The hospitality industry faces many challenges. It must adapt to new trends, rising costs, and evolving guest expectations. Hotels need to identify these obstacles and find innovative ways to address them to maintain efficiency and maximise profitability. This article will explore the key challenges for 2024-2025. It will discuss strategies to tackle them, including tech solutions that can help.
The pandemic worsened severe staff shortages in the hospitality industry. According to the American Hotel & Lodging Association (AHLA), 87% of hotel operators report difficulty filling positions. This shortage leads to overworked employees, burnout, and decreased guest satisfaction. It’s also costly: hotels may need to rely on temporary workers or raise wages, which adds to operational expenses.
How hotels can tackle staff shortages One of the best ways hotels can overcome staff shortages is by optimising their workforce through technology. Automating routine tasks and using task management systems can streamline operations. It can also reduce the need for large teams. For example, staff can be assigned tasks efficiently. Automated reminders and progress tracking will ensure all duties are completed. Centralizing communication and simplifying shift handovers lets fewer employees handle the same workload.
Tech solutions also let staff upskill via training modules. They improve service delivery without adding extra work.
With platforms like Hoop, these solutions are already built-in. Hoop's Personnel Management System has tools for task allocation, communication, and tracking. This allows hotel management to maintain high service levels even with a reduced workforce.
2. Rising operational costs
Operational costs are climbing, driven by inflation, rising energy prices, and increased wages. PwC reports that 72% of hotel owners cite rising operational costs as their top concern. High utility bills alone can make a significant dent in profits, especially as sustainability becomes an increasing focus for guests. Also, property upkeep, buying supplies, and running complex systems add to the financial strain.
How hotels can tackle rising operational costs To manage rising costs, hotels need to embrace operational efficiency. It starts with investing in tech that cuts manual work and boosts energy management. Hotels can implement smart systems that optimise energy usage, such as motion-sensor lights and temperature controls that adjust to occupancy levels.
Also, better staff scheduling and workflows can cut costs. Automation tools that assign and track tasks help staff work faster and make fewer errors. This leads to better resource use.
Hoop’s Revenue Growth Service and Personnel Management System can directly address these needs. With Hoop, hotels can automate tasks like housekeeping and guest request tracking. It can also manage shift handovers. By improving workflow efficiency, hotels can save time and reduce costs. This will keep operations smooth without increasing expenses.
3. Changing guest expectations
Today’s guests are tech-savvy and expect more than just basic accommodation—they want personalised, seamless experiences. Deloitte’s study found that 79% of hotel guests expect personalised experiences powered by technology. Guests also desire more convenience, with many preferring to check in and control their environment via mobile devices. The challenge for hotels is delivering on these expectations while keeping operations efficient.
How hotels can address changing guest expectations To meet guest demands, hotels should integrate technology into every part of the guest journey. Offering mobile check-ins, digital room keys, and personalised in-room settings can create a unique guest experience. By collecting data on guest preferences, hotels can anticipate needs. This might mean adjusting room temperature or offering tailored amenities.
Also, real-time channels, like messaging apps and room service apps, let guests make requests without waiting for staff. This provides a faster, more personalized service.
Hoop’s platform supports these personalised experiences. With its mobile housekeeping module, guest request tracker, and task manager, hotels can quickly act on guest preferences. For instance, by tracking special requests and improving internal communication, hotels can offer custom services to guests. This makes them feel valued and boosts their experience.
4. Increasing competition
Competition in the hospitality sector has become fiercer as new players like OTAs and boutique hotels enter the market. STR reports a 5.3% decline in global hotel occupancy from 2020 to 2021, largely due to increased competition. The rise of alternative accommodations, such as Airbnb, has also heightened the pressure on traditional hotels. Guests now have more options, making it harder for hotels to stand out and maintain high occupancy rates.
How hotels can address increasing competition To maintain competitiveness, hotels need to differentiate themselves. This could mean offering exclusive experiences, providing exceptional service, or adopting innovative technologies. Flexible booking options, loyalty programs, and unique package deals can also help set a hotel apart.
Additionally, leveraging dynamic pricing strategies and understanding market trends are essential. With the right tools, hotels can adjust rates based on demand, competition, and guest preferences. This can help them get more bookings.
5. Technology integration and data management
According to a report by Deloitte, 57% of hotels are investing in technology to enhance the guest experience. However, integrating new technology into existing operations is a significant challenge for many hoteliers. Hotels often face the issue of managing multiple systems, which can be complicated and costly. Data management becomes even more complex when guest preferences, room availability, and performance metrics are handled across disparate systems.
How hotels can cope with tech and data To tackle this challenge, hotels must prioritise technology integration. Investing in an all-in-one solution can streamline operations and make data management easier. Tools like Hoop's housekeeping module and task manager can help hotels. They can use them to improve processes, enhance guest experience, and boost efficiency. These tools help hotel staff work together in a more synchronised manner, reducing inefficiencies and ensuring better service quality.
6. Sustainability and cost control
The World Economic Forum highlights that hotels waste up to 60% of their energy on inefficient systems. Sustainability is becoming a key priority for travellers, with many choosing eco-friendly options when booking accommodations. However, maintaining sustainable practices while controlling costs is a fine balance for hoteliers. Rising energy prices and increased waste management responsibilities add to the burden of operating sustainably without breaking the budget.
How hotels can manage sustainability Hotels should find ways to cut waste and energy use. Focus on water use, energy-efficient lighting, and sustainable food practices. Integrating technologies that monitor these areas and enable proactive decision-making can help.
Tools like Hoop’s housekeeping module can improve operational efficiency, reduce the need for excessive staffing, and ensure tasks are completed on time, resulting in lower resource usage. Streamlining processes can help hotels. It makes them more sustainable and cuts costs.
7. Compliance with health and safety regulations
Health and safety compliance continues to be a challenge for many hotels. In 2023, 48% of hotels reported difficulties in keeping up with evolving health and safety regulations (Hotelier Magazine). As regulations change often, especially after the pandemic, hotels must stay proactive to ensure compliance. It can be hard to manage this manually. Overlooking regulations may lead to hefty fines or harm a hotel's reputation.
How hotels can ensure compliance Hotels can use tech to track, monitor, and report safety measures. It will help them comply with regulations. Digital checklists, real-time reporting, and task management tools can help hotels stay on top of hygiene and safety protocols. Hoop’s mobile checklists and reports let hotels monitor compliance in real time. This reduces the risk of non-compliance. Automating these tasks helps keep a safe environment for guests and staff, without the manual effort needed before.
8. Adapting to changing market trends
A report by McKinsey found that 53% of hotel executives struggled to predict market trends. The hospitality industry is constantly evolving, and staying ahead of emerging trends is essential for hotel competitiveness. Hotels must quickly adapt to new trends. These include remote work, changing guest needs, and sustainable tourism.
How hotels can adapt to market trends Hotels must use data to stay competitive. This will help them understand guest preferences and predict market trends. Hoop's tools provide real-time insights into guest behaviour and feedback. They allow hotels to adjust their offerings accordingly. By quickly adapting to market changes, hoteliers can gain an edge. They can increase guest satisfaction and boost revenue.