1.
THE
PROGNOSIS
FOR MEETINGS
PLANNERS
INQUIRING ON
INDEPENDENTS
A TAKE ON
TOMORROW'S
LEADERS
HOW
MILLENNIALS
WILL
CHANGE
TRAVEL BY
2020
FUTURE HOTEL
DESIGN TO FUSE
OLD AND NEW
TRENDS
AN ANIMATED
GUIDE TO
THE FUTURE OF
CHECK-IN
IN 2020,
HOTEL
BRANDING
WILL ...
STR 2020
FORECAST:
SUPPLY TO
STALL
OCCUPANCY
BOLD PREDICTIONS
FROM HNN
9 PREDICTIONS
FOR THE
GUESTROOM OF
THE FUTURE
ORDER UP!
NEW
ROOMSERVICE
OPTIONS ON
THE MENU
5 HR HURDLES
(AND HOW TO
PREPARE FOR THEM)
CONSOLIDATION
COOKING IN
DISTRIBUTION
SPACE
PRECARIOUS
PREDICTIONS
FOR THE
GLOBAL
ECONOMY
3 MOBILE STATS
YOU NEED TO
KNOW
GLOBAL TRAVEL BY
THE NUMBERS
CONSOLIDATION
IN THE CARDS
FOR HOTEL
INDUSTRY?

2.
3The 2020 Hotel Trend Report
MILLENNIALS’ TRAVEL SPENDING IS UP...
HOW
MILLENNIALS
WILL CHANGE
TRAVEL BY
2020
HIGHLIGHTS• By 2017, millennials will
outspend boomers on
hotels, predicts Jason
Dorsey.
• Mobile devices will
become the sole point
of contact between
hoteliers and their
millennial customers.
• Loyalty programs will
change to adapt to
the shorter attention
span of millennial
guests.
REPORT FROM THE U.S.—By 2020 or sooner, millennials
might dominate the travel demographic. Hoteliers need
to understand the nuances of this group of guests and
be prepared with product and services that meet their
needs and expectations, sources said.
“The number of millennial travelers is significant and
growing fast,” said Jason Dorsey, chief strategy officer
of The Center for Generational Kinetics, a consulting firm
focusing on issues of millennial consumers. “It appears by
2017 millennials will outspend baby boomers on hotels.
This will be a defining moment given that many hotel
brands grew rapidly because of the boomers and all of
a sudden the people with wallets are the millennials.”
According to Anna Blount, research manager at
travel marketing agency MMGY Global, millennials are
already more likely to take vacations than those in older
generations. According to research conducted by the
By Ed Watkins, HNN contributor
CONTINUE READING ON PAGE 4

3.
4
agency, 24% of millennials are planning to
take more overnight leisure trips in the coming
year than in the previous 12 months, she said.
“They are the most passionate about travel;
and they have the most motivation about
why they want to travel; and they are the
ones who want to take more trips, go see
more places and spend more money on
experiences than on things,” she said.
The travel patterns of millennials will shape
strategies of hotel companies in the coming
years.
“Millennials are very used to getting things
quickly and easily without the encumbrances
that perhaps Gen X and the boomers grew
up with,” said Tina Edmundson, global officer
for luxury and lifestyle brands at Marriott
International. “When you think about what
companies Uber or Apple have done for
millennials’ expectations—not just for product
but also for service—it will be incumbent
upon the hotel industry to understand how
that changes what we do.”
According to Dorsey, property-level changes
areinevitableasmillennialsrisetodominance.
“The typical hotel experience today was
designed for baby boomers. You walk in;
someone greets you; and you stand in a
line,” he said. “Millennials never stand in line,
so this (procedure) will be disrupted. There
will be no more lines, and the process of
checking in, looking someone in the eye and
answering the same questions you answer all
the time will all change.”
Dorsey said the mobile device will be
millennials’ sole point of communication with
the hotels they use.
“It’s not just the check-in, but also it will be
how I communicate if I want a drink or a
towel or directions to the gym,” he said.
“There won’t be a need for people-to-people
conversation for millennials once they and
hotels get accustomed to using that screen
as a connection point.”
Loyalty and millennials
Blount said her agency’s research shows
millennials tend to be as loyal to hotel brands
as are members of other demographic
groups. She said 49% agreed with the
statement, “I have a few hotel brands I like
and rarely stay with others.”
Edmundson believes that in many cases
millennials have yet to develop brand
loyalties.
“It’s not that they aren’t loyal; they’re now
in their formative years and are experiencing
the brands that they may or may not become
loyal to in the future,” Edmundson said. “This
is the time for them to experience a wide
variety of brands before they make a loyalty
decision.”
Dorsey sees major changes ahead in hotel
loyalty programs to match the psyche of
millennials.
“Right now, loyalty programs are based on
the number of stays or nights, which is not the
best way to incentivize millennials or build
their loyalty,” he said. “They are much more
into shorter-term rewards.”
CONTINUED FROM PAGE 3
UP NEXT: EXPERTS’ QUOTES

