ECONOMIC
Subcategory
Labor
Markets
Sources
https://www.bls.g
ov/regions/southea
st/newsrelease/areaemplo
yment_miami.htm
https://www.jwu.e
du/aboutjwu/forever-jwunorth-miami.html
https://www.zipre
cruiter.com/Salari
es/Hotel-Salaryin-Miami,FL
https://www.dol.g
ov/agencies/whd/
minimumwage/state#fl
https://www.roost
edhr.com/8reasons-foremployeeturnover-inhospitality/#:~:tex
t=Most%20HR%2
0experts%20agree
%20that,around%
2070%2D80%25
%20annually.
Value Drivers
Forces Driving Change
Employment Rate
The hospitality industry took a
major hit during the COVID-19
pandemic. Over the last year, we
have finally seen the employment
rate in the positive.
Culinary Employment Need
Hotel AKA Brickell is home to a
full-service
restaurant.
Establishing a partnership with the
Miami Culinary Institute would
combat the employment challenge
currently present in Miami. There
More specifically, in Miami, with would be job security for graduates
the loss of culinary programs such and an increase in the employment
as Johnson and Wales University rate.
and Le Cordon Bleu, the search for
culinary talent has been a struggle In addition to formal training,
to say the least.
implementation of sign on and
retention bonuses for culinary staff
could be effective in the
recruitment process. However, to
ensure return on investment, there
would be a minimum probationary
period before gaining access to
these bonuses.
Having a fully staffed team at the
Hotel AKA Brickell would also
avoid the additional expense of
overtime hours. Avoiding overtime
allows for more efficient use of
labor cost. In addition to avoiding
the cost associated with using
temporary labor.
Labor Cost
Miami has become a hub for
tourism from all over the world.
With
that
comes
extreme
Increased Pay Rates
competition. Increased pay rates
With the increase of minimum
are a necessity to retain quality
https://www.newy
wage in Florida, it is projected
staff.
orkfed.org/mediali
average pay rates will also increase.
brary/media/resear
However, to remain competitive,
Corporate partners must agree on
ch/current_issues/
Hotel AKA must compare rates to
pay rates that are competitive
ci3-11.pdf
other hotels in the area.
enough to attract quality staff
without overpaying.
Increased pay rates and overall
labor costs lead to reduced profit.
In addition, inflation is likely to
increase in the service industry
sector.
“We find that if compensation
growth accelerates in the service
producing sector, that growth is
likely to show up directly as more
rapid inflation in service prices,”
Brauer, David A.
“Most HR experts agree that a 1015% annual turnover rate is healthy
across all industries. Yet, the
Bureau of Labor Statistics
concludes that turnover in the
hospitality industry hovers around
70-80% annually.”
At Hotel AKA reduction of labor
costs could increase profit margins
by as much as 20% within the next
five years.
This high turnover rate contributes
to high labor costs. This is due to
the cost of the onboarding process.
Consumer
Spending
Trends
https://www.staya
ka.com/hotel-akabrickell/amenities
https://www.staya
ka.com/hotel-akabrickell/dining
Food and Beverage
F&B contributes between 20-40%
of the total revenue of a hotel, with
only a 10-22% profit margin.
However, it is an essential aspect of
the overall guest experience.
https://www.hvs.c
om/Content/539.p
df
https://www.linke
din.com/pulse/imp
ortance-corporatefood-beveragehotel-groupcarloshor%C3%A1cio- Transient guests are willing to pay
ferraz
more for a unique and elevated
dining experience.
https://www.hospi
talitynet.org/opini Recreation and Wellness
on/4096272.html
Optimizing Food and Beverage
Operating costs
Hotel AKA recently opened a fullservice restaurant by Michelinstarred Chef, David Meyers.
Transient guests should receive a
complimentary welcome drink at
the newest restaurants in the hotel.
Beverage has a high profit margin
versus a food item.
Residents at Hotel AKA are more Pre-Arrival Packages
likely to utilize amenities such as Amenity packages are a great way
the pool and gym. While transient to bring in new guests.
guests will likely take advantage of
the pool, spa services, meeting
spaces, etc.
