Category: Industry Trends & Insights

Stay ahead of the curve with the latest hospitality industry trends, technology innovations, and market insights affecting hotel procurement and operations in India. Learn what’s changing, what’s hype, and what actually matters for your property’s success.

  • The Sober Trend in Hospitality

    The Sober Trend in Hospitality

    Due to a greater emphasis on health, many individuals today request drinks with reduced or no alcohol content. They want to visit pubs but not consume as much alcohol as they once used to.

    Every time you go out to eat or interact with others, alcohol consumption is assumed. Because of the development of non-alcoholic beverages, non-drinkers now have options that were frequently unavailable in the past.

    Nowadays bartenders are getting inventive by preparing fermented fruit tonics and using them in their handmade sodas because making complicated non-alcoholic cocktails is undoubtedly more difficult. Some people are perfecting their own kombucha, a wonderful fermented beverage that is non-alcoholic and has a long list of health benefits. But which companies actually stay up to date with this latest trend?

    Hyatt, USA

    Numerous Hyatt hotels across the United States now offer sophisticated spirit-free beverage alternatives thanks to Hyatt’s new Zero Proof, Zero Judgment program, which uses Ritual Zero Proof and Fever-Tree products. The mission of this program is to create thoughtful, hospitality-driven experiences for everyone and raise awareness about health and well-being.

    A Hyatt poll revealed that, despite the fact that people frequently opt to indulge while traveling, nearly 50% of respondents preferred non-alcoholic beverages to beer or cocktails.

    The Merrion, Ireland

    Although you may not expect to discover alcohol-free alternatives in Ireland’s capital, the zero-proof revolution has spread throughout the entire country. The hotel started distilling “Artonical,” a zero-proof gin produced from botanicals like juniper, angelica root, lemon, orange, and grapefruit, as part of its non-alcoholic Irish spirit program. The private label spirit is showcased in a variety of vibrant combinations on the iconic “NoLo” mocktail menu.

    IHG, USA

    In order to integrate this escalating consumer demand across the IHG brand portfolio, a tea collaboration between Hotel Indigo and Steven Smith Teamaker’s took place. Since January, Hotel Indigo locations have offered healthy herbs, roots, and spice teas. Ashwagandha, turmeric, ginger, and other useful, high-immunity components are included in the teas. Other IHG properties, like Regent, put a lot of effort into developing a bar menu with interesting alcohol-free options, such as mocktails.

    The sober trend in hospitality is more than just a passing fad—it’s a reflection of a broader cultural shift toward mindful consumption and inclusivity. As more individuals prioritize health and well-being, hotels, bars, and restaurants are adapting by offering innovative non-alcoholic options that rival traditional cocktails in complexity and flavor. With major brands like Hyatt, The Merrion, and IHG leading the way, it’s clear that the future of hospitality is not just about what’s in the glass, but about personal experiences for all guests.

  • Indian Hotel Industry Set for Record Growth in 2025-26 According to ICRA Report

    Indian Hotel Industry Set for Record Growth in 2025-26 According to ICRA Report

    The Indian hospitality industry is entering what analysts are calling its strongest performance decade. ICRA’s latest report offers a comprehensive look at this unprecedented growth phase, painting a picture of an industry that’s not just recovering, but thriving. Let’s explore what this means for the sector and how it’s reshaping the future of hospitality in India.

    The Numbers Tell a Story of Growth

    The projections laid out in ICRA’s report are remarkably positive. The industry is expected to see revenue growth of 7-9% in FY2025, followed by 6-8% in FY2026. These aren’t just numbers – they represent a fundamental shift in how India’s hospitality sector operates and grows.

    What’s particularly interesting is the occupancy forecast. Premium hotels are expected to reach occupancy levels of 72-74% by FY2026, with average room rates (ARRs) climbing to Rs. 7,800-8,000 in FY2025. These rates are projected to rise further to Rs. 8,000-8,400 in FY2026, signaling a robust pricing environment that hasn’t been seen in the last decade.

    The Perfect Storm of Growth Drivers

    Several factors are converging to create this positive outlook:

    Domestic Travel: The New Powerhouse

    The landscape of Indian tourism has fundamentally changed. Domestic leisure travel, once considered a luxury, has become a regular part of urban Indian life. This shift isn’t just about numbers – it’s about a changing mindset where travel is increasingly seen as essential rather than optional.

