Digitisation has penetrated every aspect of people’s lives. Digitally native millennials and Generation Z demand a high level of digital offering from hotels. Their appetite for digital experience is insatiable having been born and raised in a highly digital environment. To accommodate them, hotels of the future will look and feel very different from present-day models; futuristic and experiential based.
Hoteliers need to understand the value of digitisation and speed up their efforts to digitise or risk becoming less relevant in the minds of travellers and ultimately replaced by new disruptors.
While it requires significant capital expenditure to invest in technology, it’s a forward-facing decision in order to remain relevant. Investing in innovation needs to be ongoing to keep up with the evolving customer. However, digitisation alone will not suffice, the customer still needs the human touch.
Recently, co-working spaces have been incorporated into hotel offerings. The shift in demographics and increase of freelance professionals have altered the way people want to work. The changing landscape from a service economy to an experience economy means that traditional office space is becoming less appealing. The rise of co-working space coincides with these trends. The value proposition of co-working space aligns closely with the hospitality industry in that they both seek to provide a place of human interaction and short-term rental options.
Hotels that have launched co-working spaces have experienced positive outcomes and this should entice others to follow suit. Co-working spaces can open up hotels to new audiences and generate additional revenue by activating existing spaces. Hotels and co-working spaces seem to be a natural fit; hotels are well placed to capture this market that is in its infancy but proliferating.