Travel Industry Recovery in 2023: The opportunity for real estate 

21.07.22 08:23 AM Comment(s) By Assetsoft

Corporate travel had the biggest hit during the pandemic and took the longest to recover. Leisure and holiday travel still saw a better picture due to extended remote working options for most employees across the globe. Most companies had offered indefinite work-from-home options when the pandemic began, and most people indulged in “workations and staycations” in local areas. But this category of people was not much; only a certain amount of people indulged in these trends, but it at least helped the hospitality industry stay afloat.  

 

During the pandemic, most companies cut down on their budget for corporate or business travel. Most corporate meetings happened online, and the need for travel became thinner. But the primary revenue for the hospitality industry comes from corporate travel and business tours of different companies. 

 

It became all the more certain that leisure travel would recover much faster than corporate travel. Exactly like local and domestic travel would recover much faster than international travel.  

 

Thankfully, the picture is not so grim anymore; recent reports by the US Travel said that more than 85% of American companies are now restarting their investments in business travel, which is a significant shift from the last two years.  

Europe and American tourism recovered the fastest 

The World Tourism Organization (UNWTO) of the United Nations has shared reports that Europe and America have been showing the best recovery rates in tourism than any other nations. In 2020 and 2021, it was - 68% and - 62% in both places. Europe and America saw better international arrivals since January 2022, but still at - 53% and - 52%, respectively. Among these, Asia is the worst hit, with international tourist arrivals still lying at - 93%.  

 

Note - All of these reports and data are in respect to travel reports of 2019 or the pre-pandemic time.  

A strong start in 2022, but uncertainties persist 

In January 2022, international travel had a solid start, unlike in the past two years. According to UNWTO reports, global international tourists increased more than 130% in 2022 compared to 2021. International travel saw a 71% decline in 2021. At the beginning of 2022, the number is 67% below the pre-pandemic levels. The trends look positive, but the industry has a long way to go before a complete recovery. There are still many uncertainties looming over this industry, like the sudden increase in COVID-19 cases. Also, the Russia-Ukraine crisis has caused major havoc in European travel.  

International travel is set to bounce back 

According to Deloitte research on travel trends for 2022, the current low COVID-19 infection rates, high vaccination rates, and eased international travel rules are helping the industry bounce back to its pre-pandemic state. The progress is slow, but it holds a lot of opportunities for hospitality real estate. 


Why? The pandemic and the new remote working crowd have different demands from the tourism industry than they had back in 2019. The hospitality industry needs to adapt to these to make the industry boom and get back in its original shape.  

Opportunities and trends in hospitality real estate 

The best approach in these times is to not wait for “normal” pre-pandemic times to get back. The hospitality industry must adapt to the new trends set by the pandemic and make the best out of the situation to boost business. Here is a list of opportunities and trends in the industry that can help your real estate business.  


  • Sustainable real estate is crucial 

 

The climate crisis has become one of the major issues with the present generation, and they want to opt for sustainable tourism options while traveling. Eco-friendly hotels, nature-inspired tours, low waste generation, and minimal carbon emissions are things that hoteliers can focus on to attract millennials and Gen-Z tourists.  


  • Digital hotel management systems 

 

Technology selection in hotel management is very vital in the present scenario. You have to adapt to digital check-ins through websites and apps and also have digital payment options and virtual tours of hotels for potential customers. All of these can be done with property management software or drones, RPA technology, IoT devices, and AI-powered tools. They will also help you stay connected with your customers, even without physically meeting them, and streamline the management process.  


  • More open spaces for health and well-being 

 

Build your hotels in a way that they have more open spaces. Post-pandemic, most travelers have started to focus on their health and well-being, and you need to offer dedicated spaces and tour options to attract this crowd. Things like spas and yoga centers are trending to help people focus on their health even when they travel. 

 

  • Offering hybrid stays 

 

With many companies like LinkedIn and Twitter giving permanent remote working options to their staff, many people are indulging in “workations.” Hotels and the hospitality industry need to offer leisure options and dedicated workspaces in the same place to cater to this crowd. Leisure and business travel are now being blended together to form this new hybrid travel trend, and you need to tap into this market for better business.  


  • Personalized experience with CRM 

 

Hotels need to treat all their patrons with more personalized and customized experiences. A technology selection and use of CRM software will help you quickly respond to your guests' needs and never lose out on business.  

Travel Recovery in 2023

Though the travel industry is recovering, there is still a long way to go before business gets back to its original state. To not lose out on customers in these critical times and highly volatile markets, you need to go that extra mile to get satisfied customers and win their customer loyalty. Plan your strategy and leadership in a way that you can take all of these trends into account to help in your hospitality real estate business recovery. Contact Assetsoft to help you in this journey and manage your projects better for greater success. 

 

Talk to us today to know how we can help!

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