4.
5The 2020 Hotel Trend Report
THE PROGNOSIS FOR MEETINGS PLANNERS
“Five years from now, I expect the hotel meetings landscape will show continued growth and demand. From
the planner perspective I believe hotels will see greater pressure to provide more amenities and services
geared towards the tech-savvy consumer. I believe there will also be more convergence between face-to-face
and virtual meetings.”
—Matthew Marcial
Meeting Professionals International
“When millennials become senior leaders, they will be very different than today's leaders. Twenty-four-hour
news, the Internet and social media, entertainment, the most diverse political/cultural/educational role
models of any generation make their perspectives, expectations, views of the world and contexts for decision
making and leadership very different. Their approaches will be more encompassing and apply more criteria
and considerations as they make decisions and function as leaders. The implications are for greater
inclusiveness, concern for environmental issues and social responsibility, as well as their views of how they fit
into both their personal social and business environments. Among millennials, there is also greater choice and
diversity of levels of ambition and desire to lead than any generation. I am curious and excited to see the
outcomes.”
—Bjorn Hanson
Preston Robert Tisch Center for Hospitality and Tourism, New York University
A TAKE ON TOMORROW’S LEADERS
CONTINUE READING ON PAGE 6
HNN ASKED EXPERTS TO TELL US IN 100 WORDS OR LESS
WHERE THEY SEE CERTAIN ASPECTS OF THE HOTEL INDUSTRY
BY THE YEAR 2020

5.
6
CONTINUED FROM PAGE 5
UP NEXT: FUTURE HOTEL DESIGN
INQUIRING ON INDEPENDENTS
“By 2020, the independently branded hotel segment (will) double in size. No longer will the question from
investors and lenders be, ‘What flag are you going to put on the property?’ Rather, it will be, ‘What’s best for
the asset—build my own brand or leverage someone else’s brand?’ And leveraging an existing brand will be
scrutinized through the lens of what are the incremental benefits to the asset for the incremental costs. The
volume of research on the value of brands will exponentially increase, raising awareness of the independent
options available. Equally important, rapid consumer adoption of the independent hotel experience will drive
demand for more product, including new builds and conversions. And loyalty will be much less driven by points
and much more by experiences, memories and service. However, the segment faces challenges: soft brands
launched by the major chains as alternatives to hard flags, continued resistance from lenders and the
ever-changing distribution landscape.”
—Alex Cabañas
Benchmark Hospitality International
“Firstly, looking at real estate play in the U.K., we have seen continued investor appetite over recent years from
private equity looking to place a large quantum of capital into substantial hotel platforms, reflecting the weight
of capital chasing low interest rates and cyclical upturns. The exit strategy of many private equity houses,
coming to the end of their holding period, will be to bolt on single assets or other portfolios, building critical
mass and restructuring to appeal to real estate investment trusts or looking to initial public offerings. It is likely
that we will see a degree of consolidation through this building process. Internationally, and taking a view of
the operators, it is likely we will see some consolidation in the short to mid-term. Operators can obviously
benefit from many synergies, cost efficiencies and a diverse offering that in turn can drive further opportunities
for growth. With performance looking good in all key, global markets, now would seem a favorable time in the
cycle for any consolidation to take place.”
—Jonathan Langston
Senior director and head of professional services at CBRE Hotels’ London office
CONSOLIDATION IN THE CARDS FOR HOTEL INDUSTRY?

6.
7The 2020 Hotel Trend Report
FUTURE HOTEL DESIGN TO
FUSE OLD AND NEW TRENDS
FIVE EXPERTS SHARE THEIR HOTEL DESIGN
PREDICTIONS FOR 2020.
By Samantha Worgull, Editorial Assistant
Hotel design trends in 2020 will be molded around guest-facing technology and sustainability,
according to five design experts.
Hotel News Now asked the experts to share their thoughts on design trends in 2020, and the
answers ran the gamut from 3-D printing technology to sustainability to the evolution of food-
and-beverage. Additionally, the design trends will be centered on providing a unique and
authentic experience, a trend that is unlikely to go away, the experts said.
“With regards to the U.S.-China climate accord, I see a great
emphasis being placed on the reduction of emissions and the
conservation of energy in 2020 as we work to create dining
experiences within hotels worldwide.
“Energy conservation will start to drive the hospitality industry in
a direction that encourages more awareness of the problem
and an adherence to practices that reduce the carbon
footprint. As rooms have begun to implement automatic
shutoff of lights and other technologies, the use of natural
light in hotel restaurants will begin to reemerge in design. …
“The shipping and freight industries will also be greatly
affected, as designers will look to source products locally to
cut down on costs. This, I think, will lead to a common practice
of working with hand-crafted, and/or repurposed furniture, as
well as locally-grown ingredients. With regards to textile and
product manufacturing, laser and 3-D printing will open up
new opportunities to create environmentally sound textiles
and products that were unimaginable just a few years back.”
CONTINUE READING ON PAGE 8

