People Want To Travel Even More

We believe that people will never stop travelling, and the tourism and hospitality businesses will always be in demand. However, the market will belong to those who have the stamina to weather out the crisis and become even more energetic and healthier. Humanity has been through worse, and with much fewer tools to overcome the adversity.

After complying with the stay at home orders for an extended period, people will want to travel even more than before. To prove our point, let’s turn to history.

One of the deadliest conflicts in human history, the Great War, had surprisingly given a boost to post-war tourism. Before 1914 seaside resorts, water sports and skiing were experiencing an increase in popularity.

The war forced millions of people to move, and they would send their loved ones postcards and photos from new places. When the war was over, people felt the need to see new and magnificent places with their own eyes. It led to a surge in travel that was also supported by the implementation of paid vacations in European countries.

Another ten years after, tourism got a new boost, when due to the 1929 economic crisis, European luxury hotels started going bust, unable to adapt to the new reality. Even the well-off audience preferred cheap camping as their main vacation option. Besides, sea resorts started putting a lot of effort into attracting tourists for the summer season to compensate for the decrease in the number of affluent customers that were used to spend the winter time in warm climates.

Every subsequent crisis created new opportunities for tourism. For example, during the 2008 financial crisis the sales of traditional package tours were dwindling, while the sharing economy services, such as Airbnb and others, thrived, filling the gap in the market of affordable travel.

The current tourism and hospitality crisis caused by the coronavirus is one of the hardest challenges that these global industries have faced in decades, but adaptation is something the industry has proven to be good at!

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Hotels Double As Offices

During the pandemic, AccorHotels seems to be betting on those who are afraid to use co-working spaces and cafes for fear of close contact with other visitors.

Hotel operator AccorHotels has come up with a new use for rooms that are vacant because of the pandemic. The company offers rooms to be used as offices. The program is titled Hotel Office and covers most of the chain’s hotels in Britain, as well as select few in Europe. In its essence, it is not much different from the standard daytime stay offer. It is even priced the same, but has slightly different check-in time – 9:00 instead of the regular 10:00 (check-out is still at 18:00), while free cancellation is possible before 14:00 instead of midnight. You can only find daytime stay offers on special landing pages – the regular website will only show options with night stay.

The prices are, on average, 15-25% lower than that for a night stay option. For example, on August 18, daytime stay at Novotel London Bridge will cost £95 instead of £114 for night stay, Mercure Hyde Park – £62 instead of £86, Mercure Paddington – £47 instead of £61.

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Artificial Intelligence and Digital Service

With the right approach to implementing digital technologies, hotels can gain a significant competitive edge. Automation allows the decision-makers to free up the most critical resource – time. It can be then spent on further business development research and diversification. Another point that is also very important in a dynamic environment is the increasing number of independent tourists that forces tourism companies to seek alternative ways of making money.

By the way, a Booking.com survey has shown that one-third of world tourists are interested in using AI for trip planning. People leave a sizable digital footprint with their search history – it includes general preferences as well as their budget and payment options of choice. 50% of those surveyed don’t have a preference for getting help from a chatbot or a real human when it comes to trip planning.


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Scientific Developments And Gadgets

A lot of luxury hotels have invested in R&D and gadgets. The Cape and Kantary hotel chain that holds 23 hotels in Thailand will monitor the quality of its drinking water by regular checks in a certified lab.

Avani Hotels that owns 33 facilities in 18 countries is covering all high-touch surfaces, such as door handles and elevator buttons, with antibacterial copper film as well as high-grade air purifiers. Hilton has implemented new hygiene standards that include contactless check-in, UVC sterilization and electrostatic spray devices that create a sanitizing mist.

Four Seasons has partnered with Johns Hopkins Medical Center to implement its Lead With Care healthcare program. Every facility will now be monitored by a health officer, and rooms will be treated with UVC devices.

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High Hopes For Vacation Season

This season did not show much financial promise for hotel owners. People were hesitant to book trips. According to a ValuePenguin survey, 48% of Americans cancelled their vacation plans over the coronavirus situation. Many have concerns about catching COVID-19, but some cite loss of work as the reason for cancellation.

