travel and hospitality trends 2023

Hospitality Industry

Hospitality Trends 2023: the future ahead

January 05, 2023 •

9 min reading

As 2022 draws to an end, we can all agree that it has been, once more, a roller-coaster ride for the hospitality industry. However, there is no time to reflect on this year as everyone is already looking ahead to 2023 and predicting which trends will impact our industry. We have summarized eight dominant trends and three springs of innovation we can’t ignore. And, traditionally, some inspiring ideas for you for this Christmas season!

--- HOSPITALITY INSIGHTS ---

1. exchange rates affecting travel and tourism.

As of December 2022, the U.S. dollar is at a favorable exchange rate against many other currencies, making international travel more affordable for US residents. For example, it has given Americans more purchasing power in Europe than at any time since the early 1980s, as the dollar and euro have almost reached parity. As a result, savvy travelers are choosing where to travel based on the most advantageous exchange rate. Due to the current international context, this trend will likely become stronger next year.

2. Travel spending should increase next year

The willingness to pay for vacation products is expected to increase. A survey conducted by Booking.com stated that “close to half (49%) admit that they plan to be more indulgent in their spending habits while on vacation to make up for the lack of travel during the last couple of years, while 43% plan to spend lavishly to ensure they maximize their trip and every experience is worth it”. In a study conducted by Expedia .com, many people (43%) said “their travel budget will be larger this year than last.”

3. The line between work and travel will become more blurred

The number of digital nomads will increase, especially as some companies such as Spotify have implemented “working from anywhere in the world" policies. However, for some individuals, full-on digital nomadism is too extreme and a more nuanced variation is emerging: “hush” trips . This solution is more temporary compared to the usual length of a digital nomad’s stay and typically lasts less than a month. However, travelers can still spend more time discovering a destination while working when required. The hospitality industry is also expected to witness more bleisure travels , a mix of business & leisure travel where a typical employee travels for business reasons from Monday to Thursday, and then extends their trip for a mini-vacation, often with their spouse or family in tow.

4. Eco-friendly travel is no longer niche

Whether it is under the appellation of sustainable travel, soft travel or eco-travel, more and more travelers are sensitive to the ecological impact of their vacations. Indeed, the YouGov Travel and Tourism Practice found that 44% of US consumers try to make purchases (including travel) from socially and environmentally conscious companies. This trend is also supported by Booking.com and Expedia.com studies. Furthermore, a new type of ecological travel is also on the rise, regenerative travel , aiming at offering trips that have net-positive impacts, bringing sustainability to another level.

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5. Digitalization will enhance travel experiences

The digitalization of tourism services will keep rising during 2023 creating more immersive experiences for travelers. Features like the possibility to virtually explore destinations during the booking process will become available. Example of future enhanced travel experience is also supported by entertainment companies, such as Walt Disney Co ., which is willing to create a real-world theme park ride that incorporates a parallel 3D virtual-world experience.

6. Traveling by train is here to stay

Travelers increasingly enjoy traveling by train as it is usually more peaceful than the crowded airports and soaring flight costs that many encountered during the pandemic. Moreover, many train routes are being reinstated giving the opportunity to facilitate travel by train. Europe seems to be leading this trend with new overnight trains recently launched. While the primary purpose of taking the train is usually to move from point A to point B, companies are also offering services to make the train a destination in itself, by offering, for example, culinary tourism activities.

7. Destinations that will be trendy in 2023

Forbes listed the 23 best destinations for 2023. When it comes to cultural city gateway, as cities can gain or lose attraction overtime, Expedia.com named the top five cultural cities to visit for next year: Edinburgh, Lisbon, Tokyo, Dublin and New York.

8. Travelers go local - less alcohol and more local food

Travelers now are willing to drink more zero-proof cocktails, (cocktails without alcohol), but still enjoy the fancy look and taste of a regular cocktail. Moreover, they also wish to have the opportunity to eat “ Zero-kilometer food “, as “Guests are increasingly looking to have a connection to the land where produce is sourced, and the demand to visit farms or have an ‘agrication’ experience has grown exponentially.” — Michael Young, resort manager at Timbers Kauai at Hokuala in Hawaii.

We suggest you take a close look at these trends to ensure your business is aligned with the changes taking place in 2023!

--- HOSPITALITY INNOVATION---

Some global changes and trends can be painful for hospitality players, but they also bring opportunities to accelerate the adoption of new technologies and meet ever-changing customer needs.

Digital normal

Going digital looks like an "easy" innovation. Hotels are replacing their legacy systems with new solutions to improve operational efficiency, drive automation, and allow employees to focus on what adds value instead of routine and time-consuming tasks. Undoubtedly, this allows companies to move toward a paperless future and contribute to sustainability, the driving force behind global consumption. Furthermore, business leaders have high hopes for the impact of digital transformation, expecting international transaction and consumer data to improve their operations. NFTs (non-fungible tokens – digital assets with a unique value) are also making their way into the hotel sector. Marriott International has been one of the first hotels to start playing this game. Moreover, some hotels already offer the possibility to book a room using NFTs, the so called 'NFT room packages', and this service is expected to become more popular in the future.

AI is paving the way

The AI (artificial intelligence) technologies are making a huge leap forward. We are already seeing significant breakthroughs, and there are more to come. In the global hospitality sector, these innovations can solve many problems, including staff shortages and the introduction of automation and self-service in customer service, which will be speedy, cost-efficient and accurate. Using robots in customer service is not "futuristic," it's already our era. Smart hotels with a combination of artificial intelligence, AR, VR and connectivity are expected to personalize customer service and make them more loyal and returning guests. Leveraging digital twins and the power of the metaverse may be a more impactful move than one might assume.

Sustainable everything

This is the main direction of hospitality in 2023 by all dominant trends. It will drive major investments, and the hospitality industry is expected to develop and adopt more sustainable solutions in all its activities. Global hotel chains are introducing different programs and initiatives. Furthermore, they also are collecting data on their environmental impact to calculate their carbon footprint. When 4/5 of travelers choose sustainability as an important factor, it is not surprising that this impacts their purchasing choices. As a result, it has become vital for hotels to switch to environmentally-friendly processes and services – and ensure that these initiatives are visible to their customers.

Thus, as mentioned, trains have become trendy , and train bragging is on the rise. Apps, such as Trainline offering “a one-stop-shop for train and coach travel”, seem to have become more popular and offer an easy way to plan a low carbon emission trip. Should you wish to know how transport and mobility are evolving in the hospitality industry, have a look at our monthly digest on the topic . If you are interested in innovation in sustainability, you should look for everything with “zero”: zero-proof cocktails, zero-kilometer food, zero-waste dining, net-zero food system , zero-touch in service automation…

Generally speaking, experts highlight that using green hydrogen in transportation, eating beans and utilizing bamboo for building affordable homes are critical innovative approaches to making progress on the UN SDGs.

We have talked a lot about sustainability in terms of reducing ecological impact, but let’s not forget that companies also need to be financially sustainable. The current shrinkflation negatively affects hoteliers, pushing them to find new ways of keeping the business financially sustainable, such as by downsizing the “offer” while keeping the price tags unchanged.

--- HOSPITALITY INSPIRATION---

Must read, follow, listen, watch to further explore these hospitality trends.

Want to see the most unexpected travel trends of 2023? Take a look at this report . Interested in business events trends? Nine of them are explained here – including the transition from event planners to designers of time. On top of that, McKinsey experts offer a number of specialist insights into the future – “ The next normal ” – on the future of space, entertainment, food, wellness, shopping, car buying, fashion and more.
The Financial Times has done a fantastic job suggesting the best books of the year on economics, environment, food and drink, science , travel, business, health and well-being.
Climate change is a big topic. You can easily access a variety of information at the UN Climate Change Global innovation HUB
On cold winter evenings you can rewatch "Home Alone" or "Die Hard" to get you in the Christmas/New Year's mood, or you can explore something new by checking out the best TV series of 2022 or listening to the best albums of the passing year.
Indeed, OpenAI chat is everywhere. But why? Listen to a new episode on “ Can ChatGPT make this podcast? ” to learn more.

We will continue to keep our finger on the pulse of trends and changes in our world. We wish you success in 2023! We will continue to inspire you to pursue positive shifts, innovations and more sustainability, both in life and in business.

Research Associate at EHL Hospitality Business School

Research Assistant at EHL Hospitality Business School

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Hospitality industry looks strong for 2023 – despite recession fears

EY Americas Real Estate, Hospitality & Construction Consulting Leader

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Despite economic headwinds stoking fears of a 2023 recession, the hospitality industry still defies expectations and posts strong numbers.

Travel demand, while currently robust, may be impacted if companies need to cut costs in the face of a worsening economic outlook.
The industry should continue to focus on efficiencies at the hotel and corporate levels, prioritizing customer experience, analytics and automation.
Transaction activity is likely to be slower; due diligence is critical so teams are prepared when the right deal comes along.

T here is one cautionary note that is always important to keep in mind when evaluating the hospitality industry. Market performance of hospitality has exceeded other industries such as technology and retail, with the gap widening in the second half of the year.¹ Add the fact that revenue per available room (RevPAR) has exceeded GDP growth during the current economic cycle, and 2023 should be a good year for the hospitality sector (see graphic).

As per a CBRE study, during the 2009 recession, 10.2% of the properties that experienced a decline in RevPAR saw their rooms revenue drop by more than 30%. On average, these properties also suffered a 35.3% drop in total revenue, but the decline in Gross operating profit averaged 57.0%.
As per a CBRE study, in 2001, properties that experienced a decline in RevPAR, only 2% saw RevPAR fall by more than 30%. On average, these properties suffered a 35.3% drop in total revenue which resulted in a 54.2% decline in Gross operating profit.
The impact of Covid-19 ended the nine-year trend of profit growth and positive RevPAR for U.S. hotels since 2010, with a significant upwards spike of RevPAR starting in 2020.

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“Historically there has been a strong correlation between GDP growth and RevPAR,” said Umar Riaz, EY Americas Hospitality Sector Leader, in a recent interview with HOTELS Magazine. “But it’s my opinion that given the current dynamics of the travel industry, even if there is a mild recession in the next six months or so, the travel industry will still perform strongly.”

The post-pandemic urge to travel remains strong, which should drive continued growth in 2023. In the US, RevPAR was up 8.1% in 2022 from 2019, and Europe was up 6.1% for the same period. Asia, driven primarily by China, was the weak spot with a 31.2% RevPAR decline from 2019 to 2022. The industry’s average daily rate (ADR), which measures the average rental revenue earned by an occupied room per day, was up 13.6% last year in the US and 18.5% in Europe, when compared with 2019 figures.²

Business travel is also poised for recovery as companies ramp up their travel budgets. Trade shows and conferences are selling out, reflecting the pent-up demand that persists across all industries to get out of the office. Another factor in the industry’s resurgence is the growing work-from-home (WFH) segment of the workforce. In some cases, those employees build their travel plans around both business and leisure. Bleisure travel, where business travelers add on a day or budget extra time in their work trip for sightseeing or some other type of leisure activity, is a growing trend. The result of these market developments is more revenue and continued economic recovery for the hospitality sector.

Reasons for optimism in hospitality sector

The EY organization projects that the global economic picture is mixed heading into 2023, depending on the region, but the long-simmering slowdown will likely turn into a global recession. In the US, the economy is visibly cooling because of persistent inflation, rising borrowing costs, deteriorating private sector morale and rapidly slowing global economic activity. Elevated inflation and a lingering energy crisis will lead to a moderate recession in the Eurozone. In China, the economic outlook remains uncertain, with growth constrained by the recently lifted zero-COVID-19 policy, a lingering property sector downturn and weakening global trade activity.

However, several factors contribute to optimism for the hospitality sector in 2023:

Leisure demand, group business travel poised to remain strong: Consumer surveys show that most people are planning at least one leisure trip over the next six months. Rising inflation might mean that consumers will make different choices when they travel, but demand still remains strong. As for group business travel, key statistics, such as a convention center booking increase of 13% in 2023 relative to 2022, point to a strong year for group travel.³ According to a survey conducted by American Express, 65% of respondents expect their spend on meetings and events to increase in 2023.⁴
Business travel recovery: According to a recent survey by Morgan Stanley of global corporate travel managers, travel budgets are likely to be 98% of 2019 levels, with nearly half the respondents expecting an increase of budgets relative to 2019.⁵
China’s re-opening: Before the pandemic, China was the world’s largest outbound travel market, with Chinese travelers taking 154 million trips and spending $255 billion.⁶ With the lifting of COVID-19 travel restrictions, Chinese travelers will begin to travel again in 2023. While there are still significant airline capacity constraints, there will be a measurable impact on both the domestic and international hospitality industries.
The rise of the digital nomad: According to a recent EY survey of companies , 87% said that COVID-19 has had a profound effect on the workplace, with 72% saying that they now have a hybrid remote/office approach and 75% saying that they anticipate no central office in the foreseeable future. As these workplace trends take hold and people become untethered to their offices, these digital nomads will become even more mobile and will work from places where they want to travel.
Infrastructure Investment and Jobs Act: Spending associated with the Infrastructure Investment and Jobs Act (IIJA) that was passed in the US in 2022 should lead to additional spending on hotels.

Deals market could see a slowdown

One aspect of the hospitality sector that isn’t expected to be so strong in 2023 is the transaction market.

With the Fed continuing to raise interest rates in an attempt to drive down inflation, the cost of borrowing money will continue to go up. As a result, transaction activity is likely to be slow in 2023. Deals will still get done, and there will be opportunities to create value and drive growth through M&A activity in the hospitality sector. Transaction due diligence will be even more critical to identifying the right transaction, given the market circumstances. In some cases, 2023 will be a good time to focus on organic growth. But teams still need to monitor what’s happening in the industry and be prepared should the right deal come along.

Boomerang workers?

During the pandemic, the hospitality industry lost much of its workforce as travel restrictions forced hotels to make severe staffing cuts. The industry’s unemployment rate leapt from 5.7% in February 2020 to 39.3% in April 2020, according to the U.S. Bureau of Labor Statistics (BLS).⁷ Many of these workers took jobs in the technology sector, which desperately needed to fill positions to keep up with sudden demand created by lifestyle changes that came about due to the pandemic.

Three years later, the world is adjusting again. While tech companies shed jobs in response to the state of the economy in 2023, the hospitality industry is now ready to hire in response to the expected increase in travel. One of the sectors that had the biggest job growth in December 2022 was travel and leisure. Hotels that have struggled to provide the same level of service and amenities they did prior to the pandemic may be able to fill some of these positions and get closer to full strength.

Bottom line: 2023 should be a good year for the travel and hospitality industry.

The hospitality industry has much to look forward to in 2023 as travel demand continues to grow faster than expected over the last few years. Consumer research reveals that leisure and group business travel remains strong and new workplace trends allow people to travel more as they can work from anywhere. While the transaction market slows down, there is still opportunity to find a good deal while still focusing on organic growth.

