Hospitality Industry to Experience Tech-driven Impressive Growth in 2024 – By Sivaprasad Gangadharan

Sivaprasad Gangadharan – Chief Sales Officer – Hotelogix
Going by trends and its impressive performance in 2023, the hospitality industry is set to experience significant growth and innovation in 2024. Let's examine a few factors driving the industry's growth this year.
Before discussing that, let's first look at the geographical state of the hotel industry in 2024.
United States
With about 664 new hotels comprising 79.286 rooms expected to be added in 2024, the hotel construction pipeline in the United States looks good. Moreover, according to PwC, occupancy will hover around 63.2%, with a 2.4% boost in ADR and a 2.7% spike in RevPAR.
Latin America
In 2024, the number of hotel openings in Latin America is expected to rise to 107, providing 16,273 rooms.
Middle East
In 2024, 103 new projects are planned to be constructed, creating 24,000 new rooms. This marks an 18% increase in projects and an 11% growth in rooms compared to last year. Saudi Arabia, Oman, Qatar, and the UAE are expected to lead this growth.
Southeast Asia
This year, construction ofÊ 295 hotel projects with 51,756 rooms will start across the region. Hotels operating across major markets, including Thailand, the Philippines, Indonesia, etc., are set to recover to the pre-pandemic level with a rise in occupancy, ADR, and RevPAR.
India
The Indian hotel industry is gearing up to witness about 15% to 20% growth in revenue in 2024. The expected boost in domestic leisure travel, MICE bookings, business travel, and foreign tourist arrivals will fuel the growth.
Okay. Now, here are some of the trends that are going to impact the hospitality industry.
Cloud technology adoption will continue to rise
Both independent and groups will take their operations to the cloud. The main reasons are cost savings, ease of use, data accessibility on the go, third-party integration, faster ROI, etc. And, of course, PMSs have also been the primary medium for hotels to address labor shortage issues. Hotel groups across the globe will increasingly adopt cloud PMSs with multi-property management features to run group-wide operations centrally, including managing reservations, rates, etc, while accessing group-level operation-critical reports. We should also see rapid adoption of contactless solutions, revenue management systems, hotel channel managers, booking engines, and more.
There is more to it. Artificial Intelligence (AI) will also draw hoteliers' attention this year. Various reports and trends suggest that hotels will leverage AI to engage with guests via chatbots, recommend itineraries, improve marketing capabilities, manage guest reviews, etc.
Sustainability will take center stage
As hotels have understood that guests have become more concerned about sustainability and ethical behavior, focusing on green initiatives is becoming increasingly important in the hotel industry. To address these concerns, many establishments will leverage technology to introduce innovative eco-friendly practices, such as sourcing sustainable ingredients, implementing energy-efficient measures, maintaining healthy air quality in the property, etc.
Data will play a major role
Today, guests expect hotels to offer them personalized services. This is where technology is crucial in enabling hotels to access the correct data, including guests' preferences, behaviors, spending patterns, feedback, etc. Ultimately, this will allow hotels to create guest profiles to provide them with customized experiences, such as room preferences and special offers. As per our observation, in 2024, hotels will pay attention to this aspect of their business to win guest loyalty and turn them into repeat guests.
Overall, the hospitality industry will experience significant growth and innovation in 2024. Cloud-based hotel Property Management Systems (PMSs), artificial intelligence, virtual reality, and smart devices will continue to play a significant role in enhancing guest experience and improving efficiency in the hospitality industry.
Sources:
https://www.hotelinvestmenttoday.com/
https://www.hotelmanagement.net/
https://stonenews.eu/middle-east-leads-global-hotel-construction-pipeline/
About Hotelogix
Hotelogix is a globally leading cloud-based hospitality technology solutions provider of industry-first Multi-property Management System, Hotel PMS and Mobile PMS App for independent and hotel groups. We have the remarkable feat of implementing the most extensive multi-property deployment of 50000+ rooms across 500+ properties under a single group. Through our distribution brand AxisRooms, we also offer Channel Manager and Revenue Management solutions. We have earned the trust of 5000+ hotels in 100+ countries, including South Asia, Southeast Asia, the Middle East, LATAM, Europe and North America. We have been instrumental in driving their growth while helping them sell more rooms at the optimum rate and serving guests better.
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Hotelogix is headquartered in Singapore with offices in the USA, India, UAE, Thailand and the Philippines.
Categories: Technology