Much of what the hospitality industry will be talking about is already happening.

Here are 10 trends that will be major forces in the hotel business in 2025.

Hotels will work toward a net-zero carbon footprint. It’s not like China and India will start doing these things, but 76% of today’s travelers want to do business with those who care about the carbon footprint and our environment.

Chris Martin, lead singer of Coldplay, has been orchestrating sustainable, net-zero carbon events for years. The fans love it and participate by pedaling on stationary bikes.

Transforming cooking oil into biofuel, adding EV charging stations and reducing our carbon footprint are becoming more critical for today’s travelers.

Next-level or “cutting-edge” artificial intelligence will enhance customer service, provide hyper-dynamic pricing, improve wellness options and personalize beyond today’s practices.

The next generation of AI is already here and being integrated into our technology. Chatbots can handle guest inquiries and sound human!

AI is not replacing humans — it enables them to be much more productive and provide improved customer service while it completes mundane tasks. The key is the prompt — we will get an intelligent answer if we ask a thoughtful question. Uses include facial recognition, voice-activated tools, automated live language translation, innovative floor-planning tools and automated task management.

Hyper-personalization via virtual reality and augmented reality are coming once we’ve acquired an opt-in. We can leverage owned channels, such as email and SMS, which give us more control, meet personalization expectations, deliver better ROI and ultimately provide more opportunities to build relationships with our customers and prospects. This might include custom room amenities, tailored entertainment options, virtual reality tours and AI-generated artwork or music. With the rise of remote work, hotels should offer packages that combine leisure with work-friendly amenities.

Nutritious menu items, new yoga mats or exercise equipment, new educational programming, food-and-beverage events, and a spa or relaxation experience are all good starts. Food-and-beverage innovation, like offering unique and locally sourced food-and-beverage options, will attract food enthusiasts and support local communities. Nutritious meals and breaks in the meeting facilities and restaurants will get positive feedback. More and more guests want a healthier lifestyle when they travel.

Hoteliers can chase greater profitability by driving revenues with enhanced AI, revenue management, sales call tracking, and ancillary revenue creation. There's opportunity to cut expenses in energy, insurance, food and labor — through robotics and chatbots — and improve tax strategies.

Biometric check-ins and facial recognition for room access will enhance security and streamline the guest experience while saving “check-in” labor.

In rooms, voice-activated controls and smart devices allow guests to control lighting, temperature and entertainment easily. Robotics can enhance efficiency, reduce operational costs and engage with guests.

Capital will improve with today’s slightly lower interest rates, debt maturity, construction, renovations, sales, and refinances. Today’s market has over $100 billion in hotel debt maturing by the end of 2025. These loans are commercial mortgage-backed securities (CMBS) at low interest rates (4.5%+/-). Future buyers might prefer the “Moneyball” approach to hotel management and use more technology and fewer employees. With construction costs increasing, new supply will continue to be muted. Project start dates for construction and renovations are difficult at best.

There is a quantum shift from baby boomers and Generation X to Generations Y and Z. Brands are responding with more products, short-term rentals are competing more favorably, cruises, glamping, yurts, and even soft brands are competing with different and tech-savvy features. With the leisure market leveling off and corporate, group and international business picking up the slack, these new guests prefer photo-ops to the “cookie-cutter” approach of many brands today.

Storytelling is arguably the most persuasive sales tool in the toolkit. Every product needs a story, and today, a robot, AI, AR, VR or any innovation can create a great story. So can trust and ethics — karma works when we repeatedly do the right thing. And think about most forecasts — if we are doing it right, we are telling a story supported by the data, not showing you the data and hoping for engagement.

Remote work is here to stay in some form. This affects business travel in a big way. While a healthy work-life balance for employees is good in many ways, it reduces travel and increases Zoom, Teams or Google Meet calls. This hybrid or remote work changes the culture nurtured in yesterday’s corporate headquarters. It also enhances the strength of the weekends when it comes to occupancy.

There are more women in both operations and senior roles in the hotel industry than ever before. In 1980, there was that rare woman in hotel operations. Most were in sales. Today, 58% of the hospitality workforce are women, and 34% of the leadership jobs in hospitality are held by women.

Robert Rauch, CHA, has been an owner-operator of hotels for several decades and is founding chairman of Brick Hospitality, owner of R. A. Rauch & Associates, Inc.

The opinions expressed in this column do not necessarily reflect the opinions of Hotel News Now or CoStar Group and its affiliated companies. Bloggers published on this site are given the freedom to express views that may be controversial, but our goal is to provoke thought and constructive discussion within our reader community. Please feel free to contact an editor with any questions or concern.

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