Concluding 2024 in hospitality: Navigating through industry shifts  

by | Dec 11, 2024

In this blog

As we conclude 2024, it is evident that the industry is heavily defined by digital innovation and hyper-personalised experiences. With this, an intriguing question arises: how can we harness the power of technology while preserving hospitality’s essence of human connection?

Let us take a moment to reflect on an eventful year of new advancements, trends, challenges, and opportunities in hospitality while envisioning an even better 2025.

Hospitality demands are evolving

The last few years have seen the hospitality industry transform in major ways, driven by evolving consumer preferences. Safety and hygiene continued to remain a priority, with contactless technologies becoming mainstream. The primary focus, however, shifted towards more personalised experiences, with hoteliers leveraging data to tailor offerings to individual guests. The desire for authentic local experiences pushed hotels and resorts to offer more immersive cultural activities.

What are new generations looking for?

Guest habits that took centre stage in 2024 

2024 saw the emergence of some exciting new trends and opportunities. Event tourism was a significant source of revenue for hospitality in the past year, with events such as Taylor Swift’s Eras Tour and the Paris Olympics attracting massive crowds. The global luxury travel market experienced significant growth, driven by increased spending and the rise of the experience economy. Luxury travellers sought more exclusive experiences and diversified offerings often with a focus on wellness and relaxation. Consequently, the wellness tourism market grew, and is expected to reach USD 2.1 trillion by 2030. With a focus on holistic wellness, guests are seeking hotels and resorts with comprehensive wellness packages including spas, meditation and yoga sessions, and healthy dining options.  

The edu-tourism sector also experienced significant growth driven by increased globalisation and a growing preference for purposeful travel. Countries like India, China, and Brazil are gaining prominence as emerging markets for global education-based migration, while domestic travel between urban and rural cities remain popular for field trips. In the socialising front, the industry has seen a cafe culture boom, and the growing popularity of competitive gatherings centred around games and tournaments. 

Responding to changing demands with technology

Technology has been the industry’s response to many of its challenges and opportunities. Businesses are moving away from traditional legacy systems and embracing the smart era of hotel ERP suites and innovative cloud solutions. There is a shift towards cloud accounting with the numerous benefits it offers over traditional accounting methods. The increased demand for hospitality services and the need to address rising costs and waste also caused digitised hotel inventory management to gain popularity. Technology is also taking centre stage in balancing the taxing demands of modern housekeeping. As traditional methods are becoming obsolete amidst the rising demand, the industry is welcoming smart housekeeping solutions to promote efficiency and stellar guest experiences. 

Technology adoption is also streamlining operations in the F&B sector which has long been characterised by fluctuating demand. Balancing reservations and walk-ins is a common challenge for restaurant owners as they strive to optimise table utilisation and guest satisfaction. To address this, restaurants are investing in digital reservation management solutions that elevate the overall dining experience by ensuring better productivity, smoother shift management, and deeper customer insights. 

Heralding a new era with greater responsibility

As we draw curtains on another year, all new solutions are empowering hospitality businesses to provide an extraordinary service befitting the expectations of modern guests for maximum control, convenience, and comfort. Driven by smart tech advancements, the future of hospitality heralds an exciting era of super personalised service.  

In the race to leverage the most advanced solutions, it is vital not to compromise the age-old essence of hospitality: human touch and connection. Striking the right balance between personalisation and data privacy is another key concern, requiring all stakeholders to invest in robust data protection and security measures. After all, as the saying goes, with great power comes great responsibility. 

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Nandika Udupihilla | IDS NEXT

Author

Nandika Udupihilla

Vice President & Country Head, Indian Ocean – Sales

Nandika is responsible for the Sales and Operations of the Indian Ocean Region, looking after Sri Lanka, Maldives, Seychelles and Mauritius. His years of expertise in IT and strategic management have helped contribute to streamlining the technological needs of IDS Next's global clients.

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