About this article

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While the travel, leisure, and hospitality industry continues to make progress toward prepandemic activity, dynamics remain with economic uncertainty, changes in consumer spend, and shifts in business travel. KPMG LLP (KPMG) invites you to join us for an interactive webcast on March 8 to assess the risks that lie ahead for the industry and the path forward to support continued growth and development. KPMG Advisory Partner, Braden Mark, will kick off the session to discuss the macroeconomic forces at play. We will then be joined by Kevin Froemming, Capital Investment & Transactions, Resorts Team Leader at InterContinental Hotels & Reports (IHG) and Steve Sear, EVP of Global Sales and Distribution at Delta, as well as KPMG Strategy Managing Director, Daniel Fischer, for a panel discussion.

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Welcome to Skift Megatrends 2023.

We are excited to present to you the 10th version of our annual megatrends. This undertaking is our largest collective editorial project of the year, the result of hundreds of hours of work that starts with initial planning back in early summer. Skift editors and researchers don’t take our trends lightly, putting the ideas through rigorous self-examination and batting down those that don’t feel completely fresh and cutting-edge.

As always, we offer a wide-ranging set of topics that we hope will guide you in your businesses in smarter ways for 2023 and beyond. We’ve had a pretty good record of being prescient with our big-picture trends. This year, from blended traveling to the potential for generative AI, to India’s reordering of travel, to name just three of our 16 trends, we weigh in across most sectors with forward-thinking ideas that we are confident will come to fruition.

Even as we all return to a more vital pace of traveling, the pandemic continues to leave its legacy on the industry in both challenging and positive ways. Here’s hoping our current megatrends will help you navigate and succeed through this new landscape. — Tom Lowry, Skift Editor-in-Chief

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9 Hotel & Travel Trends That Will Define 2023

May 25, 2022 Jeremy Wells

The days of bland, boring, paint-by-the-number hotel chains are coming to an end — no matter how tightly industry veterans cling to them. The change of guard has begun.

Eventually, they will be replaced by hotels that are not only aesthetically pleasing, unique, and authentic, but that also consider the next generation of guests.

Hotel owners will no longer find success in checking off the boxes of an average, unremarkable lodging experience; “contemporary” art, gray paint everywhere, lobby restaurant/bar, trendy furniture, “wellness” room, hipster music playlist, and one local beer on tap.

Instead, truly unique, thoughtful, custom-made experiences will become the norm.

As we look at the design trends in hospitality for 2023, we’re seeing a shift away from traditional luxury hotels to more accessible, sustainable, and affordable options. The guest experience will be more personalized than ever before. We’ll see thoughtful design beat out “luxury” design more and more.

Here’s everything that we’re seeing shape the future of hotel design for 2023 and beyond.

Adaptive Hospitality

Hotels are also adopting an “adaptive” approach to programming, which involves offering different types of experiences depending on where you are within the property or how much time you have available for your visit. In a previous episode of Future Hospitality Podcast , Rob Blood from Lark Hotels called this “Unprescribed Hospitality”.

As we become more mobile and independent, we want hotel programs that allow us to do more on our own terms — from booking our own rooms to selecting our own activities. This trend will continue in 2023 with hotels offering more programs or activities that can be tailored towards different age groups and interests (think: cooking classes for families). The goal is to make each guest feel like they are getting exactly what they need without having to ask for it.

Pride in Local Community

In the coming years, hotel design trends will focus on creating experiences that are not just memorable but also local. Hotels will become more local and transform their surrounding into an experience. This means that hotels will create a sense of place by leveraging the local culture and community to create a distinct identity.

The new generation of travelers is looking for authentic experiences and social engagement.

The new generation of travelers is looking for authentic experiences and social engagement, which means they want to spend time in places that are connected to their interests and passions. For example, a traveler may want to visit a destination because they have family there or because they have a connection with the city through their hobbies or interests. They also want authentic experiences like interacting with locals, eating locally sourced food, and drinking locally brewed beer. They want to add meaning to their travel experience by connecting with people who live in these cities and doing things that make them feel like locals themselves.

Nature Becomes a Luxury

A new trend in hotel design has emerged: hotels designed with an outdoor focus. The outdoor hotel trend is gaining momentum as hotels are being designed around outdoor activities like hiking, biking, kayaking, and more. Brands are leaning in heavily toward this; Under Canvas , Basecamp , and LOGE , to name just a few.

The trend started with boutique hotels focused on the outdoors and adventure travel but has now expanded to larger brands that want to appeal to a broader range of travelers looking for unique experiences.

In addition to offering guests access to nature through trails and other activities, hotels are adding green spaces such as gardens and rooftop terraces to their properties.

The convergence of indoor and outdoor amenities will continue to be a trend in hotel design, as travelers seek immersive experiences that immerse them in nature.

Social Spaces and Sense of Belonging

The hotel industry is changing. And it’s not just because you can now book a room from your phone or find one on Airbnb. The way we travel is changing too.

Hotels are starting to get the message that guests want more than just a room—they want an experience. That’s why many hotels are starting to design their spaces with this in mind.

Hotels will continue to ditch the traditional check-in lobbies for more communal, social spaces—and even outdoor ones.

Creating a sense of belonging and community has always been one of hospitality’s biggest challenges , but it’s now become one of its biggest opportunities too. Hotels are turning checkout lines into waiting areas where guests can relax while they wait, or they’re creating areas where people can gather together before heading out for dinner or drinks.

Kid-Friendly and Multi-Generational Travel

The future of hospitality is all about the family. More than ever before, we’re seeing more and more families traveling together — whether they’re going on a vacation or business trip — and this trend is only going to continue to grow.

Accommodations should be designed for multi-generational and mixed-ages travelers

Accommodations should be designed for multi-generational and mixed-ages travelers. Bunk rooms, loft beds, and flexible furnishings allow families to stay together while traveling.

Kid-friendly restaurants with age-appropriate menu items (mocktails!) and activities are available onsite at many lifestyle hotels allowing parents to enjoy their meal without the kids underfoot (or vice versa).

Don’t forget the pets! Families are more likely to travel with their furry friends in tow than ever before. Look for pet services such as grooming, walking, and daycare offerings as well as designated pet rooms complete with food bowls, dog beds, and even pet menus!

Helping Guests Unplug

In a world where technology has become so ingrained in our daily lives, it’s no wonder that hotels are looking to provide guests with a way to unplug from their devices.

In fact, many hotels are making it easier for guests to unplug from their devices by providing them with something else fun or distracting to do.

This includes offering quiet rooms with hammocks and cabanas for guests who want to get away from the noise and distractions of their day-to-day. Other hotels are adding extra quiet zones on property, such as libraries, meditation rooms, co-working spaces, and even nap pods where visitors can take a quick break from the hustle and bustle of life.

The Demise of Continental Breakfast

Hotel culinary trends are changing and evolving quickly. The final blow to the continental breakfast was dealt by the COVID-19 pandemic . It’s not looking pretty, which is probably a good thing. But when it comes to food and beverage, hotels still must compete.

Hotels are on the hunt for unique offerings that aren’t easily replicated by anyone else.

In order to compete with Airbnb and other alternative lodging options, hotels are on the hunt for unique offerings that aren’t easily replicated by anyone else.

More people are aware of the health benefits of eating locally and sustainably , and people rely on food as a way to connect with others. Hoteliers are responding by offering microbrews, local wines, craft beers, sustainable products, and plenty of options for all types of travelers.

Because many people are expecting menu options that cater to their dietary needs, hotels are also introducing menu options for vegan, vegetarian, gluten-free, dairy-free, and the like.

Big Steps Towards Sustainability

As the world grows more conscious about the environment, hotels will take a big step toward being 100% sustainable . The hotel industry has been slow to embrace sustainability, but we’re seeing a shift toward eco-friendly design.

A focus on individualism coupled with heightened environmental awareness inspires a return to more local, homegrown amenities. Hotels are beginning to incorporate local products into their guestrooms and restaurants. Guests value authenticity — they want to know that their accommodations are made with local materials and not just mass-produced goods from China or India.

Hotels will also be paying more attention to their energy consumption. In the past few years, the industry has made great strides toward reducing its carbon footprint through initiatives like LED lighting, LEED certifications, and solar panels.

Hoteliers have been forced to adapt to new technologies and a rapidly changing consumer mindset. The hospitality sector has been forced to adapt to a changing world and emerging markets, which has created a new generation of travelers with different expectations.

This has led many hotels to adopt technology that makes the guest experience more seamless and convenient. These technological advances will continue to shape the future of lifestyle hotels around the world.

People want to be able to access information quickly and easily, so it’s important for hotels to provide them with digital convenience as well as physical convenience. Hotels need to focus on providing guests with technology that allows them to enjoy their stay without having any hassle or stress.

These digital expectations are changing the way hotels are designed, operated, and marketed.

Travelers in 2023 stand to expect a lot from their hotels. Hotels will have to work hard to stay relevant and appealing while meeting the needs of guests out of step with a more traditional hotel experience.

The future of hotel design will become more personalized, adaptive, and thoughtful. It will be a dynamic environment that reacts to guests’ personalities and needs while building relationships with the community to give guests a greater sense of belonging in the area they’re visiting.

Brands that put focus on these areas now will be best poised to thrive when it becomes industry standard.

Jeremy Wells

Partner at Longitude°

Jeremy is the author of Future Hospitality and Brand Strategist at Longitude°. As a member of the Education Committee for The Boutique & Lifestyle Leaders Association (BLLA) and a content contributor to Cornell University’s Hospitality Vision and Concept Design graduate program, he is a committed thought leader in hotel branding, concepting, and experience strategy.

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The 7 top travel and hospitality trends to look out for in 2023: Part 1

Data insights

If you were hoping for certainty in 2023 after years of turbulence across the travel and hospitality industry, then you’re probably going to be disappointed.

Recessionary risks, continuing inflation, concerned consumers, changing tastes, the lingering effects of COVID-19 and complex geopolitics all cloud the outlook . However, we’re here to pierce the mists of the future using our proprietary datasets and guide you through 2023 with our top trends.

The outlook? Well, it’s a surprisingly positive one for the travel consumer and industry. Consumers continue to lean into experiences following the end of pandemic restrictions, the US appears to be a potential powerhouse for tourism in 2023, and business travel is deep into a recovery phase that will continue this year.

This isn’t to say it’s all going to be smooth sailing. Destinations in Asia-Pacific already most affected by the pandemic will struggle to shake the effects of COVID and many consumers are feeling the strain on their wallets from high inflation.

That’s the high-level picture, now let’s dive into the data, and reveal the hospitality and travel trends shaping 2023 .

1. High inflation and its impact on consumer travel spending

Inflation became an inescapable part of the 2022 news cycle and for good reason. This level of inflation hasn’t been seen for 30 years in most major developed economies, sometimes even longer.

Inflation has been broad-based, as the effects of rising commodity prices and the importance of the dollar to global finance have meant no country has been shielded.

In the UK and Euro Area, inflation had risen to double-digit levels by the close of 2022 and the US has seen inflation consistently top 7% throughout the year.

Even Japan, which has struggled with low or deflationary prices since the 1990s bubble popped, has seen inflation rise to just shy of 4% at the close of 2022, pushing the cost of living to a 41-year high .

So, what knock-on effects could this create for the travel and hospitality industries?

Firstly, it threatens consumers’ ability to purchase travel products by eating away at their real disposable income and can diminish their means to travel as they shore up their personal balance sheets.

Thus far we have seen household incomes suffer as a result of the inflationary environment, but not as much as the headline figures might initially have suggested . Stimulus measures and a strong employment picture have helped to dampen the effects of inflation.

Household income across the OECD has declined modestly in 2022. However, income levels have just about been maintained in real terms compared to the start of 2020, helped along by stimulus measures, which can be most prominently seen in Q2 2020 and Q1 2021 when cheques in the US were sent to households, skewing the statistics upwards for the OECD as a whole.

That direct help has increased US household consumption over what may be expected, and the country appears to be ahead in the fight to tame inflation as well.

While inflation appears to only just be peaking in Europe, the rate of increase has been moderating downwards since mid-2022 in America.

This, an extremely strong dollar, and continued robustness in its economy places the US in pole position to be the most dynamic major travel consumer market globally in 2023 .

Elsewhere, travel within the Euro Area is set to be more muted, but spending should not suddenly melt away in the region .

Poorer performers are likely to be the UK, where the Asda/CEBR Income Tracker estimates that weekly family spending fell -11.4% Year-on-Year (YoY) in November 2022, and China and Japan, partly due to economic circumstances, and partly from the effects of coronavirus.

On the side of the hotel industry, rising overheads, particularly energy costs, are still a real and lasting challenge from the previous year - with no sign of abating just yet.

Energy costs are continuing to have a substantial impact on the hotel rate landscape. Without raising room rates and moving some of this cost to the consumer, hotel profit margins would suffer severely. Therefore, as we move through 2023 it is likely we will continue to see higher room prices that outstrip 2019 levels.

2. Consumer spending continues to be directed toward experiences

Part of what has driven continued spend amongst consumers in the travel industry, despite challenging economic conditions, is pent-up demand for experiences .

The question now is, has that desire been fulfilled and will we see a shift away from spending on experiences in 2023?

The good news is that the appetite very much remains and we should expect the trend of spending directed at experiences to help push the travel market forward in 2023.

We can see that by looking at demand peaks associated with major events.

Taking first events that repeat in the same location, in this case, the Masters in Augusta, Coachella (located next to Palm Springs) and the Montreal Jazz Festival, pricing continues to be extremely robust in all three.

We are not seeing pricing fall behind what we experienced in 2022, indicating healthy demand .

Compared to 2019 in unadjusted dollar terms, hotel pricing in 2023 for the Masters is 48% above 2019 levels, 35% up for Coachella and 49% higher than pre-pandemic for the Montreal Jazz Festival, largely in line or exceeding 2022.

Pricing changes for cities hosting annual events in North America in 2022 and 2023 compared to 2019

It’s a similar outlook for the Superbowl, being held in Phoenix, Arizona this year. Comparing 2019, 2022 and 2023 pricing curves from 4 weeks out from each event, prices for rooms rose 209% in 2019, 57% in 2022 and we are looking at a jump of 163% for this year’s extravaganza.

Super Bowl host city pricing changes in 2019, 2022 and 2023

However, these are all situated in North America, what is the picture elsewhere?

Looking at the upcoming Champions League Final in Istanbul, the coronation of King Charles III in London and the Eurovision final in Liverpool, prices show more modest spikes, rising between just 25% in London to 69% in Liverpool.

This suggests that capacity and enthusiasm for spending on experiences is more modest in Europe than in North America , which fits with the better economic sentiment and prospects in the US we noted earlier.

Pricing changes for cities hosting major events in Europe in 2023

The percentage of unavailable hotels can give us some more context when looking at these patterns and what is happening.

Here we can also see North American events are selling out of hotel rooms quicker - with the exception of Liverpool - where hoteliers may have been caught out by the demand levels and failed to adjust their revenue management strategies in time, given the high unavailability this far out, but limited price increases.

Percentage of unavailable hotels in cities hosting major events in 2023 during the week of peak demand

Otherwise, US hotels are sold out more often than for major European events, with the Champions League Final, coronation and also the Rugby World Cup in Paris coming behind the major US events we have analyzed

The comparative levels appear to reinforce that while experiences are still a sought-after commodity for travel consumers globally, the US traveler is leading the race .

