A survey conducted in MAY by Skift for Oracle Hospitality reveals travellers in Canada and the U.S. are ready to shell out for more than just their rooms.
"The pandemic has had a profound impact on the hospitality industry and continues to redefine how travel will look moving forward," said Alex Alt, senior vice president and general manager, Oracle Hospitality. "The great news is that travel is on the rise and consumers are excited to get back out in the world. However, they have new and evolving expectations of what that experience will look like.”
Similar to other surveys, this one shows that three-quarters of respondents say they’ll travel within the next six months, and that domestic travel - especially road trips - will be how most eager travellers plan to dip their toes back into the water after a year at home. Only 20 per cent will travel abroad.
Vaccine rates matter. “No matter the location, 77% noted a COVID-19 vaccination is very or somewhat important in giving them the peace of mind to travel,” says Hotel News Resource, which reported on the survey.
That sense of post-pandemic safety is one factor driving travellers away from hotels and towards short-term rentals. More than half the travellers surveyed said they plan to stay at a short-term rental property in the next year.
- 43% so they can stay distanced;
- 57% for added privacy; and
- 59% for access to a kitchen.
Oracle Hospitality’s Alt notes, “Hoteliers are rising to the challenge to not only delight customers with a great stay, but also come up with services to boost revenue and compete with the growing short-term rental market."
Mid-pandemic priorities on flexible booking policies have been replaced by the hunger for experiences, the survey report suggests, and hotels are evolving to answer that appetite in the travel market - especially to counter the more limited offerings of short term rentals.
Hotel executives reported they’re expanding their offerings, including new dining, entertainment and social activities, in-hotel amenities like pools, upgraded kitchens, and even packaged excursions.
Consumers are all in, with 68% saying they’re interested in spending on products and experiences beyond their hotel room.
The top services travel consumers report they have already or are interested in purchasing from a hotel include some expected responses, like hotel restaurant dining at 92 per cent or hotel bar drinks at 82 percent.
But there are some less expected responses, too, that reveal how travel is changing.
Nearly 80 percent of respondents say they have or are interested in booking a tour or activity with their hotel; 68 per cent tickets to an event; 63 per cent wellness or fitness services; and 53 per cent a subscription membership to hotel services.
In addition, 77 per cent of travel consumers say they have or are interested in an extended stay, and nearly 40 per cent have or are interested in using a hotel as a “temporary office space.”
That has nearly half of hotel executives reporting they believe non-room sources of revenue could represent up to a quarter of their business this year - and another 24 per cent of hoteliers say it could even be up to half of their revenues in the next five years.
