The Herman Trend Alert
August 24, 2022
The Future of Hospitality Part 2
This Part 2 of the Future of Hospitality focuses on other emerging trends. If you missed Part 1, I urge you to visit hermangroup.com/alert/archive_8-17-2022.html. This week, we focus on three emerging trends and how they are playing out in the lodging arena.
The Growing Importance of Experiences
The overarching megatrend is about the increasing role of experiences in attracting customers. That trend is reflected in three sub-trends: Expanding segmentation of markets, the rising role of local culture and history, and the return to themed rooms.
Expanding Segmentation
Not only are we seeing increasing segmentation in the levels of luxury, but we are also seeing hotels segmenting by where guests are in their own lifecycles. Case in point: Norway's Scandic Hotels' homepage features all kinds of examples of his breakdown: whether it's their "teenage rooms" for families or their attracting people with "furry friends" or their offer that kids 12 and under get to stay free, this lodging chain is going after families in a big way. Other hotels are offering fully tricked out gaming consoles in connecting rooms for young families. And they are not alone, just think about the hotel advertising you have seen lately and you will understand.
Rising Role of Local Culture
Speaking of TV commercials, Viking Cruises has become the highest rated cruise lines in the world (according to Travel and Leisure Magazine's annual competition) by promoting their connections with local culture with home visits and even fresh-baked goodies when visiting families living on remote islands. On one of Viking's Asian River Cruises, passengers were given currency and shopping lists to acquire fresh produce in the local farmer's market. And let us not forget the "activations" available at Marriott's Renaissance Hotels throughout the world. These experiences give guests tastes and information about local foods and businesses that most guests would never have encountered without these additional events. On my last trip to the Renaissance Time Square in New York City, the hotel had arranged for one of the top purveyors of Egg Creams, a New York delicacy made with whole milk, (usually chocolate) syrup, and cold seltzer water. Yum. These experiences add a lot to the total stay. Just as the local visits add to the total cruise experience Viking delivers.
Return to Themed Rooms
Decades ago, when my first husband and I went to the Pocono Mountains for a long weekend, we had our choices of themed rooms, including the Dinosaur Room, the Victorian room, and the Rainforest Room. Now, once again, Marriott Hotels is leading the way with their new TED-themed rooms. According to the chain's recent social listening research there was a significant year-over-year uptick in searches for #themedrooms (+106 percent) and "hotel rooms" + themed (+65 percent), suggesting consumers are craving "more distinct and inspiring hotel experiences." At Marriott, the one-of-a-kind Curiosity Rooms crafted by TED-ed are located in San Francisco, London, and Bangkok, and include puzzles and other unexpected touches. For two nights, families become part of the world of curiosity when they book Marriott's. Immediately upon entry to the room, guests of all ages may embark on the adventure. The entire room is a puzzle box waiting to be solved. Puzzle elements have been seamlessly hidden within the décor; solving them all will lead guests to a grand finale and a series of surprises and rewards. Customized to the three destinations, the puzzles feature and celebrate local landmarks, culture, and more. Guests uncover hidden messages, hunt for puzzle pieces, and experience elements of the room in surprising and delightful ways. When the final challenge has been completed, guests receive a certificate of completion and may celebrate with a complimentary dessert in the hotel's restaurant.
Forecast: More Themed Rooms Worldwide
Following Marriott's lead, you may expect to see more themed lodging both on land and at sea---on the mega cruise ships. In fact, these floating cities may even have entire themed regions, beyond what they now offer with a fitness and/or spa orientation. We may eventually see entire subject or design-based hotels like the Curiosity World theme, perhaps featuring a Virtual Reality room where guests may enjoy and even more immersive experience. I am personally looking forward to visiting a rain forest without the mosquitos and the snakes.
Next Week's Herman Trend Alert: ReOnboarding
More than once in the past, I have covered the value of providing a re-orientation for long-tenured employees. Recently, the Harvard Business Review featured an article about ReOnboarding. Re-developing employees is always a great idea however the HBR article was missing some important elements. In this Alert, you will learn it all---HBR's suggestions as well as mine.
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