3. COVID continuation or a close to hospitality’s toughest chapter?

Turning to Asia-Pacific, markets continue to be coloured by the direct effects of the pandemic and we are seeing extremely varied recoveries, or even a lack thereof, as the region struggles to come back from COVID-19 in several cases.

Critically, the trends in the region appear to be dictated by the response of respective governments to the crisis.

Whereas places that had robust measures and effective, high participation immunization campaigns - followed by complete removals of travel restrictions - are well on their way back, those that did not fulfill some, or all, of these approaches continue to struggle.

Looking first at countries continuing to labor under the cloud of COVID, we can consider China, Japan and Thailand. These countries continued to have restrictions deep into 2022, and in the case of China, are now facing a major outbreak.

The results of those responses and the presence of the virus has been weak markets, muted demand and lower prices.

With the exception of December 2022, where we ramp up to the New Year in Asia, rates have broadly sat well below 2019 levels, even without adjustment for inflation.

The bottom across these cities sits in April, where Tokyo hotels were, on average, priced 62% cheaper than in 2019 and had a discount of 25% in Bangkok.

2019 versus 2022 price changes for major cities in China, Japan and Thailand

Let’s compare these cities to a selection taken from countries where responses were decisive, allowing restrictions to be lifted earlier and with more confidence. Taking Melbourne, Seoul, Singapore and Sydney, the difference is stark.

With the exception of Seoul, which is most exposed to the Chinese market, all turned consistently positive for pricing levels compared to 2019 by Q2 2022 .

While this is a small sample size, this underlines how developed economies across Asia-Pacific are not all reacting the same and how COVID continues to exert an influence over travel when its influence has been able to linger.

2019 versus 2022 price changes for Melbourne, Seoul, Singapore and Sydney

Price changes Melbourne Seoul Singapore Sydney

That trend is set to continue well in 2023. China cannot escape the shadow of the virus and several countries have now placed testing requirements on outbound flights, while infection rates have skyrocketed within the country.

Taking Guangzhou and Tokyo, rates for 2023 are extremely weak, failing to rise above 2019 in nominal terms until well into this year.

Pricing levels in Guangzhou, China, 2019 to 2023

Pricing levels in Tokyo, Japan, 2019 to 2023

In the case of the former, the inflection point sits in the middle of the year and for the latter, rates won’t exceed where they sat in 2019 until November 2023.

We can therefore expect a depressed travel market in Northeast Asia for 2023 and for COVID to continue to be a factor for the area in 2023 as consumers remain cautious and restrictions remain a danger to travel plans.

That rounds out part 1 of our top trends for 2023, take a look at part 2 here .

If you want to dive into the data for your market and find out how demand and pricing is shaping up, take a free trial here .

1 . High inflation and its impact on consumer travel spending
2 . Consumer spending continues to be directed toward experiences
3 . COVID continuation or a close to hospitality’s toughest chapter?

Are you ready to uncover new revenue opportunities in 2023?

Asia Pacific Gen-Zs and Millenials Seek to Unlock Value and Maximize Travel Experience With One Loyalty Program

Regional survey by marriott bonvoy uncovers key traits of travel-oriented, value-driven gen-zs and millennials.

A survey by Marriott Bonvoy, the award-winning travel program of Marriott International, has found that a majority of Gen Zs and Millennials in Asia Pacific excluding China (APEC) prefer the simplicity of belonging to one comprehensive loyalty travel program.

While 60% of APEC Gen Zs and Millennials are actively subscribed to loyalty programs, the challenge of juggling several loyalty programs has led most (57%) to seek out one program that meets all their travel needs. Marriott Bonvoy carried out the survey of 1,000 respondents across ten markets in APEC to better understand the shifting attitudes of Millennials and Gen Zs and their travel behaviors. The survey identified an emerging generation of travel-focused, value-driven " Savvy Explorers " in APEC who seek to maximize their travel dollars and unique travel experiences.

Travel in 2024 is a priority for Gen Zs and Millennials: 73% report their intentions to take at least two trips in the next 12 months and 91% plan to spend the same, if not more, on their trips compared to the year before. Travel is viewed as an essential lifestyle component, and most are willing to reduce everyday spending on dining out (60%), shopping sprees (57%) and their daily coffee (54%) so as to spend more on a holiday.

“Survey results suggest that Gen Zs and Millennials in APEC are purposefully strategizing how they can channel value from their everyday spend toward rewarding travel experiences. They also prefer to be part of only one all-encompassing loyalty travel program which fulfills their needs. To this end, Marriott Bonvoy – which gives members access to over 30 brands in 10,000 destinations -- is well positioned to deliver greater value and unlock more experiences for Gen Zs and Millennials,” says John Toomey, Marriott International’s Chief Sales and Marketing Officer, Asia Pacific excluding China .

“As testament to the program’s appeal, we have seen Marriott Bonvoy’s membership base in APEC grow by more than 50% since 2019. What’s more encouraging is that our members are highly active. They earned 40% more points in 2023 compared to 2022, and are putting their points to good use, with points redemptions increasing by more than 55% in the same period,” he reveals.

The trend of greater member growth and activity extends to the Marriott Bonvoy app. APEC member enrolment via digital channels grew by more than 25%, with mobile app downloads and active users more than doubling in 2023 compared to pre-pandemic levels.

The regional survey also uncovered notable trends amongst Gen Zs and Millennials across the 10 APEC countries. Market-specific trends can be found in Annex A.

Travel value unlocked through everyday spend Savvy Explorers take considered steps to unlock travel value through everyday spend. Leveraging on their familiarity with loyalty programs, APEC’s Gen Z and Millennials employ varied tactics to maximize their travel rewards: four in five say they have gone out of their way to use a travel-linked credit card for everyday purchases, and 67% actively use a travel loyalty program to book and redeem local experiences and staycations.

This trend is supported by usage behaviors of Marriott Bonvoy members in APEC. They accumulated points from stays across more than 8,800 Marriott International properties globally, and through everyday spend. Redemption for hotel stays in 2023 registered a 130% increase compared to pre-pandemic times, accounting for the majority of redemptions, followed by points-to-miles conversions on partner airlines.

Hotels become a key destination to explore Hotel experience is key to winning the hearts and dollars of the Gen Z and Millennial segment, with 99% of respondents believing their hotel choice can make or break their holiday. Hotels are also increasingly viewed as a key destination for exploration, going beyond the role of ‘accommodation’. Nearly four in five respondents expect their hotel to provide curated local programming and experiences, whilst 84% prefer to stay at a hotel with designs and activities reflective of its destination.

The recent debut of Moxy Hotels – noted for its hallmark playful nature, innovative design and contemporary amenities – in key APEC markets exemplifies Marriott International’s commitment to continuously bring new hospitality experiences to the region.

Despite a desire to maximize their travel budgets where they can, their hotel is one area that APEC’s Gen Z and Millennials are willing to invest extra travel dollars towards. Top motivations for new-generation travelers to splurge include the hotel’s room offerings (48%) and location (42%). Whilst amenities remain key considerations, these guests value a seamless travel experience, with mobile-first customer service (61%), reliable WiFi (68%) and flexible check-out (64%) outpacing traditional benefits like lounge access (42%).

Destination ‘dupes’ fuel intra-regional travel demand International travel has returned but APEC’s Gen Z and Millennials remain committed to destinations closer to home. While iconic holiday locations like the Swiss Alps and Bora Bora maintain their appeal, 55% are opting for destinations within the region that provide a similar experience. These so-called “destination dupes” are fast gaining traction amongst this segment because they allow Gen Zs and Millennials to stretch their travel expenses (69%), discover something new (63%) and are easily accessible (62%).

As a reflection of robust intra-regional travel demand in 2023, Marriott International saw over 60% of bookings in APEC coming from within the region.

Corporate backpackers on the rise Gen Zs and Millennials are also taking bleisure travel up a notch by capitalizing on the opportunity of a business trip to embark on multi-destination tours. In addition to extending their travel plans (68%), 84% plan to explore nearby cities and countries as part of their post-work itinerary.

With more than 560 properties across 24 brands in 22 countries and territories in APEC to choose from, Marriott International offers customers a myriad of options to mix work with pleasure.

Off-peak travel maximizes destination experience Gen Zs and Millennials are also carefully planning when to travel to maximize their trip experience. The majority (71%) of Gen Z and Millennials say they would opt to travel during off-peak seasons so as to beat the crowds and get more out of their trip. 67% feel they can do more during low-peak seasons, and 77% leave their holidays feeling more relaxed and rejuvenated.

Where Marriott Bonvoy Can Take You Marriott Bonvoy allows members to earn when they stay or spend at Marriott International’s growing portfolio of over 30 extraordinary brands across 139 countries and territories, and in over 8,800 properties. In APEC, members can benefit from the program’s key strategic partnerships with Singapore Airlines and co-branded credits cards in Japan, Korea and India. With Marriott Bonvoy Moments, members can get access to once-in-lifetime experiences such the opportunity to get closer to the action with the Mercedes-AMG PETRONAS Formula One Team at the Singapore Grand Prix.

Note to Editor Findings are from a commissioned survey by Marriott International conducted in April 2024 on 1000 Gen Z (18 – 24 years old) and Millennials (25 – 41 years old) based in Japan, Korea, India, Australia, Singapore, Indonesia, Thailand, Malaysia, Vietnam and the Philippines, who would budget for their own travels.

The term ‘Savvy Explorers’ refers to Gen Z and millennial travelers who continue to prioritize travel as a key part of their lifestyle and are always on the lookout for ways in which they can maximize and value add to their planned trips through curated accommodations, key experiences and new destinations.

Refer to Annex A for additional data on the preferences of new generation travelers across the APEC region.

Annex A: 10 Fun Facts About New-generation Travelers Across the APEC Region

Most likely to sacrifice dining out for a holiday are Australian (76%), Japanese (74%) and Indonesian (68%) travelers. Despite their renown for culinary diversity, majority would prefer to reduce eating out over giving up other everyday luxuries like monthly subscriptions.
Most frequent travelers in APEC are Southeast Asia’s Gen Z and Millennials, with over a third planning to take more than three trips in the next 12 months. Indonesian (51%), Thai (39%) and Filipino (34%) travelers set to outpace others within the region.
Top intra-regional travelers are Japanese (71%), Thai (69%) and South Korean (66%) Gen Z and Millennials who prefer holidaying closer to home. However, bucking the trend are Indian and Filipino travelers, with over 60% opting for faraway destinations.
Top off-peak travelers are Japanese (87%), Australian (81%) and Singaporean (79%) Millennials and Gen Zs. Interestingly, set to drive the high seasons are Indian travelers, with 58% preferring to travel during peak periods.
Most discerning when choosing their hotel are Indonesian, Thai and Vietnamese Gen Z and Millennials, with an overwhelming 90% preferring hotel programming and design that are reflective of the local destination and/or are environmentally friendly.
Top motivators to splurge on travel for Australian, Indonesian and Singaporean Gen Z and Millennials are quality factors such as hotel reputation and location. In contrast, Japanese and Vietnamese travelers place greater weightage on experiences such as in-hotel dining (Japan: 59%, Vietnam: 47%), whilst Thais prioritize hotel aesthetics (41%).
Top countries for business travel include Vietnam (85%), India (81%) and Indonesia (78%). Over 80% are also likely to extend their business trips for leisure (Vietnam: 82%, India: 83%, Indonesia: 80%).
Most valuable travel benefits to APEC’s Gen Z and Millennials are elevated hotel experiences like complimentary dining, spa and room upgrades. Nearly two in three Indian travelers (67%) were also likely to redeem unique travel experiences, whilst over half of Thai travelers (51%) would prefer to receive exclusive merchandise.

About Marriott Bonvoy ® Marriott Bonvoy’s extraordinary portfolio offers renowned hospitality in the most memorable destinations in the world, with 31 brands that are tailored to every type of journey. From The Ritz-Carlton and St. Regis to W Hotels and more, Marriott Bonvoy has more luxury offerings than any other travel program. Members can earn points for stays at hotels and resorts, including all-inclusive resorts and premium home rentals, and through everyday purchases with co-branded credit cards. Members can redeem their points for experiences including future stays, Marriott Bonvoy Moments™, or through partners for luxurious products from Marriott Bonvoy Boutiques®. To enroll for free or for more information about Marriott Bonvoy, visit marriottbonvoy.com .

Media Contact Mabel Lee Director of Communications Marriott International, Asia Pacific excluding China [email protected]

Kiran Hans Sr. Manager, Communications Marriott International, Asia Pacific excluding China [email protected]

Marriott Bonvoy World Elite and World Mastercards

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Top 22 Trends in the Hospitality Industry for 2024

Over the years, I've talked to many hospitality professionals and they generally all say the same thing - a hotel is not just a place to stay.

It's a brand, an experience and a place that makes you, the guest, feel a certain way.

Hotels brands and hospitality operators have ways of achieving great guest experiences that keep people coming back - and many of these will probably, more-or-less stay the same far into the future.

But, like any sector, the hospitality industry evolves to match changing consumer trends and adopts new technology to become more efficient.

I've personally seen hundreds of trends come and go over the years I've worked in the hospitality business. Some of them have gone nowhere - like virtual reality (people were claiming VR as a trend way back in the 2010's ). And people are still claiming VR is a trend today. Spoiler alert it's not.

But some of them have had a massive impact - like the mobile phone. Today we don't think of mobile as a trend but they turned into the most high impact trend ever to hit the industry.

Why do we care about hospitality trends?

Most hospitality trends that make a difference to operators are more subtle and harder to spot. I've learnt to largely ignore big, buzzy trends as they almost always never change anyones behavior, (or make anyone more money.)

But trends, particularly technology trends, are important for hospitality operators to keep track of because as trends change, companies need to evolve to remain competitive and attractive to potential guests.

With marketing, keeping up with the latest trends will give you the best possible chance of reaching your target audience - and doing it a lot faster.

Trends need to be understood for what they are - ideas you can use, ignore and develop.

"Following a trend is useful, until you start alienating the original. The last thing we want is to live in a world where everything is the same. Originality and individuality is key.”

― J.S. Strange

Many times I've heard stories of brands or operators investing six figures into some new technology only to realize a year later it was a complete waste of money - don't let that be you!

My advice - follow trends but be critical and use them creatively.

With that said, I've compiled a list of best trends in the hospitality and restaurant industry right now. I've spoken to experts on restaurant technology in Eat App like Joseph Boston and Nezar Kadhem, as well learnings from marketing and operations experts like Dawn Gribbles, Michael “schatzy” Schatzberg and Shawn Walchef.

These are the best hotel and hospitality trends that are aimed at efficiency, enhancing the guest experience, and boosting revenue.

Rich guest data and personalization

Personalization driven by rich guest data is trend that's been happening in the industry for a least the past five years and I don't see it slowing down any time soon. In fact the opposite.

As Dr Meng-Mei Maggie Chen, Assistant professor of Marketing at EHL says:

"Hoteliers cannot afford to give up though and must stay relevant.

