A Focus on Personalization and Technology

Tony Marshall, the VP Managing Director of Agilysys (APAC), writes that the hospitality industry faces a significant transformation spurred by changing guest preferences and technological advances. The Asia-Pacific (APAC) travel and tourism industry is expected to grow by 4.28% each year until 2029, but the real shift lies in how these changes are altering hotel operations. A 2024 APAC Hospitality Impact Study by Agilysys found that 68% of guests would spend more for personalized experiences, while 56% of hospitality executives feel they don’t have the necessary technology to capitalize on these opportunities fully.

The gap between guest expectations and hotel capabilities will present both a challenge and an opportunity in 2025. Hoteliers who can move beyond traditional metrics and adopt a more holistic, guest-centric approach will lead the industry transformation.

Here are five key trends that hoteliers need to adapt to meet changing guest expectations:

1. The end of space-centric revenue models: Traditional metrics like Revenue Per Available Room (RevPAR) are no longer sufficient indicators of a hotel’s success. Today’s guests expect more than just a room. To meet this demand, hotels need to shift to the Revenue Per Available Guest (RevPAG) model, which transforms every guest interaction into a revenue opportunity.

2. Unified technology: The fragmented technology landscape in hospitality has become a critical vulnerability. In order to succeed in 2025, hotels need a unified technology ecosystem where every system communicates seamlessly in real-time.

3. Data-driven personalization: Personalization at scale requires sophisticated data management. Intelligent systems that can predict and fulfill guest needs before they’re expressed are crucial for providing truly tailored guest experiences.

4. Digital transformation: The transformation to digital operations is essential. While 82% of hospitality professionals recognize the importance of RevPAG, the majority feel unprepared to capitalize on it. A measured approach to digital transformation that aligns with a company’s vision and capabilities can help bridge this gap.

5. Building lifetime guest value: It’s important to shift focus from transaction-based interactions to building lifetime guest value. This means every touchpoint, from booking to check-out, must contribute to a longer-term relationship.

Going forward, the hospitality industry needs to embrace these changes to thrive. The properties that will succeed are those that move beyond rooms to experiences, unify their technology ecosystems, personalize at scale, transform digitally, and focus on lifetime guest value.

Discover more at Hotel Management Network.