    The rise of spiritual tourism and the emergence of tier-II cities as tourist destinations have added new dimensions to domestic travel. Cities that were once transit points are now becoming destinations in their own right, creating new opportunities and challenges for the hospitality sector.

    MICE Sector: Beyond Just Meetings

    The MICE sector has evolved significantly, encompassing:

    • Large-scale corporate events
    • Destination weddings
    • International conferences
    • Cultural and artistic gatherings

    This evolution is supported by the development of new convention centers across the country, creating infrastructure that can support events of unprecedented scale.

    Operational Excellence: The New Normal

    One of the most striking findings from the ICRA report is how hotels have maintained efficiency gains from the pandemic era. Operating margins are expected to remain strong at 31-33%, significantly higher than pre-Covid levels of 20-22%. This improvement isn’t just about cost-cutting – it’s about smarter operations.

    Hotels have found innovative ways to maintain service quality with optimized staffing levels. The staff-to-room ratio remains about 15-20% lower than pre-Covid levels, but this hasn’t come at the expense of guest satisfaction. Instead, properties have invested in:

    • Cross-functional training programs
    • Technology integration
    • Streamlined service delivery
    • Enhanced guest experience management

    The Supply-Demand Dynamic

    Perhaps one of the most crucial aspects of the current growth phase is the controlled supply growth. The report indicates a CAGR of 4.5-5% in supply until FY2026, significantly lagging behind demand growth. This mismatch is creating a unique opportunity for existing properties to optimize their operations and pricing.

    For gateway cities like Mumbai and NCR, the impact is even more pronounced. These markets are expected to maintain occupancy levels above 75%, benefiting from:

    • Increased business travel
    • Transit passengers
    • MICE events
    • Extended stay requirements

    Sustainable Practices: No Longer Optional

    A significant trend highlighted in the report is the increasing focus on sustainability. Hotels are not just looking at it as a cost-saving measure but as a fundamental aspect of their operations. The adoption of renewable power sources, waste management systems, and energy-efficient practices is becoming widespread.

    Technology Integration: The Game Changer

    The role of technology in hotel operations has evolved significantly. Properties are now leveraging:

    • AI-powered revenue management
    • IoT for room controls
    • Data analytics for decision making
    • Digital guest experience platforms

    Looking Ahead: Strategic Considerations

    For a deeper understanding of these trends in the context of broader economic developments, we recommend watching this comprehensive analysis from The Daily Brief. The video provides valuable insights into how these hospitality trends connect with larger economic patterns.

    The path forward for India’s hospitality sector looks promising, but success will require a balanced approach. Properties need to focus on:

    • Maintaining service excellence while optimizing operations
    • Investing in sustainable practices
    • Developing robust technology infrastructure
    • Creating unique guest experiences

    The Road Ahead

    The Indian hospitality industry stands at an exciting crossroads. The combination of strong domestic demand, controlled supply growth, and improved operational efficiencies suggests a sustained positive cycle. However, success in this new era will require more than just riding the wave – it will demand innovation, adaptation, and a commitment to excellence.


    This analysis is based on ICRA’s January 2025 report. For specific business decisions, we recommend consulting with your financial advisors and industry experts.

  • 6 Travel Trends Reshaping Hospitality in 2024

    6 Travel Trends Reshaping Hospitality in 2024

    In an era of rapid technological advancement and evolving consumer preferences, the hospitality industry finds itself at a crossroads. As we navigate through 2024, several key travel trends are reshaping the landscape, compelling hotels and resorts to adapt swiftly or risk being left behind. Let’s explore these trends and their implications for the industry.

    1. The Rise of “Workcations”

    The pandemic-induced shift to remote work has given birth to a new trend: the “workcation.” This blend of work and leisure allows individuals to maintain their professional responsibilities while enjoying a change of scenery.