Leveraging customer data and technology to initiate customized offerings and personalization could help to make them more relevant.

However, when some industry experts advocate personalization, somehow the suggested solutions tend to be more related to selling upgrades or improving their e-mail marketing – precisely the kinds of activities which do not contribute to relevance."

It's not about trying to upsell guests with add-ons, it's about providing a memorable experience that drives loyalty and customer satisfaction.

Examples include asking returning hotel guests if you'd like to book them an experience they liked last time, or reserving a particular spot, lounger etc they enjoyed last time. This is ultimately the holy grail of personalization and data.

According to research from McKinsey Consulting, 71% of buyers expect personalized experiences and to get there hospitality businesses require two things - CRM software to keep track of the data, and staff training to make sure you are collecting the information that really matters to personalized interactions and marketing.

Dynamic pricing

Dynamic pricing is the practice of changing pricing depending on the demand for what you sell.

There's some great insight from Jorden Hollander, CEO of Hotel Tech Report about dynamic pricing, it's potential impact on RevPar and how to implement it here.

Dynamic pricing is also a trend becoming more common in restaurants. Here for example hospitality influencer Shwan Walchef discuss dynamic pricing with a tool called Juicer

All hospitality business that run F&B will look into this type approach more - especially when the pricing is dynamically changing with low friction for the end user.

@shawnpwalchef What is dynamic pricing for restaurants? At @Cali BBQ we are using Juicer Pricing to better maximize revenues during non peak and peak times in our business. #dynamicpricing #restaurants #restauranttechnology ♬ original sound - Shawn Walchef

New loyalty marketplaces

Loyalty in the hospitality industry is usually about locking in the customer to single brand with points, bonuses and exclusives - especially at Hotels. Name me one hotel brand that doesn't have a loyalty program?

But in other parts of the hospitality industry the landscape is less clear. Restaurant loyalty programs tend to me not that effective.

There are probably hundreds of loyalty app companies for restaurants that have gone out of business in last 10 years. This is mainly because outside of lunch spots in big cities - we just don't eat at the same restaurant all that often.

There are some new ideas coming to the loyalty world and I would bet on them becoming a trend in the coming years.

Screenshot 2023-10-19 at 12.52.33 PM (1)

One is decentralized loyalty like Blackbird. A company started by industry heavy weight Ben Leventhal, which he describes as:

"Blackbird will be the first decentralized platform built especially for the hospitality industry, Unlike legacy rewards marketplaces which maroon and lock earned points, the Blackbird protocol will eventually allow users to take the points they earn anywhere they go on public blockchains."

Basically, its a seamless way to earn credit you can use at multiple restaurants - enabled by Blockchain.

Sustainability

Increasingly, customers are concerned with environmental issues and want to know that the businesses they deal with are behaving ethically.

For this reason, sustainability has been one of the most noticeable hospitality marketing trends of recent times, with a growing number of hospitality businesses promoting their eco-friendliness.

Examples of this range from restaurants promoting their vegetarian and vegan options, to hotels that use smart light bulbs and smart heating to save energy.

Within the accommodation sector, there are also decisions to be made about using more sustainable materials for things like towels and bedsheets.

You can see this trend really developing with industry leader Radisson's goal of standardizing sustainability in hotels.

Will AI be a hospitality trend?

There plenty of ways AI could speed up work in the future for hotels and restaurants in all aspects from planning to marketing but the impact is likely to be marginal.

We've written about Chat GPT and AI in hospitality before at Eat App. I think it will have some impact as a trend but probably much smaller than a lot of people are predicting - especially when it comes to guest experience.

Hospitality Industry Trend 2024 Survey

What is the future hospitality in the short term. We carried out a survey amongst hospitality leaders at Eat App with a combined 100+ years experience of building technology for the hospitality industry.

Overall, our experts suggest the following advice for the industry:

1. Personalization is a major focus

Learning how to implement proper personalization and marketing strategies, is direction the industry is moving in - and customers are expecting it.

2. Training, training, training

Joseph Boston, VP of product at Eat App works with hundreds of operators and front line staff every quarter.

He suggests that "training is crucial for success. In a business with high staff turn over the ability to train fast and effectively is a key differentiators between OK and runaway success.

3. Deploy technology to improve efficiency

The hotel experience will be deeply intertwined with technology, not only within the confines of guest rooms but also before and after the journey. As a result businesses must consider technology at every touchpoint.

4. Air BnB will Decline, Hotels will Rise

A respondent said that “hospitality operators should quickly try and capitalize on the decline of Air BnB - a service which is now expensive and underwhelming. Differentiating on experience can be the key driver here."

5. Sustainability

Sustainability is a major trend in all industries, and the hospitality industry is no exception. Hotels and resorts are increasingly looking for ways to reduce their environmental impact, through sustainable practices such as using renewable energy, sourcing local food, and reducing waste. It's all about attracting guests!

Smaller trends in hospitality

I've noticed a few more trends over the past year and expect these to continue.

1. Localized guest services

Hoteliers can use location-based services to create personalized, localized experiences that are the hallmark of modern travel.

2. Mobile enabled check-ins

The use of mobile check-in has many benefits for both hotels and their visitors. The availability of mobile check-in via the hotel app does away with the need to maintain a large reception desk.

While staff members are free to handle other tasks, hotels can free up space for luggage storage, common areas, and branded merchandise counters.

With mobile check-in, guests won't have to wait in line at the front desk, which can be essential for business travelers and families with young children.

3. Automated guest messaging

Using the right integrated management system at your hotel can enable automatic guest messaging campaigns or allow you to export rich guest data to be used for external marketing.

4. Contactless payments

Contactless payments are one of the most popular technological trends in the hospitality sector because they have many benefits for hotels, resorts, restaurants, bars, and cafes.

5. Cloud PMS

The cloud hotel PMS is a piece of software that includes various modules and features to automate every aspect of your hotel's operations. I expect it to become more and more common.

Note: If you use the right restaurant management software at your hotel properties, your PMS can be integrated to give rich insight into every one of your diners at a glance.

6. Tech enabled revenue management

The foundation of a hotel's pricing strategy is a revenue management system. The sophistication of these systems will only increase and enable fine tuned pricing and optimization for small hotels as well as large brands.

7. Chatbots

Driving direct bookings is just one of the many uses that chatbots can be put to. Customer service is likely to be disrupted in some capacity AI and ChatGPT style chatbots but I'm skeptical it will revolutionize hotel customer service.

8. Smart energy management

Occupancy changes can be tracked and handled by smart thermostats and occupancy sensors.

The same goes for smart energy management systems, which continuously analyze historical thermodynamics, regional weather patterns, and peak demand loads to optimize energy consumption in real-time, all year long.

9. Co-working spaces

A lot of hotels are building some kind of co-working option beyond a cafe into their hotels.

The NEST by Wyndham is a great example of this. It encourages engagement with the brand, adds an extra source of revenue for example by cross selling the Spa to the Co-working space subscribers.

I predict we will see a lot more of this but success will depend a lot on location.

10. Predictive property analytics

As the saying goes, information is power. The software and devices will generate more and more data about how visitors interact with staff and amenities across the campus as more technology is added to enhance the guest experience.

11. Robots

I don't expect robots to have a massive impact in areas like check-in or carrying bags like some are predicting, but I do think a huge trend will be robots in F&B and restaurants.

The technology here makes much more sense where the actual cooking and preparation of food is not a customer facing part of a hospitality business.

12. Booking on mobile devices

Would you be able to survive without your smartphone if you had to make a last-minute hotel reservation in a strange and foreign location?

Smartphones have significantly influenced how people interact with the outside world, and in many situations, their popularity surpasses that of desktop computers due to their simplicity and convenience.

13. Virtual reality

It can be challenging for travelers to picture their upcoming vacation rental before they depart.

How can owners of boutique hotels in Santorini effectively convey to prospective customers the carefully curated charm of their establishment?

Virtual reality (VR) technology allows businesses to give prospective customers first-person digital tours of their space.

Atlantis-The-Palm-Dubai-Google-360-Street-View-jpeg-1

A Tourism Management study by Sage found that VR enhances the brand experience by increasing the elaboration of mental imagery and presence in comparison to other virtual tours.

VR is a definitely a trend - but will it be revolutionary? In my experience I have my doubts.

14. Predictive maintenance

Predictive maintenance enables hoteliers to use sensor data to identify wasteful or hazardous trends and alert maintenance staff before a specific issue escalates into a much more expensive one.

15. Smart reserved parking

Nowadays, hotels can use sophisticated sensors and hotel-specific apps to let visitors reserve parking spaces in advance and have those spaces assigned to them when they arrive.

16. Online review management

Online reviews of a hotel not only aid in forecasting future reservations, but also give owners important information about how well a facility met visitors' expectations.

Review management in hospitality

17. Gamified travel planning

The world is more desperate than ever for spontaneity because cabin fever is at an all-time high.

In order to make travel planning less of a chore and more of a guilty pleasure as people think about their next getaway, hospitality companies can use gamification, which involves incorporating game design elements into non-game contexts.

In conclusion, hospitality technology is a rapidly growing and evolving field that encompasses a wide range of technologies and tools used by the hospitality industry to enhance the guest experience, streamline operations, and improve efficiency.

Some of the key trends in this field include the increasing use of AI restaurant software and machine learning, mobile technology, VR and AR, and data analytics and reporting tools.

However, it is important for hotels to strike a balance between the use of technology and the personal interactions that guests expect.

Frequently asked questions about trends in hospitality industry

What are 3 major trends in today's hotel industry.

1. Rich guest data and personalization: According to research from McKinsey Consulting, 71% of buyers expect personalized experiences and to get there hospitality businesses require two things - CRM software to keep track of the data, and staff training to make sure you are collecting the information that really matters to personalized interactions and marketing.

2. Dynamic pricing: Dynamic pricing is the practice of changing pricing depending on the demand for what you sell.

3. Artificial intelligence: There plenty of ways AI could speed up work in the future for hotels and restaurants in all aspects from planning to marketing.

What is the future of hospitality in 2024?

The hotels are expected to adopt green technologies to become more environmentally friendly in the coming years. Another initiative is installing LED lighting, using recyclable material and energy-efficient appliances.

How is technology used in the hospitality industry?

Cloud technology is a common technology used by hospitality industry professionals and includes Cloud computing functions. Payment via mobile phone. Payment by phone. Contactless booking in/out.

Is technology the future of hospitality?

Future of hospitality focuses on enhancing guest services and personal experience while improving business models. Technology will continue routine operations, allowing employees to offer personalized services they could not commit to.

What is digital technology in hospitality industry?

Digital adoption in hospitality consists of the implementation and use of different digital solutions, such as online reservation systems, digital menus, contactless payment and hotel management tools.

The Top 22 Technology Trends in the Hospitality Industry (2024 Edition)

Growth Marketing Manager at Eat App

Saif Alnasur used to work in his family restaurant, but now he is a food influencer and writes about the restaurant industry for Eat App.

Reviewed by

Nezar Kadhem

Co-founder and CEO of Eat App

He is a regular speaker and panelist at industry events, contributing on topics such as digital transformation in the hospitality industry, revenue channel optimization and dine-in experience.

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Kentucky tourism continues record-setting pace in 2023 with nearly $14 billion in economic impact

FILE - Tourists stand in the rotunda area of Mammoth Cave in Mammoth Cave National Park, Ky., on Aug. 3, 2011. Kentucky’s tourism industry stayed on its record-setting pace in 2023, generating an economic impact approaching $14 billion while sustaining nearly 100,000 jobs, Gov. Andy Beshear said Thursday, May 30, 2024. (AP Photo/Ed Reinke, File)

FILE - In this March 23, 2015 file photo, a 120-foot-tall replica bat fronts the Louisville Slugger Museum and Factory in Louisville, Ky. Kentucky’s tourism industry stayed on its record-setting pace in 2023, generating an economic impact approaching $14 billion while sustaining nearly 100,000 jobs, Gov. Andy Beshear said Thursday, May 30, 2024. (AP Photo/Timothy D. Easley, File)

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FRANKFORT, Ky. (AP) — Kentucky’s tourism industry stayed on its record-setting pace in 2023, generating an economic impact approaching $14 billion while sustaining nearly 100,000 jobs, Gov. Andy Beshear said Thursday.

Travelers visiting the Bluegrass State last year spent $9.7 billion as tourism continued its post-pandemic momentum as a key contributor to Kentucky’s growing economy, the Democratic governor said.

“We’re welcoming people to our new Kentucky home, one filled with opportunity and prosperity,” Beshear said during his weekly news conference. “Where we want you to come see what we have to offer, and then we want you to move your family here to be a part of it.”

The governor joined tourism leaders at Castle & Key Distillery to celebrate the second straight record-breaking year for tourism in Kentucky. In 2022, the tourism sector bounced back from the COVID-19 pandemic to generate an economic impact of nearly $13 billion and was responsible for 91,668 jobs.

Last year was even better, with the statewide tourism industry producing $13.8 billion in economic impact and the sector sustained 95,222 jobs, Beshear said. The study by Tourism Economics determined that 79.3 million travelers visited Kentucky in 2023, up 4.5% from the prior year, he said.

FILE - The overdose-reversal drug Narcan is displayed during training for employees of the Public Health Management Corporation (PHMC), Dec. 4, 2018, in Philadelphia. Drug overdose deaths in Kentucky fell nearly 10% in 2023, marking a second straight decline in the fight against an addiction epidemic that's far from over, Gov. Andy Beshear said Thursday. (AP Photo/Matt Rourke, File)

Kentucky’s attractions include horse farms and bourbon distilleries as well as outdoor adventure, history, arts and cultural draws. Kentucky is also home to Mammoth Cave National Park.

Bourbon tourism is flourishing, with attendance surpassing 2.5 million visitors last year along the Kentucky Bourbon Trail and the Kentucky Bourbon Trail Craft Tour, which showcases smaller distilleries. Bourbon tourists tend to spend more and stay longer compared to other attractions, the bourbon industry says.

“With distilleries now in 42 counties, bourbon tourism is resurrecting Main Streets across the commonwealth and pouring much-needed revenue into local coffers. And there’s more to come,” said Eric Gregory, president of the Kentucky Distillers’ Association.

Spirit makers have invested big sums into new or expanded visitor centers to play up the industry’s heritage and allow guests to soak in the sights and smells of bourbon-making.

Communities across Kentucky registered robust tourism numbers last year.

Beshear said tourism generated $4.2 billion of economic impact last year in Jefferson County, which includes Louisville, the state’s largest city. In Boone, Campbell and Kenton counties — just south of Cincinnati — the combined economic impact of tourism was $2.1 billion, he said. It was $1.6 billion in Fayette County, home to Lexington, the state’s second-largest city. In Warren County, tourism brought in $477 million of economic impact, and in McCracken County it generated $319 million.

State Tourism Commissioner Mike Mangeot thanked tourism officials statewide for their role in the sector’s success, along with the thousands of leisure and hospitality industry workers. The tour guides, restaurant workers, hotel desk clerks and others are “the frontline ambassadors,” he said.