Only 16% of those surveyed were ready to go through with the vacation plans they had made. Hotels fight for each client – with both improved customer service and following meticulous hygiene standards.

Many large chains have implemented a flexible cancellation policy that allows customers to refund. As an example, any new and existing bookings at Hilton before June 30 can be rescheduled or cancelled free of charge – even those that are marked as non-refundable.

Hyatt, Marriott and Choice Hotels have also relaxed their cancellation rules. Most hotels only allow cancellations no later than 24 hours prior to check-in; this way the customer will be refunded. Should the customer decide to reschedule their arrival, they will have to cover the price difference on the room, if need be.

High-end hotels are implementing new health safety standards to ensure their guests are safe from the risk of contracting the coronavirus disease.

In addition to the government hygiene standards, the American Hotel & Lodging Association has developed its own: maintain social distancing between guests (6 feet), use sanitizers approved by the CDC, and more strictly control the cleaning schedule.

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Did you know?

It took 90 minutes to book a flight and manually process it in the 1950s, and it used to be more expensive. In the digital age, booking takes a split second, and a trip planning is done in a few clicks, so 1950s service looks surreal.

Since the advent of machine booking in the 1960s, IT became a fundamental part of the travel industry.

These days digitalization opens new opportunities and sets trends, changes the way we live, communicate, organize labour, education and recreation. The travel industry is no exception. Tourism digitalization makes business more flexible and adaptive to modern realities, increases its competitiveness in the constantly changing digital world.

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What is digitalization and what are its opportunities

We talk a lot about digitalization and what it offers, but how can it be summarized? We managed to explain it in just three points!

1. Digitalization is the use of digital technology to increase life quality and promote economic development. It aims to complete routine tasks and make decisions without human involvement.

2. The point of digitalization is processes automation by transforming them into digital. It makes precise analysis and autonomous decision making possible.

3. Digitalization aims to make processes flexible, to use data analysis to know exactly what market demand is to adjust the business to it.

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Digitalization makes personalized services possible

We are sure it is the right time for hoteliers to employ digitalization to meet clients’ highest expectations.

Did you know that 87% of customers will never make the second purchase if they were not satisfied with the first one? And customers’ demands and expectations grow year by year.

Use new technologies! The technological revolution has reached business. Global digitalization revolutionized the hospitality industry and changed the hotel-guest relations.

ModiHost system offers hotels an opportunity to use guest data analysis to improve service quality and increase customer retention rate. Analyze guests’ preferences and flourish in the experience economy. Build an emotionally oriented business, appeal to a client’s experience. Brands that aim for continuous development have to write a scenario of individual interaction with each client.

Hotel digitalization is a business opportunity!

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Digitalization is already well underway!

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Technologies, loyalty and environment protection

We are sure that after #COVID19 related events, tourists will choose travel destinations and hotels more cautiously. As always, we’re also confident that digital technologies have a big future in the hospitality industry and that environmental friendliness trend will continue.

Global digitalization already became a basis for the new hospitality business policy. It is now apparent that contactless services, such as online check-in and e-concierge, are gaining momentum.

High-tech finds its way into hotel rooms. Smart mirrors function as TVs, touchscreen monitors and as regular mirrors. Guests can shave, put on makeup, check email and watch TV on a big screen. Guests can connect to the room systems with their smartphones and turn light on and off remotely.

Speaking about the business side of the question: digitalization changes the way sales work. Big data allows businesses to personalize offers precisely, up to the guest’s favourite colour.

Data collection by hotels and aggregators offers an opportunity to personalize offers based on the experience of the guest, his interests, room temperature etc. Customers tend to be more loyal to hotels that make them personalized offers.

The hospitality industry decided to join the struggle to protect the environment. Businesses pay more attention to water conservation and energy efficiency. They use individual showerheads, and modern washing machines, place motion sensors that turn off the lights in no one is present in the room—no need to talk about plastic usage reduction.

These changes slowly affect every hotel worldwide. And it’s good news!

