Changes in Hotel Industry Since Last Few Years

September 5, 2018 - Reading time: 3 minutes

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The hotel industry is going through a period of unparalleled, invariable change and will look very different in future. Digital technologies are shifting the balance of power towards your clients. Simultaneously, the consumers are changing. Digitally enabled guests expect hotels to give them personalized services ever more. Hotels will need to personalize services from guests’ booking experience to their in-room preferences.

Hotels also need to use mobile to personalize the immediate hotel environment. Not just the environment but it is needed for guests’ overall experience of the destination. Quite obvious starting point is user-friendly app. It enables mobile check-in and room selection. Being able to check-in or out using a mobile device would motivate the 46% guests to return. The apps allow guests to input about their preferences.

Over the past few years, many aspects of the hotel industry have adopted new technology. The changing behaviours of the consumers have changed the way hoteliers conduct their businesses. The lodging industry has changed in several key areas over the past decades. Many of these changed have helped hoteliers to enhance their products. It helped to attract more guests and create opportunities for expansion.


However those changes have also had an impact on the hotel industries.


Marketing and distribution


Marketing and distribution costs are the most significant changes the industry has seen ever. The delivery cost for getting consumers into hotels was changed significantly by the business model. The hotel companies have been replaced by digital formats in the form of ads through social networking and so on. The third-party intermediaries came on the scene about 20 years ago.  They were welcomed by hoteliers as innovative new channels to market hotels and reach guests. The relationships between hoteliers and them have created some unique challenges from commission charges, equitable tax remittals and increased market share and reliance. When they were introduced, commissions were higher than they are at present.


Consumer Behavior

The consumers, online travel agencies and technology in general, are more sophisticated and educated than previous years.  Many areas of the industry have been touched by this sophistication. As hoteliers think the consumers are confused as well. In due to OTA’s larger marketing budgets that allow them to purchase a lot more keywords. If the consumers don’t pay attention to the URL, they might not even realize that they have booked via third party agency. Enhanced consumer awareness had led to niches within the industry too.


Owners and Assets


The necessity to adopt an emergency of the industry’s current convenient way is the select-service hotel. It’s not necessarily a bad thing for the hoteliers though. This service can often more easily adapt to consumers needs than larger full-service hotels. It is cheaper and faster to develop for the hoteliers. It may renovate a select-service property. Some older hotels can’t keep up with the shift due to such properties becoming higher end and providing all the amenities those are required by the guests. The shift from full to select service happened along with a shift in dining options for the guests. Hotels are used to be the place to eat, offering three meal services per day and so on. As fast food options and other chain restaurants became more available, consumers no longer needed to rely for food services on hotels.




The hotel industry shifted over the years. It became more intricate to operate properties as well. Rather the third party operators. By having multiple investors or owners, it is simpler and more productive to allow a third-party manager to operate properties and to accept a lower return of investment as well.