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World's Best

Travel + Leisure Readers' 25 Favorite Cities in the World of 2023

T+L readers select their favorite cities in the world in our annual "World’s Best Awards" survey for 2023.

How Voting Works

What readers loved, the full list.

Alexandra Farias

Five of seven continents are represented on this year’s list of best cities in the world, according to T+L readers. And the rankings prove that, this past year, our resilient readers got back to Asia and Africa, and traveled to cities well worth the long-haul flight, like Marrakesh (No. 14) and Singapore (No. 18). Based on reader comments, it seems the travelers who voted in this year’s World’s Best Awards survey were most interested in welcoming locals, great food, safety, reasonable prices, and aesthetics (be it picturesque nature or Renaissance architecture).

Every year for our World's Best Awards survey, T+L asks readers to weigh in on travel experiences around the globe — to share their opinions on the top hotels, resorts, cities, islands, cruise ships, spas, airlines, and more. Nearly 165,000 T+L readers completed the 2023 survey, an increase of nearly 25 percent over pre-pandemic voting levels. A total of more than 685,000 votes were cast across over 8,500 unique properties (hotels, cities, cruise lines, etc.).

Cities were specifically rated on the criteria below:

Sights/landmarks
Friendliness

For each characteristic, respondents could choose a rating of excellent, above average, average, below average, or poor. The final scores are averages of these responses.

It looks, from this list, like Mexico is T+L readers’ favorite country in the world. No fewer than five Mexican cities ranked as the best in the world this year. Japan had three winners, and Thailand, Italy, and Portugal each had two. There was some movement in the top five, compared to last year’s rankings, with two European cities slipping to make room for No. 2 Udaipur, India, and No. 3 Kyoto, Japan. It’s typical to see at least one European city in the top five — often Istanbul (No. 8 this year, also winning the title of best city in Europe) or Florence, Italy (No. 12). Those spots, this year, went to Asian cities instead, indicative of the shift back to travel to Japan (Tokyo came in at No. 7, four spots behind Kyoto) and India (which also had Mumbai at No. 10, trailing Udaipur by eight).

Read on to learn how Oaxaca, Mexico, claimed the coveted top spot for the second year in a row, and why travelers chose these 25 cities as the best in the world.

1. Oaxaca, Mexico

For the second year in a row, Oaxaca took the No. 1 spot on our best cities around the world list. The mole and mezcal capital has long been a favorite among T+L readers, but must-visit restaurants and cocktail bars ( Selva , Sabina Sabe , to name a few), plus new-and-improved hotel talent, like the stunning, six-room Casa Silencio , really gave the city the edge it needed to return to the top of the podium. As one reader said, Oaxaca is “hands down one of the coolest cities in the whole world.” The coolest, you might say.

Reader Score: 93.53

Book Now: Hotels.com | Expedia

Hands down one of the coolest cities in the whole world.

2. Udaipur, India

Jeremy Woodhouse/Getty Images

Udaipur is vying for that top spot. It was at No. 2 in 2021, before slipping into 10th place last year. Now? It’s two-tenths of a vote from perfection. As international travelers return to India — and finally see the long-awaited Raffles Udaipur , which opened during the pandemic — it’s no surprise that Udaipur is once again climbing the ranks. One reader sums up Udaipur’s appeal — in all caps, no less, saying, “VERY VERY BEAUTIFUL CITY.”

Reader Score: 93.33

Book Now: Hotels.com | Expedia | Tripadvisor

3. Kyoto, Japan

Yeojoon Yoon/Getty Images

In Tokyo, attractions are sprawled out in the open, for tourists to find easily. In Kyoto, those attractions are hidden in plain sight. It is a city of remarkable shops and restaurants and tucked into narrow, enticing alleyways. You have to look closely, but you’ll be rewarded with, as one reader said, “the best food in the world.” Another Kyoto stan noted the city’s “incredible sights and cultural landmarks with so much history that is so different from the cultures of Europe and the U.S.” That same traveler continued, “One small example was sitting around with locals soaking our bare feet together in a giant, very hot foot bath one evening at a spa situated on a train platform.” WBA Hall of Fame honoree. Reader Score: 92.06

4. Ubud, Indonesia

Lauren Breedlove/Travel + Leisure

A fixture in the top five at this point, Ubud is an inland Balinese city surrounded by jungle. One reader described their vacation highlights: “swinging over rice terraces, riding elephants, chasing waterfalls, taking pictures with monkeys, shopping at both market stalls and high-end stores, beautiful restaurants ( Cafe Lotus at night is special), cheap massages, and hotels with stunning scenery.” Sounds like a perfect itinerary.

Reader Score: 91.73

Book Now: Tripadvisor

5. San Miguel de Allende, Mexico

Last year’s runner-up and 2021’s winner, San Miguel de Allende is a longtime favorite among T+L readers. This “visually stunning” city, per one reader, is brimming with “art galleries and boutique shops,” another fan said. And as one T+L reader observed, “[It’s a] magical city that feels more like Spain than Mexico.”

Reader Score: 91.19

6. Mexico City, Mexico

Andrew Hasson/Getty Images

The capital of Mexico, and its largest city, was founded by Aztec Indigenous communities and is a regular in this category’s top 10. Every year brings more exciting hotel openings (this year it’s the beautifully designed Soho House Mexico City , opening in the fall), restaurant debuts, and perhaps most importantly, food tours of the city’s best tacos.

Reader Score: 90.55

7. Tokyo, Japan

Marco Bottigelli/Getty Images

It’s not in Tokyo’s nature to sit blithely by as Kyoto places in the top five. Japan’s energetic capital, with Michelin-starred ramen joints, phenomenal new hotels (see: Bulgari Tokyo and the forthcoming Edition in Ginza ), and a never-ending list of neighborhoods to explore, draws travelers in just like Cyndi Lauper, time after time.

Reader Score: 90.30

Book Now: Marriot | Tripadvisor

8. Istanbul, Turkey

Also named the best city in Europe this year, Turkey's culture and style capital celebrates “the intermingling of cultures and religion and people,” one reader said. “The rest of the world should take this city as an example.” They continued, “the food is exceptional, and people are ridiculously welcoming to tourists.”

Reader Score: 90.23

9. Bangkok, Thailand

Karl Hendon/Getty Images

It’s rare that Thailand’s bustling capital would rank higher than Chiang Mai. Case in point: last year, Bangkok came in at No. 24, while Chiang Mai landed at No. 7. Climbing 14 spots as travelers flock back to Asia, Bangkok has new hotels (see The Standard, Bangkok Mahanakhon ) and an absolutely delectable display of Michelin-starred restaurants to thank for its rising stock.

Reader Score: 89.99

10. Mumbai, India

Gautier Houba/Travel + Leisure

Our readers love to look beneath the surface of Mumbai — venturing past classic tourist haunts, like Leopold Cafe , and sites like the Gateway of India arch to the “art galleries and the fish market in the Colaba area,” as one T+L reader detailed.

Reader Score: 89.79

11. Chiang Mai, Thailand

Danica Chang/Getty Images

Despite slipping slightly in rank this year — after making the top 10 in 2021 and 2022 — Chiang Mai remains many T+L readers’ “favorite city in Thailand,” as one said. Reader Score: 89.49

12. Florence, Italy

Ondrej Bucek/Getty Images

Come for the mesmerizing Botticellis hanging in the Uffizi Gallery and the detailed look at the Medici family tree, stay for the alfresco sculptures in lesser-known piazzas. “Every time we come here, we fall a little more in love with this place and its amazing antiquities,” one fan gushed.

WBA Hall of Fame honoree. Reader Score: 89.48

13. Luang Prabang, Laos

Carsten Brandt/Getty Images

After not making the list last year, the Laotian city returns at No. 13 for 2023. In the mountains of north Laos, Luang Prabang is scenically sandwiched between the Mekong and Nam Khan rivers.

Reader Score: 89.44

14. Marrakesh, Morocco

Francesco Riccardo Iacomino/Getty Images

Marrakesh was the only African city to rank this year, exciting T+L readers with its restaurants and hotels tucked into the bustling Medina and iconic sites like the Majorelle Gardens and Bahia Palace.

Reader Score: 89.24

15. Rome, Italy

Camilla Glorioso

The 2,500-year-old city, which is older than Italy itself, is getting a lot of attention this year. An influx of new luxury hotels — an Edition, a Bulgari, and a Six Senses — might even push Italy’s capital city into the top 10 next year. Time will tell.

WBA Hall of Fame honoree. Reader Score: 88.91

16. Mérida, Mexico

Jurgen Vogt/Getty Images

“Mérida is an undiscovered gem in Mexico,” one T+L reader said. “The food was excellent and inexpensive.” In addition to praising the food (Mérida is known, especially among Mexicans, as a foodie town), travelers remarked on how safe the city is, with multiple readers calling it a “very safe city.”

Reader Score: 88.81

17. Siem Reap, Cambodia

Wirestock/Getty Images

Cambodia reopened to American travelers in November 2021, and since then, international travelers have been wading back into the wonders of Siem Reap. One reader, who visited right as the country reopened, said, “Our hotel in Siem Reap did not have the restaurant back yet, but we found 'Brown,’ a coffee shop. The second day we went, we were recognized, and by the third day, he knew our orders. At our hotel, the person at the desk would walk us out to our vehicles to say goodbye and greet us at the end of the day upon our return. I felt like royalty here.”

Reader Score: 88.80

18. Singapore

Caroline Pang/Getty Images

The land of hawker centers, the Marina Bay Sands infinity pool, the merlion, and the legendary Singapore sling came in at No. 18 this year, after not placing on the world’s best cities list for the past two years. The Lion City reopened in 2021 and continues to become less of a stopover and more of a final destination. (Though, with Changi Airport taking the No. 1 spot for world’s best airport, it’s not hard to see why a Singapore stopover is so appealing.)

Reader Score: 88.78

Book Now: Hotels.com | Tripadvisor

19. Charleston, United States

Lindsey Harris Shorter

Charleston, South Carolina, was named the best city in the U.S., by T+L readers, for the 11th year in a row. Travelers can’t get enough of this coastal Southern city’s pastel-colored row homes, lowcountry cooking, and phenomenal hospitality.

WBA Hall of Fame honoree. Reader Score: 88.63

20. Lisbon, Portugal

A treasure trove of mosaic tile, coastal scenery, and really, really good tinned fish, Lisboa is back on the world’s best cities list for the first time since 2020. Reader Score: 88.62

21. Santa Fe, United States

Getty Images

Santa Fe is one of just two American hubs to make the 2023 list. Though it hasn’t ranked among the best cities in the world since 2019, its vibrant art scene, Pueblo-style architecture, spa-forward hotels, and one-of-a-kind cuisine, blending Hispanic and Native American influence, drew T+L readers back this year.

Reader Score: 88.47

22. Hobart, Australia

Andrew Merry/Getty Images

The capital of Tasmania is a newcomer to this list — it hasn’t placed in at least the last five years. But it’s certainly a welcome addition to our readers’ selection of their favorite cities in the world, as a fantastic city destination on an island off Australia, a counterpart to Auckland, if you will.

Reader Score: 88.44

23. Guadalajara, Mexico

Simon McGill/Getty Images

The largest city in the Mexican state of Jalisco, Guadalajara pulls T+L readers in with incredible street food, including torta ahogada (a sauce-drenched sandwich) and tacos brimming with birria.

Reader Score: 88.13

24. Porto, Portugal

Jui-Chi Chan/Getty Images

The gateway to Portuguese wine country, Porto is praised by T+L readers for “not [being] overrun with American tourists” and, of course, for its grilled sardines. “So colorful, so friendly, and most everything you want to see is within walking distance if you are staying in town,” one reader summarized. Reader Score: 88.09

25. Osaka, Japan

Last but certainly not least, Osaka is the third Japanese city on the list this year. Located south of No. 3 Kyoto, readers were drawn to Osaka for the excellent public transportation and the wonderfully welcoming (and primarily non-English-speaking) people. Of the people they encountered in Osaka, one reader said, “We have a lot to learn from them.”

Reader Score: 88.05

Move fast, think slow: How financial services can strike a balance with GenAI

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2024 Outlook

Global M&A Industry Trends

14 minute read
January 23, 2024

The M&A starting bell has rung. Are you ready?

Global Deals Industries Leader, Partner, PwC United States

We are hearing the starting bell sounding for an upswing in M&A activity, signalling an end to one of the worst bear markets for M&A in a decade. Whilst the strength and speed of the recovery remain uncertain due to lingering macroeconomic and geopolitical challenges, we believe we have reached a tipping point. We expect the M&A markets to embark on a new upward trajectory, with a steady increase in activity as the year progresses. Indeed, a flurry of deals in the past few months suggests that this rise in dealmaking may already have started in some sectors.

Three main factors underline our newfound optimism that we are entering a new phase of dealmaking in 2024: first, the recent improvement in financial markets, spurred by decelerating inflation and expected reductions in interest rates; second, the pent-up demand for (and supply of) deals; and third, the pressing strategic need for many companies to adapt and transform business models that is the very essence of dealmaking.

The M&A market is entering a new phase in 2024 that will differ from prior ones. The upturn will almost certainly be more measured than the surge of dealmaking activity which occurred during late 2020 and in the record-breaking year of 2021. Dealmakers will be facing very different conditions in 2024 to the past few years and will need to adapt their playbooks accordingly. For example, although credit markets have reopened, financing is more expensive than it has been for a decade. The higher cost of capital will put downward pressure on valuations and require dealmakers to create more value to deliver the same return as before. As the wider macroeconomic and geopolitical landscape remains uncertain, dealmakers that are able to assess risks and plan for different scenarios will be more confident taking actions than those who may be waiting for greater clarity to arrive.

“Don’t let this M&A upturn take you by surprise. It’s coming, and when it does, it won’t be like ones we have seen in the past. Deal returns will be under greater pressure, and the companies that ultimately come out on top will be those that can demonstrate strategic value, are well prepared and can move fast.”

From an industry perspective, we are seeing some important sectoral variations: the M&A rebound has already started in energy, technology and pharma, for example, whereas other sectors—including banking and healthcare—remain slower, mirroring the broader market conditions. Many companies in sectors such as retail, real estate and construction are still recovering, or are in restructuring mode, creating potential opportunities for M&A.

Overall, we believe successful dealmakers will be those who prioritise strategy and assess the impact of the megatrends—such as technological disruption (including the rise of artificial intelligence), climate change and demographic shifts—on their business models and who are able to use transactions to take steps along their transformational journey. Key elements to drive value creation in 2024 will be a need for speed, a focus on talent and the willingness to be bold.

Look forward, not back

Dealmakers are understandably eager for the worst market for M&A since the period following the global financial crisis in 2008 to be over—and soon. Global deal values halved in just two years to US$2.5tn in 2023 from their peak of more than US$5tn in 2021. Global deal volumes also declined, down 17% from just over 65,000 deals in 2021 to around 55,000 deals in 2023. As we predicted in our 2023 mid-year M&A outlook , mid-market deals held up because they were easier to get done in a difficult financing environment and dealmakers followed a strategy of making a series of smaller deals to drive transformation and growth.

