The global hospitality market is projected to grow from $4,673.63 billion in 2023 to $4,993.71 billion in 2024, representing a compound annual growth rate (CAGR) of 6.8%. (The Business Research Company) This steady growth is driven by increased leisure and “bleisure”(business+leisure) travel, rising international tourism, and higher profits fueled by demand recovery in key regions like the Middle East and Europe. Technology integration, sustainability initiatives, and strategic property conversions enhance operational efficiencies and address supply constraints amidst global economic uncertainties.
Each fall, I ask the senior class of the Fritz Knoebel School of Hospitality Management of the Daniels College of Business at the University of Denver to give me their perspective on the future of their industry while facilitating an annual retreat there. Dr. David Corsun, PhD, is the director of this unique program, which focuses on social impact and humane management practices. He has led this initiative to benefit his students.
Over the last six years, my team and his have co-created an annual experiential retreat called the Fritz Leadership Symposium, which includes a two-day live retreat focused on articulating personal purpose, culminating in the students presenting “vision pitches” for how their industry, lives, and livelihoods will look in the future.
Here is a summary of ideas on how the class of 2025 sees hospitality evolving in four categories by 2034:
- Planet – Mandatory composting and recycling in all restaurants. Farm-to-table resorts and sustainable tourism- focus on impact and ESG (Environmental, Social, and Governance). More plant-based foods. Implementing gardens into restaurants healthier and more sustainable food options. No more plastic (boxed water instead of plastic. Roofs painted wait to reflect sunlight/heat -building powered by renewable energy (electric and hydrogen). Self sustaining hospitality in house gardens.
- Products and Services – Create a platform for all travelers to add ‘personal’ details of what they like via social media apps so we can get to know guests before they arrive. Upgrade airplane F&B options. Getting ahead of guests’ needs with AI predictions. Efficiency with AI while maintaining a strong sense of interaction with real people. Build sustainability practices into all products and service. AI system to track the emotional needs of guests. Zero waste becomes the standard.
- Profit – Tipping culture will be replaced with livable wages. AI will create forecasting and operating efficiencies that will lead to more profit. AI that will evaluate guest preferences to lead to more upselling/revenue. Take a more stakeholder vision where profit is the bottom line and relationships with employees, consumers, investors, and partnerships are prioritized. All employees are part of profit sharing. Use AI to better guest experience and ensure more loyalty. Lower employee turnover with more opportunity for growth
- People – Optimize staffing using AI to predict staff needs, eliminating wasted labor. Support passing legislation to address mental health and addiction in the workplace to make employees in recovery feel more included. Advocate and emphasize that hospitality doesn’t have to be a summer job or a one-year thing-it can be a career. All employees should be funded to learn a language of their choice. Employers need to emphasize self-care for their employees. Better work conditions to minimize turnover. Less expectation of working crazy hours and to focus on employee needs and feedback, not just the guests. Better benefits include maternity/paternity leave and closing the pay gap. Better training programs and invest in creating a better work culture.
Each year, the students vote for three classmates to represent them based on their vision pitches. This year, they honored Arianna Rojas, Copey Fuller, and Maite Montes Gonzalez, who won the opportunity to appear on the Compassionate Leaders Circle Podcast.
You can get a peek inside this annual event and meet a few of the students here.