Hotels need to think local

Get this right and guests no longer feel like they’re staying in a hotel; they feel like they’re living in the area temporarily (which is what they want)

Apr 15, 2024

The 2023 American Express Global Travel Trends Report found that 79% of Gen-Z and millennial respondents want to experience local life while traveling, and 86% want to support local businesses. Despite this strong demand, only a few hotels have fully embraced neighborhood tourism.

Key takeaways

  • Hotels face a myriad of challenges such as rising utility costs, labor expenses, and the need to increase salaries. However, prioritizing a localized approach should also be on their agenda. This approach is not only ethically rewarding but can also bring significant returns to the business;
  • Smaller independent hotels hold a notable competitive edge over larger competitors. While they have historically struggled to match the purchasing power, marketing capabilities, and refined offerings of multinational chains, the current trend favoring localized experiences could become their strength;
  • That's not to suggest that international brands should be left behind. They may need to exert more effort, but there's no reason they cannot embrace localization as effectively as smaller hotels. Regardless of the business's size, certain key elements should be taken into account.

Get the full story at Hotel Business

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