7.
8
CONTINUED FROM PAGE 7
“While it is difficult to know with certainty the hotel design
trends we’ll see in 2020, I do expect technology to be a major
influencer, and play a chief role, in the way trends are applied.
As an example, with the evolution of technology, we saw flat-
screen TVs replace traditional TVs in rooms virtually overnight.
As a result, this singular piece of technology greatly changed
the way we designers thought through layout of rooms, as
we were able to eliminate larger pieces of furniture, such as
armoires, and replace them with scaled down furniture.
“Currently, a hot topic in hotel design is how to think about
and factor in the traditional check-in desk in hotel lobby
designs. Some properties have chosen to remove the check-
in desk entirely, which impacts the way we play with space.”
“With the rapid advancement of 3-D printing technology, we
will start to see unimaginable possibilities in hotel design by
the year 2020. Casegoods, upholstery and even electronics
printed using this technology in the guestrooms will unleash
exciting opportunities that will change the design process
and the way we think. 3-D printing will continue to embrace
the commitment to sustainability and will further push the
entire industry forward.”
CONTINUE READING ON PAGE 9
“Integration of the physical space with the digital world will
be key in 2020. Some anticipated trends that we’re already
starting to see take shape include:
• Storytelling: The rules are changing. Design isn’t driven
by the new ‘it’ color or motif. Brands today integrate
storytelling into every aspect of the property, from the
public spaces to the guest rooms. This will continue to be
important moving forward.
• The pressure on luxury: The select-service and mid-tier
brands have stepped up their design in a huge way
over the last decade, putting the pressure on luxury to
differentiate itself in a new way.
• The disappearing front desk: We’ll be seeing how brands

8.
9The 2020 Hotel Trend Report
CONTINUED FROM PAGE 8
accommodate guests that want a human touch vs. those that want a tech-friendly check-
in.
• The changing guestroom desk: Guests want flexibility and multiple perch points to work
everywhere—from the bed to a chaise lounge, or chair.
• Evolution of F&B: This will continue to change, with more and more brands discontinuing or
changing the traditional room service experience. For example, The Hotel Americano in
New York offers five simple yet gourmet Bento Boxes for breakfast, lunch, and dinner that
can be ordered on the in-room iPad.
• The Chinese traveler: Brands will continue to design guest experiences around Chinese
travelers - this will include all aspects, from technology to F&B offerings.”
“Color: Color is cyclical, with fashion always leading the trend
in forecasts. Shifts in color will include a focus of over-saturation
of natural hues and a continued use of neutral tones such as
modern greys, helping to create rich and inviting spaces.
“Textureandpattern:Patternswillshiftfromthehighcontrasting
graphics we see today to more visually soothing elements.
Touchable textures will remain the most tactile element of
any space adding warmth and comfort and will range from
soft and rich wovens to heavy, luxurious velvets.
“Design (‘The New Classic’): Abstracting traditional design
elements with a ‘mash-up’ of more contemporary styles
will help to create new and unexpected environments.
Introducing surprise elements and whimsy, but not gimmicks, in
each space continues to play a role in creating a memorable
guest experience. Natural materials will continue to rule with
the lines blurred between indoor and outdoor spaces.
“Authentic experiences: Guests will continue to demand
various amenities but will be more inclined to ‘experiencing’
versus ‘having.’ Sourcing local materials and finishes,
using local artists and craftsmen and incorporating design
elements from the local environment and culture will create
an emotional tie between the guests and the community, its
culture and its history.”
UP NEXT: AN ANIMATED GUIDE TO THE FUTURE OF CHECK-IN

9.
10
AN ANIMATED GUIDE TO
THE FUTURE OF CHECK-IN
REPORT FROM THE U.S.—What will the hotel check-in process look like by the year 2020? Hotel
News Now pulled information from industry sources to find the answer.
While some of their predictions might be perceived as far-fetched, one thing is certain:
Technology is likely to play a large role in the process. (Less human interaction is a likely offshoot.)
Watch as Bill and Anne take you on an animated journey of the future of hotel check-in …
By the HNN editorial staff
UP NEXT: IN 2020, HOTEL BRANDING WILL …
Click to view

10.
11The 2020 Hotel Trend Report
IN 2020,
HOTEL BRANDING WILL …
One thing is certain: Hotel branding in 2020 will revolve
around unique, customized experiences that will test
the industry’s approach to consistency and flexibility.
Several global hotel and branding experts were
asked to complete this thought in 30 words or less: “In
2020, hotel branding will …” Following are responses
we received:
By Jeff Higley, Editorial Director
Sajith Ansar, founder & CEO of Spice Holding Group, which
includes Idea Spice, a Dubai-based branding company
that helps homegrown brands compete and grow rapidly in
emerging markets: “In 2020, hotel branding will revolve around
unique and customized consumer engagements. It will not
be about expressing luxury but about bespoke experiences.”
CONTINUE READING ON PAGE 12