POLITICAL
Subcategory
Sources
Value Drivers
Forces Driving Change
Immigration
Reforms
https://www.resta
urantbusinessonlin
e.com
/workforce/largesector-ushospitalitymarketimmigration
-reform-personal
As of November, 2023, over 2
million job positions were open and
there has been very slow a change
ever since. The US hospitality
industry is struggling to fill in these
open positions because there is a
lack of desire in the qualified
workers to work in the hospitality
industry.
Substantial increase in the
number of H2-B visas:
The increase in the number of visas
starting fiscal year 2024, will help
the hotel industry combat the labor
shortage issue.
The
federal
government
understands the problem of scarcity
in the labor market and considering
the sizeable increase in the number
of H2-B grants starting this year,
we can expect an increase further in
the coming years (short-term) as the
AAHOA
and
other
Hotel
associations see the concern and are
working closely with the federal
government on it.
The increase in the number of H2B visa grants will help the hotel
industry combat the problem of
labor shortage by almost 50%, that
is covering about 85,000 positions
of the 1.4 million still vacant.
Although the occupancy levels
have been significantly low in 2023
and will continue to be the same in
the first quarter of 2024, the
demands have increased manifold.
For the industry to meet labor
demands, it would be righteous for
it to start investing in immigrants.
People from different walks of life,
https://www.costa
r.com/article/1302
61503/howpublic-policiesshape-the-ushotel-industrysrecovery
Value Drivers: Immigration
reform: (a) increase in the
number of work visas
With the number of international
immigrants increasing every year in
the US, it is quite likely that if given
working opportunities, this would
“ease the chronic shortage of talent
https://startuptalky available” in the hotel industry in
.com/gujaratis-us- the United States.
hotels-case-study/
Currently, South-Asians own about
60% of the country’s hotels and
https://www.hospi 40% are owned by Indiantalitynet.org/opini Americans.
on/4119042.html#
:~:text=The%20ho
spitality%20indust
ry%20has%20suff
ered,of%20desire
%20of%20those%
20qualified.
https://hospitalityi
nsights.ehl.edu/ho
spitality-industrystatistics
The industry had already been
struggling with labor pre-COVID19. With the increased layoffs and
furloughs, the industry has been
crippling post COVID-19 when
hotels opened doors for its guests.
The industry still has about 1.4
million job vacancies apart from the
8.6 million jobs that have been
filled.
understand different people better
and pickup hospitality trends better.
However, with immigrants, come
the problems of visas. According to
a report, the Asian American Hotel
Owners Association (AAHOA),
they have demanded the federal
government to increase the number
of H2-B visas that are granted each
year to which the government has
increased the number to 64,716
opening for the fiscal year 2024.
The hiring and onboarding costs
will take a hit for hotels
exponentially, keeping in mind the
fact that the occupancy levels are
not
projected
to
increase
exponentially in the first quarter of
2024. However, the Revenue Per
Available Room and the Average
Room Rates have constantly been
increasing and are projected to
increase in 2024, as well which
should be able to cover some part of
the costs.
(b) Increase in the number of
tourist visas
The US authorities issued a record
number of 10.4 million tourist visas
in the fiscal year 2023. This led to
increased occupancies in hotels and
in turn an even maximized annual
turnover.
Hiring foreign nationals increases
the diversity and inclusivity within
the organization. As of 2023, there
are about 150 million foreign
nationals working in the hospitality
sector in USA.
Increased tourist visas:
Diversification of clientele brings
in different spending patterns
within the hotels. Generally, people
travelling on tourist visas to the US
have high spending capacities. This
helps the hotels to earn revenues
not only from rooms, but also from
food and beverage, spa, gymnasium
and other offerings. The total
international
traveler
volume
increased by 19.3% and reached to
86.2% in September, 2023. The U.S
Travel Association has projected
the number of international
travelers to reach 98% of the what
it was in 2019 which translates to
81.6 million international travelers
traveling to the USA in 2024.
