5 TRENDS FOR THE HOSPITALITY INDUSTRY IN 2022 - Nespresso
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79% OF HOSPITALITY BUSINESS LEADERS FEEL OPTIMISTIC ABOUT MARKET PROSPECTS FOR THE NEXT 12 MONTHS, WHILE CONSUMERS ARE INCREASINGLY CONFIDENT ABOUT GOING OUT 1. The hospitality industry is finally seeing light at the end of the tunnel. As restrictions ease, vaccination numbers climb, and general confidence grows, more consumers are venturing out to hotels, cafes and restaurants. In fact, 42% of people are seeking ‘a sociable get-together’ in the reopened market2. But does this mean everything will go back to how it was pre-March, 2020? No, not quite. The hospitality industry may be showing its resilience and welcoming customers back with open arms, but it’s a new world for everyone... From changing buyer behaviours to new payment channels, there’s a lot to take on board for hospitality businesses if they are to reap the benefits of returning (and new) customers. Thankfully then, we’re here to help. In this guide we’ll look at the top 5 trends for the coming year and how businesses just like yours can best prepare for success. From technology and wellbeing, to sustainability and personalisation, we’ll provide helpful hints and tips to aid you in providing your customers with memorable experiences that keep them coming back. TREND 1 2 3 4 5
MILLENNIALS ARE THE LARGEST Millennials, born between 1981 and 1996, are also known as G E N E R AT I O N T O D AT E , M A K I N G U P Generation Y, and as they begin to take hold of the workforce, it’s becoming clear they have considerable spending power. 31. 5 % O F T H E G L O B A L P O P U L AT I O N But what truly sets this generation apart when compared to ( 7. 7 B I L L I O N P E O P L E ) – A N D other age groups is that 72% of them want to spend their 8 2 % O F M I L L E N N I A L S T R AV E L L E D money on travel experiences rather than physical possessions4 I N T H E PA S T Y E A R C O M PA R E D T O - making them a prime target for the hospitality industry. 75 % O F O T H E R G E N E R AT I O N S 3 . So, if millennials hold the key to a large share of your revenue in the coming year, how can you best attract and maintain their custom? Well, make sure your business is online for a start. 90% of this audience use apps for airlines, maps, weather and a host of other information sources3. They research trips, read reviews and even book trips and travel via their smartphones. What’s also worth noting is their high usage of social media. 66% of millennials not only post on social media at least once a day, but 97% share their travel experiences on social channels4 – meaning you can generate free marketing if your establishment is post-worthy. Given millennials’ penchant for content consumption, it’s unsurprising to hear that they are very conscious and aligned with the safety parameters of Covid-19. 56% strictly follow World Health Organisation (WHO) guidelines on cleaning and hygiene, while 55% travel with safety supplies such as masks, disinfectants, and sanitizers, compared to just 35% of Baby Boomers3. So, if safety is a big concern for millennials, then it should be for your business too. Don’t miss an opportunity to generate revenue from this audience because you don’t adhere to social distancing guidelines or mask mandates. TREND 1: THE RISE OF MILLENNIALS
K E Y TA K E AWAY S : 1 2 3 4 5 Make sure your Try to create Ensure your Stay abreast Advertise your establishment photo-worthy business has social of all Covid safety criteria and has an online décor and media profiles safety guidelines Covid compliance presence and ambience within and ask guests and ensure on your website ideally an online and around your and customers you comply and social channels booking option premises to ‘tag’ you
90% OF BUSINESS LEADERS The hospitality industry was already avenues than ever before9. So, in T H I N K T EC H N O LO GY W I L L transforming digitally before Covid order to maximise your revenue in the struck (with growing popularity of coming year, look to solutions such as B E A N I M P O R TA N T PA R T O F apps etc.), but the global pandemic apps, digital online tools, QR codes and P O S T- L O C K D OW N O P E R AT I O N S 2 . has prompted an increased growth voice assistants such as Amazon Echo. across the sector. Digital solutions that were implemented as ‘emergency To take your technology and customer procedures’ during the pandemic experiences a step further in future, have been shown to improve consider truly next-generation solutions customer experience. So much so, such as virtual reality (VR) tours and that 63% of consumers think 360-degree virtual experiences. technology contributes to a good These innovations will enable your service experience in venues2. guests and prospective customers The digitisation of the hospitality to experience your premises without industry is here to stay. having to physically walk around the venue – again minimising human The foundation of almost all contact and social interactions. technologies implemented during the Although these solutions will pandemic was ‘touchless’ capability. inevitably incur an up-front cost, With consumers looking to avoid they only have to be done once. face-to-face interaction and even physical contact, tech was used to fill Be aware though, that not all audiences these gaps. Whereas some predicted have a burning desire to self-serve or this would revert to traditional purchase remotely. Many people do transactions, this is not actually still prefer to pay with cash, check-in the case. Consumers have actually at the front desk, and even order at come to expect more self-service the counter. So, to ensure you don’t lose this section of the market, look to create an environment that offers both traditional transactions and a digital alternative. TREND 2: THE NEED FOR SEAMLESS TECHNOLOGY
K E Y TA K E AWAY S : 1 2 3 4 5 Consider how Invest in digital Look to Choose innovative Don’t put all your your business tools such as introduce voice solutions like VR eggs in the digital can become apps, online assistants in to provide a basket – use tech more ‘touchless’ services and hotel rooms view of your as a possible QR codes and other areas establishment alternative to minimise without the to traditional personal contact need for a visit transactions