11.
12
CONTINUED FROM PAGE 11
Jonathan Tisch, chairman of Loews Hotels, which owns and/
or operates 23 hotels in the U.S. and Canada that thrive on
having local flavor: “In 2020, hotel branding will need to be
even more specific and transparent so as to effectively put
forth or sell the promise and proposition of a flag. The well-
educated and savvy traveler will have so many choices and
will want to know that their expectations will be exceeded, or
else they will look elsewhere.”
Walter Isenberg, president and CEO of Sage Hospitality,
which owns and/or operates more than 60 hotels in the U.S.:
“In 2020, hotel branding will be incredibly creative. The new
generation of traveler wants experiences and convenience.
Brands will need to learn how to bend the rules to fit each
guest.”
Michael Levie, COO of CitizenM Hotels, an Amsterdam-based
brand with seven properties open and a mission to bring
affordable luxury to the masses: “In 2020, hotel branding will
be as important as it is today—it might look and be achieved
differently. Brand is more than just a name and a logo, or
association with the big brands. Business segmentation will
shift to channel source; ‘gross revenue’ will just be a figure,
‘net revenue’ the real game (difference is distribution cost,
brand fees, online marketing and OTA commission); and
brand service will need to be an ‘experience.”
CONTINUE READING ON PAGE 13

12.
13The 2020 Hotel Trend Report
CONTINUED FROM PAGE 12
Jim Holthouser, executive VP of global brands for Hilton
Worldwide Holdings, which has 4,250 managed, franchised,
owned and leased hotels and timeshare properties, with
more than 700,000 rooms in 93 countries and territories in its
portfolio: “In 2020, hotel branding will be defined less by the
hotel’s physical brick and mortar and more by the consistent
delivery of the brand’s iconography and culture.”
Hamish Dodds, president and CEO at Hard Rock International,
which has 21 hotels: “In 2020, hotel branding will be far more
customized, and while hoteliers will continue to strive for a
strong international presence, they must be aware of the
challenges in ensuring the brand remains consistent across
various markets, all the while respecting and acknowledging
the local culture and interpretation of each destination.”
UP NEXT: STR 2020 FORECAST

13.
14
STR 2020 FORECAST: SUPPLY
TO STALL OCCUPANCY
Rate and revenue per available room will
have grown by leaps and bounds by 2020—
but not occupancy.
Occupancy levels should taper by 2020
thanks to pressure from occupancy ceilings
and supply increases. Supply is expected to
be just shy of 2 billion available roomnights,
with demand nearing 1.3 billion roomnights.
As a result, occupancy is estimated to be just
less than 64%, close to its 2014 level.
Our 2020 forecast anticipates average
rate topping $150, a total increase of
approximately 30% from its 2014 level.
Revenue per available room is projected
to surpass $96, a path fueled mainly by rate
growth.
Overall, we expect a compounded annual
rate growth for RevPAR during this expansion
period to be similar to what we saw in the
1990s. In the 98-month expansion ending
in late-2001, RevPAR grew at an annual
compounded rate of 4.8%. We have forecast
an annual compounded growth rate of 4.9%
for RevPAR for the 93 months beginning April
2013 through the end of 2020.
This forecast assumes no major downturn
brought about by a major unforeseen event
or disaster, be it economic, political, natural,
or otherwise.
Rate should be up 30% in 2020 when compared to 2014
levels, though supply increases will keep occupancy at
about the same level, according to STR Analytics.
By Steve Hennis and Carter Wilson, STR Analytics
CONTINUE TO VIEW CHART

14.
15The 2020 Hotel Trend Report
UP NEXT: BOLD PREDICTIONS FROM HNN
CONTINUED FROM PAGE 14
U.S.OCCUPANCY&AVERAGERATEPERFORMANCECYCLE
12MMA 1988-2020
$150
$140
$130
$120
$110
$100
$90
$80
$70
$60
$50
$40
50% 52% 54% 56% 58% 60% 62% 64% 66%
OCCUPANCY
68%
93-Month
RevPar Expansion
4.9% CAGR
98-Month
RevPar Expansion
4.9% CAGR
DEC 2015
DEC 2020
APRIL 2013
MAR 2001
FEB 1993
FEB1988
Source: STR

15.
16
BOLD PREDICTIONS
FROM HNNBy the HNN editorial staff
Predicting changes in the hotel industry is challenging under the best of
circumstances—let alone under a five-year horizon. But that didn’t stop the
Hotel News Now editorial team from giving it their best shot.
Presented here—with a massive grain of salt—are HNN’s predictions for 2020
Click to view
UP NEXT: PREDICTIONS FOR THE GUESTROOM OF THE FUTURE

