2017 is set to be a very interesting year for the global hospitality industry, and particularly for the industry in Los Angeles. In fact, experts agree that there are four main catalysts at play right now, and they may just change 2017 as a whole. The big question is whether the industry will grow this year or not.
An Analysis of the Industry
Only companies that are innovative and that can see a challenge and turn it into an opportunity are likely to be able to achieve sustainable growth. There have been big changes in the global economy, geopolitical turmoil, massive innovation, pandemics, natural disasters, and massive changes in demands. It looks as if this is set to continue this year. As a result of this, four catalysts have been identified, and these are catalysts that hospitality businesses such as the Bicycle Casino Hotel are facing head on.
Key things to remember about the economy include:
- That consumer spending is likely to be high in 2017, meaning the hospitality industry can be optimistic in terms of demand for their services.
- That hotel owners in particular have to make sure they have embraced online technology properly if they are to experience sustainable growth.
- That there will be some headwinds facing legacy airlines due to rising oil prices and new labor deals. Operating costs are on the increase, and this does translate in less visitors who fly in.
- The hospitality industry will continue to struggle to prepare for external events such as food safety and cybercrime.
In terms of consumer mindsets, hotels have to be ready to meet the demands of their clients. This includes understanding that:
- Consumers want on-demand functionality, removal of friction, personalization, and authenticity in every element of their travels.
- Hotels have to come up with new ways of attracting clients, such as offering vegan meals in restaurants or creating open public spaces within their grounds.
- Personalization is incredibly important, but it can also be difficult to really embrace due to the changing preferences and needs of customers.
In terms of technology, the hospitality industry has to be ready to:
- Embrace the Internet of Things (IoT), mobile applications, and artificial intelligence. These all serve to make the travel experience better.
- Integrate IoT sensors to adapt to their customers’ behaviors, using machine learning and advanced analytics.
- Win back customers by providing better, more technologically advanced, modes of ground transportation and travel.
Last but not least, it is very important that hotels embrace the various new platforms that are available to them. They must find a way to scale their brand across the entire experience of travel, instead of focusing on vertical growth. Additionally, they should look into various merger & acquisition possibilities as well as various other strategic partnerships across the year.
The hospitality industry is changing rapidly and these changes are noticeable across a range of sectors within different industries. Businesses must understand their key challenges and how they can respond to them in order to remain relevant.