Hotel 2034: Four Decade-Defining Trends for Hospitality Industry Leaders

When you think about staying in a hotel in 2034, what comes to mind? Robots delivering room service, or perhaps a VR headset replacing the traditional TV?  

While some of these futuristic changes are indeed on the horizon, there are other ways hotels will transform over the next decade—and in many cases, these changes have already begun. 

Let’s take a closer look at the current state of the hotel industry and explore the main factors we believe will shape its future. 

Global Hotel Industry Outlook 2024

The Coldwell Banker Richard Ellis’ 2024 Global Hotels Outlook report paints an optimistic picture for the hotel industry this year: 

• U.S. hotels expect a 3% increase in revenue per available room. This growth stems from rebounding international travel and a strong showing in both the business and leisure segments.  
• The Caribbean and Mexico are benefiting from a surge of U.S. tourists and a lack of new hotels opening.  
• Europe is seeing an uptick, especially in domestic and short-distance leisure travel.  
• Asia Pacific aims to match its pre-pandemic tourism numbers by December.  
• Luxury hotels and resorts are set to lead the pack in most markets.  

However, rising costs could eat into profits. While each region has its quirks, the overall trend points to a hotel industry that’s bouncing back and adjusting to how people travel in 2024. 

… But What Does the Future Hold for Hotels?

We have compiled this list of four future trends for hoteliers, drawing from independent research as well as insights shared by Andreas Tscherning, COO International of Louvre Hotels Group, and Arnaud de Saint-Exupéry, Hyatt Area Vice President for UK & Ireland and General Manager of Hyatt Regency London – The Churchill. 

1. Technology Transforms Guest Experiences

“Automation and AI will play a more and more important role in the industry both back of house and front of house, at hotel or corporate level,” said Andreas Tscherning. And he’s not alone in thinking that. 

Most hoteliers (81%) believe technology will be necessary for hotel success in the next five years. A 2022 Statista study found that on-demand entertainment access was the most likely technology to be implemented by 2025, with 45% of hoteliers planning to adopt it. Virtual reality consoles in rooms were the least likely to be implemented.  

Tscherning also provided an overview of how hotels can use new technologies to improve the guest experience and their operations. He said, “Guest data can be analyzed to provide personalized recommendations and services during the whole guest journey, with virtual assistants used throughout. Automation will allow front office tasks to be performed more seamlessly with fewer errors, while AI is useful in revenue management. The Internet of Things should be integrated into guest rooms, and energy savings can be enhanced through AI-powered building management. Robotics can be used for tasks like room service, and VR and AR have applications before and during the stay. Mobile technology and the integration of AI and blockchain are also important across hotel operations.” 

These findings align with a HotelTechReport survey, which revealed that hoteliers see technology’s main benefits as improving operational efficiency (39%), transforming guest journeys (31%), improving business agility (15%), and innovating for the future (13%). 

However, with great technology comes great responsibility. Fifty-six percent of guests worry about the security of their personal information when using hotel technology. And nearly a third of hotel chains have experienced data breaches. 

While these statistics show a clear trend towards technology adoption, some hotels are taking it to the extreme. The Henn-na Hotel in Japan made headlines in 2015 as the world’s first robot-staffed hotel. Although this approach faced challenges (they had to “fire” half their robot workers in 2019 due to inefficiency), it displays the potential for automation in hospitality. 

Many hotels are adopting more practical tech solutions, like AI-powered chatbots for customer service. Hilton’s “Connie,” introduced in 2016, can answer guest questions and provide recommendations, freeing up human staff for more complex tasks. 

Arnaud de Saint-Exupéry shares his perspective on technology’s role in shaping the future of the hotel industry: “Technology is already playing a significant role in shaping the hotel sector; something I don’t anticipate will change any time soon! It’s exciting to see the potential for synergies between technology and other defining themes, such as wellbeing. This is something we at Hyatt are primed to leverage, already utilizing technology to elevate and personalise guest experience.” 

De Saint-Exupéry goes on to explain how Hyatt is using technology to improve the guest experience: “The World of Hyatt app is helping to define digital hospitality by providing guests with premium comfort and convenience features at their fingertips. Guests can check in, check out, text the concierge, order in-room dining and other services, and even request hospitality items to be delivered to their rooms, all from the app.” 