16.
17The 2020 Hotel Trend Report
9 PREDICTIONS FOR THE GUESTROOM
OF THE FUTUREBy the HNN editorial staff
Guests will be able to
control temperature and
lighting from their tablet.
There will no longer be desks in the
room because millennial travelers are
more likely to work while sitting in bed.
Guests will have the ability to connect
Bluetooth technology to the mirror in
the guestroom’s bathroom in order to
stream content. Speakers will be built in
to the bathroom’s mirror.
Hoteliers will respond to guests’
increasing awareness of wellness
trends by implementing in-room
fitness stations, which could include a
yoga mat, exercise ball and weights.
There will be no need for a chair
and table due to the lack of
roomservice at hotels.
The guestroom closet will be
deconstructed to make things
more exposed. There is not a need
to hide anything anymore.
There will be more digital art in
the rooms, possibly on the
guestroom’s TV. It will allow for
the ability to easily change the
art and create an added punch of
energy to the room.
Guestrooms will have only hard
surfaces for flooring because
this it is perceived to be cleaner
than carpet.
So long, desks. Bye bye, bathtubs. The guestroom of the future might abandon these tried-
and-true staples (and others) in favor of new space-conscious and tech-savvy upgrades.
Sources: Sara Duffy, interiors associate, Stonehill & Taylor; Marriott’s #BrilliantGuestRoom design winners
UP NEXT: ORDER UP! NEW ROOMSERVICE OPTIONS ON THE MENU

17.
ORDER UP! NEW ROOMSERVICE
OPTIONS ON THE MENU
High costs and tightened guest schedules are prompting
many hotel companies to change their traditional
roomservice offerings.
By Terence Baker, Reporter, Europe
Vince Barrett, VP of food and beverage, New Castle Hotels
& Resorts: “The traditional way we see roomservice will be a
thing of the past for nearly all hotels, except maybe for very
high-end, 5-star-plus hotels and resorts that want to offer it as
a high-end service touch point.”
Barrett believes that within the next couple of years the
major chains will begin to roll out new in-room dining service
standards. He thinks their visions will be similar in their modeling,
but each will have their own sense of brand identity.
CONTINUE READING ON PAGE 19
GLOBAL REPORT—Roomservice in 2020 will, according to sources, look quite different than it
does today.
An indication that huge changes were on their way came with the New York Hilton Midtown’s
mid-2013 decision to discontinue traditional roomservice. In its stead came a grab-and-go
food outlet that also did guestroom delivery not on white tablecloths but in paper bags.
Some predict that in years to come only high-end hotels will continue to provide the type of
roomservice that comes with real plates, tablecloths and portable tables orchestrated by
dedicated in-room dining departments.
HNN asked five hoteliers responsible for an array of product type on three continents to give
their thoughts. This is what they said:
18

18.
19The 2020 Hotel Trend Report
Barrett, who also is MD of New Castle’s purchasing subsidiary
Provender LLC, added the brands’ mobile apps will have the
capability to interface with a hotel’s point of sales system to
provide numerous food-and-beverage options, as well as
several delivery points.
Hoteliers also will look to create retail style spaces within their
lobbies that will act as a grab-and-go option, he said.
Barrett does forecast one major difference.
Barrett also foresees brands looking to have a tiered approach
in regard to the final price paid for in-room dining, providing
guests flexibility in when, how and what they want and how
much it will cost them.
CONTINUED FROM PAGE 18
Duncan Berry, chief executive, Choice Hotels Europe/United
Kingdom: “By 2020, roomservice will still exist, but you’re likely
to be greeted by a hologram and make all transactions via
your smartphone and the next generation of Google Glass.”
For chains with flags that cover several price points,
roomservice will be tweaked, but it will tend to be reduced
in scope across the border, according to Berry, who said that
almost 50% of his hotels are limited service and therefore
do not provide in-room dining, while the other half’s guests
increasingly preferred items such as pizza, followed by other
takeaway food that they also enjoy at home.
“Hotels are providing locally-sourced menus, thereby
encouraging (sustainability) and providing the cutlery, et
cetera, for this at a small charge,” Berry said, equating the
new trend to the practice of charging a small fee to open a
bottle of wine if the restaurant in question does not have a
liquor license.
Berry also predicts flexible offering and grab-and-go options.
“This,” he said, “we are seeing as becoming more of an
expectation from our guests.”
CONTINUE READING ON PAGE 20

