Hospitality trends 2023 – the future ahead
Trends within trends
1. Exchange rates affecting travel and tourism
As of December 2022, the U.S. dollar is at a favorable exchange rate
against many other currencies, making international travel more
affordable for US residents. For example, it has given Americans more purchasing power
in Europe than at any time since the early 1980s, as the dollar and
euro have almost reached parity. As a result, savvy travelers are
choosing where to travel based on the most advantageous exchange rate.
Due to the current international context, this trend will likely become
stronger next year.
2. Travel spending should increase next year
The willingness to pay for vacation products is expected to increase. A survey conducted by Booking.com
stated that “close to half (49%) admit that they plan to be more
indulgent in their spending habits while on vacation to make up for the
lack of travel during the last couple of years, while 43% plan to spend
lavishly to ensure they maximize their trip and every experience is
worth it”. In a study conducted by Expedia.com, many people (43%) said “their travel budget will be larger this year than last.”
3. The line between work and travel will become more blurred
The number of digital nomads will increase, especially as some companies such as Spotify
have implemented “working from anywhere in the world" policies.
However, for some individuals, full-on digital nomadism is too extreme
and a more nuanced variation is emerging: “hush” trips.
This solution is more temporary compared to the usual length of a
digital nomad’s stay and typically lasts less than a month. However,
travelers can still spend more time discovering a destination while
working when required. The hospitality industry is also expected to
witness more bleisure travels,
a mix of business & leisure travel where a typical employee travels
for business reasons from Monday to Thursday, and then extends their
trip for a mini-vacation, often with their spouse or family in tow.
4. Eco-friendly travel is no longer niche
Whether
it is under the appellation of sustainable travel, soft travel or
eco-travel, more and more travelers are sensitive to the ecological
impact of their vacations. Indeed, the YouGov Travel and Tourism
Practice found that 44% of US consumers try to make purchases (including
travel) from socially and environmentally conscious companies. This
trend is also supported by Booking.com and Expedia.com studies.
Furthermore, a new type of ecological travel is also on the rise, regenerative travel, aiming at offering trips that have net-positive impacts, bringing sustainability to another level.
5. Digitalization will enhance travel experiences
The
digitalization of tourism services will keep rising during 2023
creating more immersive experiences for travelers. Features like the
possibility to virtually explore destinations
during the booking process will become available. Example of future
enhanced travel experience is also supported by entertainment companies,
such as Walt Disney Co., which is willing to create a real-world theme park ride that incorporates a parallel 3D virtual-world experience.
6. Traveling by train is here to stay
Travelers increasingly enjoy traveling by train as it is usually more peaceful
than the crowded airports and soaring flight costs that many
encountered during the pandemic. Moreover, many train routes are being
reinstated giving the opportunity to facilitate travel by train. Europe
seems to be leading this trend with new overnight trains
recently launched. While the primary purpose of taking the train is
usually to move from point A to point B, companies are also offering
services to make the train a destination in itself, by offering, for
example, culinary tourism activities.
7. Destinations that will be trendy in 2023
Forbes
listed the 23 best destinations for 2023. When it comes to cultural
city gateway, as cities can gain or lose attraction overtime, Expedia.com named the top five cultural cities to visit for next year: Edinburgh, Lisbon, Tokyo, Dublin and New York.
8. Travelers go local - less alcohol and more local food
Travelers
now are willing to drink more zero-proof cocktails, (cocktails without
alcohol), but still enjoy the fancy look and taste of a regular
cocktail. Moreover, they also wish to have the opportunity to eat “Zero-kilometer food
“, as “Guests are increasingly looking to have a connection to the land
where produce is sourced, and the demand to visit farms or have an
‘agrication’ experience has grown exponentially.” — Michael Young,
resort manager at Timbers Kauai at Hokuala in Hawaii.
