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Jess Robinson, Senior Director of Revenue Management, The Resort at Pelican Hill, Rising Revenue Optimization Leader Council Member
By understanding consumer behavior in a broader context, hospitality professionals can anticipate customer needs, stay ahead of consumer trends, and spark innovation. During this Rising Leader Council discussion, our panel discussed how data, analytics, and market research from other industries can be leveraged to understand shifting consumer preferences. This knowledge empowers hospitality professionals to enhance hospitality offerings and better cater to evolving consumer preferences.
Data, analytics, and market research about customer behavior from other industries are powerful resources to stay ahead of consumer trends in the hospitality industry. Broader industry data, such as air traffic and macroeconomic conditions, can be used to forecast demand in hospitality. Flight data can also be analyzed to target marketing efforts effectively. Consumer trend forecasting resources, such as WGSN, can be used to see customer preferences in lifestyle and food and beverage sectors. Translating these market research insights into action, hospitality offerings can be updated to meet evolving consumer needs.
Evolving consumer behaviors can also influence the design of digital platforms and hotel booking functionality. Mobile devices are now the primary tool for bookings, and consumers are becoming more price-sensitive and selective, focusing on experiences and rates. Digital platforms need to be more personalized, targeting guests based on their position in the purchasing funnel.
Understanding consumer preferences helps hotels make informed decisions when enhancing the guest experience. For example, there is a growing trend of partnerships with fashion houses, unique dining experiences, and fitness studios. Collaborating with brands that align with hotel brand and guest profile can attract new customers and enhance the overall stay. Insights on evolving consumer behavior can be used to capitalize on new revenue streams, with growing preferences for wellness offerings, sustainable practices, smart technologies, and personalized services.
The desire for “third spaces,” community gathering places, is another opportunity for hotels to meet new emerging customer needs. A study found that between 1976 and 2019 the rate of loneliness has increased almost every year among young adults. With the increased hours spent working and social interactions becoming limited to social media, more people are finding themselves without friends or a community. The hospitality industry can fill this gap by creating third spaces. Hotels offer appealing communal gathering spots, provide co-working spaces, and encourage social interaction on property. Not only does this enhance the client experience and appeal to the local community, it and generates food and beverage revenue and increases brand awareness.
Further Reading
- Entering The Era of Hotel-Fashion Brand Collaborations (forbes.com)
- Three areas for change for luxury hospitality in 2024 (hospitalitynet.org)
- What Is A Third Place? (And Here’s Why You Should Have One)
- Best Luxe Amenities at Hotels Around the World – Travel Curator
Questions for Your Team
- How can data analytics and market research from other industries be leveraged to understand shifting consumer preferences? In what ways can these findings be integrated to enhance hospitality offerings so we can better cater to evolving consumer preferences?
- How are consumer behaviors regarding booking and searching for hotels changing, and how are digital platforms influencing booking decisions?
- Are there opportunities for hotels & resorts to collaborate with other industries or leverage partnerships in trending spaces to align with audiences they’re trying to reach?
- Are there opportunities to capitalize on new revenue streams or ancillary revenue based on evolving customer behavior, such as wellness offerings, sustainable practices, smart technologies, demand for contactless experiences, or preference for personalized service, etc.?
- Third places are disappearing, the rate of loneliness has increased almost every year among young adults. More people are seeking friends and community. What opportunities does this present for hospitality? How can hotels fill the gap for guests and locals?