19.
20
CONTINUED FROM PAGE 19
Maxine Taylor, executive VP of asset management, The
Chartres Lodging Group: “I believe that we will continue the
trend in moving away from traditional roomservice. Everyone
knows the current roomservice models all operate at a loss
and over the years have become a guest ‘dissatisfier’ based
on long wait times coupled with exorbitant pricing and
delivery fees. Right now, neither the guest nor the owner is
satisfied.
“It’s difficult to say how far technology will advance, with new
and improved delivery and food production options coming
out daily. … Roomservice and other core hotel department
operations will continue to develop and test more creative
food delivery systems. Just in the past several months, 3-D
food printing has gotten a lot of attention. Right now, the
technology seems to revolve around design with food, but
who knows how this technology will evolve. It could be that
food will actually be made in the guestroom using fresh
ingredients. We simply don’t know where this might go, but
it is certainly fun to imagine and discover new answers to
age-old industry challenges. … (I) hope that by 2020 we will
find the right balance for roomservice and land somewhere
between full-service white linen and brown-bag delivery.
Duncan Palmer, regional VP, Europe, Langham Hotels &
Resorts and MD, The Langham, London, responsible for one of
London’s most luxurious properties, said the key to roomservice
in 2020 will be simplicity.
“I do believe that clients will look for lighter and healthier
options when dining by themselves in the comfort of their
hotel room/suite. Very often, hotels make the mistake of
having extensive roomservice menus. When combined with
the distance from the kitchen to the guestroom, the meals
sometimes end up mediocre in quality and very often, hot
meals are served cold,” he added.
But there is one thing Palmer never sees changing: “Quality,
not quantity.”
CONTINUE READING ON PAGE 21

20.
21The 2020 Hotel Trend Report
CONTINUED FROM PAGE 20
Michael Heyward, director of hotel performance support
Europe, InterContinental Hotels Group: “I think roomservice
will be seen less and less. It used to be the case that a hotel
room would have to provide something you would not have
at home, but the lines between the two are getting blurred.”
UP NEXT: 5 HR HURDLES (AND HOW TO PREPARE FOR THEM)

21.
22
5 HR HURDLES
(AND HOW TO PREPARE FOR THEM)
By Patrick Mayock, Editor-in-Chief
HIGHLIGHTS• Millennials are
looking for more
than just monetary
compensation.
• Fostering diversity
in the C-suite
requires a long-term
commitment.
• Rising health care
costs will remain a
major challenge.
The onslaught of challenges facing hotel human resource
professionals shows no signs of abating in the coming years.
Some of the challenges (e.g. labor relations, employee retention)
are familiar. Others (e.g. legislation surrounding social media,
sourcing skilled associates in emerging markets) are more recent.
Others still might not even be on the radar.
The common thread, if one exists, is the need for HR professionals
to tackle each and every one, sources said.
There’s no better time to prepare for tomorrow’s challenges than
today. What follows is a list of HR-related hurdles that likely will dot
the hotel runway by 2020—and suggestions for how best to start
preparing for them.
CONTINUE READING ON PAGE 23

22.
23The 2020 Hotel Trend Report
Challenge: Retaining a fickly millennial workforce
The cohort born between 1980 and 2000
often has been criticized as job hoppers
whose personal ambition exceeds any
semblance of employer loyalty. As they begin
to comprise a larger share of the workforce,
employers must find ways to retain them or
risk costly increases in recruitment.
Solution: Give them what they want (within reason)
Chuck Conine of Hospitality HR Solutions
(and an HNN columnist) said millennials want
more than monetary compensation. Plentiful
growth opportunities (both upward and cross
discipline), great training, having their voices
heard and robust health benefits all dot the
list.
They also want to know their efforts are
contributing to a higher cause, he said.
“Millennials are especially curious about
the world around us. Their causes, generally
speaking, are for improving that world. Things
like sustainability are huge.”
Challenge:‘Obamacare’&risinghealthcarecosts
“The most obvious one is going to be health
benefits,” said Melissa Silvers, principal with
asset manager SCS Advisors, when asked
what challenges HR professionals will face by
year 2020.
“Benefits over the past couple of years have
really gone through the roof.”
Solution:Shiftsomeofthecostburdentoemployees
While not the ideal scenario, many hotel
companies likely will be forced to increase
out-of-pocket employee expenses to stay
afloat, Silvers said. Others might offer tapered
health plans as a means of controlling costs.
“More brands are going to change to that
because their hotels aren’t going to be able
to stay in biz and produce a profit,” she
explained.
Challenge: Fostering diversity in the C-suite
Though notable gains have been made,
many still criticize the hotel industry’s C-suite
of executives as an “old, white man’s club.”
Hotel companies’ executive ranks must
better reflect the increasingly diverse base of
travelers they serve.
Solution: Make a long-term commitment
“Diversity is a not a check-the-box-and-
you’re-finished task,” Conine said, pointing to
the practice of placing a minority executive
in a high-profile position. A better tactic, he
said, was committing to diversity for the long
term.
“Investing in minority college programs,
such as a local community college, hiring,
training and promoting their graduates, for
example, that makes an entirely different
statement,” Conine said. “… The real players
in our industry, both the players that have
established themselves as committed and
those who are coming online, realize it’s a
long-term commitment to the community
the hotel or resort serves so that the property
reflects the diversity of that community.”
Challenge: Sorting through social media
LinkedIn was founded in 2002, Facebook in
2004 and Twitter in 2006. More than a decade
later, hoteliers are still working around the
legal pitfalls that abound when using these
and other social media platforms whether
recruiting, monitoring or employing in some
other HR-related practices. Sue Sanders,
senior VP and chief human resources
officer at asset manager HVMG, said they’ll
continue to work through those issues in the
years ahead.
CONTINUED FROM PAGE 22
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23.
Solution: Stay abreast of employment law
HR professionals should learn from others’
mistakes, Sanders said. The best way to do
that is to keep abreast of employment law
regarding social media in any number of
academic journals, news outlets or HR blogs.
Those lessons learned should be applied to
hoteliers’ own HR practices, she said.
Challenge: Accommodating a mobile workforce
Though pushed to the forefront by millennials,
the trend of associates calling for more
flexible hours and terms of employment
has permeated every generational cohort.
Accommodating those needs is as much
a retention play as it is one of productivity,
as some employees (in applicable positions
such as sales or IT) produce better work while
working remotely, sources said.
Solution: Don’t be afraid to extend the leash
Work-from-home policies and flex time should
beaddressedaswouldanyotheremployment
policy, Silvers said. HR professionals should
establish criteria for acceptable use of the
practice and hold employees accountable
to them.
Sanders is hopeful technology might soon
emerge (if it doesn’t exist already) to help
managers track the productivity of their
remote workforce.
CONTINUED FROM PAGE 23
24
UP NEXT: CONSOLIDATION COOKING IN DISTRIBUTION SPACE

