English 
Vietnamese The new year 2025 is just around the corner. Let’s rewind what impacts and trends the past 12 months of 2024 have on the hospitality industry.
In this article, we will provide you with a brief picture of the sector in 2024. The good news is that the majority of markets have been showing strong signs of growth. And let's not forget those niche, emerging travel trends and innovative solutions that leaders need to keep under the radar.
So, here we give you: A year in review for Hospitality.
Read more: The Environmental Price of Convenience: Waste in the Hospitality Industry
What’s in this blog
Market dynamics and growth
The industry growth is real, according to Skift Research’s Travel Health Index1. The hospitality sector has finally surpassed the gloomy aftermath of the pandemic.
Skift's October 2024 index has outdone the 2019 benchmark and has since moved to a more moderate but sustainable growth rate. On average, global travel grew 9% compared to last year.
Read more: Why Indian Tourists are a Gold Mine for Global Tourism
Source: Skift Travel Health Index
The regional performance also shows positive momentum, fuelled by surging domestic and short-haul leisure demand.
- European markets: Witness a modest yet steady 2.4% uptick in hotel pricing.
- North American markets: Reach a post-pandemic equilibrium, with pricing holding steady at $155 in both 2023 and 2024.
- Latin American markets: Lead global growth metrics, achieving an impressive 12.2% year-over-year pricing uplift through 2023-2024.
- Asia-Pacific markets: Experience strategic complexity with China's market reopening, catalysing regional recovery dynamics.
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Source: Lighthouse2
Sustainability is here to stay
Sustainability is no longer a “nice-to-have” perk; it is a necessity.
Young travellers today tend to favour businesses that embrace and promote sustainable practices. Almost 1 in 5 Brits aged 16-24 state environmental factors as among their top three travel priorities. The rate in older groups is 1 in 103.
Read more: Why Sustainability Is Important in Hospitality and the Best Practices
However, if you think businesses being eco-friendly is a one-sided trend, enforced upon by environmentally conscious consumers, think again! Upper management is also quickly onboard with innovative initiatives.
But beware of “greenwashing”! It is good that businesses take action for the future, but going green is not that straightforward. Check out our article here to learn more.
Emerging travel trends
The shift in consumer behaviour has set the stage for the following travelling trends:
Bleisure travel
Business-leisure, or bleisure, travel has had an impressive year with 32% of business travellers planning to take a “bleisure” trip in the next 12 months. The trend stems from the shift in customer behaviours as well as the following factors:
- The demand for in-person interactions combines with the desire for a break from the usual routine.
- The stay-anywhere, work-anywhere model is becoming increasingly common, giving employees the ultimate flexibility to enjoy their destinations while travelling for work.
- The importance of maintaining a healthy work-life balance among the global workforce.
Concert tourism
Music experiences catalyse destination selection, transforming travel patterns. Consumer research reveals that 49% of Spaniards and 48% of Brits prioritise concert-driven travel. Economic impact proves substantial—Paris witnessed a 21% surge in flight searches during Taylor Swift's performances.
Sports tourism
Forecasts indicate that the sports tourism market will grow by 18.20%, from US $709.7 billion in 2023 to US $2,704.3 in 2032. Apart from providing significant global exposure and an economic boost, sports tourism also offers host countries the following benefits:
- New job opportunities
- Strategic infrastructure investment and development
- Top-tier sponsorships like Nike, Coca-Cola, Pepsi, etc.
These benefits are often spread to the neighbouring regions, not just the host country.
Wellness tourism
Revenue metrics validate market strength—wellness travellers outspend traditional guests by 41% internationally and 175% domestically5.
The niche travel trend does not simply revolve around peaceful spa treatments or zen sessions in the deep forest. It encompasses a larger ecosystem, focusing on delivering a holistic experience for both the mind and body of every traveller.
Sleep tourism
Rest-focused hospitality emerges as a transformative trend for finding solace and rejuvenation amidst today’s chaotic life. The trend places sleep, relaxation, and wellness at the forefront of the experience.
Hospitality businesses are enhancing their offerings to accommodate guests with this distinct demand. Hilton's market analysis positions sleep optimisation as the primary travel motivation.
More and more properties launch AI-enhanced sleep solutions that utilise cutting-edge technology to personalise and optimise sleep environments for guests.
Read more: A CFO's Guide to Making Generative A.I. Work
Pet travel
Pet-inclusive hospitality demonstrates remarkable evolution, with 53% of pet owners prioritising companion travel6. 52% of pet owners exclusively select pet-friendly properties7.