Speaking about the MICE (Meetings, Incentives, Conferences, and Exhibitions) sector, de Saint-Exupéry notes the growing influence of wellbeing: “This demand for wellbeing has also filtered through into MICE, with customers looking for a holistic wellness experience before, during and after an event. One way that Hyatt is accommodating this is through Together by Hyatt, a platform which embeds wellbeing, support, technology, and sustainability into event bookings. Together by Hyatt provides everything from wellbeing enhancements that provide an elevated and intentional experiences, to bespoke event experience guides, sustainability fact sheets, and even technology tools designed to simplify, save time, and make event planning and booking seamless.” 

He further elaborates on the technological aspects of this platform: “As part of this, our state-of-the-art event experience guides are designed to provide customers with everything they need to plan and execute successful events. From collaborative software to help customers design professional, customized room diagrams and seating, to streamlining the communication process by providing the answers to 95% of our customers’ questions.” 

But perhaps the most promising future application of technology outside of AI and machine learning in the hotel industry is Smart Rooms. And here, Tscherning’s company, Louvre Hotels Group, really shines. The new Campanile Smart Lyon hotel, under Louvre Hotels Group’s “SMART INSIDE” label, offers a highly technological and connected hotel experience for guests. Its main features include: 

• A web app that acts as a digital concierge, allowing guests to control various aspects of their stay without needing to download an app. Through the web app, guests can check-in autonomously, call the elevator, adjust room settings like lighting and temperature, access a digital newspaper/magazine library, and order food from the connected bar-restaurant. 
• In-room robots that can respond to guest needs through the web app’s online concierge service.
• Connected TVs that allow guests to share and watch content directly from their smartphones.  

De Saint-Exupéry provides an example of how technology and wellbeing are intersecting in the hotel industry: “One trend I have been particularly interested in is sleep tourism, which is estimated to grow by nearly 8% and by over $400 billion between 2023 and 2028. A brilliant example of this crossover is Park Hyatt New York’s Sleep Suite by Bryte, which features a smart bed to help guests fight off jet lag, fall asleep more quickly, and stay asleep longer as the mattress adjusts to relieve pressure points and control its firmness throughout various sleep stages. It also includes a multisensory relaxation and wellness experience that pairs calming sleep-inducing audio with soothing motions within the mattress to help guests sleep.” 

Hotel executives need to accept that technological innovation is no longer optional in the hospitality sector. And it must be done thoughtfully and securely. Success in the future will likely belong to those who can balance high-tech conveniences with high-touch human interactions. 

2. Sustainability Becomes a Hotel Necessity

Accor’s Travel Trends Report 2024 reveals that climate change and sustainable options are important factors in travel decisions for 71% of Europeans. This rises to 82% for Italian travelers, followed closely by Spain at 78% and Poland at 77%. Interestingly, even among British travelers, who showed the least concern, 61% still consider sustainability important. 

“We clearly see an increase in demand for sustainability in hotels, and by extension, this would suggest a rise in eco-friendly travel,” said Andreas Tscherning. 

The Accor report also indicates that travelers are increasingly conscious of their impact on the destinations they visit. About 13% of respondents stated that it’s important for them to feel they’re making a positive contribution to the places they travel to. 

According to a Booking.com survey, 45% of travelers consider sustainable travel important, but not a primary factor when planning trips. Interestingly, 28% of travelers report being tired of hearing about climate change constantly. This puts hotels in a tricky position: they need to offer sustainable options without lecturing guests about climate change. The solution? Hotels should implement green practices without making them burdensome for visitors or the sole focus of their brand identity. 

1 Hotels is a leading figure in the sustainability charge in the hotel industry. Their properties incorporate reclaimed materials, energy-efficient systems, and on-site composting facilities. Similarly innovative is Room2 in Chiswick, London, which claims to be the world’s first “whole life net zero hotel,” producing zero emissions throughout its entire lifecycle. 

The Louvre Hotels Group has also made a major leap in sustainability to offer their guests the experiences they desire. They provide guests with energy management controls, electric car charging stations, and eco-education content during their stay. 

These examples demonstrate how sustainability can be a differentiator. However, companies need to ensure that their sustainability initiatives are earnest. Consumers are becoming more aware of “greenwashing.” While 62% of consumers are willing to change their purchasing habits for environmental reasons, they expect genuine action and transparency from companies. 

