The Viral Armageddon

Hospitality is one of the oldest service sectors in the world, and it is not unfamiliar with tough times. The dark clouds always pass! The Hospitality Industry was at the forefront during the dreaded Global Pandemic, wave after wave and the situation has never been so dynamic and so brutal. Economies on earth buckled and businesses faced an uncertain future. The Astrologers and Clairvoyants were all at Sea!

The Resurgence

The industry was able to see the silver lining after the initial shock delivered by lockdowns, restrictions, and losses in the early part of 2020, Revenge travel, Revenge tourism, pre-festive holidays, first flight post lockdowns in Incredible India Ahead of the festive season, holidays and hotels are on top of mind! Staycations, Bizcations, and Homestays are the new jargon in Hospitality trends!
The global short-stay market is about a trillion dollars currently, impacted in 2021 by COVID-19. However, it is expected to double to nearly $2 trillion by 2030. Within that, the Indian market is expected to grow 5 percentage points faster at 13 percent than the global market at 8 percent and that’s a phenomenal upward trend.
In fact, not just ours, but it is also on the stock markets' minds! Most hotel stocks have been surging to near all-time highs, some also seeking a listing on the bourses. From Oberoi to OYO everyone wants a slice of the Indian travel pie.

The Math

Let us crunch the numbers and spell the opportunity out for the Indian hotel industry.
As per multiple estimates and some back-of-the-envelope calculations, the Indian hotel industry was around ₹ 80,000 crore in 2020, pre-pandemic, a jump from nearly ₹ 50,000 crore in FY15. However, with a massive decline in FY21, it is expected to recover to nearly ₹ 70,000 crore over the next 2 years.
We have about 1.46 lakh hotel rooms in India as of FY21, this number too, is expected to approach 1.8 lakh crore over the next 5 years which is a nearly 30 percent addition. A more holistic and wholesome recovery is yet to be on the cards and in our view that is likely to happen by FY23.”
Online penetration of hotels is likely to increase from 33 percent in 2020 to 50 percent in 2025, this is a vital growth trigger given the rising growth in India's internet economy.
92% of India's hotel industry is still unbranded. Consumers have started to prefer the comfort of branded hotels post the pandemic.

The Progression

The appetite for quality supply has grown in recent years as the concentration of inventory in India’s top 10 cities has reduced and broadened out to many newer and smaller towns, and this trend is likely to continue. This is in line with the air passenger traffic increasing in smaller cities too.
The big moment of the hospitality world came with the rise of the internet and the birth of tech-based hospitality solutions like online travel sites, and global aggregators like Airbnb, our very own OYO, Saffron Stays, Vista Rooms, and many others.
Marketing starts from the consumer, and in hospitality, consumers are called ‘guests.’
There has been an increased behavioral shift towards safety and hygiene post the pandemic. Guests now want to see real and credible efforts from establishments towards safe and hygienic practices.
Hospitality has predominantly been a high-contact industry. Post-pandemic evolution organizations are adopting contactless service which is the new Normal. 

Technology’s New Basics

The hospitality industry's success is dependent on exceptional customer service and human interaction. Consequently, businesses are trying to adapt to consumer fears, vaccine mandates, and health and safety ordinances. The shift in priorities has led to hospitality trends that will impact hospitality far beyond the coronavirus.
The hospitality industry has long relied on technology to simplify its operations. Key cards and keyless hotel locks have been staples in the hotel industry for over a decade. Mobile check-in has become a standard in most hotel operations internationally since its introduction in 2013. To further ease solo and business travelers’ anxieties and adhere to social distancing guidelines, hotels have leaned into contactless guest experiences through technology integration.

Smart hotel rooms are optimized to work in tandem with smartphones and mobile apps allow guests to take advantage of amenities and services without interacting with staff. Apps enable visitors to make reservations, put down deposits, check in to their rooms, use touch-free digital menu systems to order room service, and pay for services right from their phones. Digital wallet platforms like Google Pay and Apple Pay have increased contactless payment options, making the check-out process quicker and more efficient.

Evolving Indian Hospitality: Trends, Contactless Guest Experiences, and Sustainable Future

In some regions, visitors can even scan QR codes to launch virtual TV remote controls. Hotel staff can access guest folios for service bills and automate maintenance orders easily through the same apps. In addition, concierges and front desk attendants can address guest questions and concerns via chat features. Housekeeping has also been aided by the technology boost with robotic cleaners and electrostatic sprayers to sanitize rooms after check-out.
The hospitality industry has upgraded its overall approach to customer service. With guest safety as the highest priority, communication has become paramount to gaining consumer trust. Hotels and resorts have adopted pre-visit emails that outline instructions related to Covid-19. These communications relay any operative or systemic changes to returning customers. In addition, some companies have used pre-visit emails to detail the pandemic's impact on their business. Therefore, clients better understand the precautions they are taking.
There is a huge demand for personalized and safe bubbles post the pandemic, specifically in the upscale segment. People now prefer a place that is more intimate, personalized, and secure.

The Greater Good

A lot of hospitality brands are diversifying into serviced villa/apartment rentals, co-working spaces, and also into food delivery, laundry & housekeeping services, etc. for ancillary revenue. So, marketers’ ‘to do’ list now is more versatile and dynamic.
Hospitality businesses have upgraded their overall approach to customer service. With guest safety as the highest priority, customer communication has become paramount to gaining trust. 

Career Opportunities in Hospitality

68% of the Travel & Tourism workforce requires re-skilling in light of innovations occurring throughout the industry. Hospitality companies are also upscaling efforts to attract and retain a more diverse talent pool.
The sector is training staff to implement contactless service and heightened hygiene measures, from sophisticated room cleaning approaches to health and safety protocols that build consumer confidence while protecting customer and employee safety.

Hospitality is becoming more of a career path and not just a paycheck.
This shift has happened in just the last few years from both the employee and employer standpoint. It has made the hospitality industry better because when you have higher retention, you have more engagement and loyalty from the guests—and reduced training and turnover costs.”
Tourism and hospitality degree programs have seen a surge in applications as a result.
New job profiles are emerging that include new positions that merge safety, quality and sustainability. The result will be more opportunity.
Experts believe it's the perfect time to be studying Hospitality Management! When companies come back, they’re going to be looking for more educated, critically thinking employees who are able to drive the industry forward.”
Aspirants seek a wide range of sectors within hospitality and tourism, including food and beverage, hotels, government tourism authorities, airlines, cruises, resorts, and casinos. “It adds a lot of value and Skills are transferable between all segments of hospitality and tourism.”

We Hope

That with the implementation of contactless guest experiences, upscaling hygiene measures, and personalized and safe bubbles, hotels and resorts have adapted to meet the evolving demands of guests. The integration of technology has played a crucial role in enhancing customer communication, ensuring guest safety, and driving operational efficiency. As the industry continues to evolve, there are abundant career opportunities available, with a focus on retraining and upskilling to meet the changing needs of the industry. 

By joining Lexicon IHM, aspiring professionals can gain the necessary knowledge and skills to thrive in this dynamic sector. Take the first step towards a rewarding career by enrolling in Lexicon IHM and unlocking endless opportunities in the evolving Indian hospitality industry.

Author -- Gladvin Rego | Anup Sheth | Farheen Belgaumwala | Shubhangini Bhandari