Trends in Hospitality Industry

This assignment critically reviews how hospitality industry is dealing with the changes in consumer behavior in restaurants, accommodation, entertainment and air travel.

RUNNING HEAD: Trends in Hospitality Industry
Trends in Hospitality Industry

Trends in Hospitality Industry 1
Contents
Introduction......................................................................................................................................2
Literature Review............................................................................................................................2
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

Trends in Hospitality Industry 2
Introduction
The hospitality industry can be defined as the broad group of businesses that offer varied
services to the customers. The uniqueness of hospitality industry lies in the fact that it is heavily
dependent on discretionary income and free time (Ryan, 2015). It is a multibillion dollar industry
which has three primary areas namely accommodations (such as hotels and other lodging
businesses), food and beverage (such as fast food chains, restaurants and other establishments)
and travel and tourism (such as trains, airlines and cruise ships). However, these days the
hospitality industry is being affected by a number of trends which also affect how guests choose
restaurants, hotels and entertainment. This assignment critically reviews how hospitality industry
is dealing with the changes in consumer behavior in restaurants, accommodation, entertainment
and air travel.
Literature Review
According to Zaitseva et. al. (2016), millennials (those between the age of 18 and 34) will
represent a major part of travelers by the year 2025. For providing them a wonderful experience,
companies are formulating strategies on the basis of habits and personality traits of this
demographic group such as more interest in travelling, early adoption of technology and their
spontaneous nature. Hotels are making efforts for pleasing them by offering easy check- in
facilities and gourmet dining experiences at affordable prices.
According to Kandampully et. al. (2015), the travelers are increasingly becoming tech- savvy
and spend most of their time using mobile websites and apps. This consumer behavior has forced
the hotels and restaurants to ensure that their offerings are user- friendly and up- to- date. They
understand the needs of their customers and offer free Wi-Fi services to them at all times. At
conferences and business meetings, travelers expect that the conference centers and hotels will
have a knowledgeable support staff and high quality tech equipment.
Pirani and Arafat (2016) highlighted that technology is not the only preference of the customers.
The guests are also becoming more conscious regarding their health. Restaurants are responding
with spas, pools and well- equipped fitness centres for keeping the interest of the customers into
account. Furthermore, innovative wellness options are also expected by the travelers. The

Trends in Hospitality Industry 3
customers also prefer healthy food options due to which the restaurants are responding with
introducing healthy food items in their menu. Restaurants are also considering the trends of
lighting that energizes, in- room exercise equipment, air purification and vitamin- infused shower
water.
Wu and Liao (2016) focused on the satisfaction of the customers. The number of last minute
bookings has also increased over the past years. The numbers are further expected to grow in the
coming years due to the rise of globalization in economic climate. The industry has started
offering applications, search tools and new booking services which have facilitated the
businesses to make last- minute bookings without increasing their travel and accommodation
costs on their trips. Personalization is also considered as the biggest trend in the hospitality
industry. The restaurants are personalizing their services such that it can fulfill the needs of the
customers. Some restaurants have also introduced voice- activated hotel rooms so that the
temperature and lighting can be easily customized by the guests. Restaurants have also started
making the use of augmented reality and artificial intelligence for offering personalized
entertainment and dining experiences to the visitors.
Jones et.al. (2016) was of the opinion that travel and hospitality industry has learnt the
importance of sustainability over time. Sustainability has become equally important for the
customers. Solar- powered pool heaters are being installed by the restaurants, hotels,
accommodation and entertainment industry. This is being done by them in a cost- effective and
creative way and they are making their best possible efforts such that events, facilities and
services ca be made as green as possible. Entertainment sector which comprise of beaches,
historical monuments, natural reserves, museums, theaters, etc. are also adopting such practices
so that they can effectively manage the places for a long period of time.
Kim et.al. (2015) provided that the restaurants and accommodation places are getting more
involved in self and destination promotion. This change is the result of the explosion of social
media. Accommodation places and restaurants are featuring their guests in tweets and images on
their websites and are often using such content their advertising campaigns. They are also
offering their customers a platform on Twitter, Facebook, and TripAdvisor where they can
complain about their satisfaction. Hoteliers respond to the needs of their customers quickly