For hotel executives, this means sustainability initiatives should be measurable and authentically integrated into the brand’s identity. It’s not just about small changes like energy-efficient light bulbs; it’s about reimagining the entire hotel experience through a sustainability lens. The key is to implement these practices in a way that enhances, rather than detracts from, the guest experience. 

Accor’s research also shows that while sustainability is a priority for many, cost is still the primary barrier to making more sustainable travel choices, cited by 38% of respondents. This suggests an opportunity for the industry to provide affordable sustainable options. 

3. The Evolution of Hotel Spaces and Design

The concept of what a hotel should be is changing too. The traditional model of identical rooms flanking long corridors is giving way to more flexible, multi-use spaces.  

Accor’s JO&JOE brand is a good example of this trend. These properties blur the lines between hostels, hotels, and rental apartments, and offer a mix of private rooms and shared spaces. The brand targets millennials and Gen Z travelers who value community and experiences over traditional hotel amenities. 

Another interesting case is Zoku in Amsterdam, which offers “hybrid” spaces that can function as a home, office, and hotel. Their loft-style rooms feature adaptable furniture that can transform the space from a bedroom to a meeting room. This caters to the growing segment of digital nomads and long-stay guests.

But guests want more than just multi-use spaces that function as workspaces and hotels or hostels… They also want multi-use spaces that support their health and wellbeing. And that’s something the Louvre Hotel Group are pioneers in. Louvre Hotels Group has introduced a new “Fit Up” certification label that transforms standard hotel rooms into private fitness spaces. The Fit Up rooms are equipped with a “Fit Up Wall” by Decathlon which provides guests with fitness equipment like weights, mats, and resistance bands. These rooms also offer custom workout videos from the TrainMe fitness app, led by certified trainers, covering exercises such as stretching, cardio, and Pilates. This allows guests to maintain their fitness routines during their hotel stays without having to leave their room.  

Future-proofing your properties means creating flexible spaces that can adapt to changing guest needs and generate multiple revenue streams. 

4. The Rise of Experience-Driven Travel

What younger generations want from travel is changing. As Andreas Tscherning noted, “Guests now also require more flexibility in their bookings, with staycations or very short trips increasing.” 

But today’s travelers, particularly millennials and Gen Z, don’t just desire flexibility and packages catered to shorter stays—they prioritize experiences. 

Accor’s recent Travel Trends Report shows that travelers in 2024 are seeking a deeper connection with the places they visit. More than a third of respondents expressed a desire to immerse themselves in local cultures and communities during their holidays. 

The report further elaborates on the culinary aspect of this trend: For many, this immersion starts with food. Nearly half of the respondents indicated that they try to experience local cuisine as much as possible during their travels. 

Hotels are responding to this trend by becoming destinations in themselves and attempting to offer novel experiences that go beyond traditional amenities. For example, Marriott’s Moxy is partnering with Sanctuary, a digital astrology platform, to offer cosmic-inspired travel experiences throughout 2024. This partnership includes personalized travel recommendations based on astrocartography, astrology-based insights, and interactive content. At Moxy Hotels, guests can also enjoy special experiences such as a “Sip by Sign” menu of zodiac-inspired cocktails, cosmic-themed bedtime stories via in-room rotary phones, and localized astrological programming like aura photography sessions and full moon watch parties. 

Some hotels are taking this concept even further. The Muraka at Conrad Maldives Rangali Island offers an utterly unique experience with its underwater villa. Guests can sleep 16 feet below sea level, surrounded by marine life. While this is an extreme example, it goes to show how hotels can create memorable, one-of-a-kind experiences that justify premium pricing. 

Arnaud de Saint-Exupéry of Hyatt echoes this trend towards experience-driven travel: “In 2024, travelers are increasingly looking for personalized, one-of-a-kind stays with a focus on wellbeing. In fact, we recently commissioned an IPSOS report and found that in 2024, 41% of British travelers are motivated by taking a break and relaxing, with living new experiences also a key driver. This means we are seeing greater demand for customized travel and intimate experiences, which we are well placed to accommodate given our diverse range of brands purposefully created for discovery and authenticity.” 

