How Are Guest Expectations Changing, and How Can Hotels Prepare for the Future?

Hospitality has come a long way. It started as providing no-frills shelters. Today, it’s an industry that creates complete and fully tailored lifestyle experiences.

The goal was always to offer increased comfort, create more memorable moments, build guest loyalty – and of course to drive revenue.

The technology that supports these goals has advanced by leaps and bounds. And the advent of artificial intelligence (AI) is creating even more new options and opportunities.

But what do guests really want and expect today and in the future?

One thing is clear. A clean room and friendly service are the baseline. But these simple comforts are no longer enough to satisfy the modern traveler. They want personalized, technology-driven, and sustainable experiences. In short, the future of hospitality lies in a strategic blend of human touch and smart technology.

What does this mean for your hotel in practice?

Read on for a closer look at new guest expectations, challenges hotels must overcome and how you can future-proof your property starting today.

4 key outcomes of evolving guest expectations 

The need for hyper-personalization at scale

Highly personalized trips used to be reserved for the luxury and upscale segments for a simple reason. Tracking and acting on guests’ various preferences and requirements took a lot of time and manual steps, driving up labor costs. 

The emergence of modern customer relationship management tools (CRMs) has made this quicker and easier. As a result, hotels across all segments now have a cost-effective and efficient way to tailor their guests’ stays. 

That could include: 

• Making personalized in-house service recommendations

• Having appropriate food & beverage options ready (e.g. gluten-free, vegan, halal…)

• Suggesting the right activities and restaurants

• Applying the traveler’s preferred room settings (e.g., temperature and lighting) pre-arrival

A recent survey by Data Axle highlights that 61% of travelers value such personalized recommendations and service. Millennials (31%) and Gen Z (33%) are particularly eager for tailored experiences. 

If they’re disappointed, they’ll take their business elsewhere. The same study discovered that nearly half the participants did so due to a lack of personalization or poor digital experiences.

The rise of the connected journey

Research by Hilton found that 78% of travelers want the option to plan, book and manage their trips entirely online. 76% seek travel apps that reduce friction and stress. 

There’s also a strong interest in contactless service options at hotels. And no, that’s not just a remnant of pandemic-era operations. A Deloitte Digital study highlights solid demand even pre-2020. It found that 57 % wanted the option to communicate with staff via their smartphones or a voice assistant. 60% of travelers preferred a hotel with contactless check-in options and mobile keys. 

Travelers’ uptake of Hilton’s digital arrival process proves this. From January to August 2024, guests downloaded nearly 14.3 million digital keys and shared them with travel companions over 870,000 times. 

It goes further, though. 77% of guests want to use personal devices seamlessly on their trip. That explains why “Streaming TV” is one of the top ten filters on Hilton.com. 

Of course, other smart room options are also in demand. This includes controlling blinds, temperature and lighting from one’s phone or using it to order meals or request housekeeping services. 

A focus on sustainability and wellness

According to Booking.com, 83% of travelers worldwide say that sustainable travel is important to them. Especially Millennials favor eco-friendly travel options such as low-emission transportation or hotels with green certifications. 

Given these numbers, it’s critical to implement green practices at your hotel. As you do so, let your target market know about it. Share your latest accomplishments on your website and social media. Show your team in action or outline which challenges you had to overcome on your way to a more sustainable operation. 

Here are some simple ideas to get you started:

• Phase out single-use plastics such as water bottles, straws and plastic key cards

• Implement food waste management procedures

• Work with local growers and suppliers where possible

• Host clean-up days with your team in nearby forests or along the beach

With guests becoming more mindful about protecting the environment, they’re also looking inward to take better care of themselves. As a result, wellness travel’s popularity has been attracting a broader audience and is set to grow to $1.3 trillion by 2025. 

Today, wellness travel is no longer just for luxury travelers. Budget-conscious options, as well as family-friendly resorts, have begun popping up. Retreats for weight management, mental wellness and digital detoxing are top choices among all traveler segments. 

Even if you’re not running a wellness hotel, offer amenities and services catering to this interest to stay relevant. 

Here are a few ideas:

• Clearly labelled healthy food options on the menu and/or your buffet

• Guided nature walks or walking meditations

• Wellness add-ons for the room, e.g., an aromatherapy kit

The power of digital engagement

An attractive website is the foundation of your online presence. It must convince your target audience that your property is the perfect fit and get them to book. 

But how to get people to your website? This is where another important leg of your online presence comes in – social media. 

According to research by Expedia, people view over 140 pages of travel content in the 45 days before booking. That plays right into your hands if you provide travel inspiration for your potential future guests on platforms like Instagram or TikTok. 

It draws attention to your property, gives you a chance to engage with your audience and makes your brand feel more personal and approachable. Keep posting fresh content to stay at the top of people’s minds so they think of you first when booking.