This trend once again highlights the demands for personalised experiences, wellness integration, and lifestyle alignment. Technology enablement and infrastructure evolution power these emerging preferences, reshaping service delivery across the sector.
Technology investment priorities
2024 also brought forth many innovative hospitality solutions, which reshaped operations and helped drive unprecedented growth.
According to Skift’s “The 2024 Travel and Hospitality Technology Innovation Report”8:
- 67 per cent of hospitality businesses are now in the advanced stages of cloud adoption
- 89 per cent of survey participants stated generative AI will make a significant impact in the hospitality sector in the next three years
- 83 per cent of executives already increased their budgets for AI
With cloud solutions on the rise, what will happen to legacy systems? Some have opted to integrate both on-premise and cloud platforms. However, the process undoubtedly presents numerous challenges and incurs unnecessary costs. 69% of industry leaders identify legacy system integration as their primary challenge9.
The increase in AI budget and implications is expected to deliver more personalised guest experiences, thereby driving the bottom line and optimising off-peak operations. Combined with data analytics capabilities, AI can help enhance hoteliers’ decision-making processes.
Read more: Personalisation vs Profit: Which Matters More for Hotels?
Data protection remains one of the top mission-critical tasks for every business in the sector. Due to their over-reliance on third-party vendors and the wide networks of OTAs, distributors, partners, etc., hospitality businesses are exceptionally susceptible to cyber risks.
Fortunately, as cybercrimes become progressively intricate, so does hotel technology. Hotels have also evolved and adopted more innovative security solutions. Market leaders implement comprehensive security frameworks through:
- Enterprise-grade encryption deployment
- Systematic security verification protocols
- Advanced transaction processing architecture
- Strategic staff security training
Over the coming year, market leaders have forecasted a 16% rise in technology spending10.
The labour shortage issue rages on
Sadly, the global hospitality workforce shortage continues to threaten the industry. Vacancies have reached an all-time high of 132,000 positions—48% above pre-pandemic levels11. This raging talent crisis makes it challenging for businesses to maintain operation and service quality.
Critical operational impacts reveal mounting pressure points12:
- Operational strain affecting 73% of businesses through increased workloads
- Destabilising turnover rates impacting 60% of establishments
- Customer experience degradation in 50% of venues
- Service quality declined across 41% of operations
Hoteliers are forced to implement survival strategies, reducing operational capacity. Leadership burnout emerges as a critical threat. Management teams report widespread exhaustion, citing excessive hours (69%), heightened stress (68%), and persistent understaffing (64%). This deteriorating cycle amplifies pressure on the remaining staff, accelerating departure rates12.
Read more: Effective Labour Market Strategies to Combat Staff Shortages in the Hospitality Industry
The crisis requires industry leaders to deploy targeted solutions, such as adaptable schedules, competitive compensation, etc., to secure talent.
It is unsure for how long the crisis will last.
How will 2025 turn out for hoteliers and their industry? Subscribe to the TRG Blog to always stay updated!
Sources:
1. https://research.skift.com/recovery/?_gl=1*14ehmg3*_gcl_au*MTcxMDM4NzUyMi4xNzIxMTI3MTM3LjMwNjQ1NTU4Ny4xNzI2MjEzMzQxLjE3MjYyMTMzNDI.
2. https://www.mylighthouse.com/resources/blog/2024-global-hotel-pricing-trends
3. https://store.mintel.com/uk-the-ethical-traveller-market-report
4. https://amadeus.com/en/newsroom/press-releases/music-tourism-expected-to-drive-european-traveler-demand-in-2024
5. https://globalwellnessinstitute.org/global-wellness-institute-blog/2024/03/25/a-decade-of-wellness-tourism-first-ever-compilation-of-10-years-of-market-data/
6. https://www.savills.co.uk/insight-and-opinion/savills-news/350158-0/unleashing-the-power-of-personalisation--exploring-niche-markets-in-the-hotel-industry
7. https://www.pettraveladvisor.com/pet-travel-trends-on-type-of-pets-destinations-mode-of-transport/
8. https://skift.com/insights/the-2024-travel-and-hospitality-technology-innovation-report/
9. https://hospitalitytech.com/2024-lodging-tech-study
10. https://www.amadeus-hospitality.com/resources/travel-technology-investment-trends-2024/
11. https://www.ukhospitality.org.uk/campaign/workforce/
12. https://axonify.com/en-uk/news/hospitality-survey-2024/
