2024 marks a pivotal year for the hospitality industry, where innovation and adaptability will be the keys to staying ahead in a dynamic landscape. As we step into the new year we want you to be prepared by learning the upcoming trends. In this blog, we'll explore some key trends that are expected to shape the landscape of the hospitality and short term rental industry in 2024. We will be focusing on the integration of AI, the rising importance of flexibility, hospitality solutions, and the evolving landscape of Online Travel Agents (OTAs).

The AI revolution

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In 2023 everyone has noticed the fast growth of AI in their daily lives. This rise has become very apparent worldwide. About 35% of companies are using AI and 42% of companies are exploring AI for its implementation in the future.
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In 2024, this AI revolution is about to unfold in the hospitality industry as well. AI-powered chatbots and tools are becoming more common on OTAs for reducing wait times and providing personalised recommendations. 

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There are a couple of new AI features for OTAs to be expected in 2024, here we talk about the plans of 3 of the biggest OTAs: Booking.com, Airbnb and Expedia. 

Booking.com’s AI Trip planner

The launch of Booking.com’s AI Trip planner is going mainstream in 2024. Right now the beta version is only available for a select few Genius members in the US. The AI Trip planner is a new feature that will provide travellers with a visual list of destinations and accommodations, combining the online travel agency's existing machine learning models with OpenAI's ChatGPT application programming. Travellers will be able to ask the AI Trip Planner general travel-related questions and also ask about more specific topics to help them throughout their whole planning process.
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Airbnb’s new AI integration

Airbnb has made a groundbreaking move by collaborating with GamePlanner.AI. 
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The specifics of their collaboration are not yet made public. But most likely it is  Airbnb's intention to also create a personalised travel concierge service. This could enable Airbnb to provide tailored travel recommendations, integrating past preferences, reviews, and real-time data for a better travel experience.

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Expedia’s Project Explorer

Expedia’s Project Explorer is now being tested and is expected to come out at the end of 2023. The new feature will curate trips based on different budget tiers, location, time of year, and interest. 
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Expedia will also use generative AI to go through reviews and property listings in response to questions or prompts. This way Expedia wants to enable users to easily ask questions, like whether the hotel they are considering has strong Wi-Fi or coffee machines, and immediately get a conversation-like response. 

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What should you do with this information?

It is important to stay on top of these innovations, so you can make changes to your listings on OTAs as quickly as possible. This is something that Otamiser is specialised at. We follow the trends closely and update our clients listings where needed, to keep ensuring their top positions on the OTAs. 
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You could also embrace this revolution by looking for AI integrations you could implement for your own channels. For example there are many tools to help you install an AI chatbot on your website to help guests get answers more easily, as this is something that people value ever more. 

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Strategic Investments: Hospitality Solutions

Since the industry is becoming more and more dynamic and trends are changing faster than ever, you must implement tools that help you stay in touch with the market. 

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Advanced revenue management system

There are 2 hospitality solutions that are becoming increasingly important in this data driven landscape. First of all, advanced revenue management systems. These solutions enable dynamic pricing strategies and optimising revenue in real-time. A good revenue management helps you get more bookings for better prices based on factors like weather conditions, flight statistics, events, and much more. The more parameters the revenue management system uses, the better it will perform and help you increase your revenue. 

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There has been an increase in last-minute bookings, as travellers seek to take advantage of lower prices and more flexible booking options. Forbes states that in the first three months of 2023, 63% of bookings were same-day bookings. This trend is expected to continue into 2024, as consumers become more accustomed to the convenience and cost savings associated with last-minute bookings. To grab these possible visitors, your prices have to be optimised in real-time. That is another reason why choosing the right revenue management system is crucial now, and even more in the future. 

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Ranking management system

But also since the number of listings on OTAs is going up, it is important to boost your visibility on those channels by using a ranking management system. There is a first ever algorithm that cracked the code of Booking.com and other OTAs and discovered how it can get listings on the top positions of the ranking. This not only boosts visibility a lot, but also on average gives properties 24% increase in revenue, due to more bookings. 

OTA Evolution: what to consider for your OTA mix

Online Travel Agents (OTAs) are evolving. The implementation of AI is one example, as we discussed in the beginning of this blog. Next to that, unique property types such as tiny homes, caves, castles, and other original rental types are becoming more popular. Airbnb has seen an 80% increase in nights booked for unique property types. 
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Additionally, the rise of niche tourism sectors, such as wellness retreats, adventure travel, and cultural tourism, is predicted to create a surge in niche OTAs, focusing on these specific travel segments. We already start seeing a trend of increase in bookings through the smaller, more local and more specialised OTAs. 

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You can take a look into what kinds of OTAs exist and which of those fit your properties. There are a few guiding factors to help create or rethink your strategy. We recommend connecting to at least six channels and diversifying these channels to include global, regional, and niche OTAs.
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The global OTAs, like Airbnb and Booking.com, attract hundreds of millions of visitors monthly. That is why they are vital for increasing traffic and visibility. Regional OTAs attract visitors from specific domestic markets. Niche OTAs on the other hand target specific audiences and are often the most lucrative part of OTAs. 

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Being active across different OTAs helps increase a property’s visibility and familiarity amongst travellers researching a trip, increasing the likelihood of receiving a booking, either directly on their website or indirectly via an OTA.

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The right channel mix is important for your revenue management. To learn more about OTA in revenue management, and how it should be done correctly, you can read our blog.

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Prepare for the future of the hospitality industry
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As we prepare for the future of hospitality in 2024, embracing these trends will be crucial for staying ahead of the curve. The integration of cutting-edge technology, strategic investments in hospitality solutions, and adapting to the evolving landscape of OTAs are crucial steps in ensuring success in the dynamic and competitive hospitality industry. So, here's to an exciting and transformative 2024 for the world of hospitality!