The hospitality industry is one of the most important to communities, offering an extensive range of career opportunities and improving the customer experience in all types of accommodation. In light of the latest demands for sustainability, digitalization, and ease of mobility, hospitality has undergone a major shift in products and services since the COVID-19 pandemic.
The industry is not limited to accommodation; it also extends into sectors such as tourism, event planning, and wellness. Each business targets different customers, so it crafts its offerings for the audience, country, or age bracket that defines the audience.
Therefore, hospitality is a pretty tricky industry to work in and thrive in, especially given the competition. Luckily, entrepreneurs and visionaries have access to efficient tools, such as artificial intelligence or augmented reality, to improve, so here are some strategies that can help them keep up with the competition.
AI and the advantage of automation
Artificial intelligence is everyone’s safety net these days, as the technology is constantly improving by addressing previous challenges. For example, regulations are becoming clearer about how companies use these tools to protect consumer data and follow the basic guidelines of a tech firm.
In hospitality, AI is used by both customers and entrepreneurs to enhance the experience. Individuals, for example, can access AI-based applications to improve their booking journey, benefit from price monitoring, and better detect scams. On the other hand, businesses can improve the customer experience by introducing AI-powered chatbots, dynamic room recommendations, and personalized offers.
In addition, AI is highly useful in hospitality management through tools such as built-in CRM (Customer Relationship Management) and Proposal Management. According to https://grandsystems.com/en/, using a cloud-based hotel management system is necessary to streamline operations, along with forward-thinking management.
Sustainability and the customer demand for responsibility
The World Sustainable Hospitality Alliance highlighted how climate change is affecting hospitality, including increased operational costs from extreme weather events. The organization also determined that the industry should reduce emissions by about 66% by 2030 to limit its contribution to climate change.
Some ways this could happen include a multidimensional approach in which hotels actively reduce their carbon emissions, governments promote and ease access to renewable energy, and architects push for sustainable building designs.
Companies in the hospitality industry should focus more on sustainability to remain competitive, since customers value products and services that are responsibly produced. The shortage of natural resources is a growing concern for communities.
The prioritization of wellness and health beyond “self-care” trends
The term self-care is more than what we see on social media; its importance lies in how it’s done. So, if hospitality wants to remain relevant for customers and help them in the right way, they should introduce more products and services that truly serve human wellbeing, such as:
- Prioritizing sleep by creating special rooms to optimize sleep, as well as providing monitoring devices to give insight into sleep patterns;
- Focusing on hygiene with air purification systems, antimicrobial materials in high-contact areas, and advanced disinfection;
- Experimenting with dining options that improve nutrition, having spaces suitable for meditation and relaxation;
The implementation strategy should include the process of identifying which potential customers would prefer more, based on their needs. Entrepreneurs can leverage marketing and data collection to better understand their audiences and tailor wellness services. For example, if we separate audiences by age, wellness services are considerably different for Gen Z than for Gen X.
Adapting spaces according to the science of architecture
Many hospitality companies, whether hotels or wellness facilities, recognize the impact that architecture and interior design have on their success. Space, light, and geometry are crucial in making people feel a certain way, and in most cases, the missed opportunity to build a loyal customer base lies in management’s inability to put themselves in the customer’s place.
Sometimes, even poor lighting can affect the entire vibe of the room, let alone outdated furniture or inefficient decor. If we take a look at what some of the most well-known hotel designers have done, we can imagine what a welcoming building would look like:
- Tara Bernerd focuses on holistic layouts and attention to detail, as seen in The Hari Hong Kong;
- Lyndon Neri and Rosanna Hu combine functionality with aesthetics in a pleasing way that we see in the Zedwell Piccadilly hotel;
- Kelly Wearstler is known for her boldness and richness in interior design, as she’s behind the interiors in Avalon Hotel in Beverly Hills;
What are the leading challenges in hospitality in 2026?
While improving the many factors of aesthetics and functionality in hospitality is necessary, some issues simply cannot be solved like that. For instance, the staffing and efficiency squeeze are making it difficult to balance a company’s ability to retain talent. On the other hand, the long working hours and seasonal contract employees contribute to a lack of satisfaction.
Businesses must refine their hiring strategies and work with training institutes or hospitality schools to access talent. However, training methods are equally important for supporting employee engagement, so make sure to cross-train people through a structured training and onboarding process.
Finally, the competitive pressure to provide experiences rather than simple products and services might confuse entrepreneurs about what customers need. Building innovative and creative entertainment attractions, or being open to customer wellness ideas, should cover what the future holds for hospitality. Being more flexible can create opportunities for growth and attract customers, but finding a balance between the internal mission and external pressure is more important.
Final considerations
The hospitality industry is singlehandedly supporting sectors like tourism or business travel, but it might need a touch of modern technologies and efficient approaches to evolve. Some focus on using AI to improve management and enhance sustainability, while others emphasize the importance of unique spaces and the quality of our wellness offerings. Navigating challenges such as the shortage of long-term staff or competitive pressure can be difficult, but companies can address them with the right tools.
