“Everyone has the car, they need to change the engine for the new terrain”

Looking through fresh eyes at services & experiences

It is becoming a common discussion; what new services can be developed which will engage consumers and improve revenue flows?

Research is suggesting that the consumer has changed. The trends suggest:

· Move to digital purchasing

· Back to basics – great service, great value

· A desire for experiences; living in the moment

· Need for hygiene transparency

· A focus on well-being – nutritious and healthy food styles

Research is also suggesting that the hotel market will split into 5 sectors:

· Super luxury

· The bespoke boutique

· The business and budget hotel

· Lodging – being close to nature

· Air BnB.

The arguments are that consumers will pay for an exceptional experience. They also want the bespoke service level. It may sound strange but it is almost a full return to the hospitality of past eras when hotels offered an experience in themselves. With all the rising costs, the view is that the consumer will be more restrained in eating out, order in more, and will want to see strong value propositions.

It will be a tough challenge for many operators to embrace as costs may well rise by close to 30% during 2022 and yet the consumer only expects to see a 10% increase in costs. They may well only accept a 10% increase and few have the margin capacity to accept 20% less, so the question arises as to what does need to change?

If the hotel sector is changing as the above suggests, then how about the high street? How will city centre offers change? How will workplaces too change in terms of the experience offer?

As one expert put it “Everyone has the car, they need to now change the engine for the new terrain”.

So what will we see? The question will be answered by operators across the country and by how models do change.