Trends in Hospitality Industry 4
through these public forums which further allow them to maintain positive relations with the
guests and drive future bookings.
Dzhandzhugazova et.al. (2016) highlighted their views on the topic that concluded that
customers now prefer using innovative services for handling their day to day requirements. Since
customers prefer cost effective ways in their travel and tourism, the industry has also come up
with travel apps and online services through which they can easily book their flights, hotels or
accommodation options as per their preferences at any time of the day. Furthermore, they are
capable of comparing the prices of the services provided by the competitors so that they can
make a wise decision based on their paying capacity. Considering the tech- savvy behavior of the
customers, restaurants, accommodation places, air travel service providers and entertainment
sector also displays the reviews provided to them by the customers so that informed decision can
be made by potential customers.
According to Radojevic, et.al. (2015), the air travel industry is also considering the fact that the
customers are now more conscious about their travel experience due to which innovative features
are being offered by them along with friendly and caring crew so that the customers can have a
memorable experience. The features include wireless inflight connectivity, serving pre- flight
candies to kids and serving local food. They are also offering the customers with better seat and
cabin comfort such as mood lighting, light and smart designs and improved air quality in order to
provide them a personalized experience. The air travel industry is also fully aware of the fact that
the passengers now want a tailored experience which requires the airlines to focus on increasing
their ancillary revenues. They are also paying full attention to the quality of services offered by
them to the passengers including inflight entertainment and catering.
As per Schuckert, et. al. (2015), usage of old technologies by the restaurants has also resulted in
loss of customers to the competitors. Top hotel and restaurants chains are experimenting with
latest technologies for enhancing the experiences of the travelers from booking to check- out.
They have also started offering booking option through their mobile apps. This has benefited
travelers as well as the hotels and restaurants by reducing waiting times and streamlining the
arrival experiences of the attendees.

Trends in Hospitality Industry 5
The literature of Xiang et. al. (2015) provided that the prices of airline industry have reduced due
to which the number of international visitors have also increased over a period of time.
Therefore, the hospitality industry is also considering providing services in a multitude of
languages along with offering them with tailored experiences which suites their culture and
meets the requirements of the international visitors.
As per Fong (2016), the entertainment sector such as monuments, museums, etc. are also being
provided with seamless connectivity across devices. This action in the hospitality industry has
promoted the tourism of the places. Digital concierge services and mobile check- in are also
being provided by various hotels and restaurants. Guests are also being issued high- tech cards
which can easily detect their presence and performs the function of unlocking the door even
before they reach it. Digital devices have been provided to the flight attendants so that they can
get easy access to the latest passenger information relating to issues with prior service, personal
preferences, etc. in order to provide them with customized service. The analysis provided that
those in the industry who have taken the behavior of the customers into consideration have been
able to perform well in the market. Such restaurants, entertainment, air travel and
accommodation places have also been able to defeat the competitors.
Conclusion
Therefore, it can be concluded that the hospitality industry is greatly affected by a number of
trends. Such trends also affect customer demands and their way of choosing hotels, restaurants,
accommodation and entertainment. Travelers are increasingly becoming tech- savvy and spend
most of their time using mobile websites and apps which requires the restaurant, accommodation
and entertainment places to offer free Wi-Fi to the customers so that their offerings remain up-
to- date. They are also giving due consideration to the health related aspect and are focusing on
personalized services. Air travel services are also being simplified with the help of online
bookings and tailored services in relation to inflight entertainment and catering. Therefore, the
industry is appropriately responding to the change in the customer behavior.

Trends in Hospitality Industry 6
References
Dzhandzhugazova, E.A., Blinova, E.A., Orlova, L.N. and Romanova, M.M., 2016. Innovations
in hospitality industry. International Journal of Environmental and Science Education, 11(17),
pp.10387-10400.
Fong, L.H.N., Law, R., Tang, C.M.F. and Yap, M.H.T., 2016. Experimental research in
hospitality and tourism: a critical review. International journal of contemporary hospitality
management, 28(2), pp.246-266.
Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality industry: Some
personal reflections on corporate challenges and research agendas. International Journal of
Contemporary Hospitality Management, 28(1), pp.36-67.
Kandampully, J., Zhang, T. and Bilgihan, A., 2015. Customer loyalty: a review and future
directions with a special focus on the hospitality industry. International Journal of
Contemporary Hospitality Management, 27(3), pp.379-414.
Kim, M., Vogt, C.A. and Knutson, B.J., 2015. Relationships among customer satisfaction,
delight, and loyalty in the hospitality industry. Journal of Hospitality & Tourism
Research, 39(2), pp.170-197.
Pirani, S.I. and Arafat, H.A., 2016. Reduction of food waste generation in the hospitality
industry. Journal of Cleaner Production, 132, pp.129-145.
Radojevic, T., Stanisic, N. and Stanic, N., 2015. Ensuring positive feedback: Factors that
influence customer satisfaction in the contemporary hospitality industry. Tourism
Management, 51, pp.13-21.
Ryan, C., 2015. Trends in hospitality management research: a personal reflection. International
Journal of Contemporary Hospitality Management, 27(3), pp.340-361.
Schuckert, M., Liu, X. and Law, R., 2015. Hospitality and tourism online reviews: Recent trends
and future directions.

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Wu, P.H. and Liao, J.F., 2016. Service-oriented organizational citizenship behavior, perceived
service quality and customer satisfaction in hospitality industry. Journal of Applied
Sciences, 16(1), pp.18-24.
Xiang, Z., Wang, D., O’Leary, J.T. and Fesenmaier, D.R., 2015. Adapting to the internet: trends
in travelers’ use of the web for trip planning. Journal of Travel Research, 54(4), pp.511-527.
Zaitseva, N.A., Goncharova, I.V. and Androsenko, M.E., 2016. Necessity of changes in the
system of hospitality industry and tourism training in terms of import substitution. International
Journal of Economics and Financial Issues, 6(1), pp.288-293.