6 Factors Driving Change in the Hospitality Industry in 2023
June 2023
Contributing Experts
Nicole Tosi - Sales Manager, Full-Service Hospitality
Courtney Messersmith - Account Manager
We take it upon ourselves to know every inch of the hospitality industry: design trends, consumer trends, shifts in construction, and more. Over the last three years, the state of the world has almost entirely transformed the hospitality industry and how it operates, from technological advances to shifts in hotel lobby layouts. Consumer trends also show travel as a high level of importance for 2023.
Our experts recently attended trade shows and conferences like AAHOACON and the HD Expo to bring you the inside scoop. Here’s what they learned.
Updates to International Travel
A contributing factor to a new, potential hospitality trend is the end of COVID-19 vaccination requirements for international travelers. This announcement came from the Biden-Harris administration on May 1, 2023:
“Today, we are announcing that the Administration will end the COVID-19 vaccine requirements for Federal employees, Federal contractors, and international air travelers at the end of the day on May 11, the same day that the COVID-19 public health emergency ends.”
With this COVID-19 vaccination lift, the hospitality industry will surely see increases in international and even domestic travel as the health emergency ends.
Bruce Ford, SVP, Director of Global Business Development for Lodging Econometrics, calls this “The Great Hotel Renovation Cycle” in his recent HD Expo presentation:
“Hotel renovations and conversions are up 50% from this same time last year due, in part, to brand pressure to complete renovations deferred throughout the COVID-19 crisis. This trend is expected to continue through 2024 and possibly beyond.”
Lodging Econometrics is the global hotel development intelligence and decision-maker contact information leader.
Bleisure Travel
Another industry trend is bleisure travel, or part business, part leisure travel, where employees work from hotel rooms or lobbies while vacationing with their families. This idea became popular, yet again, from COVID-19, when nearly everything in our lives shifted. Many of us were working from home, and now that remote working is here to stay, there’s an even more significant shift where employees choose to work. Sometimes that’s from home, but other times it’s at the luxury hotel lobby they’ve brought their family on vacation to. A study by a leading freelance company, Upwork, shows 22% of the American workforce will be remote by 2025. This allows hotels to turn their spaces into working environments for travelers and even locals looking for hotspots.
Wellness and Mental Health
As we’ve seen in the restaurant industry, consumers are becoming aware of their mental and physical health, and this trend can also be seen in hospitality. EIS Hospitality Account Manager, Courtney Messersmith, sees this firsthand in the current construction of hotel rooms.
“Hotels have been incorporating and promoting wellness in rooms and hotels more recently. In some hotels, you can upgrade your room to a ‘stay well room’ with air purification systems and other wellness elements,” she said. “Some hotels offer more fitness abilities in rooms such as yoga mats or fitness equipment.” Messersmith also mentioned Hilton and Peloton’s plan to add Peloton bikes in all 5400 Hilton hotels.
Understanding Design Needs
Regarding design trends in the hospitality industry, Nicole Tosi, EIS Sales Manager, Full-Service Hospitality, says it’s about understanding what the customer is looking for when they choose a property to visit and not necessarily about a trendy design. “Right now, it’s about having a more timeless and homier atmosphere rather than luxury around every corner,” she said.
In a recent renovation, the Ritz-Carlton Amelia Island was reconstructed to make the property elegant, traditional, and worthy of standing the test of time. Rich finishes and more refined white tones, natural stone, and woodgrains are incorporated into these traditional designs, appealing to everyone with less focus on trendy materials or designs.
Sustainability
We’re restaurant, retail, and hospitality experts, and we notice when trends cross paths between markets. Sustainability is a movement we’ve seen become successful and popular in the restaurant industry through our research, and hotel brands are also committed to sustainable practices.
Our sister company, Digney York Associates, recently began a renovation project at The Casa Marina, Curio Collection by Hilton in Key West, Florida. Through their Green Park program, Park Hotels and Resorts commits to “enhancing and incorporating sustainability into [their] investment and asset management strategies, with a focus on minimizing environmental impact.” Their sustainability practices won them a 2022 Energy Start Certification to Casa Marina Key West.
Host Hotels is also taking on a sustainability initiative, pledging to reduce their use of plastic in the construction of their hotels. 1 Hotel South Beach is LEED® Silver-certified and was constructed using only recycled materials. The brand incorporated compostable room amenities and reusable, wooden key cards as part of their plastic-free movement.
Nearshoring
In any industry, business costs are always top of mind, and it matters where your products are manufactured and come from. With higher interest rates than in the past, construction funding is more challenging and costly. We’re even seeing additional tariffs on goods imported from countries like China. Though we rely on value engineering to assist with these costs, such tariffs might force a re-evaluation of where hotel groups attain their products. Manufacturers still grapple with longer lead times between manufacturing and delivery; the solution is finding local or near-shore manufacturers. Not only is nearshoring more cost-effective, but it’s also sustainable as it reduces logistical liability, freight, fuel, and carbon consumption. Ultimately, the balancing act is between increased costs of construction, longer lead times, and supply chain delays and being aware of your company’s environmental impact.
Solutions for Your Hospitality Needs
Though we can only predict where the industry may lead, we know it will evolve and reinvent itself. Our dedication to hospitality innovation has positioned us to provide seamless experiences, even when faced with challenges. Our EIS Hospitality team is ready to help take your project to the next level. No matter what stage your renovation is at, we’re here to simplify the complicated.
About Elkay Interior Systems
Elkay Interior Systems (EIS) is a tight-knit team of industry-leading designers, commercial-grade manufacturers, innovative engineers, resourceful project managers, and sourcing experts committed to every stage of your project by guaranteeing quality and reliability. We stand out from the crowd with our 40+ years of global experience in the restaurant, hospitality, retail, and education markets. We believe in simplifying the complicated.