Subscription Model’s Next Destination: The Hospitality Industry

Amidst shifting consumer behaviors in the post-pandemic hotel industry, traditional loyalty programs have diminished appeal, leading businesses to explore alternative strategies such as subscription models. These models provide consistent revenue for hotels, offer luxury experiences to attract customers, and create a sense of exclusivity that enhances brand affinity. With a particular focus on the growing market of digital nomads, subscription models cater to the modern customer's need for convenience and flexibility. Businesses need to consider their target market and conduct a thorough cost-benefit analysis to implement a successful subscription model that boosts customer retention and brand loyalty.

While past summer seasons have proved to be integral in rebuilding the hotel industry following the pandemic, it’s important to reflect on what lessons learned to evolve business strategies. From changes in booking preferences to updated cleaning standards, evolving market conditions are forcing hoteliers work harder than ever before for brand loyalty. That’s why hospitality companies should adjust their tactics to cater to diverse travel options and distinctive experiences.

For example, many hotels are rethinking their loyalty programs. In the past, companies have relied on loyalty programs to secure customer retention. While this was a successful tactic before the pandemic, as customers reevaluate what they are looking for in travel, traditional loyalty programs have lost their appeal. There are fewer incentives for guests, like keyless entry and room upgrades, which leads them to look elsewhere for the best deals.

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The Hotel Yearbook Technology 2023

The 2024 edition of "The Hotel Yearbook (HYB) Technology," curated by EHL's Ian Millar, offers a comprehensive outlook on the emerging technology trends and innovations poised to shape the global hotel industry. It amalgamates insights from a multitude of industry thought leaders, spotlighting key foresight in several tech-oriented fields. This includes anticipated evolutions in the future tech stack, which will drive operational efficiencies, the 'human stack' that explores the intersection of human resources and technology, and the application of Generative AI in creating novel customer experiences. Overall, this HYB edition serves as an essential guide for understanding how technology and innovation will redefine the industry landscape.
www.hotelyearbook.com/edition/technology-2023.html