Initiatives : Investing in sustainable practices, energy-efficient technologies, and eco-friendly amenities presents opportunities for hotels to appeal to environmentally conscious travelers and differentiate their offerings in a competitive market.
Niche Markets : Targeting niche markets such as wellness tourism, eco-tourism, and experiential travel allows hotels to cater to specialized traveler segments and create unique value propositions that resonate with specific customer needs and preferences.
Competitive Pressure : Intense competition from traditional hotels, alternative accommodations, and online booking platforms exerts pressure on pricing, profitability, and market share, challenging hotels to differentiate their offerings and maintain competitiveness.
Disruptive Technologies : Disruptive technologies such as sharing economy platforms, artificial intelligence, and blockchain threaten traditional hotel models by disrupting distribution channels, customer relationships, and business models.
Economic Uncertainty : Economic downturns, geopolitical tensions, and global crises such as pandemics can disrupt travel patterns, reduce consumer spending, and impact hotel occupancy and revenue, posing significant threats to the industry’s stability and profitability.

How SIS International’s Hotel Market Research Helps Businesses

SIS International offers comprehensive hotel market research solutions tailored to the unique needs and objectives of businesses operating in the hospitality industry. Our research methodologies and insights empower clients to make informed decisions, capitalize on opportunities, and overcome challenges in a dynamic market environment:

Risk Mitigation :

SIS helps businesses mitigate risks and uncertainties by providing in-depth market analysis, competitive intelligence, and regulatory insights. By identifying potential risks and challenges, clients can develop strategies to address issues and safeguard their assets proactively, minimizing the impact of external threats on their operations.

Strategic Planning :

Our hotel market research equips businesses with strategic insights and actionable recommendations to optimize market positioning, capitalize on emerging trends, and differentiate their offerings. Through an in depth understanding market dynamics, consumer preferences, and competitive landscapes, clients can develop tailored strategies to achieve their business objectives and drive long-term success.

Market Expansion :

SIS International assists businesses in identifying new market opportunities, assessing market entry strategies, and expanding their footprint in both domestic and international markets. Through market segmentation, feasibility studies, and market entry assessments, clients can identify untapped markets, evaluate market potential, and develop entry strategies that maximize growth opportunities and mitigate risks.

Product Development :

Our research-driven approach enables businesses to innovate and refine their product offerings to meet evolving consumer needs and preferences. By conducting market assessments, concept testing, and consumer surveys, clients can gather valuable insights into product demand, feature preferences, and pricing strategies, guiding product development efforts and enhancing competitiveness in the marketplace.

Customer Experience Enhancement :

SIS helps businesses enhance the guest experience by providing insights into customer expectations, satisfaction levels, and feedback. Through guest satisfaction surveys, mystery shopping programs, and sentiment analysis, clients can identify areas for improvement, address pain points, and deliver personalized experiences that drive customer loyalty and repeat business.

Competitive Intelligence :

Our competitive intelligence solutions enable businesses to stay ahead of competitors by monitoring competitor strategies, identifying market trends, and benchmarking performance metrics. By analyzing competitor offerings, pricing strategies, and marketing tactics, clients can identify competitive gaps, capitalize on market opportunities, and develop strategies to outperform market rivals.

Expand globally with confidence. Contact SIS International today!

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Please note you do not have access to teaching notes, internet marketing research in hospitality and tourism: a review and journal preferences.

International Journal of Contemporary Hospitality Management

ISSN : 0959-6119

Article publication date: 12 October 2015

The purpose of this study is to provide a progress review of published Internet marketing research within the top eight hospitality and tourism journals and to provide suggestions on future research directions.

Design/methodology/approach

The study collected 331 Internet marketing-related articles published in the top eight hospitality and tourism journals during the period of 1996-2013. Using content analysis, the study analyzed and discussed research topics, research methods and industry sectors of selected articles. The study period was broken into three sub-periods and used correspondence analysis (CA) to examine the significant changes of topical areas over time. A follow-up CA was conducted to compare the topical and methodological preferences of the selected eight journals.

In all, 5-category and 27-subcategory classifications of research topics were identified in the study. The two-dimensional perceptual map indicates that Internet marketing research in the hospitality and tourism fields experienced introduction, growth and maturity stages. The research focus changed from business perspective to customer perspective and then to both business and customer perspectives. The eight top hospitality and tourism journals were grouped into four journal sets that share similar article characteristics and preferences.

Research limitations/implications

Due to the sample size, the classifications and trends generated in this study may not be generalized to all Internet marketing research in hospitality and tourism disciplines. The process of identifying topic and method categories might be biased, especially in identifying new topics. Future research may apply CA method in literature review studies on other research topics.

Practical implications

The study analyzed published research in Internet marketing in the hospitality and tourism fields and provided topical and methodological recommendations to academia for future research. This study may also give hospitality managers new insights into Internet marketing applications in the industry.

Originality/value

This study is one of the few attempts to provide a comprehensive review of Internet marketing research in the hospitality and tourism fields. This study uses CA in literature review study, opening up a new way to easily analyze and visually display the literature trends. This study also creatively compared the publication preferences among eight top-tier hospitality and tourism journals using correspondence analysis.

Internet marketing
Correspondence analysis
Hospitality and tourism

Acknowledgements

The authors would also like to express our great appreciation to Dr Seyhmus Baloglu for his valuable and constructive suggestions to this research work. This research was partially supported by the Caesars Foundation.

Leung, X.Y. , Xue, L. and Bai, B. (2015), "Internet marketing research in hospitality and tourism: a review and journal preferences", International Journal of Contemporary Hospitality Management , Vol. 27 No. 7, pp. 1556-1572. https://doi.org/10.1108/IJCHM-05-2014-0268

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The Importance of Market Research in the Hospitality Industry

Table Of Content

To assure product feasibility, to create better marketing campaigns, to understand brand reputation.

The usefulness of market data in business has resulted in a greater demand for data analysis , a field that is projected to grow by 19% by 2026. Data analysts, who are in charge of analyzing trends to guide business decisions, can effectively interpret market data to help businesses plan operations effectively.

Hospitality businesses that engage in thorough market research will have the information they need to create more satisfying experiences for their future clientele. In this article, we’ll discuss why it’s important for businesses in the hospitality industry to conduct thorough market research.

Businesses cannot expect to secure loyal customers without understanding what these customers want.

In 1992, a poor understanding of market needs led to the initial failure of Disneyland Paris, which was Disney’s European theme park project . After assuming that a theme park in Europe would be as successful as their American projects, Disney forgot to take into account the cultural differences between America and Europe. It also failed to understand create an accurate profile of its targeted customers.

Disney’s American theme parks were successful because their fantasy-inspired designs stood out from what architecture looked like in the rest of the country. However, because Europe was already home to many historic landmarks, Disney’s faux castles failed to impress. In addition, the recession in Europe during the 90s left many of its citizens unable to shell out disposable income for theme parks. Because Disney didn’t take its ideal target market’s needs into account, Disneyland Paris remained unprofitable for many years.

It’s the same with any other hospitality business.

Understanding your customers’ needs, preferences, and culture will help you better understand how well your business will do , or how you can adjust your rates to make a profit.

When you understand your target market, you’ll understand which marketing channels can best reach them. If your business is a cruise line for seniors, for instance, you wouldn’t have much luck trying to promote your brand on platforms with young userbases, such as Instagram and TikTok.

Through market research, you’ll also understand what kind of content your audiences will respond to. Poor market research led to the failure of Pepsi’s 2017 video advert starring Kendall Jenner. The mid-2010s saw the rise of activist movements like Black Lives Matter. In response, Pepsi created a commercial that featured supermodel Kendall Jenner emerging from a crowd of demonstrators to hand over a can of Pepsi to a police officer. Add because Pepsi simply appropriated the imagery of these movements without meaningfully addressing the real issues its target audience cared about, the commercial received widespread public backlash.

Situations like the Pepsi controversy can be avoided with proper market research. By studying customer data, your business will better understand what kind of marketing content they’re looking for.

Optimizing occupancy, revenue or ADR
Upgrading your software stack
Solving distribution or/and tech issues
Improving their hotel online presence

Established businesses can also use market research to determine how their customers perceive them.

By gathering data on customer satisfaction and reviews, businesses can determine which aspects of their establishment need changing, and what they can do to improve their customers’ experiences. Businesses can gather this data by conducting customer satisfaction surveys or compiling online reviews.

Market research on customer satisfaction can also help you manage your reputation online. If you’re starting to see negative reviews, you can act on complaints before public perception worsens.

Market research is about assessing who your customers are, what they need, and what they’re saying . Once you’ve gathered this information, consult with experienced hospitality professionals to create an effective performance improvement plan.

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Social Pulse Podcast: Hospitality
Social Media Management
Social Media Marketing

How Hospitality Marketing Has Changed Since the Pandemic

Written by Mike Allton

Last modified Aug. 27 2024

Table of Contents

We all know that marketing, particularly hospitality marketing, changed dramatically during the pandemic. That radical shift in consumer behavior required equally radical shifts in messaging and strategies.

But when the pandemic subsided, consumer behavior changed again. But it wasn’t a rubber band snapping back to how it was before. Some behaviors and corresponding marketing strategies returned to normal. Others didn’t. Still, more continued to change in other ways. What’s different today? What current trends do those of us in hospitality need to know about?

That’s exactly what Tyler Anderson discusses in this recap of Social Pulse Podcast: Hospitality Edition, hosted by Agorapulse’s chief storyteller, Mike Allton.

Tyler is the founder and CEO of Casual Fridays , a social media and content production agency, focusing on hospitality and tourism through his guidance. Casual Fridays has become a leading social media marketing agency for hotels and resorts, serving diverse clients from luxury brands to unique boutique hotels.

With his experience, Tyler and his team have successfully propelled hundreds of hotels and resorts into the digital spotlight, crafting memorable experiences and driving unparalleled engagement.

What’s Casual Fridays?

Mike Allton: I’d love it if we started with you sharing more about how you got started and the work your agency is doing today.

Tyler Anderson: Sure. I could elaborate and make this a long answer, but I’m not. I’m going to give you the short end of it all.

My background was in traditional media, but I was a very early adopter of social media and digital marketing. to the point where I literally was probably one of the first 1,000 people on MySpace .
And I leveraged, you know, just my—I don’t want to say passion. That’s not the word. But I was kind of like the same age of the people who are hardcore into TikTok now, right? Like, I was a young 20-something. And I was on MySpace back in the day, an early adopter.
I just saw the power behind it.
So even though I was still in traditional media and I worked in radio, by the way, I would, I would actually create promotions, you know, for my clients at the time, like, and I had some pretty big clients like Pepsi and Vitamin Water and I would do crossover promotions through radio with MySpace for the radio station.
I created the radio station’s MySpace profile. So total early adopter.
And then in 2009, I decided to start a social media agency because a lot of the traditional agencies at the time, they kind of rolled their eyes when you would bring up social media.
They did not see the value back then. And I just kind of knew that this was going to be like a new frontier and transform things. And absolutely, that’s what it’s done. I just kind of worked with a wide range of clients back then, everything from car dealerships to dentists, you name it.
And I stumbled across our first hotel in 2011.
And that’s kind of the rest is history.
Fast forward a couple of years, we just started adding more and more hotels and then I’d say our peak was in around 2018-2019. I think at that time we were serving like 160-something hotels.

We did have some other clients that we would serve. We did a lot of music festivals and we did like Jersey Mike’s and some other brands. And then the pandemic hit, right? And so pretty much everything hit reset and then coming out of the pandemic.

That’s when we doubled down, and we said we’re going to go back and exclusively work with hotels as we were coming out of it. And that’s what we did.

So, in 2021, we repositioned the agency to be exclusively a hotel and resort hospitality agency, and that’s what we do today.

The Pandemic’s Effect on Business

How did the pandemic impact your agency and the hospitality industry overall.

Tyler Anderson: On the agency level, like going into 2020, we had some other challenges. At that time, we were working with a large music festival, too. And they overdid themselves. Like they expanded to multiple cities and all that. They had some financial times, which anybody who’s ever worked in the agency [will tell you] when you have huge enterprise level clients, and if they have rough times, you’re going to have rough times.

So going into 2020, we were already kind of going into a little bit of a rough patch, with some staff. And then that’s when we were, like, you know, we kind of had some preliminary conversations like, well, we need to go all in on hotels cause that’s what we know best and that’s what the plan was, but what’s that quote? Like Mike Tyson says, everybody has a plan until they get punched in the mouth or something like that. That’s what we were kind of going into.

And lo and behold, you know, I remember it clear as day. I was at Social Media Marketing World , which is a conference you and I met at way back in the day.

And I remember I was sitting in front of Jay Baer ‘s talk with Brian Fanzo, and he was another speaker, and he nudged me, and there were some preliminary talks about COVID kind of going into that conference because that conference was in February. And I want to say it was around the first or the last week of February, right before March.

And you kind of heard a little bit of COVID in the news, but not a lot. And then Fanzo nudged me, and he was supposed to be speaking the following week at South by Southwest . And he nudges me, and he shows me a text he had just gotten right there from the conference organizer saying, “Hey, we’re canceling South by Southwest.” That’s when I’m like, “Man, it’s going to get bad.”

I got a phone call the next day. We had about, I don’t know, 10+ hotels that we worked with in Atlanta, and they were supposed to hold the final four. And one of the hotel GMs [was] like, “Hey, we need to pause, suspend everything. They just canceled the final four. Our city is basically gonna be shut down for the next month until further notice.”

