Hospitality Paradigm

Ever-increasing investments in virtual reality technologies have created an opportunity for consumer-focused brands—including hotels—to create distinctive virtual experiences for their guests.

Ecommerce giants like Amazon and Alibaba are already creating immersive VR shopping experiences for their customers, and hotels can (and should!) pay close attention to how consumers respond to the ability to experience brands and their products—and even complete transactions—in virtual environments.

But global brands have an additional challenge: how can they create immersive virtual experiences localized for any global language to serve their international audiences in authentic ways?

The same technologies that allow brands to provide in-language experiences for customers online may soon be capable of translating VR-based experiences, from product voiceovers to text and imagery displayed in virtual worlds. And content translated for central digital channels like websites may someday be easily repurposed for VR environments using the same technology.

Travel Market Report has seen a trend toward more all-inclusive properties; Many resorts have ditched resort credit to bring guests a vacation experience that is truly all-inclusive, including deeply discounted experiences like golf, spa treatments, tours and excursions.

Luxury travellers will rely more on travel agents. Just as 2018 was the year of multigenerational travel, 2019 will be about couples and adults. More hotels are catering to adults in kid-free environments, either by opening adults-only properties or adults-only sections within one property.

Guests are looking for “Insta-worthy experiences” and hotels are delivering. In Antigua, for example, properties are “now including extras like Galley Bay, where you can take a hobie out to explore a shipwreck; or Blue Waters, where they offer a free trip out to the reef for snorkeling; or Curtain Bluff, where they include waterskiing and motorized water sports.”

The trend is toward the unique. Travellers want that local culturally immersive experience nowadays. Everyone has ‘been there, done that’ with the major attractions and sightseeing destinations; people want that true ‘what the locals do and go’ experience. Smaller boutique hotels and even bed-and-breakfasts have become more popular for clients who want that small town, local charm and experience.

Hotels are offering “tours that take guests to authentic and not commercial spots, where they can interact with the grower or the local fisherman. Experiences that are off-the-beaten-path, so that discovery becomes the whole point of the excursion.

Meetings too, are looking for the unique and unusual. Groups are stepping out from traditional setups and layouts to introduce new space distributions and designs. For example, instead of having a U shape or a classroom set-up, clients are looking for a mix of furniture to create different spaces within the same room, and also looking to incorporate healthy choices in coffee breaks.

Business travel within Asia is growing at twice the pace of the rest of the world, and looks set to overtake the top-spending Americas within the next 10 years. There is also a growing trend among corporate travellers to include local leisure activities as part of their working trips.

The rise of Bleisure – combining business and leisure activities into one travel experience – is accompanied by a concurrent growth in popularity for sharing services.

While most Corporate Travellers do not have to pay their business travel, they are just as cost conscious as their leisure travel counterparts, and are interested in getting suggestions that help them save money (34%).

The focus on cost has seen the sharing economy, specifically ride-sharing services like Uber and Grab and home-sharing services like Airbnb and Couch Surfing, being a large part of business travel, even more so than for leisure. The reasons for using sharing services are ease and convenience and better quality and service.

The rise of Bleisure means that business travel behaviours are becoming more aligned to leisure travel, including cost consciousness. Sharing economy providers benefit from this trend thanks to the competitive products, flexibility and convenience they are able to offer and deliver.

In only three decades, the Chinese have gone from easily stereotyped, rube, new tourists to conquerors of the industry. After hundreds of millions of visits and billions of dollars showered around the world, Chinese tourists now hail from the middle, rich and the very rich classes. Fewer travel in groups. Some still enrage destinations with their thoughtlessness. Others are welcomed for their enthusiasm and unique points of view. Above all, the Chinese are changing tourism around the world.

The travel numbers are astonishing. For the fourth year in a row, the Chinese are the world’s biggest group of international travellers, taking 142 million international trips in 2017. In the next decade, that number is projected to jump to 390 million, according to the China Outbound Tourism Research Institute.

And Chinese tourists are the biggest international spenders: $258 billion last year. All this has been accomplished at a time when only 7% of Chinese citizens hold passports. On the inbound side of the equation, China is expected to become the No. 1 travel destination sometime in the next five years, knocking out France and solidifying its dominance over tourism.

Chinese tourists can lift economies seemingly overnight. Chinese visitors to Europe improved the Continent’s trade balance by $4 billion.

Wealthy Chinese shoppers among the haute couture shops of Avenue Montaigne in Paris are a common sight. There is so much money involved in Chinese tourism that Anna Wong of the U.S. Federal Reserve recently warned that what looks like tourist spending overseas might actually be money laundering to conceal asset investments from the Chinese government.

It’s hard to wrap one’s arms around this ever-growing Chinese tourism juggernaut, but its emergence is clearly the most important milestone for the industry since globalization kicked off the modern explosion.

Permanence is passé. As any trend-conscious urbanite will attest, bars, restaurants and stores no longer require longevity in order to achieve success. In many cases, the shorter their shelf-life, the more popular they become.

Pop-up outlets have – with a certain irony – turned into one of the more durable trends of the past few years. Typically they give fledgling brands a showcase, maximise cheap rents and offer customers a sense of having bought into something unique. But can the world of short-lease fashion stores and week-long cocktail bars translate into the hotel sector?

Of course it can. The concept of pop-up hotels has become more prevalent in recent times. This is partly due to clever branding (temporary accommodation, after all, being far from a new phenomenon) and partly due to some highly creative advances on the part of providers. In an era when differentiation has become all-important, there’s value in being able to market an overnight stay that doesn’t fit the usual mould.

Pop-up ‘hotels’ tend to fall into one of a few categories. Many are essentially luxury tents, soft-shell spaces erected for a few days at a time in desirable locations and fitted with as many mod cons as can realistically be managed. The ever-more-popular notion of festival ‘glamping’ also fits here.

Other pop-up accommodations are more functional but no less viable, making use of existing structures that are currently empty. These might be anything from shipping containers to untenanted buildings.

The premise behind the idea is simple. When high-rise residential buildings are completed, it can take them up to two years to secure long-term tenants. WhyHotel, which recently secured almost US$4m in seed funding, makes the most of this period by selling as-yet-unfilled units in these new developments as hotel beds.

“We’re on site for guests 24/7,” explains President and Co-founder Bao Vuong. “We generally start by using around 50% of a building’s units, so early on we have by far the predominant number of people in the building. That percentage gradually falls as the months go by, and by about 20% we pull out.”