Studio Predicts Top Hospitality Trends to Watch Out for in 2023

2022 saw a rise in expectations around phygital experiences, resisted against disenfranchising existing social structures and saw a burgeoning metaverse flourish. It was a year of moving forward but also one of elevated social consciousness where conversations on burnout, perfection fatigue, and corporate social values caused us to reconsider whether the path ahead was in fact the way to go.

As we enter 2023, the question now becomes, what’s next? Will 2023 continue as 2022, or will it pave new paths and give birth to new and divergent trends? Zooming in on the travel and hospitality space and inspired by industry experts, here’s our best guess.

1. Appetite for travel is at an all-time high…

An Expedia survey found that nearly half (46%) of people say travel is more important to them now than it was pre-pandemic. In 2022, respondents put their money where their mouth was when during the second quarter, lodging bookings were the highest in Expedia Group history. (Source: Expedia: 2023 Traveller Value Index) While talks of a looming recession and cost of living crisis might seem to indicate a decline in travel for 2023, the data suggests otherwise. More so than ever, people are looking to get away. It’s just the way they go about it that will be expected to change.

2. but expect it to look different than before.

Booking.com finds that “People around the world are feeling overwhelmingly more optimistic about travelling in 2023 compared to 2022.” The pandemic reminded society that there can be good moments even in hard times and that ultimately hard times will come and go. In turn, “the mood is shifting from one of hopeful uncertainty to bold adaptability.” (Source: Booking.com: Travel Trends 2023) A travel trend that indicates this mentality and is expected to be on the rise is, camping, outdoor excursions, and road trips. Offering back-to-basics and off-the-grid experiences, these excursions, when planned accordingly, cater to penny-pinching travellers and offer the chance for escape amid even the most tumultuous financial and political times.

3. VR travel inspires IRL travel.

While talk of travel within the metaverse has garnered much buzz, it is not expected to replace real-life travel in 2023. Instead, 2023 will see a spike in travellers using VR technology to decide where to travel in real life. 46% of individuals are more likely to travel to destinations that they wouldn’t have previously considered after virtually experiencing them. Thus, VR is expected to embolden travellers and make them feel more comfortable in stepping and exploring beyond their comfort zones. (Source: Booking.com: Travel Trends 2023)

4. Nostalgia reminds us of good times.

Nostalgia has long been a tool for remaining positive when the world is rife with uncertainty. Offering a much-longed-for dose of familiarity and, thereby reassurance, nostalgia reminds us that there is light when in the face of darkness. In 2020, brands looked to nostalgia to remind consumers of better days during the global pandemic. Now, as we look to 2023, a year plagued by war in Ukraine, a cost of living crisis, and systemic oppression across the board, nostalgia remains as relevant a trend as ever. Taking matters a step further, 2023 will likely see brands leaning into ‘newstalgia’ or new nostalgia which offers something familiar with a fresh innovative take, often in the form of new technology. (Source: Wavemaker: Growth Trends 2023) The hospitality industry is uniquely positioned to tap into newstalgia as it can highlight an institutional and regional legacy while also featuring the latest technological advancements within the premises.

5. Company travel is back with a vengeance.

Virtual fatigue runs deep. As a result, 87% of corporate meetings, events, and conferences in 2023 are projected to have some element of in-person programming. Up 6% from 2022, this is expected to generate a considerable increase in travel as programming hosts remote-based employees and is held outside of HQ and office-based cities thus marking a return of business travel. (Source: Amex: 2023 Global Meetings and Events Forecast) While seemingly a return to business as usual, 2023 business travel will differ from pre-pandemic business travel because hybrid work requires employers to go the extra mile to build team camaraderie when employees do get together in real life.

“2023 will see a rise in destination business retreats with a focus on strengthening relationships and corporate recreation rather than work. Think ‘survivor’ themed trips at luxury cabins or country farmhouses complete with outdoor adventure activities, or crime-centric escapes where spy school and CSI simulations double as sight-seeing scavenger hunts.” (Source: Booking.com: Travel Trends 2023)

6. Self-care but make it quirky.

Since the pandemic, the topic of self-care has been at the forefront of conversation. As individuals across the globe look for new and different ways to practise self-care, 2023 will be no exception. With nearly half of all travellers (46%) reporting a desire to take wellness trips, 2023 will see a rise in travellers journeying to off-the-beaten-path destinations to take part in alternative self-care practices. Among these practices, sylvotherapy, foraging, and fruit harvesting are expected to become quite popular. (Source: Hotels.com: The No-Normal – Unexpected Travel Trends in 2023)

7. In pursuit of hidden gems.

In 2022 Vrbo reported a 30% increase in off-the-beaten-path travel location bookings. As costs are on the rise in major metropolitan cities, this figure is expected to increase even further in 2023. (Source: Vrbo: The No-Normal – Unexpected Travel Trends in 2023) Travellers keen to take said journeys cite a desire to delight in the excitement of going beyond their comfort zone while gaining exposure to new languages, cultures, and foods. As a result, the hospitality industry can expect to see an influx of niche experiences encouraging people to push the envelope of the typical travel itinerary. (Source: Booking.com: Travel Trends 2023) Even frequently travelled to locations will look to ride the wave of bucking the status quo as restaurants, entertainment, and experiential offerings begin featuring the food and cultural offerings of off-the-beaten-path locales.

As hotels and other players in the hospitality sector seek to apply 2023 trends to strategic efforts, here’s what we suggest.

Revel in the fact that travel is back, but do so with agility. Despite a boom in travel, hotels will need to be adaptable to account for changes in the way people travel. To compete with the trends which are driving guests away from hotels, (i.e. camping and outdoor excursions) hotels should offer these activities on the premises. If priced affordably and marketed effectively, hotels make a compelling case for being the place where individuals go to do such activities as they take the stress and planning out of the equation.

Keep an eye on the future, but don’t forget about the past. Staying up-to-date with technology and having a presence in the current tech-sphere is a powerful tool for building brand recognition. Still, it is important not to turn a blind eye to the past. Hotels, especially those with history and legacy, should play up the golden moments of the past. The more golden moments a guest hears about, the easier it is to envision and want to make their own golden moments there. By integrating the past with the present, hotels are empowered to establish a level of trust and legitimacy while also meeting the cultural inclinations of the moment.

Cater to new travel desires. As business and wellness travel takes on new forms in 2023, hotels should leverage existing structures and offer – ings to meet travellers’ new – found wants and needs. While corporate gatherings are trad – ing in conference rooms for luxury cabins, hotels with ap – propriate offerings and space should aim to establish corpo – rate partnerships by pitching themselves as destinations fit for such occasions. Likewise, hotels with the space and, at least initial, amenities to accommodate wellness travellers should do the same. To ensure they can meet the recent needs of wellness travel, they should initiate part – nerships with wellness professionals who are able to deliver services to guests and provide their expertise as it pertains to further developing well – ness offerings.

Move forward with intentionality. While incorporating elements of a trend may serve one brand, it may not make sense for an – other. Trends will come and go, but a brand that knows itself and acts in a manner that rings true is evergreen. Keep abreast of trends always. Use them sparingly.