And literally, it was just like for two days straight taking emails, taking calls, every single hotel, except for one estate, which I’ll get to in a second, shut down. And everybody just immediately needed to pause. And even the ones that still stayed open, they were impacted to the point where, you know, there’s no way we’re going to sustain.

Overnight revenue [was] just like gone.

And, like a lot of businesses, we immediately had to furlough people and had to figure it out. We got a PPP loan. The only saving grace which has nothing to do with hotels. We had a nonprofit that reached out to us ahead of time. We lived in San Diego at the time. It was Feeding San Diego and they got an abundance of donations to the point that they also needed help and support with social media to get the word out on all the missions that they were having, trying to help people out during the pandemic. And so that we did pick them up as a client, and between that and then the state of Florida and the hotels that did remain open during that time, that’s what allowed us to survive, I’d say from, you know, March until September of 2021.

So that’s that, but yeah, to answer your question, it was just like overnight, it just dried up. And as far as how it impacted the hotels … I mean, a lot of the hotels, and, you know, I don’t know about the audience, what they know, but you know there’s usually the leisure side of business, which is people are going on vacations, trips, whatever it may be. And then there’s the group and business side of hotels and that’s, you know, conferences, meetings, events, business travel.

But with the pandemic, what happened? Business travel just shut down. Conferences shut down. People were doing virtual conferences.

Mike Allton: Yeah. We got through it. You’re now focusing 100% percent on hotels.

What are some of the other changes that you’ve implemented since then?

(And that could be from how you structured the agency to even just how you’re doing marketing.)

What are some of the results that you’ve seen?

Tyler Anderson: I think the biggest thing I just want to touch on first with the hotels: After a while, we got to open up again like we needed to. But I remember going to one or two hotels during that time and it was a ghost town and I remember the horror stories [I heard] from some of these hotels.

They would have to furlough their whole staff, and so there would maybe only be two or three people at a hotel who were still employed: maybe a general manager, a director of sales, and then maybe an engineering operations manager. And those three people would go into these hotels …

I remember talking to one in New York City, which has 1,300 rooms. It’s a massive hotel, and there’s only three people going in there, you know, from March until like September of 2020 and their whole job is, literally, every two or three days, they had to go into every single room and just flush the toilets just to make sure that they would still remain operational and they wouldn’t have issues and make sure the lights work. Talk about an eerie time.

But then, when they all decided to kind of open up, the biggest change that impacted the hotels is, well, I don’t know if you remember this, but people were definitely having pent-up travel demand. Because we were all in lockdown, we’re stuck at home.

Everybody just wanted to get out and go on vacations. That’s why Florida flourished. But regardless, people just wanted to get out of their house, but nobody was going to be able to get out for business travel. And no one was going to be able to get out for conferences or anything like that.

So what I’d say the biggest impact the hotels had to adjust just to get out of the pandemic is everybody shifted their focus to basically 100% leisure business, where before a lot of these big box hotels or big, huge hotels in big cities that are near convention centers, you know, leisure, maybe only represented like 10-20% of their business before the pandemic.

Now, all of a sudden, they’re asking it to represent all of their business just so they can remain open and remain in business. That was the biggest change for them to survive.

And then, of course, social media became a great way to do that. And while most hotels were maybe active before the pandemic, you know, this was their one way where, you know, social media was maybe one of many components that they were doing before the pandemic.

They were doing a lot of other stuff to target that group business, but now here we’re coming out of the pandemic, they were all in, and social media provided a viable way, and I don’t want to say done like at a minimal budget, but let’s be honest … You know, we were talking about traditional media and some of these other things.

It’s expensive. Like, in theory, you can run social media ads for 50 bucks a month if you need to, or a hundred bucks. So it just provided a little bit of an easier way for them to at least dip their toes in again and get the word out, maintain presence.

And then the other reason that social media was so important at the time is because, again, because they all shut down in a matter of minutes, in early March during 2020.

When they did start opening up, people would go to those pages and they’re kind of weird. You look at some hotels’ social media accounts, and you can tell like when everything turned off because their last post was March 12th, March 13th. And there was nothing. There was no activity.

Now you’re getting people who are going on these channels, sending Instagram DMs or Facebook messages. Hey, are you guys open? We’re looking to do something. And social media became kind of the channel that allowed them to reconnect with their guests as they were coming out and being able to provide the hotels for guests to kind of go on these vacations from all that pent-up travel demand.

So, that’s kind of how the hotels recovered from it. A lot of the hotels, you know, they had massive layoffs. They lost a lot of people, and they have limited teams [while] maybe prior to the pandemic had a full-time marketing team or department where they were able to do social media.

It was a great opportunity for them to leverage an agency to do that.

And so, we came up with a COVID relief package, which, was just minimal presence, but it was at least something for them: handling their Instagram DMs, responding to comments, getting some basic ads out there, sprinkling out some basic content, just so people would know they’re open again.

We just decided to double down: Serve the hotel space, the resort space, provided some just kind of really bare bones packages that were in full transparency. And we weren’t getting rich off of them, but it got our foot in the door with the hotels again.

And it really reminded me of my early days at the agency, but it was good. It got us back and reacquainted with many of our old partners but also newer hotels that we’ve never worked with before. So, and then I know you also asked, like, how’s the agency evolved and whatever. Definitely one of the pros, I will say, that did come out of this is it allowed us to kind of reestablish how we wanted to do things.

Sometimes, you would maybe have an old hotel partner who was setting their ways or setting things being done a certain way. Coming out of the pandemic and having that little hiatus of six months with a lot of them allowed us to kind of hit the reset button and just shift some of those things in patterns that we were doing.

Obviously, we can expand on that, but that was really (I’d say, from a high level) how we adopted it and came out of the pandemic.

Mike Allton: That makes a lot of sense. I definitely remember that sense, after being cooped up for so long, that need to get out. We went to New York City for Christmas and New Year’s 2021. We finally were allowed to so we were living in Manhattan for years. We didn’t go to the ball drop. We went to Times Square earlier that day. We weren’t quite that crazy to be among thousands of people at that time, not tens of thousands like it used to be, right? But it was just thousands, but now it’s 2024, and things have continued to change and evolve.

How are you seeing the marketing industry within hospitality today?

Tyler Anderson: So, I was going to maybe intertwine this in my last answer.

One of the other things that I think happened from the pandemic … If you look at the data, what exploded during 2020 was TikTok in short-form video because people were stuck at home and consuming it. And like TikTok massively exploded in that, where before the pandemic, it was like, “Oh, that’s just for teenagers.” Right?

When the pandemic hit and now you’re having moms, 30-somethings, older millennials, and then even some younger Gen Xers who are now becoming avid users on that platform, it changed the game. And then Instagram, of course, followed suit.

So to answer your question, I’d say that’s the biggest thing from then to now.

What’s changed is the significance and importance of basically short-form videos across the platforms.

And that is the one thing, too, from a strategic perspective, like with hotels. And I mean, gosh, we could make a whole separate podcast just on the performance of organic content in social media right now. So I’m not going to rant on that, but video is the one way that we see with all our hotel partners. I can pretty much do any random spot check, even on other hotels that we don’t work with. I think this is the same for all businesses. That’s why I said, I’d be curious about you.

Video is the one thing like your newsfeed content if it’s images or carousels, that content is primarily only being served in the newsfeed to your majority of your followers. And then, whereas Reels content is what, when we look at the analytics, a lot of times that’s reaching non-followers. That’s how you’re growing your audience, seeing new people.

So from the travel perspective, those who are definitely adopting Reels content and short-form video content . That’s where we’re seeing the most success. And, of course, that’s a result of the pandemic, and I give all that credit to TikTok.

Mike Allton: Yeah, I totally agree with that.

We’re seeing a lot more videos coming up and performing well on TikTok when it’s a search perspective, right? People are going to TikTok to search for destinations and options and leisure destinations for instance. Whereas, yeah, you’re right. The Instagram Reels in particular are being served to a far greater audience that isn’t already following the accounts. I got a notification this morning, maybe yesterday from Instagram, you know, specifically saying, “Hey, this particular Reel has reached a significant, exponential number of people that aren’t already following you,” which I’d personally seen. So I’m not a Reels producer, but that was pretty cool.

On the flip side, I got a notification from Facebook saying, “Hey, your engagement is down. Why don’t you create more Reel content?” And I’m thinking I’m publishing the same content to my Facebook page as my Instagram account. So I’m reaching different audiences on those platforms, but I think you’re right.

Tyler Anderson: It’s nuts because I will log in, I’ll do random spot checks. I obviously don’t manage the accounts, but I’ll do random spot checks with some of our hotels.

I’ll usually maybe sign into the Instagram account for, like a high-end luxury, beachfront resort. And then I’ll also do it for maybe a big box hotel in an urban city. And it’s consistent across the board when I do these checks, usually, their video content, the Reels are reaching usually anywhere from 30 to 40 percent non-followers. Whereas just a standard image post is reaching 90 percent of only followers.

You brought up a good point, too, of how the landscapes changed is the integration now of social SEO. So, Instagram has made changes where you can write keywords and phrases. So, it might be planning a trip to New York City and just trying to change the copy to include that. That’s been a big change in the last four years because that didn’t exist.

One thing I just don’t want to forget to bring up just from a content perspective: Pre-pandemic, I’d say one of our job applications, when we would hire new talent and people to work with our accounts, we had a lot of writing examples.

We asked for writing examples, and I’d say being a super-strong copywriter was super-important. That’s not the case anymore.

I’m not saying we rely on AI , but we can use AI to teach people how to write copy and better copy and improve their copy. And we had one girl who works for us … We hired her before AI took off. And she’s great and she’s awesome, but we joke with her that she was like a B minus copywriter before, but she’s taken the time to learn how to use AI and she became one of our best copywriters. And [she] knows how to use the right prompts and nail it.

Tying this back to what we look for now, though, and how it’s changed, we look for people who are good creators, who know how to create good video content. Not that you have to be a professional videographer, because nowadays, anybody can be it with their smartphones. And I’m sure we’ll talk a little bit about influencer marketing stuff, but really, we try to train a lot of our people who work for our hotels to almost be like influencers or creators.

You’re just not a creator professionally, if you will, or you’re not an influencer, if you will, but you should be able to create content like that. And, so we’ve invested like a lot on that and a lot in training on that. And that’s the number-one thing we look for now.

Can you create good content? We’ll worry about the copywriting later. So that’s been a big evolution that, you know, was not the case four and a half, five years ago.

Mike Allton: That is such a good point. In fact, we talked about that a little bit in our first episode, with the social media marketing manager for MGM and about the importance of shooting content on-site.

In fact, for those of you who want to learn more about TikTok SEO, check out our sister podcast, the Social Pulse Podcast: Retail Edition . I did a whole episode with Wave Wyld all about TikTok SEO. It’s incredible.

Incorporating SEO

Tyler Anderson: Mike, you brought up a point I want to go back to. You’re talking about, just like the social SEO. I’ve not seen the study yet … A part of me wants to do it on my own and just fund it. Like, maybe I should do this, but I’m very into like anecdotal, just like observations and trends and stuff.

And, you know, a majority of our employees now are under the age of 30. They don’t Google stuff. They don’t. They don’t go onto Google and search it. They go to TikTok and Instagram, and usually it’s TikTok, and they search if they’re looking for a hotel or they’re planning a vacation or they’re looking what restaurant to go eat. “Hey, I want to do sushi in Dallas tonight.” Or they’re traveling, they’re looking on TikTok and Instagram and they’re searching there.

You know, they’re not going to Yelp. They’re not going to Google. They’re not going to TripAdvisor.

I asked the point blank, “Is that what you and all your friends do?” Like, yeah. And so like, okay. Some hotels may say, well, we’re a resort and we’re more luxury and they’re not our audience because they can’t afford us right now. And I hear that. Okay. But they will be in five years. So you can get involved now here. And if that is your audience, like that’s what you got to be mindful of.

We noticed that we’re encouraging that with our hotel partners. We incorporate that when we’re creating content. We try to keep the vibe in mind as well as incorporating those keywords and phrases that can help them show up on that search, but it’s changing for sure.

I’m kind of a tweener between a millennial and a Gen Xer. So to me, I still do like reviews. If I’m buying products and services, I will look at the stars, and I will read people’s opinions. That would be like my first criteria for a lot of younger millennials and Gen Z or Gen X or Gen Z.

What we’re seeing is they’re looking for the vibe, the ambiance. That’s their first priority, then it goes to the reviews and the five stars or whatever it is, so. Just an observation.

Mike Allton: That’s an excellent point. It’s a lot like Pinterest was for years. Where people were pinning pins, we would often refer to them as dreamers, right? Because they would be pinning things that they wanted to make, they wanted to do, or wanted to buy at some point in the future.

A luxury brand who says, “I don’t want to be on TikTok. That’s not my target audience.” You’re absolutely right. Those are the people that they want to get in front of so that maybe somebody can’t afford the Conrad in Manhattan today, but if they see the vibe there, if they see the magnificent vaulted ceilings and they see where they’re situated, that might be a hotel that they want to save up for and dream about going a year or two, five years down the road.

And you’re right. The entire search landscape is changing beneath our feet. I subscribe to Search Engine Journal and MarTech Search and these kinds of newsletters. People are freaking out, search marketers are totally freaking out because TikTok, Instagram, and Pinterest and AI. Between those facets the Google blue links are going away. They just are.