24.
25The 2020 Hotel Trend Report
CONSOLIDATION COOKING IN
DISTRIBUTION SPACEBy Alicia Hoisington, Managing Editor
HIGHLIGHTS• Sources expect
Google to enter the
distribution mix.
• OTAs will have to
compete with online
retailers.
• Sales for private
accommodations
are predicted to be
$1.6 billion in 2018 in
the U.S., according to
Euromonitor.
REPORT FROM THE U.S.—Consolidation might well befall the
online travel agencies, if not outright obsolescence. And
the sharing economy is here to stay.
Those are just two of the predictions for the distribution
landscape in 2020, offered by industry experts.
“Expedia and Priceline will retain their dominance, and
it could be that Expedia outright acquires Travelocity,”
Michelle Grant, travel and tourism research manager at
Euromonitor International and an HNN columnist, wrote via
email.
However, she said the smaller online travel agencies will
remain and fight for relevancy. Additionally, all players
will look to increase supply beyond hotels, focusing on
delivering ideal accommodations to customers.
“I think we’ll see metasearch engines playing a larger role in
accommodation bookings. While Google has yet to make
significant waves in the distribution space, it could be that in
the next five years the company refines its existing products
and launches new ones that are ready for a significant
marketing push, thus making it a significant player in the
distribution space,” Grant added.
“You’re starting to see it. It’s such a lucrative business, these
OTAs, that everybody’s trying to jump in and find an angle,”
said Bashar Wali, president of Provenance Hotels. “And we
all know with the amount of information Google has on
us as consumers, and the amount of money there is to be
made in the OTA world, it would be shocking that Google
doesn’t become a meaningful player in that world.”
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25.
And the competition won’t just come from
the likes of Google, either.
“OTAs will need to compete with generalist
online retailers, such as Amazon and Alibaba,
who will increasingly target the online travel
category due to it representing a large
share of total e-commerce sales,” Angelo
Rossini, research analyst with Euromonitor
International, wrote via email.
Brian Tkac, senior VP of marketing and sales
at Hostmark Hospitality Group, foresees fewer
OTAs—as the channel is defined today—in
the mix.
“But there will always be third parties that
will capture direct market share and take
advantage of weak links in the distribution
chain, similar to today’s meta aggregators,”
he wrote via email.
The sharing economy
Sources said the sharing economy isn’t going
anywhere.
“The sharing economy will be more prevalent.
We predict sales for private accommodation
to be $1.6 billion in 2018 in the United States,
up from $622 million in 2013,” Euromonitor’s
Grant said.
“Suffice it to say the way shoppers shop is
changing every day. In the sharing economy,
think about Uber for a minute and how that
completely disrupted the whole model,”
Wali said. “The traditional way of going on a
site and looking at reviews and doing all that
stuff, I see that becoming cumbersome for
the millennials. It just takes too many steps.
And I truly believe we’ll start seeing the Uber
way being more common and relevant in
our industry.”
And what about hotels being listed on
sharing-economy websites?
“Airbnb has stated that it will be curating
its supply, removing types of supply, such
as hotels, from its listings to ensure that
its marketplace meets its community’s
expectations. It is unlikely that hotels will be
able to leverage Airbnb in the future,” Grant
said.
“Will we ever be on the sharing economy?
Will hotel rooms become part of Airbnb? I
absolutely believe that will be the case. And I
absolutely believe that the sharing economy
is here to stay,” Wali said.
“It may not be Airbnb … but I think there will
be an Airbnb experience for hotels where you
are—sort of like the airline model—buying
based on demand, buying based on what
somebody’s willing to sell a room for and kind
of liberating the experience and making it
really simple,” he added.
CONTINUED FROM PAGE 25
26
UP NEXT: 3 MOBILE STATS YOU NEED TO KNOW