However, megadeals—transactions with a value in excess of US$5bn—fell by 60% from their peak of almost 150 deals in 2021 to less than 60 in 2023 but are starting to grab headlines again. The two largest deals in 2023 were both energy deals announced in October—Exxon’s US$59.5bn proposed acquisition of Pioneer and Chevron’s US$53bn proposed acquisition of Hess. And although January often spells a quieter month for deal announcements, 2024 has already seen several megadeals being announced, including Hewlett Packard Enterprise’s proposed US$14bn acquisition of Juniper Networks, Blackrock’s US$12.5bn proposed acquisition of Global Infrastructure Partners, Chesapeake Energy and Southwestern’s proposed US$7.4bn merger, and DigitalBridge and Silver Lake’s US$6.4bn proposed equity investment in Vantage Data Centers.

We believe that these transactions highlight a greater willingness among dealmakers to do larger, more complex deals. At times, that means finding creative solutions to address current challenges, such as financing and regulatory oversight, to grow and create value and sustained outcomes.

A dynamic sector landscape

A closer look at individual sectors and subsectors indicates where M&A is already turning upwards. In 2023, deal volumes increased in aerospace and defence, mining and metals, power and utilities, pharma, industrial manufacturing, automotive, and technology compared to 2022. These sectors look set to continue, and future subsector hotspots include AI, semiconductors, electric vehicles, batteries and energy storage, biotech, space, consumer health, and insurance brokerage.

Year-over-year change in global deal volumes and values by sector, 2021-2023

Select the bubbles on the chart to view the information for each sector

Bubble chart showing the year-over-year change in deal volumes and values. In 2023 several sectors started to show signs of growth in deal volumes and/or values.

In some sectors, M&A activity has started to recover.

In energy, utilities and resources (EU&R), the energy transition continues to drive business transformation as companies reposition themselves to meet sustainability challenges. The number of EU&R megadeals almost tripled in 2023 compared to the prior year, and the two largest deals of the year were energy ones.

In TMT, technology continues to be a key focus, and the software deals market is attractive for PE players. The largest tech deal of 2023 was Cisco’s US$28bn proposed acquisition of Splunk, which was announced in September 2023.

In pharma, large-cap companies pursuing midsize biotech targets to fill drug pipeline gaps, strong investor interest around diabetes and weight loss GLP-1 drugs, and a continued focus on precision medicine are likely to fuel M&A activity in 2024.

For others, M&A may take longer to recover.

Financial services M&A is likely to remain challenging in 2024, but the need for financial institutions to transform should give dealmakers greater optimism.

Healthcare services will likely see some distressed hospital deals as companies grapple with financial and operational difficulties such as funding cutbacks and clinical workforce shortages. Digital innovation will help address staffing issues, and telehealth and health tech and analytics companies will continue to be attractive to investors and create opportunities for M&A.

In consumer, where purchasing power is still constrained—especially for middle-income families—retail, hospitality and leisure sectors may lag. While hospitality and leisure dealmaking showed declines in both deal volumes and values in 2023 compared to the prior year, we expect the return of tourism to pre-pandemic levels and consumer preferences for experiences will increase the flow of businesses coming to market in 2024.

“Market signals are more positive and we're seeing a willingness among dealmakers to find creative solutions to get deals done and accelerate transformation. I believe these factors—and pent-up demand—have created a tipping point and we will see an upswing in M&A in 2024.”

Factors underlying our dealmaking optimism

An improved outlook.

The recent improvement in the financial markets provides the backdrop for a resumption of a healthier M&A market. The repeated hikes in interest rates over the past two years appear to have ended, with most bankers predicting between three and six rate cuts in the US, possibly beginning as early as March. Even if rates drop more gradually, the financing environment will be more stable, and thus it will be easier for dealmakers to price, execute and plan their deals.

The mood in financial markets has changed markedly. In the last two months of 2023, the S&P 500 and the NASDAQ composite indices posted double-digit gains of 12% and 15%, respectively and the Nikkei 225 and FTSE 100 gained 6% and 5%, respectively, over the same period. The almost 100 basis point decline in 10-year US Treasury notes, from a peak of just under 5% in early November to around 4% at the beginning of 2024, amounts to a massive sigh of relief: the markets now believe inflation, while remaining stubborn, will no longer present a debilitating challenge to the economy.

Enterprise value to forward EBITDA multiples for major indices increased by about 15-20% in 2023. Nonetheless, forward multiples remain below three-year highs, which suggests valuations still have some room to run. Furthermore, the increase in multiples lags the overall increase in enterprise value, which implies the strong performance in the major markets is grounded in improving fundamentals and expectations. Investors in 2023 were concerned about a possible recession, but they have entered 2024 with more optimism, which we believe will support a reactivation of the M&A market over the coming year.

The subdued IPO markets are another factor supporting our view that an upturn in M&A activity will occur in 2024. Quieter IPO markets tend to create more opportunities for M&A as companies seek an alternative exit strategy. With global IPO proceeds down 30% in 2023 from 2022 (from US$173bn to US$121bn), the backlog of companies waiting to go public has grown. Whilst there is cautious optimism for an IPO recovery , windows will be tight due to upcoming elections in many countries. Investor tolerance for risk has declined due to recent disappointing post-IPO performance, and we expect issuers will be challenged on their equity story, profitability, cash generation, and, ultimately, valuations. We expect many companies will plan for optionality, with a dual-track approach to exits in 2024, likely resulting in an increase in M&A.

Demand and supply

Each month that goes by without a normal flow of deals puts more pressure on transactions that need to be done. We believe dealmaking has reached an inflection point: the lower levels of M&A activity in 2023 have created pent-up buyer demand and a buildup in seller assets.

of CEOs plan to make at least one acquisition in the next three years.

Private capital has almost US$4tn of ‘dry powder’—capital which needs to be put to work or returned to limited partners. At the same time, private capital has approximately US$12tn of assets under management (AUM), almost double the amount in 2019 before the start of the global pandemic, highlighting the significant build-up in unrealised value in portfolios over the past three to four years. With numerous PE funds either nearing or past their typical deadlines for their portfolio investments, they will find themselves under increasing pressure from their limited partners to return capital, and we expect this will lead to an increase in exit activity.

The attractiveness of M&A on the corporate side has also been building. At a time when rapid change from global megatrends, including digitalisation and decarbonisation, is bringing about major transformations, companies are re-evaluating their strategies and looking to reinvent to stay ahead. As companies look to scale, gain access to technology and talent, and accelerate growth, acquisitions are one obvious path forward. Alternatively—or additionally—divestitures of non-core or underperforming assets will allow them to focus financial and managerial resources on core strategic growth areas.

Time to go further, faster

CEOs and PE funds are taking a closer look at how to create value—and quickly. From unlocking new sources of value with technology to accelerating decarbonisation, businesses believe transactions are, in many cases, the best way to keep up with market developments and will allow them to transform faster than would otherwise be feasible .

of business leaders expect to use M&A to accelerate adoption of technology and technology-related processes.

Adjusting to a different M&A market

We think that both the conditions and the expectations for M&A will be substantially different in 2024 than they were before—and even during—the pandemic, particularly as they relate to navigating uncertainty, financing and restructuring.

Navigating uncertainty

Many uncertainties continue to cloud the outlook for 2024, including economic volatility, geopolitical tensions, increased regulatory scrutiny, supply chain disruptions and upcoming elections in several countries. However, CEOs have learned a lot over the past few years, including how to navigate amid uncertainty, and are showing greater willingness to take calculated risks and to find solutions to equip their businesses for the future. We believe this will extend to developing an M&A strategy which will support their growth and business transformation objectives.

Credit conditions in early 2024 are markedly improved compared to during 2023, when institutional lenders were struggling to syndicate debt and the debt markets were effectively shut. In the past decade, private credit funds have emerged as key players in the credit markets—providing capital to support leveraged buyouts, recapitalisations and other types of private equity transactions, and offering more flexible and customised financing solutions. Private credit is playing an ever-increasing role in the provision of financing for deals and with global dry powder of US$450bn at the end of December 2023, they are in a strong position to support an increased level of dealmaking activity in 2024.

With the recent stock market performance and overall heightened public company valuations, the use of stock as a currency to finance deals is expected to increase and thus avoid the need for debt financing entirely. The two oil and gas megadeals announced in late 2023 are recent examples of mergers for which the consideration was 100% stock.

Distressed opportunities

There are approximately US$300bn of leveraged loans maturing between 2024 and 2026. In a higher interest rate environment, this will inevitably translate into a steady rise in dislocated capital structures. Where value breaks in the equity, but a vanilla refinancing is unachievable, shareholders may either explore a refinancing with an alternative credit provider, an amend-and-extend (A&E) arrangement with existing creditors, or may opt for an M&A exit. However, where value breaks in the debt, there may also be potential for more innovative M&A solutions—for example, partial disposals to service debt. In situations where credit fund lenders take over businesses in a restructuring, they will likely be open to right-sizing balance sheets and using M&A and refinancing tools to drive a turnaround, and accelerate their internal rates of return. This will likely translate into more M&A opportunities.

In late 2023, the fall in US Treasury yields prompted some companies to refinance debt maturing in the next few years rather than wait for expected interest rate cuts in 2024 to lower borrowing costs. Companies unable to refinance may find themselves burdened with higher debt servicing costs. This may create a need to restructure to reposition themselves for the future. In these situations, restructuring to improve the ability to refinance is not just financial, and it may come in different forms—for example, portfolio assessments to improve the balance sheet by selling parts of the business—or operational restructuring to improve profitability and reduce risk. Distressed businesses are also seeking to strengthen their balance sheets and cash positions through M&A solutions, whereby they are being acquired by a stronger new parent. When this occurs, it may be necessary to be executed through a legal process such as a UK scheme or similar arrangement, depending on the jurisdiction. Furthermore, we are seeing examples in sectors such as retail and hospitality where companies are taking action to reduce debt by removing some of the more capital-intensive assets, such as real estate, from balance sheets.

M&A volumes and values in 2023

Deal volumes and values, 2019-2023.

Click the tabs to view the chart and commentary for each region.

Bar chart showing M&A volumes and values. Deal volumes and values declined in 2023, with less megadeal activity but mid-market dealmaking continued.

Global : M&A volumes and values declined by 6% and 25% in 2023 compared to the prior year. Hopes for a rebound early in the year were dashed by rising interest rates and financing challenges, and the number of deals declined by 20% between the first and second half of the year. While the data for the second half of 2023 is likely understated due to the lag in deals being reported, the bearish sentiment among dealmakers which existed during the second half of the year was palpable. However, while the number of deals declined in the second half of 2023, deal values improved slightly over the first half of the year, largely boosted by the two large energy deals discussed earlier.

Asia Pacific : deal volumes and values decreased by 1% and 26%, respectively in 2023 compared to the prior year. China’s M&A market has continued to be challenging. Even in Japan where low interest rates and low inflation created a more stable investing environment, deal activity was down by 4%, although values were buoyed by some larger deals, including the US$14bn acquisition of Toshiba by a consortium led by Japan Industrial Partners. The high levels of investment and M&A activity seen in India during 2021 and 2022 slowed in 2023 as dealmaking volumes decreased by 4% and deal values dropped by a massive 70%. The decline in India’s deal volumes in 2023 was partly due to the US$60bn merger between HDFC Bank and Housing Development Finance Corp in 2022.

Europe, the Middle East and Africa (EMEA) : deal volumes declined by 13% in 2023 compared to the prior year but remained above pre-pandemic 2019 levels. Deal values declined by 36% over the same period, primarily due to a decline in the number of megadeals. Macroeconomic factors, geopolitical tensions and a drop in investor confidence affected both volumes and values. Almost all countries experienced a decline in deal volumes in 2023 compared to 2022, although Austria, Germany, Italy and Switzerland fared better than other countries in the region.

Americas : deal volumes decreased by 3% in 2023 compared to the prior year. Although deal values declined by 19% over the same period, the number of megadeals held steady. As a result of a decline in megadeals in both Asia Pacific and EMEA over the same period, the share of megadeals in the Americas region increased from 62% of global megadeals in 2022 to 71% in 2023.

How M&A could vary among sectors

In some sectors, the rebound is already here. In TMT, for example, the software deals market is hot for PE players and technology continues to be a key focus: of the seven megadeals (defined as deals over $5bn) announced in TMT in 2023, six were in the technology sector, including the largest deal of the year, Cisco’s $28.1bn proposed acquisition of Splunk. In pharma, large-cap companies are expected to continue pursuing mid-sized biotech companies to fill pipeline gaps in the face of impending patent cliffs, and investor interest around GLP-1 drugs, used to counter diabetes and enhance weight loss, and a continued focus on precision medicine is likely to fuel M&A activity in 2024. And in energy, as companies position themselves for major changes relating to sustainability issues, several large deals have recently been announced, including Exxon Mobil’s planned $59bn acquisition of Pioneer Natural Resources, Chevron’s planned $53bn acquisition of Hess, and Newmont’s $17bn acquisition of Newcrest.

Other sectors are moving more slowly, including consumer and xxx.

Reacting to the starting bell: Takeaways for dealmakers

As the M&A rebound takes hold, dealmakers will need to be prepared for the change in conditions and expectations that will accompany it. Four essential aspects to bear in mind in 2024:

The need for speed. Due to the pent-up buyer demand and a reluctance to sell at lower valuations, when quality assets do come to market, we expect them to be highly competitive. In such situations, preparedness will be key, and speed can be an important differentiator. We anticipate AI may soon provide the ability to accelerate dealmaking preparedness by removing some barriers to transactions, speeding up the deal process and helping reduce the number of failed deals. Dealmakers should have buy-in from key stakeholders and decision makers—including boards, investment committees and C-suites—well in advance.
Reinventing your business model. PwC’s 27th Annual Global CEO Survey found that 45% of CEOs doubt their company’s current trajectory will keep them viable beyond the next decade. While 97% of CEOs report having taken some steps to change how they create, deliver and capture value over the past five years, it is clear that more action is needed, particularly in sectors likely to be most affected by the force of the global megatrends such as technological disruption, climate and demographic shifts. Dealmakers need to take proactive steps to assess the risks and opportunities and be prepared to pivot to find new sources of value. CEOs who apply a broader lens on areas such as strategy and new business models, operations, workforce, sustainability, tax, risk and regulatory compliance into their value creation approach and business transformation will be best positioned to accelerate their strategic goals and achieve sustainable growth.
Where’s the talent? As companies look to leverage technology and transform, generative AI will become more widely deployed, and talent will again be at a premium—and a key value driver. Dealmakers will need to answer important questions before transacting: what are the acquirors’ capabilities needed, who possesses those capabilities at both the acquiror and acquiree, and what programs and plans are required to ensure the key talent sticks around?
Being bolder. We could come up with 10 or more reasons why this is a bad time to do deals, ranging from the macroeconomic uncertainties to the higher cost of capital. But the next wave of M&A is coming, whether you are ready for it or not. Of course we recommend you weigh the pros and cons carefully, and take the new challenges into account. But don’t let them hold you back. Hearing the starting bell ring should trigger action for companies looking to adapt to the rapidly changing landscape across sectors. If you want to get ahead of competitors for the future, you need to act now.

