Hotels' Biggest Challenges, Luxury's Evolution: Ask Skift's Most Popular Questions
We have answers to some of Ask Skift's most popular questions, including what are the biggest challenges hospitality faces and how travel brands are using social media to attract younger audiences
Here are three of the most common questions our answer engine Ask Skift 2.0 has fielded recently and a brief summary of the answers it provided.
What Are the Challenges Facing the Hospitality Industry?
High construction and operating costs are slowing the development of new hotels, especially for independent brands without access to capital. That's contributed to a constrained supply environment, which helps keep room rates high but limits growth potential for hotel brands.
Labor shortages remain one of the hospitality industry's most pressing issues of the most persistent hurdles for hotels worldwide. JLL's operator survey, based on more than 1,000 hotels across 20 Asia-Pacific countries, found front office and food and beverage positions to be the most difficult to fill.
Sustainability is also a major concern for hotel executives, but there's a notable gap between ambitious corporate commitments and on-the-ground action. While a joint report from the World Travel and Tourism Council and Greenview revealed that 90% of 20,000 hotels surveyed worldwide have a plan to cut greenhouse gas emissions, only 6.1% of those hotels use renewable sources for their energy needs.
In addition, global economic turbulence, including concerns about a possible recession, has created uncertainty for hotel operators and investors. Rising interest rates from historic lows have tightened access to capital, particularly for hotel development requiring lending from regional or local banks and investors.
How Is Luxury Travel Evolving, Particularly With Younger Affluent Travelers?
Affluent travelers are increasingly focusing on experiences over lavish accommodations or luxury shopping. About 63% of luxury travelers are likely to seek out adventurous activities, according to Skift Research and industry surveys.
Research Analyst Saniya Zanpure wrote that the trend has become more pronounced among younger generations, those aged 18-44, who account for 67% of bookings and 70% of spending among affluent travelers.
As the definition of luxury is expanding to include wellness, sustainability, and a focus on substance over spectacle, Research Analyst Robin Gilbert-Jones noted a trend toward "quiet luxury." Gilbert-Jones wrote younger and wealthier travelers are seeking cultural connections, authentic experiences, and environmental consciousness.
What Are Travel Brands Doing on Platforms Like TikTok and Instagram to Attract Younger Audiences?
With some content creators acting as travel advisors and booking agents, brands are increasingly partnering with creators who can offer niche expertise — in fields such as food or adventure travel — and equipping them with tools to enable direct bookings.
Regarding booking capabilities within social platforms, Expedia Group announced this month it's launching Trip Matching, a feature on Instagram that would allow users to book travel based on videos from the social media app. Travelers would be able to share a publicly available travel-related Reel with the Expedia account on Instagram, and then AI would generate itineraries and travel tips based on the video.
Brands are also shifting more of their marketing budgets from traditional channels toward social media. That trend is expected to pick up as members of Gen Z and millennials represent a larger share of travel spending.
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