26.
27The 2020 Hotel Trend Report
3 MOBILE STATS YOU NEED TO KNOW
global mobile subscriptions by 2019
(In Q1 2014, there were 6.8 billion.)
Source: Ericsson Mobility Report June 2014 Source: Switchfly and Harris poll to 2,017 U.S. adults Source: Switchfly and Harris poll to 2,017 U.S. adults
Americans will book travel on a
smartphone in the year 2020.
of millennials will book travel
in 2020 using a smartphone.
3 MOBILE STATS YOU
NEED TO KNOW
UP NEXT: GLOBAL TRAVEL BY THE NUMBERS

27.
28
UNWTO: Tourism 2020 Vision
GLOBAL TRAVEL BY THE NUMBERS
Projected Market Share By Region In 2020
GLOBAL TRAVEL BY THE
NUMBERS
CONTINUE TO VIEW NEXT CHART

28.
29The 2020 Hotel Trend Report
Projected Market Share By Region In 2020
SHARE OF WORLD BUSINESS TRAVEL SPENDING: DOMESTIC PLUS OUTBOUND INTERNATIONAL
CONTINUE TO VIEW NEXT CHART
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29.
CONTINUED FROM PAGE 29
30
SHARE OF WORLD BUSINESS TRAVEL SPENDING: DOMESTIC PLUS OUTBOUND INTERNATIONAL
UP NEXT: PRECARIOUS PREDICTIONS FOR THE GLOBAL ECONOMY

30.
31The 2020 Hotel Trend Report
PRECARIOUS PREDICTIONS
FOR THE GLOBAL ECONOMYBy Shawn A. Turner, News Editor
The hotel industry environment of 2020 will no doubt change during the next five years, but in
some ways it will also stay the same, according to sources.
The predictions for 2020 were varied among the four experts to whom Hotel News Now posed
the question: “What will the macroeconomic environment look like for hotels in 2020?”
Their responses ranged from the belief that disruptors such as sharing economy companies will
continue to, well, disrupt the industry, to a significant increase in the amount of global tourism.
Listed below are the thoughts HNN’s cadre of sources had on the subject. Feel free to chime
in with your own thoughts in the comments section below.
• The hotel business has always been an industry that has
seen a lot of change. That’s still going to be the case five
years from now.
• The millennial traveler will continue to send shockwaves
across the industry, and the hotels of five years from now
will all feel like independents, even if they’re branded.
“When someone is traveling to Nashville, they want to feel
like they’re in Nashville,” he said. “When they’re going to
L.A., they want to feel like they’re in L.A.”
• Disruptors will continue to be a big factor in the industry
during the next five years.
• Without saying what the overall economic condition might
be, Merkel said the industry appears poised to continue to
be in a good position in 2020.
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31.
• International travel will be a big influence in 2020, Hartwich
said. Developing nations will continue to develop, and
outbound travel from these countries will continue to
catch up to the United States.
• It’s unclear what will happen with China. Some believe
the country is on the verge of a real estate bubble that is
about to pop. If that happens, it will have a major impact
on international travel numbers in 2020.
• He said it will be interesting to see what happens to Airbnb
and other sharing economy companies during the next
five years. “By then, we will have a great viewpoint on
what that company means for the hotel industry, and I
don’t think right now that anybody knows,” he said.
• Echoing Merkel’s comments, Hartwich said there likely
will be a proliferation of experiential hotels. “If you have
a unique hotel with unique offerings, you can exercise
pricing power,” he said. “With an average Courtyard, it’s
harder to push rate too far from the competition.”
CONTINUED FROM PAGE 31
• Millennials will be a key demographic in 2020. In the
Americas, the Latin American traveler will be driving a lot
of demand for hotels, Freitag said.
• There will be many more “transparent travelers” in 2020.
That is, those travelers who are willing to give up information
about themselves in order to make travel easier. “TSA and
Global Entry are the first signs of that,” he said.
• Long-haul aircraft will continue to improve, and airlines will
focus more on point-to-point markets, such as Southwest
Airlines does with its model. The hub-and-spoke system will
not be as big of a focus.
• Using the term “downturn” to describe the hotel industry
in 2020 might be a tad too strong, he said. “If there are no
demand shocks, it’s going to be a soft landing,” he said.
• Asia will continue to gather momentum, while there will be
“pockets” of strength in Africa. Europe and America will be
“cruising along” while Germany will be a “powerhouse.”
32

32.
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