    • Over 20% of people in most countries plan to take a workcation in the near future
    • Hotels are adapting by offering:
      • Dedicated workspaces
      • Ergonomic furniture
      • High-speed internet connectivity
      • Coworking spaces
      • Networking events and social mixers

    2. Pop Culture Tourism and “Set-jetting”

    Pop Culture Tourism and "Set-jetting" Travel Trend

    The influence of pop culture on travel choices, particularly among Gen Z, cannot be overstated. “Set-jetting” – traveling to destinations featured in movies, TV shows, or books – has become a significant trend.

    • After “The White Lotus” aired, searches for Sicily hotels increased by 50%
    • Two-thirds of global travelers have researched destinations seen on streaming shows
    • 39% have booked trips after seeing locations in movies or TV series
    • Hotels can capitalize on this trend by:
      • Partnering with social media influencers
      • Organizing guided tours to famous film locations
      • Offering themed experiences related to popular franchises

    3. The “Instagrammability” Factor

    The "Instagrammability" Factor

    In today’s social media-driven world, the visual appeal of a destination plays a crucial role in travel decisions.

    • 70% of “travel enthusiasts” share their travel plans on Instagram
    • 67% use Instagram to find inspiration for their next destination
    • Hotels are responding by:
      • Incorporating visually striking elements into their design
      • Creating “Instagrammable” spots throughout their properties
      • Leveraging user-generated content in marketing strategies
      • Focusing on unique local viewpoints and landmarks in promotional materials

    4. Sustainability and Environmental Awareness

    The growing concern for environmental issues has made sustainability a major focus in the travel industry.

    • The sustainable travel market is growing at a CAGR of 14% from 2022 to 2030
    • Hotels are implementing various eco-friendly initiatives:
      • Eliminating single-use plastics
      • Offering eco-tourism packages
      • Promoting local and seasonal foods
      • Providing on-site bicycles for guest use
      • Obtaining and promoting green certifications
      • Engaging with local environmental initiatives
      • Working with carbon offset organizations

    5. Wellness Travel and “Travel Therapy”

    Wellness Travel and "Travel Therapy"

    Recognizing the therapeutic benefits of travel, more consumers are embracing “travel therapy” or wellness travel.

    • Activities focus on reducing stress and improving mental health
    • Popular wellness travel activities include:
      • Hiking
      • Yoga retreats
      • Spa visits
      • Meditation sessions
      • Hotels are responding by:
      • Collaborating with wellness experts
      • Offering outdoor adventure activities
      • Creating nature-centric experiences
      • Providing on-site fitness facilities and classes

    6. The Solo Travel Trend

    The Solo Travel Trend

    Solo travel, especially among Gen Z, has seen a significant surge. This trend reflects a shift in how younger generations perceive tourism.

    • Key aspects of solo travel include:
    • Flexibility in itineraries
    • Deeper engagement with local cultures
    • Focus on personal growth and self-discovery
    • Hotels are catering to solo travelers by offering:
      • Flexible plans and packages
      • Accommodations with single rooms
      • Communal areas for socializing
      • Enhanced security measures
      • Special pricing options for solo travelers
    Why people solo travel?
    Courtesy: 2024 Hospitality Technology Trends by PressReader.

    Conclusion

    As we move further into 2024, it’s clear that the hospitality industry must continue to evolve to meet changing traveler expectations. From offering seamless digital solutions to providing unique, personalized experiences, hotels that successfully adapt to these trends are likely to thrive in the competitive landscape.

    For a more comprehensive look at the technological innovations reshaping the hotel industry, I highly recommend downloading the “2024 Hospitality Technology Trends” report from PressReader. This insightful report delves deeper into the essential technology trends that hoteliers must adopt to stay competitive in today’s dynamic hospitality environment. You can access the report here.

    By staying attuned to these trends and leveraging technology to enhance guest experiences, the hospitality industry can navigate the challenges of 2024 and beyond, ensuring a bright and innovative future for travel.


    About the Author:

    Azhar Umar is a seasoned professional in the hospitality industry with over a decade of experience. As the CEO and CTO of Zarnik, India’s first B2B e-commerce marketplace for hotels, Azhar brings a unique perspective on the intersection of technology and hospitality. His expertise in both hotel operations and full-stack development allows him to provide valuable insights into the evolving landscape of the hospitality sector.

    We’d love to hear your thoughts on these travel trends! How do you see them impacting the hospitality industry? Share your perspectives in the comments below.