Hospitality Industry between Dream and Profitability

4. Market Trends in the Hotel Industry and Investment in Human Capital

The hotel industry is going through a dynamic period, influenced by changes in traveler behavior and the global economic context. As an investor, it is important to know these trends to understand the medium and long-term potential of a hotel:

Strong post-pandemic recovery: After the severe decline in 2020, global tourism has returned to close to previous record levels. In the first 7 months of 2024, the number of international tourists reached 96% of the pre-pandemic level, with 11% more travelers than in 2023. This robust recovery, despite some economic and geopolitical challenges, shows that the demand for travel remains high and resilient. The World Tourism Organization has estimated that the year 2024 marks the full recovery of global tourism after the pandemic, confirming that people want to travel intensively again. For investors, this translates into solid demand for accommodation services, both in major cities and in holiday destinations.

Sustained growth and investor confidence: Globally, interest in hotel acquisitions has returned with force. In 2024, global demand for hotel assets increased by 16%, and cross-border capital (investments from international funds) exploded by 55% compared to the post-pandemic period (CBRE – Full Year 2024 Global Hotel Capital Flows). In addition, market studies (Global Hotel Investor Intentions Survey 2024) show significant investor optimism: over 50% of investors surveyed plan to increase capital allocation to hotels, attracted by profit prospects and price adjustments in the market. These figures indicate a strong appetite for the hotel sector, now seen as an opportunity to obtain better returns compared to other real estate segments or bonds.

The “bleisure” trend and the new mixed demand: Travelers’ habits have changed. More and more people are combining business trips with vacations (business + leisure = bleisure), extending their stays after work meetings to relax and explore the destination. This trend means longer stays and better occupancy on weekends for hoteliers, even in traditionally business-oriented hotels. Remote work has also opened up the opportunity to work from anywhere – some professionals choose to stay in a new city for a few weeks, working from the hotel or a shared space and exploring in their free time. This flexibility is generating new demand for hotels, which are adapting by offering co-working facilities, excellent WiFi and internet, and comfortable rooms for extended stays. Local experiences and customization: The modern traveler is increasingly looking for authentic experiences. Boutique hotels, themed properties or those integrated into the community are capturing the interest of travelers who want to feel the local spirit. Even large chains are personalizing the experience – from inspired interior design, biophilic design, design based on local culture, to tours and activities organized for guests. For an investor, this means that there are niche opportunities: a hotel that offers something unique (for example, a restored historic building, a sustainable eco-resort or a modern “smart hotel” concept) can attract the right market segment and stand out from the competition. The general trend of increasing tourism spending is also visible in economic data – in 2024, international tourists spent 11.6% more than in the previous year (World Travel & Tourism Council (WTTC)), exceeding $1.9 trillion globally (World Tourism Organization (UNWTO)), a sign that people are willing to pay for quality accommodation and special experiences. Major events and their effect: The hotel industry directly benefits from major international or local events. For example, a World Cup, the Olympic Games, music festivals such as UNTOLD, art festivals such as TIF or gaming festivals such as E-Fest, large conferences, large socio-political gatherings, etc. attract tens or hundreds of thousands of visitors, increasing the occupancy rate and hotel rates in the host cities. In the coming years, more such global events are scheduled (e.g., the 2026 World Cup, the 2028 Olympics), which will boost hotel revenues in the respective regions. On a local level, if the chosen city becomes the center for a European sports event or an IT hub with international conferences, the hotel you have invested in will feel the positive increase in demand. Paying attention to tourism and event trends is part of the strategy of any informed hotel investor.

Example: During the 2024 Roland-Garros tournament, five-star hotels in Paris recorded remarkable financial performance, benefiting from the influx of international and local tourists attracted by the prestigious sporting event. According to available data, luxury hotels in Paris achieved occupancy rates of up to 85.5% between July 23 and August 6, 2024, an increase of 16.5 percentage points compared to the same period in 2023. This positive trend was supported by effective revenue management strategies, including dynamic price adjustments and special offers for the tournament period. During the event, average hotel room rates increased significantly. For example, packages for the 2025 French Open at five-star hotels such as Shangri-La Hotel Paris and Four Seasons Hotel George V were priced at approximately $3,185 and $3,495, respectively!! These packages included not only luxury accommodation, but also VIP tickets to matches and other exclusive benefits, attracting a clientele willing to pay for the complete experience.

Overall, the global hotel market is growing and transforming, supported by people’s desire to travel and live experiences, the rapid adaptation of hotels to new demands, and renewed interest from investors in the sector.

Human capital

No matter how far innovation goes, hospitality remains a deep human field. The future does not belong to the most automated hotels, but to those who know how to use technology to give more space to authentic connection.

As millions of new travelers enter the global landscape, the available workforce is becoming increasingly scarce and diverse. Companies must adapt to a reality in which employee ages, cultures, and expectations are constantly changing.

In a competitive market, attracting and retaining talent requires more than attractive offers. People are looking for jobs where they can grow, contribute, and be part of a meaningful story.

Professional training is no longer a luxury, but a necessity. Dual learning models, continuous learning, and soft skills development define the new profile of the employee ready for tomorrow’s hospitality.

Hospitude: the attitude that makes the difference

It’s not just technical skills that matter, but also attitude. Leaders who inspire, employees who empathize, and teams that communicate are the key to transforming simple services into memorable experiences.

Automation is making its way into operations, but the real challenge is another: how do we reposition human roles to highlight what robots can’t offer — warmth, creativity, intuition?

The brand promise is no longer just a marketing campaign. It’s the daily behavior of employees. The guest experience is directly proportional to the employee experience.

New generations want more than a salary — they want to work for organizations that do good, not just profit. Hospitality that integrates sustainable values ​​into its culture will have a clear competitive advantage.

Managers are no longer mere supervisors, but orchestrators of experience. Frontline employees become brand ambassadors. Roles are fluidizing, and collaboration replaces hierarchy.

Technology may change the framework, but the essence remains the same: hospitality is about people taking care of each other. And companies that invest intelligently in their people will be the ones that will be memorable.

The Manager of the Future

In the future, that has just begun, the manager will need to be:

• Empathetic and efficient at the same time.
• Open to technology, but also able to create authentic relationships.
• Able to understand global culture and manage diverse teams.

In an industry where housekeeping or cooking can be outsourced, the true value will lie in the manager’s ability to orchestrate emotional experiences for guests.

In increasingly digitalized hospitality, the real difference is no longer technological efficiency, but authentic human connection. Technology now takes over repetitive tasks — automated check-in, logistics management, or room allocation — freeing up employees for what really matters: personal relationships with guests.

The new trend in premium hospitality is clear: luxury is no longer just about material comfort, but also about personalized attention, empathy, and memorable gestures. Guests increasingly appreciate moments of human authenticity, those subtle details that transform a stay into an experience worth telling.

The future of luxury hospitality emphasizes emotional intelligence, creativity, and the ability of employees to create unique moments. Automation does not replace human magic, but rather enables it, giving it space to manifest.

The challenge for hospitality managers is and will be to invest in technologies that not only streamline but also amplify opportunities for real human interaction. In a future dominated by automation, the most precious experience will remain an authentic gesture, an unexpected attention, a moment of sincere emotion. We will continue to debate about human capital with the best experts from the Hotel University of Lausanne (EHL), from St Francisco State University and from ASE Bucharest, on the occasion of the INVEST summit on November 19-20 this year (www.inv-est.eu)