He further elaborates on how Hyatt is meeting this demand: “As Hyatt, we also take special care in developing one-of-a-kind excursions curated personally for each guest with our World of Hyatt experience platform, FIND. From seeing the lights of London by night with an evening River Thames bike tour while staying at Great Scotland Yard Hotel – The Unbound Collection by Hyatt; to a private tour of The British Museum and National Portrait Gallery whilst spending a city break at Hyatt Regency London – The Churchill, there is truly something for everyone.” 

The key for hotel executives is to understand that future success depends on offering more than just a place to stay. Hotels have to become destinations for experiences—whether through their own programs or by helping guests connect with local attractions and activities. And to really make the most of these experiences, hotels need to step up their marketing game. They should have an active digital presence, with content that’s tailored and adaptable. As Tscherning said, “Hotels need to use social media and online reviews to get their brand and vision out there.” 

How to Prepare Your Hotel Chain for the Future

So, what’s on the horizon for hotels? In the near future, we’re looking at growth. Long-term? It’s all about innovation—being smarter, greener, supporting local communities, and offering guests healthier experiences.  

According to Andreas Tscherning, “The hotel of the future will have smart rooms, with overall flexibility and modular, multi-functional spaces, both in the guest rooms and in public areas. Connectivity will be even more important than water these days! Materials should be eco-friendly, and services should focus on wellness and healthy living—things like fitness centers, in-room workout options, healthy menus, electric car charging, and use of recycled, locally-sourced products. The goal is to minimize waste and avoid single-use plastics.” 

Arnaud de Saint-Exupéry shares a similar vision for the future of hotels: “The hotel of the future will combine technology, design and service to create the ultimate experience for guests. It is particularly exciting for us as we are uniquely placed, given our size and agility, to react quickly to new developments and trends to implement proactive change, working with stakeholders to go above and beyond.” 

Accor’s research paints an interesting picture of what travelers want from hotels going forward. There’s clearly a desire for tech conveniences, but people aren’t ready to give up the human element. In fact, 65% of travelers said they’d rather have a person help plan their trip than an AI tool. It’s all about finding the right mix of technology and personal service. 

To succeed in the future, hotel groups need leaders who can do more than just talk a good game. You need executives who can drive digital transformation without taking unnecessary risks, who can use data to really get what customers want, and who can roll with whatever punches the future throws. 

About the Contributors

Andreas Tscherning has served as the Chief Operations Officer International of Louvre Hotels Group since 2017. 

Tscherning is a Swedish national and a graduate of the Lausanne Hotel School. He has worked in the hotel industry since the mid-1990s in Switzerland and Africa, with prior roles at Sheraton and Mövenpick. 

Tscherning joined the French based Louvre Hotels Group in 2008 as General Manager of the Golden Tulip Kumasi City in Ghana, later taking on roles at the Paris headquarters overseeing operations in the Mediterranean, Europe, and internationally. Louvre Hotels Group has a network of more than 1,700 hotels, from 1 to 5 stars, in 60 countries across the world. 

Arnaud de Saint-Exupéry is the Area Vice President for UK & Ireland and General Manager of Hyatt Regency London – The Churchill. His career with Hyatt began in 2008 when he took his first General Manager assignment at Andaz London Liverpool Street, the first property of this new brand. In 2013, Arnaud moved to Japan, where he successfully opened Andaz Tokyo in June 2014. 

With his extensive experience in the UK luxury hotel market, Arnaud returned to the UK in 2016, joining Hyatt Regency London – The Churchill as General Manager and Area Vice President for Hyatt Hotels in the UK & Ireland. 

In this role, he oversees the management and strategic development of the luxury Hyatt Regency London – The Churchill, as well as eight additional properties in the UK. These include Andaz London Liverpool Street, Great Scotland Yard Hotel, Hyatt Regency Birmingham, Hyatt Regency & Hyatt House Manchester, and Hyatt Place West London, among others.  

About the Author

Milos Tucakovic is a Managing Partner at Stanton Chase Belgrade. He is also Stanton Chase’s Consumer Products and Services Global Sector Leader.  

Milos has almost two decades of executive search and leadership advisory experience, and prior to this accumulated nearly 30 years of human resources and management experience.  

Milos is a member of the Serbian Association of Managers and Knowledge Committee of Serbia. He also lectures on management at the College of Hotel Management in Belgrade.