Review platforms also deserve a mention here. While you don’t have direct influence on them, these sites can be a huge business booster. 

One study found that online reviews impact 93% of consumers’ booking decisions. A Cornell study highlights just how strong this impact is. A one-point increase in a hotel’s average rating on a 5-point scale makes travelers 13.5% more likely to book that property.

As you probably expect, an improved reputation drives revenue. The same study put a number to it, finding between 0.49% and 1.42% increase in RevPAR depending on the hotel type. 

So, if you haven’t done it yet, set up an online reputation management SOP for your hotel. Monitor top review sources like your Google, OTA and TripAdvisor profiles. Respond to guest feedback and use their insights to further improve your service. 

4 challenges you must try and overcome to set yourself up for successEstablish strong data security and privacy

To work well, AI-powered technology requires vast amounts of user data. A recent survey found that 48% of travelers will gladly share personal information for a more tailored, AI-powered brand experience. 

But what about the other half? Many travelers may be interested in AI-driven services or wish for more personalization, but not enough to share sensitive information. 

According to a recent Pew Research Center survey, 81% of consumers think the information AI companies collect will be used in more ways than originally intended. Another study by KPMG found that 63% of participants worried about data breaches or misuse. 

If you choose to leverage AI, it’s your responsibility to pick a provider you can trust with travelers’ data. 

Ask how they use and store it and if they share it with third parties. If something doesn’t sound right, choose another solution. 

Ensure your property hits sustainability targets

Implementing a new standard or procedure always requires up-front investments. Sustainability is no exception. It will likely take staff training, capital expenditure and time before your guests see a difference. On top of that come regulatory hurdles you need to work around. 

That can make it tricky to prioritize environmental goals during times when budgets and daily schedules already feel stretched. But since green initiatives often save costs and boost your image in the long run, they’re well worth it.

There’s another challenge that’s often overlooked: the “say-do-gap”. Yes, 83% of travelers claim they value environmentally friendly travel. But at the same time, 50% say that cost is the most important factor in their booking decisions. Another 30% prioritize quality. In short, sustainability should not come at an extra cost or make the trip less pleasurable for travelers.

Digital keys are a great example of a green practice that benefits the environment, your guests and the hotel. They save everyone time during check-in, reduce cost and waste. Hilton estimates that their digital keys save approximately 100 tons of plastic per year. 

Integrate disparate systems for a single source of truth

You know the situation. You’re trying to get a specific data set for a colleague. At the same time, senior management is breathing down your neck for a detailed report. And of course, you still need to quote group requests and set optimized public rates for the coming months. 

But with the many disparate systems and data silos, this can feel like building a puzzle where none of the pieces were made to fit. 

How are you expected to make informed decisions around items such as personalized marketing, total revenue from your spa and ancillary services or your online reputation when it takes hours to collect, format and interpret information. 

You’re making decisions based on old and disjointed data. As a result, you miss commercial opportunities and struggle to adapt to new guest expectations. 

That means lost chances to promote and sell your rooms and consequently lost revenue. 

The solution is simple: one unified commercial platform that brings everything and everyone together in a single source of truth. 

No more endless spreadsheets, countless logins and differing systems. Instead, a simple interface with instant access to real-time data.

Each commercial team is provided with actionable, personalized insights to develop integrated and cohesive strategies to capture more revenue opportunities around new guest expectations.

Address the need for personalization with targeted data

Industries like retail and airlines have set the bar high. Both industries are experts in personalized offers. Just think of the last time you booked a flight and were able to customize everything from your seat selection to your meal choice and baggage allowance. 

Online retail is the same. Your favorite shopping portal can probably recommend products you didn’t even know you wanted every time you log in. 

With daily experiences like these, consumers have grown accustomed to a more tailored service. And they’ve come to expect it from hotels as well. 

Unfortunately, try as they might, many properties fall short of their guests’ expectations in this area. 

Luckily, there’s a way to address this challenge – investments into the latest hotel tech that allows you to fully personalize the guest experience and give retail and airlines a run for their money. 

A real opportunity lies in unlocking granular data to understand exactly who your guests are, how they book, what they spend, and what truly motivates them. 

Transforming personalized raw data into intelligent insights through advanced business intelligence is essential. 

For example, with insights into performance and guest behavior, your sales and marketing teams better understand what’s working and what isn’t, such as promotions in email campaigns. 

Marketing campaigns can then be custom-created to highlight services and packages that resonate with specific demographics, encouraging direct bookings over OTAs. 

Once guests are acquired, truly understanding them through personalized data on their preferences can elevate their experience. 

By understanding individual needs, inclinations, and spending patterns, you can offer relevant upsells and cross-sells (increasing revenue), refine in-room amenities, and adapt services to genuinely delight guests. 

