As the hospitality industry continues to adapt to a rapidly evolving market, shifting consumer expectations, and challenging economic conditions, new industry trends are emerging. We have compiled the most significant influences impacting how consumers are choosing to travel today.
Travel Outpaces Other Sectors
Despite looming recession fears and an unpredictable economic landscape, travel is up in 2023. In fact, tourism is predicted to reach up to 95% of pre-pandemic levels globally, while retail sales volume is down by 0.7% compared to March 2021.
According to the Secretary-General of the UN World Tourism Organization, Zurab Pololikashvili, “UNWTO anticipates a strong year for the sector even in the face of diverse challenges including the economic situation and continued geopolitical uncertainty. Economic factors may influence how people travel in 2023 and UNWTO expects demand for domestic and regional travel to remain strong and help drive the sector's wider recovery."
Hotels can take advantage of the continued boost in traveler enthusiasm while equipping themselves for more domestic travel and shorter trip length. They can prepare for the latter possibility by driving revenue elsewhere – for instance, through upsells and experiential add-ons.
The swimming pool at Grupo Habita's Baja Club Hotel in La Paz, Mexico.
Customizable Guest Experience
One of the biggest trends in the hospitality industry in 2023 is guests looking for more customizable experiences – in fact, 86% are looking for more personalization when traveling. Guests want to make the most out of their stays, and by making room upgrades and add-ons easily accessible to guests, hotels can boost revenue, as well as provide more memorable experiences on-property. Furthermore, integrations with loyalty programs, which are key to 42% of guests, allow them to take customization to the next level.
Selfbook’s array of customization options – all available directly within the checkout flow on a hotel’s website – range from add-ons to special member rates for loyalty programs like I Prefer. Whether choosing rate plans that include daily breakfast, adding spa treatments to their stay, or scheduling outings or local cultural experiences, guests can take personalization to the next level with Selfbook, all without needing to make separate reservations outside of the hotel booking flow.
Social Commerce for Travel
Social commerce is set to grow three times as quickly as e-commerce and become an $80 billion market in the US by 2025, making it a core target area for most industries. Travel has lagged behind retail in embracing this selling strategy, but 2023 is the year for hotels to embrace social selling to deepen their direct engagement with travelers and reduce OTA dependency.
Groups like Small Luxury Hotels of the World and IHG have hopped on board with strong customer-facing TikTok and Instagram accounts highlighting unique stays and giveaways. Hotels can take their social selling strategies a step further by enabling guests to book their stay directly through social media, using tools like , which hotels can embed within Instagram stories and posts, TikTok posts, and more.
Working directly with creators, who have immense trust and loyalty among their follower bases – creator content has 60% more engagement than content posted by brands – is also a prime strategy for hotels that want to share booking Links among hyper-targeted demographics.
A New Era for Payments
Offering the payment methods preferred by today’s shoppers is crucial for hotels to keep up, especially those who have long relied on legacy payment methods. With digital wallets to become a $3.5 trillion industry in 2023, hotels can no longer go without accepting payment methods like Apple Pay, Google Pay and Buy Now, Pay Later. Selfbook brings all of these payment methods to guests, enabling them to instantly pay for their hotel stay in one step.
Furthermore, as payments continue to be simplified on the consumer end, the same should happen for hotel teams on the backend. Selfbook’s newly released product is the payment orchestration platform the industry has long lacked, finally automating payments processing, enabling hoteliers to seamlessly handle refunds and additional charges, and offering on-demand payouts. An all-in-one solution, Station brings the simplicity typically reserved for guests to those driving the industry forward behind the scenes.
Sustainability Takes Center Stage
Sustainability has been crucial to consumers across industries, with three quarters of Gen Z consumers claiming that it has more influence on what they choose to buy than brand. Travel – particularly air travel – having a notoriously outsize impact on the environment, travelers are especially aware of the carbon footprint their trips might leave behind.
Hotels across the globe have taken part in increasing their sustainability efforts by reducing their environmental impact through more efficient energy usage, reducing waste, and cutting down water usage. In fact, in order to remain aligned with the Paris Climate Agreement, hotels must reduce their emissions by 90% by 2050. The state of California also recently passed legislation to ban single-use small toiletry bottles – these efforts not only help the environment, they also improve efficiency and reduce costs for hotels.
Despite hotels’ efforts to enhance their sustainable practices, 86% of guests remain unclear on or unaware of them. To combat this lack of awareness, Selfbook's Direct booking layer enables hotels can highlight their efforts directly within the booking flow and even invite guests to participate in their climate protection activities. In partnership with the non-profit Ouanalao Reef organization, St Barths-based Hotel Christopher offer guests the option to include a small donation in their booking to support coral reef restoration projects around the hotel and preserve the natural beauty that is central to any visit to St Barths.
Read more about sustainability at Selfbook hotels .
The striking view from the Lounge Bar at J.K. Place Capri.
Bleisure Travel Continues to Rise
One of the biggest trends following the pandemic is the move towards hybrid or fully remote work. Some remote workers have taken the opportunity to travel while working, taking the combination of business and leisure, or “bleisure,” to a new level. This demographic, often referred to as digital nomads, are not bound to a single geographical location, and the ease with which they can pick up and go is only increasing. With digital nomad visas cropping up in popular remote work destinations like Spain and Greece, some are also planning longer getaways.
This trend creates a significant opportunity for hotels to adapt to attract these types of guests mixing business with leisure, who represent 40% of travelers in 2023. Hotels can work to be a hotspot for remote workers by providing a comfortable working environment and by offering easy bookings for longer-term stays, like Club Quarters' extended-stay apartment-style accommodation.
The serene Spa Villeroy at Maison Villeroy in Paris.
Health and Wellness
The wellness tourism industry is currently booming and is projected to hit $1.3 trillion by 2025. Both business and leisure travelers are looking to unplug and relax on their getaway, and offering options such as yoga retreats, spa days, and massages are a great way to attract this growing demand from consumers.
With nearly half of guests stating a need to disconnect from the stresses of their everyday lives to prioritize their mental wellbeing while on vacation, hotels can maximize their health and wellness offerings. Selfbook partner hotels, from Korakia Pensione in Palm Springs to Maison Villeroy in Paris, are able to highlight their wellness services instantly during the booking process, allowing guests to effortlessly add a massage or a day at a private spa to their stay.
Future Outlook
While business continues to be booming for travel, hoteliers must keep an eye to changes happening both among guests and within the industry to ensure they continue to drive direct revenue. With seamless technology that allows guests to book all elements of their holiday in one unified flow and the ability to automate payments once and for all, Selfbook’s product suite is crafted to serve hotels throughout 2023 and beyond.