Whatever expectations our industry had in mind for the 2020s were changed very early into the new decade.
The early months of the COVID-19 pandemic were characterized by deep concern about the future of virtually every enterprise that relied on people coming together, and instead of starting with a new generation of the Roaring ‘20s, we collectively faced shutdowns and slowdowns, layoffs and furloughs. For a time, we could only speculate about the future of the business.
As the industry continues to bounce back in impressive fashion, it’s no surprise to see the changes to hotels — and the visitors who are prioritizing travel today.
One of the industry segments that looks the least like it did in 2019 and early 2020 is leisure. Leisure travelers are out in force, embracing the experience with a degree of gusto and an appetite for new tastes and activities that are both impressive and heartening.
Leisure travelers are the rocket fuel in a resurgent hotel industry. Still, hotel owners and operators are recognizing that with new priorities, behaviors, and expectations comes new challenges — and new opportunities. Business as usual won’t cut it.
Understanding how to meet those challenges, capitalize on those opportunities, and create spaces and experiences designed to satisfy the new leisure traveler will be critical to success in the months and years to come.
Don’t Need a Reason
How have leisure travelers changed since the pandemic? What does today’s leisure traveler look like, act like and think like?
There are no simple answers here, because the sustained spike in leisure travel encompasses a broad demographic swath of hotel guests. Anecdotally, family travel is a particular strong point, but leisure is up across the board. Leisure travel revenue was projected to be up 14% at year-end 2022 compared to 2019, by far the biggest contributor to an ongoing recovery.
A noteworthy development in leisure is the rise of “just because” travel: the kind of trip taken simply for the pleasure of seeing different places, trying something new and treating oneself to a fun getaway.
The pent-up demand from any extended pandemic-related hesitation and limitations seems to give travelers a license to get out there with a level of spontaneity and carefree enjoyment that reflects a deep societal shift. It's travel for the sake of travel, and it is manifesting in countless ways, from piggybacking onto a business trip to a spur-of-the-moment getaway for a long weekend or to visit family and friends.
Great Expectations
Given this shift in both perspective and travel behaviors, it’s not surprising to learn that leisure travelers are looking for hotel stays to fit with their own elevated expectations. Leisure travelers have in some cases shed their concerns for in-person interactions following the most significant of COVID-19-related disruptions. As a result, this segment of travelers expects hotel food and beverage to be back in a robust way — especially when visiting full-service hotels.
While some guests still appreciate the convenience of grab-and-go style options, the majority expect a full range of elevated food-and-beverage service options — an expectation heightened in some locations by pandemic-related local restaurant closures.
With higher expectations, hotel owners and operators must recognize that it’s in our best interest to expand not just on-site menus, but available entertainment offerings. We are already seeing more activities available — from spa packages to water aerobics and yoga — aimed at satisfying the needs of a growing population of active travelers. With longer stays and the ability to work from anywhere affording some travelers the flexibility of extended getaways, the property almost becomes an extension of their home residence, and the conveniences and amenities need to meet or exceed that standard.
Another area of innovation in creating a residential experience for transient guests is in the expansion of in-room functionality and entertainment options. The ability to stream personal content from a phone or mobile device directly to the in-room television is just one such example. Travelers are ready to take certain comforts of home on the road, wherever they’re going, and hotels should be equipped with these capabilities.
Creativity Counts
Going far beyond the basics to offer creative and distinctive new experiences for guests has the potential to be a difference-maker for hotels competing for leisure audiences.
Resort fees or destination charges are likely to become more prevalent, as more hoteliers lean into that exercise.
We are likely to see more local and cultural flavor in programming, as well. It could be as simple as a Kentucky-based hotel offering a curated bourbon tasting combined with a "History of Bourbon" class. Hotels are looking to offer local tours of art, architecture, history and cuisine — programming that isn’t just tied to an experience, but uniquely to the place where the property is located.
Successful hotels will also be those that go the extra mile in literally and figuratively catering to post-pandemic appetites. We are already seeing more dinner options in lounge and bar, areas alongside bigger and more creative bar menus. With leisure guests embracing a "seize the day" attitude and demonstrating a willingness to spare no expense to make a trip memorable while enjoying the finer things, it’s up to hotels to deliver.
Rooms to Grow
Today, business travel remains somewhere around 85% of pre-pandemic levels. That number is likely to continue to steadily increase as competition comes back and the value of face-to-face deal-making and relationship-building becomes more important for companies to thrive. Regardless, hoteliers looking for new and emerging opportunities are understandably focused on growth and possibilities in the vibrant and dynamic leisure segment.
The sustainability of this reinvigorated enthusiasm for leisure travel remains to be seen, but if it’s anything like the post-war cultural and economic boom of the “Roaring '20s” — another period where consumers responded with vigor to the opportunities that had previously been unavailable to them — the future of the leisure segment specifically and the hotel industry in general is very bright indeed.
Seasoned industry leader Rob Smith is the divisional president of full-service hotels at Aimbridge Hospitality.
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