So that’s changing. But to your point, social is an opportunity for luxury brands. So that’s a particular trend. And I’m glad you brought that up.

What other trends are you seeing that social media managers and the community managers that are listening in the hospitality industry today?

Tyler Anderson: We’ll touch on influencer marketing a second.

The other trend that we are seeing is the de-emphasis of the vanity metrics. Hotels have now been, and I think a lot of small businesses kind of feel this way, hammered. Originally, there was a land rush to be on social because it was quote-unquote free advertising, right?
And over time, they’re noticing a lot of times their organic reach has just been just decreasing, decreasing, decreasing, right? There’s a decrease in organic search results, but you still need to have it for the point we just made.
People still are going to go search. So maybe while your content will naturally show up in the feeds of your followers, you still want good-looking content. So when people are searching or they stumble across you or you’re running ads, because that’s a big proponent, maybe you’re running ads and then they click through to your profile. And the reason they do that is this kind of ties back to the point we’re just talking about. Search has gone down … By the time like a Gen Z person or a younger millennial is hitting your hotel’s website, they [are] pretty much in the bottom of the funnel.
They’ve already decided they’re going to your destination. They’re just debating between you and maybe one other hotel. They’re not looking at rate. They’re not going to your website to check out all your beautiful photos to read about the destination. They did all that preliminary research on social media, on TikTok, on Instagram, whatever may be.
So we’re seeing the trend that we’re seeing now is actually having that elevated content. Hotels are now kind of putting a different style to their content. They’re investing more in lifestyle content productions to almost make their social media be a replication of their website, just not as traditional like a website, like having more that kind of blend of influencers slash UGC style content, but maybe created by the hotel. So really, I guess what I’m trying to summarize, we’re seeing a bigger investment in original content by the hotels, to make their social feeds be an extension of their website, knowing that it’s not gonna maybe get the, the reach. It’s not going to get maybe the engagement and it’s maybe not going to get the follower count that they were maybe hoping for five, six, seven, eight years ago when they started all this.

So that’s another big shift that we’re seeing, too.

Mike Allton: I want to hone in on that a little bit because that is different from what we’re seeing on the retail side.

On the retail side, there’s definitely an emphasis on UGC. I was talking to a product manager at TikTok in a recent interview. They were showing us the statistics with this, but with that kind of content on the retail side, the emphasis is definitely on authentic like homemade-looking. I don’t know how else to put it, where it really looks like somebody made this video themselves, not in a production studio.

I gave the example where I was on TikTok personally and I saw somebody demonstrating a product and he was standing in his garage next to his car with a crappy overhead garage light. The garage door was closed, and he’s like using the back of his garage door as the background on which to frame this product. The product itself was cool. The production value of the video was really, really crappy. But the more I looked at it, the more I realized it was the brand that was creating that video.

It was just, to your point, a UGC style. But if I understood you correctly, it sounded to me like you said that:

With the hospitality edition with hotels, the focus is on UGC content but elevated in the production value.

Tyler Anderson: Yeah. And when I say elevated … I mean, that still can happen maybe for the ads. This probably is a perfect blend into the influencers, too.

Influencers or content creators? Yes, that’s a strategy, but it has to be done carefully. And we’ll get to that in a second. But one of the challenges or problems that a lot of the hotels find (and we find this, too) when you would work or partner with some of these creators, it’s all about them.

Like they show up and when they’re creating the content, it’s not really featuring the hotel. It’s not featuring the amenities. I get it. That creator maybe wants to be authentic to their audience, but there still is a ROI that the hotels are measuring. So it’s one thing if you’re working with that creator and you want that creator to create that content and then they’re posting on their channels, that’s fine.

But some of these hotels were also trying to do that as a means to getting more of their own content that they would want to post as well. Then all of a sudden, the content then gets off brand. Like you lose a little bit of your brand authenticity then too. So it’s like a double-edged thing. Like you kind of want it, but then you don’t want it too much.

So that’s why I was saying: Hotels are willing to kind of compromise some of those vanity metrics. Like, hey, we know that we may not get as much engagement on this post if we use UGC as if we do something that we create that’s maybe a little bit more elevated and is on brand. But it has still that portrayal of it.

So that’s why what I was saying: What we’ve done at our agency, we try to do a blend. So that’s why we’re training our team to be like content creators. But they’re going in to do it for the hotel, not for their own thing, because they’re not an influencer, right? So, that’s where we’ve invested a lot in our training.

Most of the time we’re shooting most of it on iPhones, and we teach them how to edit and cut that. So it has that UGC look.

In the pre-show you said who do you get your news from?

One of my favorite followers is Adam Mosseri . Do you ever follow his content? He’s the head of Instagram. I mean, he, to me, it’s straight from the horse’s mouth. Like he’s telling you what they’re doing, what they’re working on and all that. Well, if you watch and listen to his reels and stuff, it’s really interesting. When he’s talking about all these strategies and best practices and what you should be doing, I’d say, I’m not going to say all the time, but like 90 percent of the time, he says, “If you’re a creator, if you’re a creator, if you’re a creator …”

I actually want to do a mashup of his videos talking and never do I hear him say if you’re a business or if you’re a brand or whatever, you know, it’s always about if you’re creators.

And if you really think about it, like going back to my opening here, when I said, I came from traditional media:

“That’s just the world we live in now. Like Facebook is no different than what NBC was in the nineties. Like Facebook’s just a network. And as opposed to in the nineties, we’d watch Friends or we’d watch Seinfeld . Now people are watching this creator or that creator. And so Facebook wants these creators to create all this content. They don’t want brands. Not saying we can’t be there, but it’s not their first choice. The brands I’m tying this back here, I guess the trend though, is we are still seeing hotels that realize that. And so they’re like, all right, if we’re going to run ads and we’re going to do pay to play, and we want this stuff, we at least want our end result or our product representing our product the best.”

So that’s where they want to maybe have some elevated content. They realized they can’t just show the room that would be on the website with nothing in it. They need to have a couple in there, maybe having some drinks or having breakfast in bed or the children jumping on the bed.

So we try to stage some of that and make it more lifestyle with some models. And that’s why I say a big trend is like that lifestyle aspect to it, not just like an architectural shoot and then doing it from a UGC perspective.

I know I’m bouncing around here, but that’s kind of the trend. And then tying this back to influencers, I’m not saying influencer marketing doesn’t work (my personal opinion on this). And one of the things that we’re trying to shift for it is, you know, if you’re a hotel out there, I get it, especially if you’re a nice hotel. For the listeners out there who aren’t a hotel, maybe you’re an influencer and you’re like, “Hey, I want to work with more hotels.”

Here’s my advice: The hotels are in no shortage. Good hotels, they’re in no shortage of getting influencers who want to work with them. They get hit up all the time, like all the time, especially if it’s a nice resort.

And I’m sorry if you’re an influencer, that request that you send saying, hey, you’re coming on your family vacation and you have X amount of followers and you get this amount of reach and you want a free hotel room and all this stuff because you’re 90 percent of the time? The hotels don’t see the ROI there.

So they can’t quantify it. Okay. That’s just the reality. And they get so many of those. And then furthermore, we see this, too. Mike, this cracks me up. Those same people sometimes are staying at one hotel on a Monday, Tuesday, and then Wednesday, Thursday, they’re staying at the competitor’s hotel across the street.

What kind of mixed message is that sending to the hotel, right? Or to your audience? Well, okay, well, am I supposed to stay at that hotel or that hotel? Right?

So, my advice: Play the long game. And this is what we’re trying to do more. We’re trying to have our hotels select partners and influencers that they feel represents the brand well, that has the audience that we think also would be interested in the brand.

Don’t look at it as a one-time engagement, but let’s try to do a multi-engagement. So, we’re trying to have it be at like a year, year and a half. Now you can tell the story with their audience. So the first one might be like, “Hey, we want to do a multi-campaign agreement with you. It’s going to be four hosted stays to be done over the next 18 months.”

Part of that, we want you to talk about the various phases of travel. So it might be: “Hey, I’m thinking of a girls’ trip with me and my friends. Like you can picture this on an influencer’s account. We’re going to go to San Diego. We’re like narrowing it down. Oh my God, I was thinking about some hotels. I think I’m going to maybe do this hotel. It has this, this, this.”

Now, her audience is being told of the story, right? But then they’re also going to see it now a week before she goes. And then they’re going to see it while she’s there. Then they’re going to see the wrap-up. Then they’re going to see four months later: “I had so much fun in San Diego. You know what? I can’t wait to take my husband back for his birthday.”

You know, now you’re building that relationship. And it’s so interesting. Maybe it’s because I’m an old school marketer. Marketing hasn’t changed like the principles of marketing. Like it’s the same principles of marketing that were for whatever reason with social media, we get so caught up on the new shiny object.

And if you ever worked with in radio, television, print, the number-one thing they’d always talk about is frequency. People aren’t going to make a decision off of a frequency of one. They’re not going to hear one radio commercial and act on it. They’re going to hear your radio commercial maybe five, six, seven, eight times, then they act on it.

Why are we not approaching influencer marketing the same way?

That influencer needs to have a frequency with their audience, not three times in a 24 hour period. Oh, big deal. If they did three stories, we’re all going to disappear. But if you’re following an influencer and you’re hearing them talk about any product or service in January, then again, in April, then again, in September, now you’re building that credibility and trust.

Mike Allton: I 100% agree. Tyler, this has been amazing. The time’s going by so fast. I just have one more question I want to slip in here because you talked about the ROI of influencer marketing, which I do influencer marketing, so I understand that’s a challenge no matter who you are.

But what about organic social media?

How are you measuring the impact of social media on these businesses, on these hotels?

Tyler Anderson: So there’s a couple of ways. That’s a great question. It’s kind of a loaded question.

[It] depends on who our hotel partner is and what their goals are because each one of them may have different goals. For some of them, it is still, it pains me to say this, but you know, at the end of the day we can educate our clients. And sometimes they don’t know what they don’t know. But, for some of them, sometimes it’s still vanity metrics. They want to know, are we growing our social accounts? Are we getting engagement? Things like that.

For other ones, it could be something very transactional. They want to see that they’re actually getting heads and beds, room bookings. There are some restrictions we have just as if it’s a large big brand hotel. Obviously, Marriott or Hilton or Hyatt ‘s not going to give us pixel data to track that.

We might have to get creative. We might come up with social media packages or deals only. So then we might only run them from social media. So maybe it’s like, “Hey, we have a triple-A special that we want to offer for this hotel” where they’re not advertising any other place, but social media, we might run it there. Then we can at least track the heads and beds …

So it’s like reach, impressions, cost per thousands, just those various metrics, which brings us back to traditional marketing. It really does depend on the hotel. And then I’m going to throw the wild card at you. That wild card metric. It’s just the eye test. And I know that sounds so stupid, but we have a lot of hotels who have ownership groups who literally just want to go to their Instagram feed, look at it and have this confidence that they love it.

Thanks for listening [and reading] the Social Pulse Podcast: Hospitality Edition, where we’re digging into the challenges, successes, and stories of social media and community professionals in the industry, just like you. Subscribe to gain valuable insights that you’ll be able to apply to your own work and social presence from each and every episode.

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230+ Innovative Hospitality Management Research Topics In 2023

Have you ever thought about what goes on behind the scenes to make your hotel stay or restaurant food so great? Hospitality management research is like the investigative work of detectives in the world of hospitality. It aims to find ways to enhance your experiences away from home and ensure that hotels and restaurants run smoothly.

In this blog, we delve into the importance of research in the hospitality industry. It’s the key to enhancing guest experiences, optimizing business operations, and promoting sustainable practices. It keeps businesses up-to-date with changing trends and helps attract and retain the best staff, all while exploring innovative solutions for the challenges faced by the industry.

We’ll also provide you with over 230 innovative research topics in hospitality management for 2023, catering to various fields of study, whether you’re a social sciences, economics, STEM, or law and ethics student. So, if you’re curious about the world of hospitality research, read on to uncover the secrets of guest satisfaction and the ever-evolving landscape of this dynamic industry.

What Is Hospitality Management Research?

Table of Contents

Hospitality management research is like detectives studying how hotels, restaurants, and other places where people stay and eat can do things better. Imagine someone trying to find ways to make your hotel stay more comfortable or your restaurant meal tastier. That’s what researchers in hospitality management do. They ask questions, gather information, and use special tools to solve problems and make the experience of staying and eating out more enjoyable for everyone. They also look at how to make these places run smoothly and help the people who work there do their jobs better.

This kind of research is important because it helps hotels and restaurants become better at what they do. It can lead to new ideas and improvements that make guests happy and also help the businesses make more money. So, hospitality management research is all about finding ways to make your time away from home more enjoyable, relaxing, and delicious.

Importance Of Research In Hospitality Management

Here are some importance of research in hospitality management:

1. Enhancing Guest Experiences

Research in hospitality management helps hotels and restaurants figure out what makes guests happy. It’s like finding the secret recipe for a big smile. By asking questions and studying what guests like and don’t like, they can make stays and meals more enjoyable and memorable.

2. Efficient and Well-Run Businesses

Just like a chef needs a recipe to cook a delicious meal, businesses in hospitality need the right recipe for success. Research helps them find the best ways to do things, like how to manage staff, plan menus, and set prices. This makes the hotel or restaurant run smoothly and make more money.