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Digital changes

Traditional tourist attractions, sightseeing, for example, are transforming as well. Tourism becomes digital. Adobe Digital Insights (ADI) analyzed 321 million social engagements and found out 8 out of the 10 largest hotels have tested some VR experience.

Developers paired VR devices with consumers’ mobile devices. Virtual entertainment is becoming the most critical part of the program. Moreover, the number of hotels that offer some AR/VR-related experiences have increased by 13% last year.

For example, customers scan a map, chose a place of interest and join an online tour there via VR.

Gamification elements make it possible for the tourists to make a location part of a famous game. Furthermore, these technologies help to improve service quality.

Hilton Hotels Garden Inns implemented a game into employees’ training. They used AR to simulate routine situations to test how employees interact with customers.

They then received ratings based on the game’s results as well as customer reviews. It helped to improve service quality, which was also rated by guests.


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Travel: digital trends of 2020

Today lets talk about prospects of digital tourism and its development trends this year.

Online booking and global search.
In 2020 online booking surpassed $800 billion mark. Experts estimate there will be 700 million online booking users looking for an ideal vacation in 2023.

Moreover, 33% of users say a virtual assistant played an integral role in helping them plan a great vacation.

The internet allows for a spontaneous trip. In 2020 Google Analytics show 519% increase in search queries including “this evening” and “today” compared to 2015.

Speaking of global searches, 150 million bookings are made online.

Millennials prefer to look up information about an upcoming trip on a hotel site rather than a travel agency’s one. Furthermore, in 2018 users began to book tours in mobile apps, and it is becoming more popular.

More and more people use digital and internet technologies to plan vacations and business trips. It makes their lives easier, so these trends will continue to grow in popularity.

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Eight digital technologies

ModiHost team always follows new trends in the hospitality industry. We are glad to notice that AI use in hotels now goes beyond temperature and light adjustment or playing guests’ favourite music. Hotels are starting to use AI for automation and service quality improvement via learning guests’ preferences and anticipating their needs.

Voice assistants are becoming an integral part of room service. Some, yet few, hotels accept payment in digital currency after blockchain user identification.

What else can digital technologies offer the industry?

Augmented reality is used to stimulate travel packages sales by showing hotel rooms, surroundings and local attractions via an AR headset.

Another amazing technology is the brain-computer interface. BCI is used for remote control of various objects, suitcases for example, by thought, and to engage guests in interactive games played by thought alone.

Hotels are becoming like something from sci-fi, and it’s only the beginning!

Large-scale Digitalization

The pandemic has pushed the hotel business to follow the digitalization path more quickly. A recent industry survey shows that in Europe, Asia and the US over 80% of travelers will now take great care to maintain social distancing in hotels, while 70% of hotels soon will or already have implemented contactless customer service practices.

However, experts believe that the Russian hotel sector is aimed at overcoming the crash rather than implementing expensive innovation. The sector is bleeding red ink.

Considering the consequences of the pandemic, hoteliers will have to contend with a new type of client that will demand extra-special treatment. Safety becomes the main focus, and this goal can be achieved with the help of digital solutions.

This is confirmed by an Oracle and Skift poll: with over 1.8 thousand various hotel industry leaders surveyed and some 4.6 thousand clients from North and Latin Americas, Europe and Asia-Pacific. The survey showed that 84% of travelers believe that maintaining social distancing is the most important factor in choosing a hotel.

Some 70% of customers surveyed have expressed their preference for hotels that offer self check-in and check-out. Some 20% believe that extended room service (for instance, food delivery) is an important safety factor that helps to avoid visiting public spaces in the hotel.

Industry leaders have stepped forward expressing their readiness to comply with these requests. Almost 82% have either implemented or are in the process of implementing changes to the public spaces that will help maintain the required distance between guests and staff. Over 70% of hotel sector directors claim they have either implemented or are in the process of implementing contactless payments and digital information services, while some 60% are using smartphone-app-based room keys.

Two thirds (67%) of directors report having implemented or planning to implement self check-in and check-out. Over 60% of industry representatives have expanded or are in the process of expanding the room service, while 50% are developing new food delivery options.

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