We have based our commentary on data provided by industry-recognised sources. Specifically, values and volumes referenced in this publication are based on officially announced transactions, excluding rumoured and withdrawn transactions, as provided by the London Stock Exchange Group (LSEG) as of 31 December 2023 and as accessed on 3 January 2024. This has been supplemented by additional information from Preqin, S&P Capital IQ and our independent research. Certain adjustments have been made to the source information to align with PwC’s industry mapping.

Brian Levy is PwC’s global deals industries leader. He is a partner with PwC US. Suzanne Bartolacci is a director with PwC US.

The authors would like to thank the following colleagues for their contributions: Nicola Anzivino, Tim Bodner, David Brown, Roberta Carter, Sally Dixon, Hannah Elliott, Aaron Gilcreast, Michelle Grant, Lisa Hooker, Erik Hummitzsch, Barry Jaber, Eric Janson, Malcolm Lloyd, Hamish Mackenzie, Hein Marais, Christian K. Moldt, Miriam Pozza, Alastair Rimmer, Michelle Ritchie, Hervé Roesch, Bart Spiegel, Christopher Sur and Peter Wolterman.

Explore our local M&A Trends from the following countries or regions:

Explore the other insights in our global m&a industry trends series.

Malcolm Lloyd

Global, EMEA and Spain Deals Leader, Partner, PwC Spain

David Brown

Partner, Global Corporate Finance Leader, PwC China

Colin Wittmer

US Deals Leader, Partner, PwC United States

Domenic Marino

Canada Deals Leader, Partner, PwC Canada

Eric Janson

Global Private Equity, Real Assets and Sovereign Funds Leader, PwC United States

Tel: +1 617-834-4900

John Potter

US Deals Clients & Markets Leader, Partner, PwC United States

Lucy Stapleton

UK Deals Leader, Partner, PwC United Kingdom

Marc Schmidli

Switzerland Deals Leader, Partner, PwC Switzerland

China Deals Leader, Partner, PwC China

Carlos Fernández Landa

Partner, PwC Spain

Partner, PwC Canada

Stéphane Salustro

France and Maghreb Deals Leader, Partner, PwC France

Alastair Rimmer

Global Deals Strategy Leader, Partner, PwC United Kingdom

Gabriel Wong

Partner, PwC China

Bronwen Alexander

UK Deals Markets and Services Leader, Partner, PwC United Kingdom

Erik Hummitzsch

Germany Deals Leader, PwC Germany

Samy Walleyo

Partner, PwC Germany

Miriam Pozza

Global and Canada ESG Deals Leader, Partner, PwC Canada

Tel: +1 514 205 5000

Benjamin Ribault

Partner, PwC France

Glen Hadlow

Australia Deals Leader, Partner, PwC Australia

Rob Silverwood

Partner, PwC Australia

Siobhan Syrrou

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Your 2024 Travel Mood Board

Make these 2024 travel trends your own with experiences you'll only find at four seasons..

Will this be the year you focus on wellness? Maybe you’re wanting to finally go on that epic adventure or make sure you experience all those big pop culture moments first hand. Whatever your travel style is, exploring trends can be a fun way to find inspiration for your next great vacation. From immersive wellness experiences to set-jetting to event- and adventure-based travel, we’re taking a look at some of the biggest trends for the year ahead and how Four Seasons can help you channel them all.

What kind of traveller will you be in 2024? We can’t wait to find out.

Let the sound waves pour over you during a shamanic sound healing session at Naviva®, A Four Seasons Resort, Punta Mita, México.

Take part in a rejuvenating yoga class at Sensei Lanai, A Four Seasons Resort.

Every stay at Naviva® comes with a complimentary spa treatment, which can be enjoyed in one of the two spa pods tucked away in the jungle.

For the wellness traveller

From destination spas to yoga programs to meditation retreats, wellness tourism continues to be a global trend that’s here to stay. In fact, 94% of travellers are incorporating wellness and self-care into their trips, according to luxury travel advisor network Virtuoso. But beyond just a relaxing massage, more and more people are seeking immersive experiences – think forest bathing, thermal baths, guided meditation sessions in scenic destinations and fitness bootcamps that take you outside the gym – to help them focus on their health, reconnect with themselves and dive deep into the benefits of nature.

With just 15 luxury tents set on 48 acres, the adults-only Naviva®, A Four Seasons Resort, Punta Mita, México , was designed as a refuge that blurs the line between nature and resort. Relax in your stand-alone tent tucked discreetly into the forest and take a dip in your private plunge pool accompanied by the sounds of birds singing and the distant rumble of the Pacific Ocean. Along with the serenity that nature brings, this intimate, all-inclusive resort offers unique opportunities for self-discovery . Embark on a shamanic sound healing journey, forest bathe beneath the stars, visit the home of a local artist for inspiration or spend your day in the Spa. For those looking for a truly transformative experience, challenge yourself in the House of Heat – a traditional temazcal (sweat lodge) designed specifically for Naviva. Guided by a dedicated curandero (healer), your ceremony will explore an area of focus that resonates with you, such as gratitude, devotion or rebirth.

On the lush, rolling uplands of Hawaii’s Lanai island, the dedication to wellness can be felt in every corner of Sensei Lanai, A Four Seasons Resort . Restore the body and mind with a plethora of classes and treatments including Vinyasa yoga, TRX suspension, private wellness consultations and island activities such as horseback riding and archery. Opt for a curated experience or a personalized, more structured program; or work with the team of experts to create your own à la carte itinerary. Whatever you choose, you’ll be following the Sensei Way – a philosophy developed by co-founder Dr David Agus along with scientists and physicians from around the world that focuses on three paths: movement, nourishment and rest.

For even more expert guidance, head to the Center for Health & Wellbeing at Four Seasons Hotel Westlake Village . Set in the foothills of the Santa Monica Mountains just minutes from the Malibu beaches, the Center is where you can delve deeper into specifics such as metabolism, body composition and nutrition with a robust and highly skilled team of experts . Book a personalized four-day health retreat , plan a relaxing wellness stay , or simply check in for a weekend getaway and enjoy the complimentary classes led by expert instructors, the healthy food options and the tranquil setting. Try new things like equine-guided meditation with horses, meant to help focus and awareness.

Plan your perfect vacation at Four Seasons Resort Maui at Wailea, the real-life version of the fictional resort in Season One of The White Lotus .

For Season Two, The White Lotus travelled to Sicily and the historic San Domenico Palace, Taormina, A Four Seasons Hotel.

Spend at least one day relaxing by San Domenico Palace's iconic pool overlooking the Ionian Sea.

Head to the Spa in Maui for a locally inspired treatment or a massage in one of the thatched-roof outdoor spa hales.

For the set-jetter

According to a 2023 survey from American Express Travel, 70% of Gen Z and Millennial travellers have been inspired to visit a destination after seeing it in a television series or film. And Four Seasons is perfectly primed to bring your favourite on-screen locations to life. Just a few of our Four Seasons celebrity properties are The Ocean Club, A Four Seasons Resort, Bahamas , where the 2006 James Bond movie, Casino Royale , was filmed; the Beverly Wilshire, A Four Seasons Hotel , where sparks flew between Julia Roberts and Richard Gere in the all-time classic Pretty Woman ; and Grand-Hôtel du Cap-Ferrat, A Four Seasons Hotel , in last season’s Emily in Paris .

Of course, at the top of everyone’s destination wish list are Four Seasons Resort Maui at Wailea and the gorgeous San Domenico Palace, Taormina, A Four Seasons Hotel – the real stars of HBO’s popular series The White Lotus .

Synonymous with paradise, Four Seasons Resort Maui at Wailea is a dream setting for a Hawaiian vacation. Maybe it’s the palm-tree-lined, powdery beach; the incredible aloha spirit of the staff; or the tailored treatments and locally inspired experiences found at the Spa, but this is a property that stays with you long after you leave. While the resort in The White Lotus is fictional, you can still walk in the footsteps of your favourite characters from Season One while in Maui. Snorkel in the clear blue waters, explore the Pacific aboard a private yacht, unwind by the pool and be sure to pay a visit to the Resort Spa .

Built on the site of a 14th-century convent, San Domenico Palace served as the scene-stealing backdrop for Season Two of The White Lotus . The Hotel, set along Sicily’s coast within the charming town of Taormina, makes the most of its dramatic setting with rooms overlooking the Ionian Sea, sprawling gardens and a Michelin-starred restaurant helmed by Chef Massimo Mantarro. Have the Hotel arrange for a picture-perfect Vespa ride through the historic streets or a luxury yacht cruise, just like Tanya did.

Enjoy dinner and drinks at MARCUS Restaurant + Terrace, a stylish hotspot located at Four Seasons Hotel Montreal.

Lounge by the adults-only pool at Four Seasons Hotel at The Surf Club.

Grab a drink at The Surf Club's legendary Champagne Bar, fringed with palm trees and set in the Hotel's original Art Deco building.

The guest rooms at Four Seasons Hotel Montreal overlook downtown.

For the culture connoisseur

Experiential travel shows no signs of slowing down in 2024. Increasingly, travellers are planning vacations around a concert, sporting event or seasonal festival. Whether you’re organizing your girls’ trip to Singapore to coincide with a Taylor Swift concert, booking a stay in Miami to relax on the beaches and see Lionel Messi play, heading to Montreal for the Canadian Grand Prix, or perfectly timing a Paris vacation with the 2024 Summer Games, maximizing travel has never been so fun.

Now that Argentine soccer star Messi has joined Inter Miami CF, it’s the perfect excuse for soccer fans to book a South Florida trip. Rest your head at the elegant Four Seasons Hotel at The Surf Club , which scores major points for its sprawling, timeless rooms and residences; poolside cabanas; and the legendary, greenery-filled Champagne Bar . Located along 9 pristine acres in Surfside, you’ll have easy access to downtown Miami and shopping in Bal Harbour, with DRV PNK Stadium just a 45-minute drive away. Another excellent option? Four Seasons Hotel and Residences Fort Lauderdale .

Up north, Four Seasons Hotel Montreal sits in the heart of the city, just a short distance from the Circuit Gilles-Villeneuve, the racing track that’s the site of the 2024 Formula 1 Grand Prix du Canada, happening in early June. After a day cheering in the stands, return to the Hotel for dinner and drinks at MARCUS Restaurant + Terrace , created by visionary chef Marcus Samuelsson.

Set along Cabo's Golden Corridor, Four Seasons Resort and Residences Cabo San Lucas at Cabo del Sol offers a Mexican chic, village-style atmosphere.

Land, sea or sky, there are countless adventures available at Four Seasons Resort Peninsula Papagayo, Costa Rica.

Plunge through forests, pass by breathtaking waterfalls and take in the incredible views from the slopes of a volcano while mountain biking in Costa Rica.

For the adventure seeker

Want to learn to free dive? Go river rafting? Ski in the Grand Tetons? Stepping out of your personal comfort zone and feeling the thrill of the great outdoors is also top of mind for many travellers going into 2024. Four Seasons has an impressive roster of global properties in sought-after adventure locales, but the one-of-a-kind insider access to unique, personalized experiences is something you won’t find anywhere else.

At Four Seasons Resort Peninsula Papagayo, Costa Rica – which recently underwent a $35 million renovation – the idyllic seaside-meets-the-forest setting comes with a healthy dose of adventure. Fill your days with adrenaline-pumping activities such as cruising above the water on an eFoil surfboard, ziplining through the jungle and white-water rafting on the Upper Tenorio River. If you’re not sure where to start, the Resort’s in-house adventure providers, Papagayo Explorers , can guide you every step of the way.

Are you an ocean lover who’s ready to try something new? Head to Four Seasons Resort and Residences Cabo San Lucas at Cabo del Sol – opening in early 2024 – and learn to free-dive right off the Resort beach. Led by the on-site Adventure Team, the Resort’s special free-diving academy lets you build your skills and confidence in order to experience the underwater world in a deeply personal way. Whether you’re an experienced diver or a curious beginner, you’ll gain self-awareness and get a first-hand view into the same waters that celebrated oceanographer Jacques Cousteau once called “the world’s aquarium.”

If your adventure aspirations lean more towards the mountains than the beach, the chalet-style, ski-in/ski-out Four Seasons Resort and Residences Jackson Hole offers myriad ways to get out and explore the wilderness. Glide down the celebrated ski runs at nearby Jackson Hole Mountain Resort in the winter, trek the area’s rugged peaks in the summer and come face to face with a variety of wildlife in Grand Teton National Park in any season. With plenty of year-round activities to choose from, there’s something for every type of adventurer in Jackson Hole.

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In this second post of the series we look at the state of business travel, how the luxury hotel segment is faring, the rise of alternative lodging, and which regions are leading the way when it comes to the resurgent demand for travel.

Read Part 1 : The 7 Top Travel and Hospitality Trends to Look Out for in 2023

To catch up on our first three trends, which included inflation, expenditure on experiences and the industry's COVID hangover, click here and read on to see the four remaining hospitality and travel trends shaping 2023.

Table of Contents

4. Is business travel on its way back?

5. A supercharged American rental market

6. High-end hotels will likely fare better in 2023

7. America resurgent, Europe cautious and Asia currently lagging slightly behind

Another sector hugely impacted both in the short- and long-term by the pandemic was business travel.

The Meetings, Incentives, Conferences and Exhibitions (MICE) sector was cut at a stroke by lockdowns and huge growth in video conferencing changed the face of work forever. So, can we expect a comeback in 2023 or is the age of the face-to-face meeting over?

Once again, it’s an upwards trajectory, with our indicators pointing to continued positive growth , as are other industry bodies.

Extracting GDS searches, which are a critical business travel booking route, there is a clear trend line of growing searches, and therefore demand throughout the last two years that shows no signs of stopping as we head into 2023.

During peak season for MICE travel in mid-2022 search volumes for London and Seoul were 40 to 60 times what they were at the beginning of 2021, although this is coming from a very depressed base.

GDS hotel searches in major business travel destination, 2021 - 2022

Averaging out search demand trends across this selection of cities displays a clear and consistent upwards trend throughout the period, and as we close 2022, search volumes are at the highest level seen since the start of the global pandemic.

We are not alone in this analysis, as American Express’ 2023 Global Meetings and Events Forecast expects broad-based growth in global spend for business travel, rising by 3.1% globally. Once again North America is expected to be the most buoyant region, with growth in spend predicted to hit 3.8%.

Another area where North America, and the US specifically, is a market leader is in the vacation rental sector . Here reservations soared above pre-pandemic levels in 2022 according to our data.

As we closed out the year, demand in the country spiked to the point where double the reservations were made in the first week of December 2022 as compared to 2019, and over the last year only Latin America exceeded North America for reservation growth.

Weekly variation in US holiday rental reservations, 2019 versus 2022

Using a snapshot of 10 major metro markets in the US, we can see continued strength in pricing in the first half of 2023, which reflects strong demand and booking pace.

Only Miami and Orlando fail to consistently increase in price throughout 2023, which may reflect high seasonality in these destinations, and therefore it seems like the US rental market will enter 2023 as it concluded 2022.

