Industry Update
Supplier News 1 February 2017

The increase in online sales in the hospitality industry will exceed 20%

Announcing the Hotel Marketing & Technology Trends 2017

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Profitroom

The year 2017 promises to be prosperous for the hotel industry in Central Europe. Growth can be expected in many areas, especially in online sales where the increase could even exceed 20%. In the coming year, hoteliers will focus more on direct sales, sustainable development and the use of modern technologies aimed at optimizing profits. The above forecasts can be found in "Hotel Marketing & Technology Trends" - the fourth publication of the series prepared by Profitroom experts in cooperation with their partner - the consulting company Deloitte.

This year's report includes 13 trends in the areas of technology, marketing and sales, which will have a direct impact on the functioning of hotel facilities in 2017. These include, among others VR technology, the increasingly popular livestreaming, or the use of emotions in marketing communication that is also gaining popularity in the industry. Taking advantage of these trends will help hoteliers present their facilities in an attractive way against those of their competitors and encourage potential guests to pay a visit.

Just as it was the case last year, 2017 will bring a growth in sales of hotel services through Internet sales channels. Hoteliers will take action to increase sales through direct booking via their hotels' websites. What will motivate them to do so? - "We live in uncertain times. Direct reservations, strong hotel brand and the ability to directly get in touch with the guest is a kind of insurance policy against the downturn. It is not only a financial, but also a strategic requirement", said Marcin Dragan, Profitroom Managing Director.

When planning marketing activities for 2017, one should also take into consideration the technological changes. Currently, the market is dominated by mobile devices. As you can read in Hotel Marketing & Technology Trends, in 2016 up to 51% of the websites were displayed on tablets and smartphones. "These results confirm that nowadays having a website tailored to mobile devices is a necessity. For Internet users it is important that the website loads quickly, is clear and legible, as well as user-friendly and properly designed for convenient viewing on small screens. These are very important issues confirmed by Profitroom research which showed that if a mobile website is not working properly on devices with smaller resolution, up to 40% of users may stop viewing it and go to another site"- pointed out Magdalena Majchrzak, Profitroom Project Manager.

According to Deloitte experts one of the trends that will have an increasing impact on the hotel industry is the functioning of the closed circuit economy. The idea regards mainly the production chain, but it can also be used in the service sector, including the hotel industry. The closed-circuit business model proposes a series of actions that allow to increase resource efficiency, extend product life, avoid the production of unnecessary waste and contribute to the development of innovation. Examples of such activities in the hotel industry include using sources of renewable energy and implementation of an effective strategy for waste management, with an emphasis on minimizing food waste and its reuse for energy production. In Poland, there are already a number of hotels operating in accordance with the principles of sustainable development. "The economy of the closed circuit is a challenge, but also a huge opportunity for the hotel business. By applying such a strategy hotels may stand out against the competition and demonstrate their commitment to sustainable development, to which modern consumers are increasingly sensitive and which they increasingly take into consideration when making their choices", says Julia Patorska, Senior Manager in the Deloitte Sustainability team.

This year's publication of "Hotel Marketing & Technology Trends" also contains specific instructions explaining how hoteliers can use the upcoming trends in their business.

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About Profitroom:

Profitroom has been active in the hospitality industry for over 10 years now, serving more than 1500 hotels in various parts of the world. Profitroom specializes in providing solutions maximizing hotels' profits.
They provide, among others, one ofthe most popular reservation systems in Europe - Upper Booking Engine, design award winning hotel websites and offer marketing services to hotels.
In recent years, the company has gained trust of the most respected independent hotel brands and won awards for both their products and designs. More details on http://www.profitroom.com/about-us

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