3. Sustainable and Eco-Friendly Practices

Researchers in hospitality also look at ways to be kind to the planet. They explore how to save energy, reduce waste, and use fewer resources. This not only helps the environment but also saves money for businesses in the long run.

4. Keeping Up with Changing Trends

Travel and dining habits change over time, just like fashion trends. Hospitality research keeps businesses up-to-date with what’s popular and what’s not. It’s like knowing which clothing style is in fashion, but for hotels and restaurants.

5. Attracting and Training the Best Staff

Good staff is like the icing on a cake – they make everything better. Research in hospitality management helps businesses find and keep talented employees. Businesses can make their employees happier and more effective by knowing what they need and want. This will lead to better service for guests.

In this section, we will discuss hospitality management research topics:

Great Hospitality Industry Research Topics

Consumer Preferences in Sustainable Accommodations
Technology’s Role in Personalizing Guest Experiences
Crisis Management in the Post-COVID-19 Hospitality Sector
Food Safety and Public Health in Restaurants
Diversity and Inclusion in the Hospitality Workforce
Cultural Exchange and Tourism Impact
Managing Employee Turnover in Hospitality
The Effect of Online Reviews on Hotel Selection
Social Media Marketing for Hotels
Environmental Responsibility in Hospitality Operations

Amazing Research Titles About Hospitality Industry

Sustainable Hospitality: Green Practices and Guest Satisfaction
Innovations in Guest Experience Management
Resilience in the Face of Crisis: Hospitality Industry Strategies
Digital Disruption in Hospitality: The Tech Transformation
From Stars to Stories: Rethinking Hotel Ratings
Exploring Cultural Tourism in the Hospitality World
Unveiling the Secrets of Top-Rated Hotels: A Guest-Centric Analysis
Banquets and Conferences in the Digital Age: Innovations in Event Management
Social Media Crisis Communication for the Hospitality Industry
Dining Experiences Beyond the Plate: Restaurant Innovations

List of Recommended Philippines Hotel and Restaurant Management Dissertation Topics

Boutique Hotels and Local Tourism Development
Culinary Tourism in the Philippines: A Flavorful Journey
Community-Based Tourism Initiatives: Socioeconomic Impacts
Sourcing Locally: Sustainable Food Practices in Filipino Restaurants
Promoting Filipino Hospitality and Cuisine through Social Media
Revenue Management Strategies for Philippine Hotels
Cultural Festivals and Hotel Occupancy Rates
Elevating Customer Service in Filipino Restaurants
Ecotourism Trends and Eco-Friendly Accommodations in the Philippines
Adapting to the ‘New Normal’: Challenges and Opportunities in Philippine Hospitality

Research Topics in Hospitality Management for Social Students

Social Responsibility in Hospitality: A Comparative Study
Indigenous Communities and Tourism: Social Implications
Gender Diversity in Hospitality Leadership Roles
Mental Health Among Hospitality Workers: A Social Perspective
Social Media’s Impact on Destination Marketing
Inclusivity and Diverse Populations in Hospitality
Reducing Food Waste in Restaurants: A Social Goal
Tourism as a Catalyst for Cultural Exchange
Social Entrepreneurship in the Hospitality Sector
Community Engagement in Tourism Development

Research Topics for Hospitality Management for Economy Students

Mega Events and Their Economic Impact on Hospitality and Tourism
Price Elasticity in the Hotel Industry
Economic Analysis of All-Inclusive Resorts
Tourism’s Role in the Economic Development of Developing Nations
Foreign Investment in Hospitality: Economic Insights
The Economics of Luxury Hotel Operations
Market Entry Strategies for International Hotel Chains
Tourism Taxes and Their Influence on Visitor Numbers
Airbnb and Its Economic Impact on Traditional Hotels
Agrotourism’s Economic Viability and Potential

Outstanding Research Titles For Hospitality Management Students

Crafting Exceptional Guest Experiences: A Study in Hospitality Excellence
Hospitality Resilience in Times of Crisis: Strategies and Success Stories
The Digital Revolution: Innovations in Hospitality Management
Beyond Stars and Diamonds: A New Era of Hotel Classification
The Art of Hospitality: Unveiling the Secrets of Top-Rated Establishments
Events Redefined: Innovations in Banquets and Conferences
Navigating Social Media in the Hospitality Industry
Sustainability and Responsibility: The Future of Hospitality
Restaurants Reinvented: Culinary Adventures in Modern Dining
Emerging Ethical Dilemmas in Hospitality Management

Leading Thesis Titles For Hospitality Management

Hotel Revenue Management Strategies and Their Impact on Profitability
The Influence of Guest Reviews on Hotel Selection
Digital Transformation in Hospitality: A Case Study of Leading Chains
The Role of Environmental Practices in Guest Satisfaction
Global Diversity in Hospitality Leadership: Challenges and Opportunities
Promoting Cultural Tourism for Sustainable Economic Growth
Employee Turnover: Causes, Costs, and Solutions in the Hospitality Sector
Social Media Marketing for Hotels: Best Practices and Pitfalls
Legal and Ethical Aspects of Food Safety in Restaurants
The Sustainability Movement in Boutique Hotels: Case Studies

Hotel Management Research Paper Ideas

Optimizing Hotel Room Pricing Strategies
Enhancing Hotel Operations Through Technology
Sustainable Practices in Hotel Management
Crisis Management and Disaster Preparedness for Hotels
The Role of Leadership in Hotel Success
Innovations in Hotel Guest Services
Customer Relationship Management in the Hotel Industry
Effective Marketing Strategies for Hotels
The Impact of Employee Training on Guest Satisfaction
The Influence of Hotel Design on the Guest Experience

Argumentative Essay Topics for Research in the Hospitality Industry

The Pros and Cons of All-Inclusive Resorts
Online Travel Agencies vs. Direct Hotel Booking: Which is Better?
The Ethics of Wildlife Tourism: Balancing Conservation and Entertainment
The Role of Technology in Replacing Human Workers in Hospitality
Is Sustainable Tourism Truly Achievable, or Just a Buzzword?
Cultural Appropriation in the Restaurant Industry: Where to Draw the Line
Balancing Economic Growth and Environmental Sustainability in Tourism
The Impact of Overtourism on Local Communities
Are Hotel Loyalty Programs a Benefit or a Burden for Guests?
Legal and Ethical Issues in Food Allergen Handling in Restaurants

Social Media Research Topics
Mental Media Research Topics

Creative Hospitality Management Research Topics

The Influence of Art and Design on Hotel Guest Experience
Gastronomic Tourism: Exploring the World Through Food
The Theater of Fine Dining: Immersive Restaurant Experiences
Hospitality as a Form of Entertainment: Theatricality in Hotels and Restaurants
Novel Approaches to Hotel Branding and Theme Concepts
Music and Soundscapes in Enhancing Ambiance in Hospitality Establishments
The Role of Storytelling in Hotel and Restaurant Marketing
Innovative Hotel Room Features and Amenities
Sensory Marketing in the Hospitality Industry
Virtual Reality and Augmented Reality Applications in Tourism and Hospitality

Social Media Research Topics About the Hospitality Industry

The Impact of Influencer Marketing on Hospitality Businesses
Crisis Management in the Age of Social Media
User-Generated Content and Its Influence on Hotel Bookings
The Role of Instagram in Promoting Food Tourism
The Viral Power of TikTok for Restaurant Marketing
Online Reputation Management for Hotels and Restaurants
Social Media as a Tool for Personalized Guest Experiences
The Dark Side of Social Media: Handling Negative Reviews
Popular Topics in Philippine Hotel and Restaurant Management Theses
The Privacy Debate: Social Media and Guest Data in Hospitality

Excellent Research Titles About Hospitality Management

The Guest Journey: A Holistic Approach to Hospitality Management
Resilience in the Hospitality Industry: Lessons from Adversity
Tech Transformation: Shaping the Future of Hospitality
Guest Satisfaction Beyond Stars: Secrets of Highly Rated Hotels
Innovations in Event Management: Redefining Conferences and Banquets
Navigating the Digital Age: Social Media Marketing for Hotels
Sustainability and Responsibility: The New Imperatives in Hospitality
Culinary Experiences: The Evolution of Dining in the Modern Era
Ethical Dilemmas in Hospitality Management: A Comprehensive Study
Unlocking the Potential of Boutique Hotels: Case Studies

Tourism and Hospitality Research Topics for STEM

Data Analytics in Tourism: Optimizing Operations and Guest Experiences
Smart Cities and Sustainable Tourism Development
Biotechnology and Food Safety in Hospitality
The Role of Artificial Intelligence in Personalized Tourism Recommendations
Environmental Engineering in Sustainable Hotel Design
Renewable Energy Solutions for Eco-Friendly Accommodations
Geographical Information Systems (GIS) in Destination Planning
Sustainable Transportation and Tourism
The Impact of 5G Technology on Tourism Services
Waste Management and Recycling in the Hospitality Industry

Sustainability Research Topics for Tourism and Hospitality

Zero-Waste Initiatives in Hotels: Challenges and Success Stories
Sustainable Agriculture and Farm-to-Table Dining in Restaurants
Carbon Footprint Reduction in Air Travel and Its Implications
The Role of Green Certifications in Eco-Tourism
Plastic Reduction Strategies in the Hospitality Sector
Community-Based Tourism and Local Ecosystem Preservation
Sustainable Water Management in Hotels and Resorts
Sustainable Practices in Adventure Tourism
Responsible Tourism and Conservation of Endangered Species
Green Building Design and Energy Efficiency in Hotels

Simple Hospitality Research Topics

The Importance of Customer Service in Hospitality
Hotel Pricing Strategies and Occupancy Rates
Food Safety and Hygiene in Restaurants
The Impact of Guest Reviews on Hotel Reputation
Staff Training and Retention in the Hospitality Industry
Innovations in Hotel Room Design
Effective Marketing Strategies for Small Hotels
Local Food Sourcing for Sustainable Dining
The Role of Hospitality in Economic Development
The Psychology of Guest Satisfaction

Top Hospitality Research Ideas

Destination Branding and Its Legal Implications
The Role of Insurance in Hospitality Risk Management
Privacy and Data Protection in Guest Information Handling
Intellectual Property and Copyright Laws in the Culinary World
Alcohol Licensing and Regulation in the Hospitality Sector
The Legal Aspects of Hotel Contracts and Booking Agreements
Discrimination and Equal Opportunity Laws in Hospitality Employment
Environmental Compliance in Hotel Building and Operations
Liability in Tourism Activities: Legal Protection for Tour Operators
Health and Safety Regulations in the Restaurant Industry

Hospitality Management Research Topics

The Significance of Employee Training in Hospitality Service Excellence
Innovations in Hotel Room Amenities and Design
Food Safety and Hygiene Practices in High-End Restaurants
The Role of Technology in Guest Service Enhancement
Sustainability Initiatives in Hotel Operations
Crisis Management Strategies in the Hotel Industry
Tourism and Cultural Exchange: Promoting Diversity and Inclusion
Legal and Ethical Issues in Alcohol Service at Restaurants
The Psychology of Customer Loyalty in Hospitality
The Impact of Hotel Design on Guest Satisfaction

Research Topics on Hospitality and Tourism

The Interplay of Tourism and Local Culture Preservation
Sustainable Tourism in Protected Natural Areas
Hospitality Innovation for Accessible Tourism
The Influence of Cultural Events on Hotel Bookings
Online Travel Agencies and Their Impact on Small Hotels
Destination Marketing through Virtual Reality and Augmented Reality
Hotel Booking Behavior: A Comparative Study of Different Generations
Disaster Preparedness and Crisis Management in Tourism
The Effects of Weather and Climate on Tourism Destinations
Dark Tourism: A Study of Morbid Attractions in Travel

Excellent Hospitality Research Topics

The Power of Personalization in the Hospitality Industry
Exploring Resilience in Crisis-Hit Tourism Destinations
Hospitality Technology Adoption and Its Influence on Guest Satisfaction
Beyond Stars and Diamonds: A New Era of Hotel Classification
Crafting Unique Guest Experiences: A Study of High-Rated Hotels
Innovations in Event Management: Rethinking Conferences and Banquets
Social Media Marketing Strategies in the Hospitality Sector
Sustainability and Responsibility: Imperatives for Future Hospitality
The Evolution of Culinary Experiences in the Modern Dining Landscape
Ethical Challenges in Hospitality Management: A Comprehensive Analysis

Outstanding Hospitality Research Topics

The Guest Journey: A Holistic Approach to Hospitality Management
Strategies for Resilience in the Hospitality Industry
Digital Transformation in Hospitality: Innovations and Challenges
Guest Satisfaction Beyond Stars: Unveiling Top Hotels’ Secrets
Innovative Approaches to Event Management: Redefining Conferences and Banquets
Social Media Marketing in Hospitality: Best Practices and Pitfalls
Sustainability and Responsibility in the Modern Hospitality Landscape
Reimagining Restaurants: Creative Concepts and Trends
Ethical Dilemmas and Moral Compass in Hospitality Management
Boutique Hotels: A New Wave of Luxury Accommodations

Innovative Hospitality Dissertation Topics

The Impact of Blockchain Technology in Hotel Operations
Augmented Reality and Its Application in Hotel Marketing
Biosecurity Measures in Hospitality Post-Pandemic
Sensory Marketing and Its Role in Guest Satisfaction
Sustainable Practices in Hotel Interior Design
Robotics and Automation in the Hospitality Industry
Micro-Moments in Guest Decision-Making: A Mobile-First Approach
Virtual Reality-Based Tourism Experiences
Waste Reduction Strategies in Hotel Operations
The Role of Emotional Intelligence in Hotel Leadership