3 strategies to help future-proof your hotel as guest expectations continue to evolveInvest strategically in the right technology

If the thought of building your tech stack from scratch or even “just” updating it feels overwhelming, that’s hardly a surprise. There are countless tools and each one promises to solve all your problems. 

But too often, systems overlap or don’t communicate properly with each other. Sometimes the product is great, but it’s overkill or simply not right for your property. 

Instead of adopting new technology for its own sake, follow these steps to optimize your tech stack:

• Do your research: Talk to industry colleagues, sign up for demos and trials. And always ask your questions without hesitation. That’s what sales calls and test periods are for. This will give you a feel for each tech solution and help you narrow down your search.

• Keep it simple and connected: It’s better to have fewer systems that communicate well than countless apps with limited integration. A tool might otherwise be fantastic, but if it doesn’t fit in with the rest of your tech, you won’t get full (or any) use of it. 

The better everything works together, the easier it is for your team to work and the better your results will be. 

Check that connections are available between the tools you plan on using before you sign any contracts to avoid costly, time-consuming surprises. 

• Choose cloud-based systems: they’re quicker and easier to implement and maintain compared to old-fashioned server-based systems. With cloud systems, you can typically scale up and down usage plans as well, ensuring you only pay for functions you use. Remote access from any device is another important point. 

This creates options like checking guests in via tablet while sipping a cocktail on the terrace or pulling up a live performance report during a budget meeting at the company headquarters.

Balance technology with the human touch

While guests are eager to use technology to make travel easier, they still know that human interactions are essential for an unforgettable experience. That could be as simple as a friendly chat with a receptionist that leads to a recommendation for an authentic local restaurant. 

But how often do front desk staff have time for that if every check-in comes with endless admin steps?

This is where technology can take over repetitive tasks that don’t contribute to the guest experience. That leaves your team with more time for their actual purpose – connecting with guests on a personal level and providing genuine, unhurried service. 

You see, it’s not about using tech to replace your team. Instead, you’re enabling them to use their time more meaningfully. 

Listen to guest feedback and harness the power of data

In-stay and post-stay surveys, as well as online reviews, are a goldmine of actionable feedback to drive operational improvements and commercial strategy.

Here’s how:

1. Check on your guests during their stay to ensure everything is going smoothly

   Medallia Zingle found that only 25% of guests will report an issue and 50% would do so if there was an easy way. Give them that chance with proactive follow-up and you’ll have the opportunity to address problems before they end up in a negative online review. 

   This also improves guest loyalty. 42% of travelers would consider returning to a hotel if a poor experience was corrected quickly.

2. Gather insights and connect with guests via post-stay questionnaires and online review platforms

   Show your appreciation for each response and address or, if possible, make up for shortcomings past guests mention. That shows you’re approachable and willing to improve. 

3. Implement a modern CRM to gather communication and survey responses in one place. 

   Then the system updates guest profiles with preferences travelers mentioned, e.g., a high floor, gluten-free food or their favorite wine. This helps you anticipate their needs now and during future stays. 

   A CRM also makes it easier to analyze feedback. This can reveal repeat issues, show you which services to improve or even provide inspiration for new offers and promotions.

Blending innovation with tradition

Implementing new technology doesn’t have to mean turning your back on time-honored traditions that your guests appreciate. 

It’s your chance to maintain these traditions in a relevant way by creating the fully customizable travel experience today’s guests crave. 

To give guests more control and free your team from endless admin, implement connected applications like a cloud-based PMS, CRM, and robust BI solution. BI is the glue that unites your tools into a single source of truth, giving you instant access to all the data you need, exactly when you need it. 

Not only does this allow you to leverage personalized and targeted data it enables quick and effective decision making, which frees up more time for you to add a genuine human touch to the guest experience. This is a facet of hospitality that will never go out of date.

Now it’s your turn. Where could you do better at meeting your guests’ expectations? And which changes to your strategy and tech stack does that require? 

Take an honest look at that now and embrace new solutions to keep your guests coming back over and over because you know and give them exactly what they’re looking for. 

About Lighthouse

Lighthouse (formerly OTA Insight) is the leading commercial platform for the travel & hospitality industry. We transform complexity into confidence by providing actionable market insights, business intelligence, and pricing tools that maximize revenue growth. We continually innovate to deliver the best platform for hospitality professionals to price more effectively, measure performance more efficiently, and understand the market in new ways.

Trusted by over 65,000 hotels in 185 countries, Lighthouse is the only solution that provides real-time hotel and short-term rental data in a single platform. We strive to deliver the best possible experience with unmatched customer service. We consider our clients as true partners – their success is our success.

This article originally appeared on Lighthouse.