Consumer behavior is constantly shifting.

However, once in a generation, an external event occurs that transcends the boundaries of a consumer behavior shift and can reshape an entire experience.

The past two years, spurred by a global pandemic, have dramatically reshaped the relationship between consumer behavior and hotels.

This transformed relationship becomes more evident as travel demand returns to pre-pandemic levels.

Driven by rising consumer confidence, pent-up demand, and accumulated savings, the way consumers spend has changed forever, impacting the hospitality distribution space.

Specifically, the most impactful transformation in the hotel distribution space, stemming from new consumer behaviours, is centred around implementing and enabling tech-enabled solutions to mirror reshaped demands.

With my extensive experience in tech-enabled hospitality businesses, here are my takeaways:

The case for greater digital adoption in hospitality

In 2021 alone, 40 million new users online – a number greater than the populations of Canada, Poland, or Malaysia.

This surge in online users brings internet penetration in Southeast Asia (SEA) to 75%. As a reference, Europe was sitting at 82.5% in 2019.

Unsurprisingly, pandemic-influenced digital adoption led to a marked increase in online grocery shopping, learning, and home entertainment interaction globally and regionally.

According to a McKinsey study, e-grocery shopping will sustain its allure for many consumers despite the easing of pandemic restrictions.

On the flip side, the same report highlighted that remote learning, air travel, dining, and live entertainment would revert to pre-pandemic levels.

Digger deeper, changes to operations for food and beverage outlets as a result of constant closures and re-openings and seating restrictions caused by the pandemic have forced more profound and long-term changes to the dining-out experience.

Encouragingly, the more agile operators have adapted by embracing basic takeaway options or by creating restaurant-like experiences at home.

Highly innovated operators went a step further, transforming business models to a full cloud kitchen concept.

In our view, steps taken to reduce the proportion of revenue linked to real estate are a positive development.

However, more can be done.

The pandemic has shown that food and beverage operators could branch out further and create their own e-store, offering private in-home catering built around their signature dishes, a curated wine selection, and even online cooking tutorials.

More significantly, heightened online usage also redistributed the audience profiles of many consumers.

Cloudflare’s radar project revealed that, in 2021, TikTok was the most popular domain, surpassing the traffic of Google or Facebook.

While marketers need to adopt this growing platform, they also need to ensure they remain agile and engage with their customers where they are, keeping in mind their behaviour changes faster and faster.

Work from home and virtual meetings – a thing of the past or the ‘new norm’?

Humans are social creatures, and two years of isolation is significant. Hence, more time and money will exit the home and into the physical economy as restrictions ease further.

Speaking earlier this month, Sebastien Bazin, Accor’s CEO, predicted the decline in activity from international travelers, as the adoption of Zoom and Teams soared in the last 26 months, will be compensated by domestic demand.

According to an Accor internal survey, while most employees do not want to go back to the office five days a week, 70% do not want to work from home either. Enter the hospitality space to meet this challenge.

Bazin expects the newly agile workforce will increase working hours in hotel lobbies, bars, or restaurants.

He bets his hotels, mainly located in major cities, will be busy with local demand from 9am to 9pm, driven by local demand.

His hotels will compete with venues like Starbucks, which has catered for that particular demand for the last ten years.

With this new audience, operators should strategize how to best capture additional revenue opportunities such as valet parking, health club, concierge services, or laundry services.

If the preference for virtual meetings remains, hotels may need to consider whether their costly but underutilized meetings and events spaces are fully optimized.

One trend worth considering is the creation of private clubs in such prime areas, as city hotels have the locations, facilities, and service staff to operate them.

There has been considerable growth in demand for such venues in recent months.

From omni channel to omni presence

Transformational global events have and will continue to reshape the foundations of consumer-focused industries like hospitality.

The aftermath of September 11 was a catalyst for leveraging e-commerce to maximize room night sales.

The recovery from the pandemic can have the same impact on the distribution of hotels’ goods and services and present an opportunity to move from omni-channel to omni-presence.

Resources will be needed to upgrade the tech stack currently in use.

Marriott signaled its ambitions in November 2021 by signing an agreement with Amadeus to modernize its reservation and commerce infrastructure.

With hotel stays being increasingly marketed as experiences, hotels that enable guests to purchase complementary products like spa and golf when booking a stay will gain a competitive advantage.

The next phase of this project will also enable guests to purchase other items such as the desk lamp or lounge chair of their favorite hotels or resort.

Integrating the booking and fulfillment process with partners such as ShopBack, a fast-growing cashback reward program with multiple travel and hospitality offers, will increase market presence.

The digital future is now

A distribution strategy limited to selling rooms through a branded website, online travel agents or the GDS is outdated.

The time for hotels to get creative is now.

Operators need to keep a closer eye on technological developments, the competitive landscape and consumer behaviours before committing proper resources to transform and modernize practices.