Unique Hospitality Research Paper Topics

The Impact of Feng Shui in Hotel Design and Guest Satisfaction
The Use of Scent Marketing in Enhancing the Guest Experience
The Role of Astronomy Tourism in Dark Sky Destinations
Hospitality for Space Travel: Preparing for a New Frontier
The Influence of Animal-Assisted Therapy in Hotel Stays
The Revival of Historic Hotels: Challenges and Success Stories
Gaming and Virtual Reality Integration in Hotel Entertainment
Culinary Tourism and Edible Landscapes in Restaurants
The Art of Mixology: Craft Cocktails in Modern Bars
Hospitality as a Platform: Cross-Industry Collaborations in Guest Services

Hospitality Management Research Topics in the Philippines

The Impact of Ecotourism on Philippine Local Economies
Local Food Sourcing and Sustainability in Filipino Restaurants
Community-Based Tourism Initiatives in the Philippines
Promoting Filipino Hospitality and Cuisine through Social Media
Adapting to the ‘New Normal’: Challenges and Opportunities in Philippine Hospitality
Cultural Festivals and Their Role in Philippine Tourism
Boutique Hotels and Their Contribution to Philippine Tourism
Sustainable Practices in the Philippine Hotel Industry
Tourism and Indigenous Communities: Social and Economic Impacts
COVID-19 and Its Effects on Philippine Hospitality: Lessons Learned
Tourism in the Philippines: Addressing Overcrowding and Overtourism

Challenges Face By Students During Hospitality Management Research

Here are some challenges that are faced by students during hospitality Management research:

Complexity of the Industry: The multifaceted nature of the hospitality industry demands an in-depth understanding of various sectors, making it challenging to focus on a specific research area.
Data Collection: Gathering reliable and relevant data can be a hurdle, as it often requires cooperation from industry partners or access to real-time customer data.
Changing Trends: Hospitality is constantly evolving with emerging trends and technologies. Students must keep up with these changes to ensure their research remains current.
Cultural Diversity: The global nature of the industry means that students may encounter challenges when conducting research in culturally diverse settings, from language barriers to understanding local customs.
Ethical Considerations: Studying the hospitality industry may involve complex ethical dilemmas, such as privacy concerns or the impact of research on businesses and employees.
Resource Constraints: Access to resources for research, such as funding, relevant literature, and technology, can be limited, especially for students with tight budgets.
Time Management: Balancing coursework, internships, and research can be demanding. Students often struggle with time management to meet deadlines and make progress in their research endeavors.

Hospitality Management Research is like the secret ingredient that makes hotels and restaurants better. It’s all about creating enjoyable experiences for guests, ensuring businesses run smoothly, and even being kind to our planet. As we’ve explored a wide range of research topics, it’s clear that this field is ever-evolving and holds countless opportunities for students and professionals alike.

By understanding the importance of research in enhancing guest satisfaction, improving business operations, and promoting sustainability, we can appreciate the immense impact it has on the hospitality industry. So, whether you’re a student or a business owner, keep exploring, innovating, and embracing the world of hospitality management research to ensure a brighter and more delightful future for all.

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Industry News

News August 26, 2024

ASI Research Exclusive: Europe’s Distributors Top $14B in Annual Sales

The new in-depth study of the European promotional products industry builds on ASI Research’s initial groundbreaking report on the market, which launched in 2023.

By Christopher Ruvo

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Last year, ASI Research debuted a landmark data-backed study that provided a first-of-its-kind comprehensive estimate of total promotional products distributors’ sales across the United Kingdom and European Union.

The analysis was never meant to be a one-off. Rather, it was intended to be the launching pad of an envisioned annual study of Europe’s promo business performance. And that’s just what it’s now become.

The flags of the European Union and United Kingdom.

Following months of study, ASI Research has released its second-ever annual estimate of promo sales in Europe. This year’s report is larger than last year’s, adding three new nations to the mix that are geographically in Europe but not politically part of the U.K. or EU – Iceland, Norway and Switzerland.

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Big Players

An uneven year, m&a’s uptick, the sustainability impetus, a quick word on product preferences, outlook 2024, spotlight on turkey.

The study also once more includes a nation-by-nation sales breakdown for the U.K. and each of the 27 countries that comprise the supranational political and economic union known as the EU.

The topline 2023 tally for all U.K. and European (EU and the three others) distributor sales? Nearly $14.1 billion.

Nearly $14.1 billion Annual promo distributor sales across the United Kingdom , European Union and Iceland , Norway and Switzerland in 2023. (ASI Research)

The total is more than half the size (54%) of the North American promo market, in which distributors collectively produced sales of $26.1 billion in 2023 on the back of 1.2% year-over-year growth, according to ASI Research.

Nate Kucsma, ASI’s senior executive director of research and the leader of the study, said the performance across the U.K./Europe was strikingly similar to that of the North American promo market in that sales broadly increased but did so moderately amid a plethora of challenges.

About $10.74 billion Annual promo sales in European Union countries in 2023. (ASI Research)

“The growth rates across nations were fairly measured, and there was not significant variation in the sales expansion rates among the various countries,” says Kucsma. “It shows a remarkable degree of interconnectivity.”

Keen observers may note that a comparison between 2023’s $14.1 billion figure and ASI Research’s estimate of $12.48 billion for the year before would indicate a year-over-year increase of about 13% in the U.K./Europe. Still, Kucsma explains that’s not an apples-to-apples comparison, as additional countries were added to the study this year and estimates for some countries, like Portugal and Spain, were reassessed in light of additional information that showed actual performance was stronger.

ASI Research developed the sales estimates through a combination of efforts that included intensive number-crunching and extensive first-person research conducted with key leaders in the U.K./European promotional products market.

Nearly $2.02 billion Annual promo distributor sales in the United Kingdom in 2023. (ASI Research)

ASI was able to leverage those executive connections, in part thanks to its several decades of transcontinental promo relationship-building, being a lead member/co-founder of international industry partnership organization PromoAlliance and through providing consistent media coverage of the merch market in Europe, including boots-on-the-ground reporting of major trade shows like PSI in Germany and Merchandise World in the U.K.

As for the number-crunching, researchers used the North American market as a sales benchmark.

With that in mind, ASI Research developed an algorithm that incorporated evaluations of gross domestic product per capita, advertising spend per capita and the number of small- and medium-sized businesses in every European country assessed. Researchers used the resulting formula and insights from European industry leaders to determine total promo spend estimates for the U.K. and the various European countries, then added those up for a combined total.

As promo increasingly globalizes, with more business interaction between the North American and European promo markets, it’s important to have industry-wide sales estimates that provide a scope for the addressable markets on both continents, says Kucsma.

“These numbers help orient the industry and aid every company in understanding where they stand and how they’re performing relative to the larger marketplace,” the research executive says. “We plan to continue to evolve our study in the years ahead.”

About $1.3 billion Annual promo distributor sales in Iceland , Norway and Switzerland in 2023. This was ASI Research’s first year analyzing these three nations, which are geographically part of Europe but not politically part of the U.K. or EU. (ASI Research)

When it comes to the U.K. and Europe, the top five countries for promo sales are Germany ($3 billion+), the United Kingdom ($2 billion+), France (nearly $1.7 billion), Italy (about $1.54 billion) and Switzerland (nearly $966.5 million).

The first four countries, which all experienced promo spend above $1 billion, are probably not a surprise. They’re home to Europe’s big national populations, major brands/corporations, and the continent’s largest national economies, all of which would be expected to drive swag spend.

Switzerland, however, counts a population just below 9 million. The Central European nation powered its way to the top five thanks, in significant part, to being a primary international center for banking and corporate headquarters, Kucsma says.

As such, a lot of merch investment decisions were made in Switzerland, resulting in nearly $1 billion in swag spend transacting through the nation, even if high proportions of the actual products were distributed beyond the geographically small country’s borders, according to ASI Research.

“Switzerland punches above its relative population weight due to its importance to the global economy,” says Kucsma.

Rounding out the top 10 countries were Sweden (nearly $661.2 million), Spain ($620 million), Denmark ($563.7 million), Belgium ($448.1 million) and the Netherlands ($431.4 million).

Spain is one of Europe’s most populated countries (about 48 million) and has one of the continent’s more advanced economies, with tourism and other industries driving commerce – all of which helped spark investment in swag. ASI Research developed additional information this year that enabled a more accurate estimate of Spain’s promo market, leading to a figure of $620 million for 2023, Kucsma notes.

In population terms, Spain is about eight times bigger than Denmark, more than four times bigger than Sweden and Belgium and nearly three times bigger than the Netherlands. However, those affluent Northern European countries have fairly robust economies, advanced marketing/advertising sectors and relatively high per capita GDP – all of which contributes to spurring comparatively muscular promo spending, research shows.

In North America, distributors’ sales growth in the second half of 2023 slowed. In the fourth quarter, for example, sales were essentially flat with a 0.9% increase reported, according to ASI Research.

Broadly speaking, the 2023 business performance of U.K./European distributors mirrored their cross-Atlantic counterparts.

“The second half of 2023 was a slower period for promo sales in Europe,” says England native Chris Lee , a member of Counselor’s Power 50 list of promo’s most influential people and CEO of The Pebble Group, the U.K.-headquartered parent company of promo software maker Facilisgroup and global distributor Brand Addition (asi/202515).

Lee continues: “Following the post-COVID bounceback, a whole host of macroeconomic factors led to caution on corporate spending in the year’s latter half, with many buyers holding onto their budgets and cash, delaying decisions around marketing investment.”

Business hurdles that had merch buyers balking included inflationary pressures, high interest rates, hesitancy to spend due to marketplace uncertainty and recession in economic powerhouse Germany, intensifying regulations that complicated business and even, in cases, political instability.

“The second half of 2023 was a slower period for promo sales in Europe.” Chris Lee, The Pebble Group

The recession in Germany contributed to promo distributor sales declining 0.68% in the country. “The general economic situation and mood in Europe, especially in Germany, has been rather negative,” shares Tobias Roesch, co-CEO of elasto GmbH & Co. KG (asi/51817), a large Germany-based supplier.

The Deutschland doldrums had a knock-on effect throughout Europe, given the nation’s pride of place as the continent’s largest national economy and biggest promo market.

“The German economy floundered, and that weighed on overall demand,” asserts John Lynch , founder of Krakow, Poland-based Lynka , one of Europe’s leading producers and suppliers of imprinted activewear, corporate clothing and accessories, which in 2021 became part of Counselor Top 40 supplier Vantage Apparel (asi/93390).

Despite Germany’s struggles, the promo market there still remained above the $3 billion mark – the only nation in the U.K./Europe in that category and about a third larger than the second-place United Kingdom. As importantly, promo distributors in the overwhelming majority of nations studied, including nine of the top 10, engineered collective year-over-year sales increases, even if those rises weren’t off the charts, according to ASI Research.

Distributor sales rose in Nine out of the top 10 European countries for promo business in 2023. (ASI Research)

Distributors executed the gains through a variety of means, including capitalizing on what remained of the post-COVID momentum – like the return of in-person business events and festivals.

“Events and travel were full-force again in the U.K. and the EU, with tourism as an economic driver,” says Power 50 member Jo-an Lantz , CEO/president of Counselor Top 40 distributor Geiger (asi/202900), a Maine-headquartered firm that operates in North America as well as the United Kingdom and continental Europe. “Similarly, an uptick in activity from the financial and retail markets helped drive promo sales.”

Meanwhile, with companies focused on retaining talent in the new hybrid working model, there was a growing trend of using promotional products to boost employee morale and engagement, including investment in employee onboarding kits, says Pieter Boonekamp, general manager of PF Concept, Europe’s largest merch supplier. More than a few distributors capitalized on that, he says.

“We’ve seen a trend toward merchandise that creates stronger ties between employees and their employer,” says Power 50 member Jay Deutsch , CEO of Washington-based Counselor Top 40 distributor BDA (asi/137616), which operates in key European markets like the U.K. and Germany. “The power of merchandise to show appreciation, incentivize, reward, inspire and welcome is unmatched.”

Some distributors and suppliers say demand for retail items and, relatedly, perceived higher value products helped pump up sales numbers, too. “We’ve definitely seen a shift to more high-end products,” shares André Noordwijk, owner/general manager of Netherlands-based promo firm BeGlobal Promotions.

In the U.K. in particular, a greater acclimatization to the post-Brexit reality among businesses and a general adaptability among distributors were among the additional factors that helped distributors keep business moving, executives say.

“Since COVID, many companies in the industry have been running leaner than before in terms of staff and overhead. This put them in a strong position to handle a challenging market,” says David Long, founder/executive chairman of Sourcing City, an ASI partner, PromoAlliance member and trade service organization that provides a suite of solutions for the U.K. promo market.

Another way some promotional products companies are driving sales in the U.K./Europe is through strategic acquisitions that enable them to increase market share.

Large North American-headquartered distributorships have been among the active when it comes to M&A.

To wit, Geiger has been consistently acquiring competitors in Europe since 2018, including this year’s acquisitions of Brandelity in England and WER GmbH in Germany. Building on past European acquisitions, BDA last year bought Germany-based ipm | gruppe and this year purchased U.K.-based sports merch firm The Great Branding Company . Counselor Top 40 distributor Myron (asi/278980) has gotten in on the action too, buying German distributor Schneider GmbH in February.