If the past 18 months has had one cleanliness of an outlet is a driver 72% OF CONSUMERS ARE NOW positive outcome, it was that it made for their visits2, so be sure to comply PROACTIVELY TRYING TO LEAD many of us more health conscious. with the latest safety guidelines A HEALTHY LIFEST YL 2 . What’s more, it prompted many of us to and social distancing. query our mental health and wellbeing too. We now care more about what we Another key focus for our health eat, where we stay and the company these days is our mental wellbeing. we keep – and this goes for your It’s estimated that 200-500 million audience too. In fact, 42% of consumers people meditate worldwide5, are more likely to be influenced and this number continues to grow. by calories on menus in cafes and Now, if your business has the space sandwich shops10. So, is this something and resources, then look to offer your you currently do (or could do) at customers meditation workshops or your establishment? As always, if even yoga classes. If your establishment it’s important to your prospective is unable to do this, do not fret. Show customers, then it must be important to your customers that you care about you too. With health being so high on their mental wellbeing by offering the agenda for people, be sure to pay quiet spaces or contemplation areas. close attention to the foods you serve as Alternatively, create a comfortable well as the options for physical activity space where customers can relax and you provide. Look to offer nutritious unwind with calming lighting, soothing and healthy meals and music, and their favourite cup of coffee. if your hotel has the space available, With such a desire for holistic health offer access to exercise equipment within your audience, anything you or fitness classes. For the latter, be can do to support them, will help. aware that 49% say the hygiene and TREND 3: H E A LT H & W E L L B E I N G I S K E Y
K E Y TA K E AWAY S : 1 2 3 4 5 Provide nutrition Maximise the Where possible, Offer your Create quiet information on number of offer access customers spaces where your menus healthy and to exercise meditation customers can nutritious meal equipment and workshops relax and enjoy options you serve workout classes or even a coffee yoga classes
Despite the impact of the past 18 do to minimise your business’ impact on SUSTAINABILIT Y REMAINS months on buyer behaviours, ethics and the planet. Failure to do this, could mean A KE Y CONSIDERATION sustainability issues remain a key driver you become less appealing to prospective FOR CONSUMERS IN 2021 for almost a third of consumers6. customers, even more so following COP26. WITH 32% OF CONSUMERS COP26 has brought widespread attention Members of Generation Z are adopting to sustainability issues so sustainability will more sustainable behaviours than any HIGHLY E N GAG E D W I T H become an even bigger driver for change. other groups - 50% reduced how much ADOPTING A MORE Avoiding single-use plastics is the most they buy and 45% stopped purchasing SUSTAINABLE LIFEST YLE 6 . common way consumers demonstrate their certain brands because of ethical or commitment to sustainability, with 61% sustainability concerns6. saying they have cut back. But this isn’t But the key is making sure people know the only way they are demonstrating their about your values and sustainable commitment. 49% of consumers say the activities. So when you do implement new next area of focus is seasonality, and policies or procedures to improve your 45% say it’s buying local goods6. sustainability, be sure to advertise this fact on your website, social channels and marketing With this in mind, look for all the collateral. It’s not ‘blowing your own ways your business can become more trumpet’, it’s showing a very eco-conscious sustainable and ethical. From using LED audience that you not only share their lighting to reducing single use plastics values but can help them meet their own and choosing locally sourced products and personal objectives. seasonal ingredients, there is plenty you can TREND 4: T H I N K ( A N D O P E R AT E ) S U S TA I N A B LY
K E Y TA K E AWAY S : 1 2 3 4 5 Reduce your Minimise your Choose locally Update your Update your website, energy usage reliance on sourced products menu to social channels with LED single-use plastics from farmers include seasonal and marketing lighting and producers ingredients – materials with in your area minimising the information on your need for imports sustainability goals and achievements so far
91% OF CONSUMERS ARE MORE LIKELY TO SHOP WITH BRANDS WHO PROVIDE RELE VANT OFFERS AND RECOMMENDATIONS 7 . Given we are now in a digital world of apps, their requests. For example, if you know they mobile devices and online booking systems, requested a soft pillow on their previous trip, there is a priceless by-product that you may be be sure this is already in their room before missing out on… data. Each time a customer they arrive for the next stay. If you know they engages with your business, you have an prefer a king-sized bed in their room, then opportunity to capture information that can suggest this as a priority on their next booking. be used to build up a ‘profile’ of that person. This level of care and personalised attention This profile can then be used to inform the will ensure the customer has a pleasant and personalised service and experience you memorable stay at your establishment. provide. But is personalisation that important? But, it doesn’t end there. With modern data Well, in addition to the headline statistic on management systems integrated into your this page, research has found that 66% of website and booking systems, you can also millennials want to use a service that advises personalise their online interactions with your users based firstly on personality and only brand – serving up offers and deals that are later, based on budget3. So, to a growing specific to them. The use of data to maximise number of your audience, personalisation is the personalisation aspect of your business more important than cost. can be a daunting task. However, once it’s done, you’ll be able to see just how valuable To create a personalised experience in the this approach is in today’s hospitality industry. hospitality industry, simply use what you It’s believed that personalisation can deliver already know about a customer to pre-empt between 6% and 10% more revenue for a hotel8. TREND 5: THE RISE IN PERSONALISED EXPERIENCES
K E Y TA K E AWAY S : 1 2 3 4 5 Review your Look to invest Use customer data Serve customers Be sure to track current digital in a customer to pre-empt their unique deals and your return on tools and the management requests before offers based on investment to data that’s system (CMS) or a stay or visit their previous see how well your available to you consult with experts interactions personalisation is performing
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