According to Deloitte’s Future of Hospitality report, the industry is facing "shifting consumer behavior" and "macroeconomic headwinds." Guests expect more tailored experiences, but also expect discounts. And traditional growth models are under pressure from a convergence of multiple forces.
The report identifies six key forces impacting the industry, and examines how these dynamics are already driving change—and creating a unique set of issues that are shaping the industry:
- The unprecedented consumer. Shifting guest expectations around value, personalization and experience are influencing how hospitality companies attract, engage and retain customers.
- An evolving society and culture. Demographic changes, evolving work and travel patterns, and increased expectations around accessibility and inclusion are reshaping hospitality demand.
- Exponential xTech. Advances in AI, data, and automation are enabling new guest experiences and operational capabilities, while challenging legacy technology environments.
- Radical industry upheaval. New business models, alternative accommodations, and changing competitive dynamics are altering how hospitality companies compete.
- Shifting economics, policy and power. Labor constraints, cost pressures, capital considerations and regulatory factors are influencing investment and operating decisions.
- Environmental pressures and the energy transition. Sustainability expectations, energy use and climate-related considerations are increasingly affecting hospitality operations and long-term planning.
The report also outlines strategic imperatives for hospitality organizations as they respond to these dynamics.
Read the full report here.