“With intense competition and market saturation , I would expect to see a continued approach to M&A as businesses look to increase market share.” Pieter Boonekamp, PF Concept

“The last few years have seen a number of the major U.S. distributors making multiple acquisitions across Europe,” says Lynch. “As global corporations increasingly demand global solutions to their merchandise needs, these moves are inevitable.”

To be sure, European-based companies are also purchasing competitors. In part, some executives say, their moves are related to North American firms’ acquisitions in the market.

“U.S. distributors being relatively acquisitive in the European market inevitably triggers a broader impact,” says Mike Oxley, the U.K. CEO of distributor Prominate (asi/300426).

Supplier-side deals are happening, too. Europe-based supplier Premium Square Group has been busy. “We have completed three acquisitions in the last two years to add territory and products to our range, and we’re definitely looking for others,” says Counselor Power 50 member Jeff Lederer , who holds a co-majority stake in Premium Square and is a leader of the investment firm that owns Myron.

“It feels like there are slowly more M&As in Europe , but it’s nowhere near comparable to the U.S. market.” Tobias Roesch, elasto GmbH & Co. KG (asi/51817)

Nonetheless, European promo leaders assert that M&A in the U.K. and on the continent is not happening at the rate seen in North America, where acquisitions have been on an upward arc, with massive deals – including the biggest the North American industry has ever seen – occurring. “It feels like there are slowly more M&As in Europe, but it’s nowhere near comparable to the U.S. market,” says Roesch.

Promo leaders in the U.K. and EU aren’t expecting promo M&A to rapidly intensify on their shores, nor do they believe vast consolidation of their fragmented markets is in the cards. Still, many say they anticipate a gradual rise in mergers and acquisitions in the years ahead.

“With intense competition and market saturation,” says Boonekamp, “I would expect to see a continued approach to M&A, as businesses look to increase market share.”

Adds Oxley: “I do expect further M&A as some companies struggle/fail and as other U.S. distributors take an interest. However, I think a wholesale shift in the market is unlikely.”

Get this: In 2023, Netherlands-based BeGlobal Promotions experienced 35% year-over-year growth in sales of sustainable products within its portfolio.

The increase was driven by end-buyer demand and government regulations that have clamped down on easily disposable products with short life cycles, says firm principal Noordwijk.

BeGlobal’s experience with sustainable product sales, and the reasons for it, are representative of perhaps the broadest product phenomenon sweeping promo Europe from Reykjavik to Rome: customers’ rampant demand for ethically made items that minimize impact on the planet, and the industry’s intense impetus to meet the need.

“It seems that all new products now have sustainability credentials,” says Long. “This focus on the environment has been prevalent in the U.K. for several years now, and most suppliers have ranges of products that have some claim to be environmentally friendly.”

“A more professional, sustainability-minded industry is necessary for the ongoing health of the European promo market , especially as it relates to buyers’ perceptions of what we do. The alternative is that some buyers will simply disengage with promo.” Mike Oxley, Prominate (asi/300426)

Executives think the demand for green will only grow, continuing as not a trend but a foundational launching point from which all new products must be created. “In the apparel arena, for instance, there are a number of brands that have already gone 100% sustainable, like Mantis and Neutral,” says Lynch. “At Lynka, we have one of the most sustainable apparel decoration facilities in Europe and continue to invest in eco-friendly solutions.”

To be clear, sustainability doesn’t just mean using eco-friendly materials. It involves ensuring a product with such materials is made through a supply chain in which workers are treated humanely and properly compensated, all while operations have increasingly fewer impacts on the earth. The emphasis extends to how the products are circulated, too.

“Stricter regulations on packaging waste are pushing companies to use minimal and recyclable packaging for their promotional products,” notes Boonekamp.

Speaking of: End-buyers are increasingly demanding proofs/certifications of eco/ethical claims and government-driven laws are making certain sustainable operations a requirement. “Companies are increasingly required to conduct LCAs (life cycle assessments) to measure the environmental impact of their products from production to disposal,” Boonekamp says.

Promo Europe is working to keep up with the change, though executives admit that doing so requires continual evolutionary efforts in operations, managing tomes of additional paperwork and shouldering increased costs.

“The amount of data that needs to be collected and maintained to report under the EU’s Corporate Sustainability Reporting Directive , for example, is massive, and requires even more investments in technology to store, measure and report,” shares Boonekamp.

On an industry-wide level, more must be done to keep up, some say.

“The lack of specific information on carbon emissions of products can be an issue,” says Geiger’s Lantz. “As a result of legislation, we’re required to provide carbon emissions on products for certain clients. Suppliers are making progress in this area and will slowly improve. As a distributor, we need to implement systems and processes to hold this data and pull it forward to our clients in addition to our own efforts to reduce our carbon footprint.”

To Lantz’s point on progress, for sure some suppliers have already made pivotal advancements. Netherlands-based XD Connects, Counselor’s 2024 Sustainability Advocate of the Year , has made a mission of proving its goods are sustainable – and providing a model for others to follow in that regard.

XD Connects’ work includes implementing a virtual passport that authenticates sustainable materials throughout the production process and developing an independently verified life cycle assessment tool that calculates the cradle-to-grave carbon emissions generated by each of its products. The supplier publishes those figures on its website and in its catalogs.

Importantly, promo leaders ASI Media spoke with believe the green revolution is ultimately for the better of the merch medium – and people and planet – and thus essential to keep advancing.

“A more professional, sustainability-minded industry is necessary for the ongoing health of the European promo market, especially as it relates to buyers’ perceptions of what we do,” says Oxley. “The alternative is that some buyers will simply disengage with promo.”

European promo leaders say the most popular product categories tend to be fairly consistent across borders, though for sure there are degrees of regional/national variation, such as outerwear being more popular in colder climate northern countries.

In general, drinkware, writing instruments, bags and gift baskets, especially around the holidays, tend to have wide appeal. Retail/higher-end items carry cachet with buyers, too. Apparel has gained considerable steam, though still is not yet at the popularity levels seen in North America. Notably, in the garment realm, synthetic fabrics are making greater inroads; Europe has traditionally been cotton-heavy in preference. Caps/headwear haven’t caught on in a big way and, according to some, the interest in hoodies has waned of late. Unimprinted gifts are more popular than in the U.S.

“It goes without saying,” says Jo-an Lantz, president/CEO of Counselor Top 40 distributor Geiger (asi/202900), “that clients want solutions that are truly sustainable and information from cradle to grave on the products we provide.”

Promo leaders in Europe tell ASI Media that 2024 has been an uphill battle. While some believe their particular companies will grow annual revenue, the most common sentiment is that, on an industry-wide level across the U.K. and Europe, distributors’ collective sales will be flat or down compared to 2023.

“We hear from many sides that it’s currently tough times,” says Roesch. “My feeling is that our industry, as a whole, will not see increases but a decline.”

Lynch offers a similarly sobering perspective.

“We are an industry of optimists,” says the Lynka leader. “In my 33 years in promo, the only year I heard anyone openly admit to a sales decline was 2020, the COVID year. That said, in the first half of 2024 in Europe, I have heard partner after partner share their dismay over the slow start to the year. Some are openly discussing large deficits to 2023 sales, while others express their hope that the end of the year will bring a much-needed sales boost. In the end, I suspect the European industry would be quietly satisfied if 2024 turned out to be flat.”

What’s driving the dourness? In part, it’s a hangover from the COVID recovery boom days, some say. Boonekamp gives an answer that sums up the perspective of many on even more foundational causes. “The trouble is ongoing economic uncertainty, which includes inflation, rising interest rates and lingering concerns regarding potential recessions,” he says. “All that impacts business spending.”

“We are an industry of optimists .” John Lynch, Lynka

There are internal challenges too: rising costs for labor and energy, for instance, as well as supply chain disruption. Indeed, the rerouting of cargo-carrying ships away from the Suez Canal, due to Houthi militant attacks in the Red Sea, has had a more substantial impact on European promo supply lines than North American ones, as the Suez is the primary route for many U.K/Euro firms importing from Asia.

For sure, there are positives to report, too. Long, the Sourcing City executive, says he’s optimistic, at least as far as the U.K. promo industry is concerned.

“The economy is stabilising after significant inflation, and the year has major events which increase demand for promotional merchandise, such as a general election, the European Football Championships and Olympics.” He notes that Sourcing City’s twice-annual trade show, Merchandise World, has a record number of exhibitors for the September version of the event.

Deutsch has some upbeat words as well: “We are seeing modest market segment volume increases in the U.K. and Europe in 2024. The market had a steady return following the COVID pandemic, and we are optimistic about the future.”

Ultimately, for promo growth to happen on an industry-spanning level, Lee says that businesses need to feel confident about the stability and direction of the economy. They’re not quite there yet. Even so, there is cause for encouragement, he says.

“Businesses continue to be careful in their marketing spend,” The Pebble Group executive says, “but I am hopeful that the industry will see a slow, but steady, uptick in spend in the second half of 2024 compared to the second half of 2023.”

Turkey’s profile on the global promotional products scene is on the rise.

With a population of about 85 million, the country primarily lies in West Asia, on the doorstep of Southeastern Europe, with a small part of the nation actually on the European continent.

The location, along with infrastructural investment, has helped Turkish manufacturers position themselves as a cost-effective nearshoring sourcing alternative to factories in China and other East Asian nations for European promo products suppliers.

Initially, Europe-based suppliers were turning to Turkey for textiles for apparel and bags, but in recent years the scope has expanded to include hard goods too – everything from writing instruments and drinkware to medals, key rings and ceramic items. About 60% of Turkish promo exports reportedly go to nations in the European Union.

Ömer Karatemiz is the president of the Turkish-based supplier ILPEN and the founder and current president of PROMASIAD, a Turkish promo association founded in 2019.

Now, Turkish promo manufacturers are working hard to expand further in North America, again positioning themselves as a reliable price-competitive-with-quality option over East Asian sourcing.

Leading the charge is Promotion and Printing Industrialists’ Business People Association (PROMASIAD), an Istanbul-based promotional products association that formed in 2019 to advance the Turkish merch industry domestically and in the international market.

PROMASIAD recently attended July’s ASI Show Chicago as part of bridge-building efforts and found the trip fruitful, believing there’s ample opportunity to grow as a production hot spot for North American suppliers.

ASI CEO Tim Andrews, Ömer Karatemiz of PROMASIAD and professionals from Turkish suppliers that exhibited at ASI Show Chicago in July discussed the potential for greater connections between the North American and Turkish promotional products industries.

“The U.S. no longer wants to buy promotional products from China,” asserts PROMASIAD President Ömer Karatemiz. “If we can get the right positioning here in terms of logistics and local service, secure the right investments and develop the right product concept, I believe we can capture a much bigger share of the U.S. market as a result.”

Notably, Turkey’s own domestic promotional products industry is on the upswing too, Karatemiz says, with distributors there driving business within the nation’s borders. About 35% of PROMASIAD members are distributors, 50% are manufacturers and 15% are involved with printing and press activities.

A report PROMASIAD prepared in conjunction with the Istanbul Chamber of Commerce determined that the total value of the Turkish promotional business is around $7 billion. To clarify, that figure includes much more than just distributor sales domestically, which is what ASI Research’s U.K./European study looked at; it encompasses factors like exports, for instance.

The size of Turkey’s promo industry “is increasing day by day with the investments in production facilities and growing export rates,” Karatemiz told ASI Media in a Q&A this spring . “We believe the annual growth of the Turkish promo market is 6%-7% because every day the industry is gaining importance, and companies, corporations, NGOs, etc. are investing in promotions.”

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Debit card market to reach $151.1 billion, globally, by 2032 at 5.5% cagr: allied market research.

Rise in demand for contactless payments from customers as well as small businesses is expected to drive the market growth. Moreover, the rise in partnerships to launch contactless credit cards specifically designed for small businesses drives the growth of the market.

PORTLAND, Ore. , Aug. 27, 2024 /PRNewswire/ -- Allied Market Research published a report, titled, " Debit Card Market by Type (Plastic and Metal), and Industry Vertical (Retail, Hospitality, Transportation, Healthcare and Others): Global Opportunity Analysis and Industry Forecast, 2024-2032" . According to the report, the debit card market was valued at $95.7 billion in 2023, and is estimated to reach $151.1 billion by 2032, growing at a CAGR of 5.5% from 2024 to 2032.

Get Your Sample Report & TOC Today: https://www.alliedmarketresearch.com/request-sample/A323721

Prime determinants of growth

The global debit card market is experiencing growth due to several factors such as the rise of contactless payments is a notable trend shaping the global debit card market. With technological advancements, contactless debit cards have gained popularity, allowing users to make swift and secure transactions by simply tapping their cards on payment terminals. This trend aligns with the changing consumer preferences for quick and hassle-free payment methods, driving the adoption of contactless technology in debit card solutions. However, security concerns and concerns and competition from alternative payment methods hinder the market growth. Moreover, increase in digitalization and IoT integration in the banking industry offer remunerative opportunities for the expansion of the debit card market.

