Optimism for 2025

There’s plenty of optimism in the expected growth of the hotel industry for 2025. Driven by the increasing travel demand and a strengthening economy, hotels continue to adapt to the desires of their guests, and guests are responding with increased bookings.

We’ve discussed many practices that continue to attract travelers, such as sustainability, personalization and customization, the use of AI in hotel management, and the demand for wellness travel.

Still, the growth of the sharing economy and peer-to-peer rental platforms like HomeAway and Airbnb continue to pressure traditional hotels to offer alternative accommodation options and competitive rates.

Here is a recap and update on new and continuing trends in the hotel industry for 2025. 

 

Sustainable Practices

Travelers continue to seek hotels committed to sustainable practices. This includes hotels that actively reduce carbon emissions and implement water conservation measures. Guests notice the minimization of single-use plastics and conservation efforts to minimize waste, such as towel reuse and low-flow toilets. 

Personalization

Guests notice and appreciate hotels that customize their experiences based on their travel history and data. Hotels must continue using big data and technology to understand their guests’ needs and preferences better and tailor their services based on personalized understanding and attention. 

Alternative Accommodations

Personalization includes the growing demand for alternative accommodations–more unique, homey, cozy, functional spaces that include separate living areas, kitchens, and work options, brought on by the competitive peer-to-peer offerings by lodging providers like HomeAway and Airbnb. 

AI & Other Tech

AI will continue to expand beyond customer service chatbots to provide big data and predictive analytics for more personalized guest experiences, optimal pricing and demand forecasting. 

Knowing the Digital Traveler

As the range and stay of the digital traveler grows, hotels must understand this digital-savvy market. They use online platforms to research, book, and manage their travel plans. The Digital Traveler often combines work and leisure. Hotels must invest in all the digital marketing and distribution channels to reach this growing market.

Wellness Travel

Guests want travel experiences to rejuvenate the body and open the mind. The range of well-being journeys and health trips includes simple spa experiences to digital detoxes and silent retreats with everything from meditation and yoga to fitness and cooking classes.

Food & Beverage 

Global flavors and fusions will dominate the curious palate of Gen Z travelers, and culinary tourism will continue. Creative coffee drinks, self-serve ramen bars, and low-alcohol options are on the rise, along with the popularity of pistachio everything, small servings/snacks all day, and simple seafood. This 2025 Hospitality Trends Report is a fun read. 

Flexible Payment Options

Buy now pay later (BNPL) is a fast-growing trend in the industry. This enables hotels to attract guests interested in a more luxurious experience without the financial pressure. There are several options to consider when implementing flexible payment options like BNPL.

Overall, the hotel industry is expected to continue growth in 2025. Hotels, however, need to adapt to the changing demands of travelers and invest in sustainable practices, AI and big data, digital marketing, and personalized services to remain competitive.

 

References:

Hospitality Net Key Hospitality Technology Trends to Watch in 2005

8 Game-changing Hospitality Trends for 2025 

Hospitality.net Clear Skies Ahead 2025

2025 Hospitality Trends Report