Average price for holiday rentals in 10 major US cities across H1 2023

While there is a raft of positive news for the travel industry, we can’t ignore that there are some storm clouds on the horizon. As we have noted, incomes are stagnant or falling for the average consumer as we close 2022.

While the head of the International Monetary Fund (IMF) expects that a third of the global economy will be in recession in 2023.

A sector that is much more insulated against these risks is the luxury sector, as wealthier consumers are less sensitive to economic shocks , with a better cushion against issues like high inflation.

Pricing comparison for five-star hotels and three star-hotels in H1 2023 compared to H1 2019

Five-star hotels show higher price growth in H1 2023 when compared to 2019 than for one- to three-star hotels. For the former, nominal prices posted in H1 2023 are 22-23% up from 2019 levels, whereas their less luxurious counterparts are advertising rates 14-15% above pre-pandemic levels.

Looking across our data there are a few mega trends to pick out. First is that the Asia market looks like it has the weakest outlook in 2023, while the US is potentially the strongest major economy from a tourism perspective .

Aggregating and averaging pricing across regions, we can see that Q1 2023 hotel price growth for Asia from the same period in 2019 falls far behind any other region, and that North America slightly leads Europe.

Ahead of all of these are Oceania, reinforcing how a strong pandemic response has helped the region return to growth, and the Middle East and North Africa region, home to many luxury holiday destinations.

Changes in prices for hotels in Q1 2023 compared to Q1 2019 split by world region

Looking at our top 10 destinations for price growth in Q1 2023, that trend continues, with many resorts catering to long-distance travellers being represented. These include Maui, Sharm El Sheikh, Palm Beach and Los Cabos.

Top 10 pricing growth leaders in Q1 2023

If you want to dive into the data for your market and find out how demand and pricing is shaping up, take a free trial here .

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How to ‘ACE’ hospitality recruitment

Thanks to the lifting of travel restrictions in many regions, hotels are filling up again. However, instead of heaving a sigh of relief that the worst of the pandemic is over, hotel executives find themselves with a new problem on their hands: a lack of personnel.

Up to 70 percent of all hospitality workers in the United States 1 “AHLA data shows 70 percent of hotel employees laid off or furloughed,” TSNN, May 4, 2020. and the United Kingdom 2 “Coronavirus and its impact on UK hospitality: January 2020 to June 2021,” Office for National Statistics, July 19, 2021. were furloughed or laid off during the pandemic, and many employers are struggling to get them to return to work. Like their counterparts in other industries, hospitality employees have used the time off to reassess their priorities, and many have found new jobs that offer more flexibility.

Accustomed to this new way of working, many are reluctant to go back to their old positions, especially if they held roles waiting tables, cleaning rooms, and checking in guests. Such roles make up a significant portion of the hospitality and travel workforce in many markets, such as in the United Kingdom, where they account for 45 percent 3 Hospitality and tourism workforce landscape , Economic Insight, June 2019. of all jobs in the industry. While automation may reduce the workforce requirements for many of these functions in the future, the current labor crunch is worsening as demand for hospitality services in the immediate term spikes.

Even those who kept their jobs are likely to seek better career prospects elsewhere as more employment opportunities open up: around 40 percent of respondents in a McKinsey survey said that they are thinking about leaving their positions in the next three to six months —and many are even willing to quit without having another job lined up.

What’s changed and what can employers do to recruit—and retain—talented employees?

In this article, we delve into the five key talent acquisition trends that employers should be aware of. We also offer a simple approach for how they might “ACE” talent attraction: analyze talent suitability with digital tools; clearly define and communicate job requirements and career paths; and empower the HR department with the skills and tools they need to find and keep talented candidates.

Five hiring trends all hospitality employers should know

The pandemic has altered the hiring landscape in nearly every industry, including hospitality. Employers who equip themselves with a deep understanding of these five shifts in talent acquisition will be better able to adapt their hiring processes to staff their workforce with the talent their companies need to thrive into the future, as well as to recoup the losses incurred during the pandemic.

1. Digitization is radically changing hospitality roles

Like many other industries, hospitality is being transformed by digital and automation technologies. As such, many companies are rethinking their business models and workforce composition with an eye at simultaneously lowering costs and improving customer experience. In hotels, more guests are checking themselves in at self-help kiosks, and autonomous drones are delivering amenities directly to rooms, alleviating the labor shortage for some of the more labor-intensive functions.

As automation takes over more tasks currently performed by humans, new job roles will be created, especially to design and manage emerging technologies and digital solutions. It is estimated that 65 percent of primary-school students in 2030 will perform jobs that don’t yet exist. 4 The future of jobs report, Chapter 1: The future of jobs and skills , World Economic Forum, 2022. As hotels increasingly base decision making on customers’ booking and behavioral patterns, AI skills will grow in importance, and more data analyst positions will be created.

Hotel brands and other hospitality-focused companies have been rolling out customer-facing mobile apps, as they have found online digital channels to be especially effective at direct customer engagement. As such, more user experience (UX) designers will be needed to create attractive and intuitive customer journeys on these digital platforms and to continually optimize their design and functionality based on data analyses of customer engagement. Online marketing managers will also be needed to conceptualize and launch compelling campaigns and brand stories across mobile and other emerging platforms to entice potential customers.

To support all these shifts, software engineers will be needed to design and implement new AI solutions on the back end, as well as to optimize booking platforms on the front end and embed software for Internet of Things (IoT) applications.

2. Employees are expecting more flexibility

The pandemic has debunked, to a large extent, the idea that work needs to be done exclusively in an office. Videoconferencing and cloud-based digital tools have enabled remote work without much loss in productivity, if any. And while many people around the world have begun returning to their workplaces, they have grown accustomed to the increased flexibility to manage work and personal commitments—a level of autonomy they are reluctant to relinquish. This has led many companies to implement numerous hybrid work models.

Job searches for remote work have nearly quintupled from June 2019 to June 2021. And while five years ago about a fifth of job postings offered the option to work remotely, nearly 80 percent of postings do today (exhibit). As jobs have become increasingly location agnostic, former hospitality workers have shown an unwillingness to return to jobs that require them to be tethered to reception desks, for example. Furthermore, candidates applying for digital roles in the hospitality sector expect the same flexibility offered in other industries.

Based in Germany, Koncept Hotel is an example of a company that has radically embraced the idea of remote work. Some of the hotel chain’s properties are almost entirely without staff, as everyone apart from the housekeeping team works remotely. A cloud-based automation system takes care of everything, from reservations and check-ins to payments and night audits.

Many roles in hospitality could be offered with remote-working options, including social-media managers, event planning consultants, accountants, marketing and PR executives, and customer support associates. Even a concierge can go virtual with the right technology support system in place.

But what about roles that have to be performed in person, such as housekeeping or waitstaff? To address this issue, employers may need to consider redesigning what a career in hospitality looks like. For example, if employees have a diverse portfolio of roles, they may be able to enjoy more flexibility in terms of work hours and location, along with a number of other benefits.

3. Hospitality careers are becoming more multifaceted

People who currently work in the hospitality industry often wear multiple hats out of necessity. Staffing shortages are straining the smooth running of daily operations, and guest-facing employees frequently have to perform different functions to keep service standards high. For example, many hotels equip receptionists with mobile tablets so they can double as concierges. And as more burned-out employees leave the hospitality workforce, the labor crunch will likely become more severe, especially for tasks that require a physical presence.

However, some hotels are taking this seemingly intractable challenge as an opportunity to reimagine what a career trajectory in hospitality looks like. While important, a paycheck has become only one among a number of factors candidates consider when accepting an offer. Employees seek a sense of fulfilment and meaning, and one way employers can foster personal and professional growth in hotel staff is to provide opportunities for them to expand their skill set.

In-person roles can become more rewarding for current employees and more attractive to talented candidates. Digitization can provide employees in service jobs with more flexibility in responsibilities and career growth. Some functions, such as housekeeping and reception, may require a physical presence, but an employee with a portfolio of in-person and location-agnostic duties may not have to spend all their workdays on-site. As career paths become more multifaceted, employees may also be able to command higher wages and greater satisfaction.

Companies could identify and offer top performers training opportunities for higher-skilled functions in other departments. For example, a member of the front-desk team may enroll in a social-media training program to learn how to conceptualize, run, and track the effectiveness of online campaigns. After completing the course, such employees could work with the hotel’s marketing department, contributing to digital campaigns, and, as such, work from home two days a week. Since front-desk employees have firsthand interactions with many guests, they could offer invaluable qualitative insights to the campaigns they work on, while at the same time deriving professional fulfillment from being involved in an interesting project, greater flexibility to balance their personal and professional commitments, as well as a higher salary.

Naturally, empowering staff to take on multiple roles requires an investment from hotel managers and executives. And as more employees work across functions, collaboration among different departments needs to be effective, and executives would have to build the right suite of digital and on-site training programs. A robust technology and communications stack could be key to reducing complexity and to opening up the instant communication channels needed for effective problem solving. Hyatt, for instance, has created a centralized digital workspace called Konverse, which includes communication channels and a task tracking system that enables daily collaboration for employees from front desk to housekeeping to engineering.

4. ESG cannot be ignored, even in hiring

Many employees take into consideration the social and environmental responsibility of a company when choosing a place to work. As customers, investors, and employees grow in their awareness of environmental, social, and corporate governance (ESG) issues, hotels are reviewing every aspect of their corporate strategy and operations, including hiring practices and roles.

Many companies are finding it helpful to have a leadership position that provides oversight and coordinates best practices on issues pertaining to their climate impact. As examples, Carnival Cruise Line has a strategic sourcing manager in charge of sustainable procurement, and TUI Cruises has an environmental manager who is in charge of ensuring that all of the company’s functions are aligned with ESG standards. On a more granular level, more hotel chefs are being tasked with sourcing more locally, organically, and sustainably, and chains such as the Shaner Hotel Group hire eco guides to educate guests about the environment and plan eco-focused activities.

As customers, investors, and employees grow in their awareness of environmental, social, and governance issues, hotels are reviewing every aspect of their corporate strategy and operations.

When hiring, employers could also be paying more attention to diversity, equity, and inclusion (DEI). A diverse and inclusive workforce contributes to greater employee satisfaction and is correlated with better economic performance . Companies could partner with external organizations and reassess their perks and benefits to foster greater inclusion. For instance, Kimpton Hotels and Restaurants works with organizations such as Trans Can Work, The Mom Project, and DirectEmployers Association in their recruitment efforts, enabling the company to benefit from a diverse talent pool of candidates. Meanwhile, Hilton, which ranks second in Fortune’s 100 Best Companies to Work For list for 2022, uses a quarterly diversity dashboard to track a company’s diversity performance based on clear metrics and targets, including the makeup of its corporate leadership. To ensure a pipeline of diverse leaders for senior management, Hilton partners with universities such as Harvard and Cornell on external development programs.

5. The bar for hygiene will remain elevated

Even though restrictions implemented during the COVID-19 pandemic are gradually being lifted, many hygiene protocols will likely endure beyond the pandemic. New roles and skills are needed to improve the coordination of hygiene-related initiatives across companies to protect the safety of both guests and employees.

For instance, some hotels have hired hygiene managers to revise sanitation protocols and oversee their implementation across the property. This requires coordinating with different subdepartments such as food and beverage, spa and wellness, and entertainment. The hygiene manager trains hotel staff on how to maintain hygiene standards and also works closely with the legal department and medical team to ensure that initiatives adhere to local laws and are grounded in science.

ACE talent acquisition

Hospitality employers may need to adapt their hiring practices in response to these five shifts. To start, we’ve come up with a broad approach that may help them ACE talent attraction and improve employee retention.

Analyze talent suitability with digital tools: Whittling down a pool of applicants is often done based on gut feeling and the personal experience of the recruiter, which is not only expensive but often ineffective—up to 80 percent of employee turnover is due to poor hiring decisions. Advanced data analytics can be a powerful tool to help identify appropriate candidates while reducing the subjective aspects of the screening process. An employer can define the specific talent they are looking for (analytic tools may help identify potential gaps) and work with a data analytics team to build a predictive model to identify likely characteristics of success, using it to sift through the stack of digital résumés. By implementing this approach, a fast-growing organization that struggled to retain high-performing sales talent managed to reduce first-year attrition by 23 percent and improve quality of new hires by 40 percent.
Clearly define and communicate job requirements and career paths: No one likes nasty surprises, so it’s best to avoid them by defining roles and their requirements early in the game. Each candidate and new employee should know how performance will be evaluated and the perks, support, and benefits they will enjoy when they join the company. While an employee’s career trajectory may change after joining a company, the candidate should be aware of the options available and the path they can expect when they receive an offer. In our experience, employers who use employee-centric design to optimize and customize a candidate’s career path within the organization, taking into account their unique attributes, skill sets, and interests, tend to be companies with the greatest impact and satisfaction rates among their staff.
Empower your HR department: A skilled HR team makes all the difference, but building one requires investment and training. They should be trained to wield the digital tools they have at their disposal competently to screen the most suitable candidates quickly, identify reasons why candidates fall out of the recruitment funnel, and streamline the overall hiring process so that it doesn’t drag on for more than two weeks. Beyond these technical skills, the HR team should also know how to conduct smooth interviews. According to Workplace Trends, nearly 60 percent of job seekers have experienced poor interview processes, and 72 percent of them shared those experiences with others. Even when a candidate is not the perfect fit for a specific role, they may be suitable for another role, so it’s important for those who don’t get an offer to also feel valued.

Hotels and other hospitality players have a rare opportunity to rebuild their workforces by transforming their hiring practices. Those who keep these five trends in mind and adopt the ACE approach may find the industry’s brightest talents clamoring to join and grow in their ranks, delivering superlative guest experiences for a long time to come.

Margaux Constantin is a partner in McKinsey’s Dubai office; Steffen Köpke is a capabilities and insights expert in the Düsseldorf office, where Joost Krämer is a consultant.

This article was edited by Jason Li, a senior editor in the Shanghai office.

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Active streamers on Twitch worldwide 2024

In April 2024, video streaming platform Twitch had approximately 7.23 million active streamers, down from a peak of 9.89 million in January 2021. The platform experienced a boom during the COVID-19 pandemic when many new users used the platform to connect with friends or try their hand at livestreaming. However, this trend normalized again towards the end of the year, and the streaming space has also grown more competitive as platforms other than Twitch have evolved to attract streamers and viewers.

Game streamers

Twitch is very popular with gamers and gaming audiences, and the ranking of the most popular Twitch streamers reflects this. Ninja (real name: Richard Tyler Blevins), the top-ranked streamer on Twitch , had 18.83 million followers in November 2023. Ninja saw a meteoric rise to fame when he was one of the first top-ranked players to stream the then-newly released Fortnite Battle Royale at the end of 2017. Second-ranked auronplay (real name: Raúl Álvarez Genes) was ranked second with 15.83 million followers on Twitch. With more than 9.3 million followers, Imane Anys, better known as Pokimane, was the only woman among the most-followed Twitch streamers worldwide. Overall, women only accounted for nine percent of the top-ranked Twitch channels.

Number of active streamers on Twitch worldwide from January 2018 to April 2024 (in millions)

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