Report Coverage and Details

Forecast Period: " 2024–2032"

Base Year: " 2023"

Market Size in 2023: " $95.7 billion "

Market Size in 2032: " $151.1 billion "

CAGR: "5.5%"

No. of Pages in Report: "230"

Segments covered: "Type, Industry Vertical, and Region"

Drivers: "Increase in digital payments adoption", "Financial inclusion initiatives", "Technological advancements"

Opportunities: "Expansion in emerging markets"

Restraints: "Security concerns", "Competition from alternative payment methods"

Access Your Customized Sample Report & TOC Now: https://www.alliedmarketresearch.com/request-for-customization/A323721

The plastic segment is expected to garner the highest revenue during the forecast period.

Based on type, the metal segment held the highest market share in 2023, accounting for more than half of the global debit card market revenue and is likely to retain its dominance during the forecast period. With rise of e-commerce and online transactions, consumers are increasingly favoring electronic payment methods over cash. However, the plastic segment is projected to attain the highest CAGR from 2024 to 2032, owing to increasing adoption of digital payments.

The transportation segment is expected to garner the highest revenue during the forecast period.

Based on the industry vertical, the retail segment held the highest market share in 2023, accounting for nearly one-third of the global debit card market revenue and is likely to retain its dominance during the forecast period. The retail sector's stronghold in the market is driven by the increasing consumer preference for cashless transactions, the widespread adoption of point-of-sale (POS) systems, and the growth of e-commerce platforms. These factors collectively boost the use of debit cards in retail, solidifying the segment's leading position.

However, the transportation segment is projected to attain the highest CAGR from 2024 to 2032. This can be attributed to the increasing urbanization and infrastructure development.

Asia-Pacific to maintain its dominance by 2032.

Based on region, Asia-Pacific held the highest market share in terms of revenue in 2023, accounting for three-fourths of the global debit card market revenue and is expected to rule the roost in terms of revenue throughout the forecast timeframe. The rapid adoption of digital payment methods in the Asia-Pacific region, driven by government initiatives, technological advancements, and the proliferation of smartphones. Debit cards are a crucial component of this digital payment ecosystem.

Thales Group

Giesecke+Devrient GmbH

Eastcompeace Technology Co., Ltd.

Paragon Group Limited

CPI Card Group Inc.

Watchdata Co., Ltd.

Wuhan Tianyu

The report provides a detailed analysis of these key players in the global debit card market. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.

Suggestions:

Recent Industry Dev/Industry buzz/News

In September 2022 , India released its draft National Electricity Plan, setting out ambitious targets for the development of battery energy storage, with an estimated capacity of between 51 to 84 GW installed by 2031-32.

The Federal Reserve has proposed significant decreases in the caps on debit card interchange fees. This regulatory action aims to reduce the costs for merchants but could impact the revenue models of card issuers.

In February 2020 , IDEX Biometrics ASA, a smart card manufacturing company, introduced TrustedBio, a solution built for reducing biometric smartcard costs. This cost reduction is aimed at accelerating the adoption of smart dual interface cards.

In December 2020 , PayTM and SBI Card selected dzcard, a south Asian smart card manufacturer to deliver the dual interface credit card. These cards will allow customers to process contactless payments and gain cashbacks through the Paytm application.

Get More Information Before Buying: https://www.alliedmarketresearch.com/purchase-enquiry/A323721

Key Benefits for Stakeholders

This report provides a quantitative analysis of the debit card market outlook, debit card market segments, current trends, estimations, and dynamics of the debit card market analysis from 2022 to 2032 to identify the prevailing debit card market opportunities.

Market research is offered along with information related to key drivers, restraints, and opportunities.

Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network.

In-depth analysis of the debit card market segmentation assists to determine the prevailing debit card market size, debit card market share, debit card market growth, and debit card market opportunity.

Major countries in each region are mapped according to their revenue contribution to the global debit card market Statistics and debit card market forecast.

Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.

The report includes the analysis of the regional as well as global debit card market trends, key players, market segments, application areas, and market growth strategies.

Debit Card Market Report Highlights

By Industry Vertical

Hospitality

Transportation

North America (U.S., Canada )

Europe ( France , Germany , Italy , Spain , UK, Rest of Europe )

Asia-Pacific ( China , Japan , India , South Korea , Australia , Rest of Asia-Pacific )

LAMEA ( Latin America , Middle East , Africa )

Purchase This Comprehensive 230-Page Report (PDF with Insights, Charts, Tables, and Figures) @ https://bit.ly/3T4ln4E

Key Market Players

Cangzhou Datang Steel Pipe Co., Ltd., VALID, wuhan tianyu information co. ltd, Eastcompeace Technology Co., Ltd., CPI Card Group Inc., Paragon Group Limited, Giesecke+Devrient GmbH, Thales Group, Watchdata Co., Ltd., IDEMIA

Trending Reports in BFSI Industry (Book Now with 10% Discount + Covid-19 scenario):

Digital Gift Card Market Size, Share, Competitive Landscape and Trend Analysis Report, by Channel, by Transaction Type, by Card Type, by Application Area, by End Users : Global Opportunity Analysis and Industry Forecast, 2023-2032

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Loan Management Software Market Size, Share, Competitive Landscape and Trend Analysis Report, by Component, by Deployment Mode, by Enterprise Size, by Application, by End User : Global Opportunity Analysis and Industry Forecast, 2021-2031

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Wilmington, Delaware . Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports Insights" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Allied Market Research CEO Pawan Kumar is instrumental in inspiring and encouraging everyone associated with the company to maintain high quality of data and help clients in every way possible to achieve success. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

Contact: David Correa 1209 Orange Street, Corporation Trust Center, Wilmington , New Castle , Delaware 19801 USA. Int'l: +1-503-894-6022 Toll Free: +1-800-792-5285 UK: +44-845-528-1300 India ( Pune ): +91-20-66346060 Fax: +1-800-792-5285 [email protected]

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View original content: https://www.prnewswire.com/news-releases/debit-card-market-to-reach-151-1-billion-globally-by-2032-at-5-5-cagr-allied-market-research-302231453.html

SOURCE Allied Market Research

Hospitality industry statistics to have on your radar 2024

The hospitality industry is a vast sector with many different sub-sectors that include recreation, lodging, entertainment, food and beverage which are constantly evolving. Due to the overwhelming amount of data available today, it has become increasingly challenging for industry players to gather all the necessary hospitality statistics to keep up with the latest trends. As a result, staying informed and up-to-date has become an impossible task.

Despite being an exhilarating career path with many avenues that demand a diverse skill set , the hospitality industry is currently struggling to fill open positions. This is partly due to the changing nature of jobs and employee expectations.

Customer needs and expectations have evolved in recent times, largely due to the global pandemic which spurred a seismic shift in industry trends . As well as other factors such as technological advancements such as Artificial Intelligence.

In the absence of access to data that tells a story, industry players are finding it increasingly challenging to optimize their social and digital strategies.

This is especially problematic for hoteliers and destination marketers who are already overwhelmed with their day-to-day responsibilities.

Of course, business owners should closely analyse their own business data but it's also important to take a look at the bigger picture.

In this comprehensive article, we have gathered a wealth of hospitality statistics and data that will equip you with the insights you need.

Our goal is to empower you to harness the power of analytics in the hospitality industry to drive innovation, exceed customer expectations, and achieve remarkable value.

The hospitality and leisure industry data

Trends in the hospitality industry have always been in a state of flux because client demands are always shifting with the times.

Understanding hospitality industry statistics allows you to properly equip yourself to handle your client needs. Analysing industry data and insights will help you to figure out and deploy the right strategies to take your business to the next level.

Current state of the hospitality industry

By examining top level statistics, you can gain insights into the present condition of the hospitality industry at large and gain a glimpse into its future.

The travel industry is experiencing a robust comeback in 2024, bringing a ray of hope for hoteliers who have been eagerly awaiting positive signs.

More articles on trends and strategy Hotel brands: Who owns what? Top 10 Trends in the Hospitality Industry in 2024 EHL's MBA in Hospitality for ambitious hotel professionals 8 customer service experience trends to watch in 2024 Spa trends, treatments and concepts to look and feel great in 2024

The industry anticipates a steady growth rate

Industries such as hospitality, which were affected by COVID-19 safety measures, are seeing some impressive growth rates since the resurgence of travel worldwide. The statistics below indicate just how impressive the current and future growth rates are.

The hospitality industry experienced a remarkable growth from $4,390.59 billion in 2022 to $4,699.57 billion in 2023, achieving a compound annual growth rate (CAGR) of 7.0%. This significant expansion is a testament to the industry's resilience and ability to bounce back from the challenges posed over recent years. (Hospitality Global Market Report 2023)
The projected growth of the global hospitality market is set to soar to a staggering $5,816.66 billion by 2027, with a remarkable compound annual growth rate (CAGR) of 5.5%. (Hospitality Global market report 2022)

Growth trends in specific sub-sectors

Due to changes in consumer expectations, preferences and the rapid advancement of technology (among other factors), some areas in the hospitality industry are seeing a bigger growth rate than others. The statistics below shed light on these areas.

Hotel booking statistics

Room demand is set to reach an all-time high in 2024 according to STR research.
Siteminder predicted hotel occupancy will increase 2.5% globally and Hotel average daily rate (ADR) is projected to grow by 4.9% in the next 12 months.
The bleisure market continues to rise —business trips which are extended for leisure purposed. The bleisure tourism market was estimated to be valued at nearly US$ 594.51 billion in 2023, and is predicted to continue to grow to $731.4 billion by 2032, with a CAGR of 8.9% from 2023 to 2032. (Future Market Insights).

Key stakeholders' market share and consumer influence

The hotel and lodging industry is monopolized by a few major players globally. Overall the market continues to expand and consumer trends dictate which of these brands gain more market share.

Booking.com is the most valuable travel and tourism brand in the world, with a market capitlization of $121.42 billion. ( Companies Market Cap ).
Airbnb's market value reached $92.11 billion in U.S. dollars in 2023, representing a significant increase from $54.13 billion the previous year. However, it has experienced a decline from its peak valuation in 2021, surpassing a staggering $100 billion. (Statista).
Today Airbnb's market value stands at $74 billion, commanding market share of over 20% in the vacation rental industry.
The declining valuation is thought to be due to rising rental pricing and overwhelming choice of properties. (HelpLama).
As of 2024 Marriott International is the world's biggest hotel brand valued at $62.56 billion.
It is estimated that a further 2,707 hotels will open their doors globally in 2024. (Statista).

Food & Beverage statistics

The Online Food Delivery Market, which includes both Grocery Delivery and Meal Delivery services, experienced significant growth during the COVID-19 Pandemic. This market is projected to continue its upward trajectory with a compound annual growth rate (CAGR 2023-2028) of 11.47%.
As a result, the food delivery market volume is expected to reach a staggering US$1.79tn by 2028. (Statista).
According to Fortune Business Insights, the global food service market was valued at $3,236.92 billion in 2023 and is expected to grow to $3,486.58 billion in 2024.
The Business Research Company reports that the fast food and quick service restaurant market will grow from $295.03 billion in 2023 to $316.11 billion in 2024, with a compound annual growth rate (CAGR) of 7.1%.
The ready-to-drink (RTD) coffee and tea market is expected to grow significantly in the coming years, reaching $133 billion by 2027.
Functional health drinks are trending and is currently valued at $213.74 billion in 2024 and is predicted to grow to $306.76 billion by 2029.

Health & wellness statistics

The global health and wellness market is estimated to reach almost seven trillion U.S. dollars by 2025. (Statista).
The global medical spa market was valued at an estimated US$14.4 Billion in the year 2022 and is projected to reach a revised size of US$45 Billion by 2030.
The spa services market represents an 88-billion-dollar global industry and is expected to grow by over 17 percent to 260 billion dollars between 2023 and 2030.
Facial treatments, tattoo ramoval, hair removal and medi-spa retreats are all experiencing rapid growth.

Jobs & employment in hospitality & leisure

It goes without saying that hospitality and travel businesses have suffered as a result of the pandemic and economic difficulties. As a result the hospitality jobs market took a hit.

Whilst travel restrictions are firmly a thing of the past the economic uncertainties continue, making the hospitality jobs market recovery slow.

Many of those laid off workers in 2020 found more reliable jobs with better perks and more sociable hours elsewhere. When should we expect a full recovery? The statistics answer these questions best.

A new position in hospitality becomes available every 2.5 seconds.
The hospitality, catering, and tourism (HCT) industry accounts for approximately 3% of the total global workforce.
The Travel and Tourism sector was expected to employ approximately 320 million individuals in 2023, showcasing a steady growth trend after experiencing a decline in numbers in 2020. This decline saw employment figures drop from 334 million in 2019 to 271 million. However, the industry is now on the path to recovery, with employment opportunities steadily increasing once again. (Unilever). Discover the types of jobs available in this exciting growth sector.
Hotels will struggle with staffing shortages until 2025 when the industry is expected to make a true adjusted recovery.

Travel & tourism statistics

If 2022 was the year travel returned following the pandemic, 2023 was all about making up for lost time and ticking off bucket list items and it seems 2024 is no different. In short, there's a healthy outlook to the travel and tourism sector in 2024 and beyond. To better understand the current changes and future of travel and tourism, we have compiled the statistics below.

General travel & tourism industry statistics

The general travel and tourism statistics below show the current and future state of the travel and tourism sector as a whole.

The projected market volume is set to reach an impressive US$1,063.00 billion by 2028, with revenue expected to display a steady annual growth rate (CAGR 2023-2028) of 4.42%. (Statista).
By 2028, online sales are projected to account for a staggering 76% of total revenue in the Travel & Tourism market. (Statista).

Growth trends in specific areas

The growth of the travel and tourism sector has been influenced by several factors including ease of access to information, an increase in the amount of paid leave, and rapid urbanization among others. Despite the pandemic slump, the industry is now doing well and is projected to do even better over the next few years, as indicated by the following statistics.

Global tourism expenditure is projected to reach USD2 trillion, surpassing previous records driven by the strong demand for leisure travel. (Euromonitor International).
As employees strive for a better work-life balance, the resurgence of business travel becomes a more intricate affair. In line with this shift, bleisure travel is poised to make a significant impact, with predictions indicating that it will soar to an impressive USD300 billion by 2024. This trend highlights the growing desire among professionals to combine work and leisure, creating a unique and enriching travel experience. (Euromonitor International).
These 5 countries will be the fastest growing tourism destinations in 2024: Tunisia, Mexico, Morocco, Dominican Republic, and Sri Lanka. (Travel Off Path).

Domestic vs. international travel

The statistics below help to better understand the "new traveler" whos is most likely planning 2 domestic trips and 2 international trips in 2024.

International travel has rebounded post pandemic however going forward into 2024 it's clear that whilst consumer sentiment is very much in favor of international travel, domestic travel is much more budget friendly. (Travel + Leisure).
Global business travel will fully recover by 2024. It is forecast to increase by 14% in 2022, with the US and China seeing the largest growth (30% each). (Leslie Josephs)

Air, cruise & ground transport

The widespread adoption of the internet as a source of information, the ease of mobility and increased awareness of new destinations have brought significant changes to how consumers travel. The statistics below show how much travel has changed and what to expect.

Global flight numbers were still below pre-pandemic levels at the end of 2023. According to the International Air Transport Association, global airlines anticipate that approximately 4.35 billion individuals took flights in 2023, a slight decrease from the 4.54 billion flyers in 2019.
In the global airline industry, it was anticipated that 2023 brought in net profits of $9.8 billion, although these profits will come with a razor-thin net profit margin of 1.2%. (Mint)
Rail transport is set to experience exponential growth in 2024, emerging as the fastest-growing travel category worldwide with an impressive growth rate of 35.6% over the course of 2023-2024. (Euromonitor International).
According to some travel experts, fly-to-the-meeting and fly-back-from-the-meeting day trips will stop being popular as more people prefer multi-day bleisure trips. (SAP Concur Study of Global Business Traveler)

Jobs & employment in travel & tourism

As it was with all other sectors and industries, the travel and tourism sector experienced a labor shortage in 2023, but will it continue?

Jobs in travel and tourism were still below pre-pandemic levels at the end of 2023 at a projected 320 million jobs. But with the growing demand for travel, jobs in this sector are set to rise to 430 million by 2033. (Statista).
Candidates for these open positions have different expectations and priorities compared to those before the pandemic. They expect flexible working arrangements, skills training, and diversity and inclusion. Hotels will have to adapt to fill open positions. (AHLA)
New positions are opening up that are centred around digitalization, technology and sustainability .

Demographic statistics: Who's travelling in 2024?

Different segments play different roles in the travel and tourism industry. To fine-tune your digital strategy, you have to know your target market well and understand what they expect when they travel. Here are a few stats that show some key domgraphics that may be relevant to your business.

In the modern era, travel has become increasingly digitalized, with 67% of consumers projected to make their travel bookings online in the year 2024.
An interesting trend among post-pandemic travelers is the shift towards a younger demographic, with millennials (aged 30-44) comprising the largest portion of Wellness Worshippers, Leisure Seekers, Luxury Seekers, and Digital Travelers, as revealed by Euromonitor's Voice of the Consumer: Travel Survey. This highlights the changing preferences and behaviors of travelers in the modern era.
The luxury segment is growing. Luxury Seekers are most commonly found in countries across the Middle East and Asia Pacific, while Eco-Adventurers tend to be prevalent in both Asia Pacific and Europe. On the other hand, Cultural Explorers are predominantly found in various countries throughout Europe.
There is expected to be a 15% growth in sales of sports tourism packages sold through travel intermediaries from 2023 to 2024. (Euromonitor International).

Hospitality & travel is evolving at speed

In 2024, the hospitality and travel sectors will be evolving at a rate of knots. Vacant positions and shifting consumer preferences define the landscape. Seamless online booking is now a necessity, just the beginning of a guest-centric approach. Elevating the experience means personalized on-site services, setting leaders apart.

Yet, beyond technology lies a deeper need—embracing diversity and inclusion as fundamental values. To cater to the evolving traveler, a blend of high-tech solutions and high-touch experiences aligning with their beliefs is vital. Statistics serve as signposts in this transformative journey. Adaptability is the key to survival, while a comprehensive guest journey and commitment to diversity steer success.

Amidst change, strategies demand recalibration. Embrace adaptability, shape a holistic guest experience, and embed diversity and inclusion into your brand. These principles navigate the industry toward leadership in the evolving hospitality and travel landscape of 2024.

Sources: World Travel and Tourism Council, STR, UNWTO, Forbes, Statista, Future Market Insights, US Travel Association, Alice, UK Government, CNBC, Market Data Forecast, The World Bank, The Caterer, Hospitality World by The Economic Times, Bureau of Labor, McKinsey, Research and Markets, Resolution Foundation, Allied Market Research, Euromonitor International, World Economic Forum, STR, NPD Group, Deloitte, American Hotel & Lodging Association, The Business Research Company, Hotels News Resource, ResDiary, International Labour Organization, Data Appeal, Euromonitor International, UREN, Mordor Intelligence, Travel + Leisure, Travel Off Path, Mint, SAP Concur study, Fortune Business Insights, The Business Research Company.

About EHL Group

EHL Group is the global reference in education, innovation and consulting for the hospitality and service sector. With expertise dating back to 1893, EHL Group now offers a wide range of leading educational programs from apprenticeships to master's degrees, as well as professional and executive education, on three campuses in Switzerland and Singapore. EHL Group also offers consulting and certification services to companies and learning centers around the world. True to its values and committed to building a sustainable world, EHL Group's purpose is to provide education, services and working environments that are people-centered and open to the world. www.ehlgroup.com

EHL Hospitality Business School Communications Department +41 21 785 1354 EHL

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(PDF) Marketing for Hospitality and Tourism
(PDF) Hospitality marketing research from 2000 to 2009: Topics, methods
Marketing in Hospitality Industry
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Principles of Hospitality Marketing
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COMMENTS

Hospitality marketing research: Recent trends and future directions
This article reviews the hospitality marketing research published in four top hospitality journals from 2008 to 2010 for the purposes of identifying significant trends and gaps in the literature.
Global trends in hospitality
1. Introduction. The global hospitality industry, which includes hotels and other types of accommodations, as well as restaurants, bars, casinos, cruise ships, travel agencies, tour operators, and similar organizations, accounted for roughly $4.5 trillion in consumer spending during 2020 (Hospitality Global Market Report, 2020).More broadly, the travel and tourism segments accounted for 10.3% ...
(PDF) Marketing Management in the Hotel Industry: A Systematic
The current research is a systematic review of the literature on hotel marketing management that provides evidence that hotel marketing management contributes to organizational performance and ...
Hospitality industry data and key statistics: 2024 update
The hospitality industry experienced a remarkable growth from $4,390.59 billion in 2022 to $4,699.57 billion in 2023, achieving a compound annual growth rate (CAGR) of 7.0%. This significant expansion is a testament to the industry's resilience and ability to bounce back from the challenges posed over recent years.
Hospitality marketing research: Recent trends and future directions
Highlights. Hospitality marketing research published in top journals from 2008 to 2010 is reviewed and synthesized. Classifications based on research topic, industry focus, analysis technique, and other methodological issues are included. Significant trends and directions for future research are discussed. 1.
Hospitality Industry Trends (2024 update)
10 hospitality trends 2024 - Elevate experiences, embrace evolution. Workforce empowerment: Transforming challenges into opportunities. Artificial intelligence and technology: Choosing the best tech to revolutionize hospitality. Culinary experiences: Putting experiences, authenticity and the senses first.
Marketing Management in the Hotel Industry: A
This study found that hotel marketing management research from the past 10 years can be divided into four major categories: marketing framework, marketing strategy, service, and consumer behavior. Articles on marketing framework discussed hospitality marketing [4], consumer value [44], and social media [45].
How Has Technology Changed The Face Of Marketing In Hospitality Amid
Over the past year and a half, hospitality marketing and management has witnessed tremendous growth in terms of research and development (Byrd, et.al, 2021).
Tourism and Hospitality Marketing Research
Marketing research plays a crucial role in tourism and hospitality marketing. It enables the marketer to conduct research into the marketing mix, to understand the market better, and to measure levels of consumer satisfaction. Furthermore, it minimises risk when managers make marketing management decisions.
Full article: Effects of COVID-19 pandemic on hospitality industry
This pandemic is also likely to have a significant impact on the research agenda of hospitality marketing and management scholars. With unprecedented challenges faced by the hospitality industry in the COVID-10 era, hospitality scholars are expected to shift their research focus to develop solutions for the industry.
Customer Engagement in Hospitality and Tourism Services
Amid a new marketing era featuring increasingly dynamic and interactive business environments (Hollebeek et al., 2016; Pansari & Kumar, 2016), the concept of customer engagement (CE) has sparked growing interest among scholars in mainstream marketing as well as in the hospitality and tourism domain.Recent empirical research has shown that CE enhances customers' brand evaluations (So et al ...
Artificial intelligence's impact on hospitality and tourism marketing
Based on grounded theory, a three-stage interliked qualitative approach, comprised of structured interviews with AI experts which informed focus groups with tourism marketing experts and a subsequent follow-up survey to reconfirm findings in the light of changing industry priorities due to the COVID-19 pandemic, was used to explore the changes ...
The importance of Marketing in the Hospitality industry
According to one marketing agency specialising in loyalty programs, they serve multiple functions for a hospitality brand including: Protect market share from competitors, Steal high-value customers from competitors, Create an opportunity cost for using a competitor. 3. Essential Hospitality Social Media Marketing.
Evolution of the impact of social media in hospitality: A bibliometric
The hospitality industry has been affected by social media by providing an interactive channel for content creation that is of interest both for tourists, ... Analysing the conceptual evolution of qualitative marketing research through science mapping analysis. Scientometrics, 102 (1) (2015), pp. 519-557. Crossref View in Scopus Google Scholar.
Hotel Market Research
Hotel market research supports companies in identifying and understanding their target market by gathering in-depth data on consumer demographics, behavioral preferences, and purchasing behavior. It allows companies in the hospitality industry to customize their existing products and services more effectively to address the unique requirements ...
Internet marketing research in hospitality and tourism: a review and
The two-dimensional perceptual map indicates that Internet marketing research in the hospitality and tourism fields experienced introduction, growth and maturity stages. ... This study may also give hospitality managers new insights into Internet marketing applications in the industry. , - This study is one of the few attempts to provide a ...
(PDF) Hospitality Marketing: Principles and Practices
hospitality industry, including mark et demand, the marketing concept, the special charac- teristics of service industries, the PESTE environment and the hospitality marketing mix. Part B : Pre ...
Market Research in Hospitality Importance
The usefulness of market data in business has resulted in a greater demand for data analysis, a field that is projected to grow by 19% by 2026. Data analysts, who are in charge of analyzing trends to guide business decisions, can effectively interpret market data to help businesses plan operations effectively. Hospitality businesses that engage ...
How Hospitality Marketing Has Changed Since the Pandemic
We all know that marketing, particularly hospitality marketing, changed dramatically during the pandemic. That radical shift in consumer behavior required equally radical shifts in messaging and strategies. But when the pandemic subsided, consumer behavior changed again. But it wasn't a rubber band snapping back to how it was before. Some behaviors and corresponding marketing strategies ...
Marketing for the Hospitality Industry Research Guide
A collection of Industry Market Research. Includes reports on many hospitality industries. Select the industry and then view the "Industry at a Glance" section of the report for the current revenue in dollars, the number of businesses, and the growth rate--for past 5 years and projected for next 5 years
230+ Innovative Hospitality Management Research Topics In 2023
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Top 10 Trends in the Hospitality Industry in 2024

10 hospitality trends 2024 - Elevate experiences, embrace evolution

1. Workforce empowerment: Transforming challenges into opportunities

2. Artificial intelligence and technology: Choosing the best tech to revolutionize hospitality

Contactless services: Effortless technology, impeccable stay

Technology-driven innovation: Beyond boundaries

Hyper-personalization: Tailored moments, lasting loyalty

3. Culinary experiences: Putting experiences, authenticity and the senses first

4. Bars and drinks redefined: Adding creativity and design to the drinks' menu

The effect of economic uncertainty on hotels, restaurants and fine wines

6. Fine wine prices: Navigating the fluctuating vineyard market

7. Rising interest rates: The impact on hotel property values and transactions

Other trends that have been, still are, and will continue to shape hospitality

9. Data-driven decision-making: Data-analytics for optimum personalization

10. The power of social media: Crafting authentic narratives

Master in Hospitality Management

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Hospitality industry statistics to have on your radar 2024

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Marketing Management in the Hotel Industry: A Systematic Literature Review by Using Text Mining

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The importance of Marketing in the Hospitality industry

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Personalisation

Frequency and loyalty rewards programs

3. Essential Hospitality Social Media Marketing

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How Hospitality Marketing Has Changed Since the Pandemic