IMPACT ON HOTEL AKA
BRICKELL:
Hotel AKA Brickell currently has a
total of 231 employees of which 20
are working on work visas. The
goal of the hotel is to fill in all the
vacant positions. The hotel is
currently looking out to hire for 35
job positions and with the increased
capping of the H2-B visas, aims to
fill in all the positions and probably
open new positions to generate
employment for people seeking
jobs within the industry.
The hotel currently has a RevPAR
of $255.19 and ARR of $314.80.
Although, major hotels saw a
decline in their RevPAR in the year
2023 compared 2022 because of
Art Basel, Hotel AKA Brickell was
able to survive through it.
With that seeing an upward trend,
the hotel is all set to cover the hiring
and onboarding costs of all the new
employees it plans to have.
To conclude, the increase in
capping in the H2-B visas will
positively impact the hiring
environment for Hotel AKA
Brickell.
Hiring foreign nationals will
broaden the horizon of empathy and
will enhance customer experience
as each member will bring his
experience and understanding to
offer.
Laws
https://www.cbre.
com/insights/brief
s/domestic-andinternationaltravels-impact-onthe-lodgingindustrys-recovery
https://wttc.org/ne
ws-article/useconomy-facesdaily-loss-ofnearly-198million-due-totravel-restrictions
https://www.unwt
o.org/news/touris
m-recoveryaccelerates-toreach-65-of-prepandemic-levels
https://www.statist
a.com/topics/7704
/hotel-industry-intheus/#topicOvervie
w
The hospitality industry in general
accounts for 2.9% of the GDP in the
American economy with over 5.7
million employees.
The economy and the hotel industry
had not fully recovered from the
2007-09 crisis when COVID-19 hit
giving it an all-time historical hit
with over 1 billion room nights
unsold. The US economy faced a
daily loss of nearly $198 million
due to travel restrictions.
Value Drivers: (a) Upliftment of
the international travel ban
The US government started lifting
the international travel ban in a
series of events starting November
8, 2021 wherein fully vaccinated
individuals from 33 specific
countries.
(b) Consumer Protection Laws
The US government has a strong
infrastructure of Consumer Laws
which prevents the individuals
from being trapped or engaging in
Upliftment of the Travel ban:
An estimated 700 million tourists
traveled internationally between
January and September, 2022
wherein there was a 106% increase
of international travelers in the
USA.
USA as a country also experienced
a high surge in the of about 126%
in terms of the intra-regional travel.
This in turn lead to high occupancy
levels across the nation. The
average length of stay of
international travelers increased
which covered not only occupancy
levels but also increased average
room rates and revenue per
available room.
New York City saw a double
increase in the number of
international tourists in summer of
2023.
any malpractices and encourages
them to travel freely. The US
government also launched the Visa
Waiver Program in 2015 which
allows participating countries to
travel to the US for 90 days or less
https://www.oecd- for tourism or business without
ilibrary.org/sites/7 obtaining a visa.
af173cePost COVID-19, consumers have
en/index.html?ite become extremely careful with
mId=/content/com hygiene standards and practices.
ponent/7af173ce- These laws also demand all
en
hospitality institutions to comply
with them and maintain high
https://southflorid sanitation
standards.
Hotels
ainjuryaccidentblo collectively spend as high as $9
g.com/2013/10/10 billion annually only on sanitation
/florida-hotelservices.
laws-whoFor Florida specifically, under the
controls-andCommon Negligence Law, hotels
regulates-hoteland motels are required to
safety-andcompensate any hotel guest if he or
security-for-hotel- she is a victim of a crime within the
guests-in-florida/
hotel premises.
The law also demands the hotels to
have locks, fire sprinklers, sanitary
regulations etc. in place.
https://hospitalityi
nsights.ehl.edu/ho
spitality-industrystatistics
The occupancy levels surged up to
62.7% in 2022 which was a
considerable increase from the last
two years.
The hotel industry in the USA saw
a massive decline in the market
share in 2020 and 2021, but
bounced back with a shocking
$258.1 billion dollars share in the
entire market space within the US.
Increased demand from high
spending international travelers
also led to an increase in the
RevPAR of the rooms in general.
The increase in demand of rooms
has given the hotels the power to
increase their ADR which helps
them maximize their total annual
turnovers as well. EHL has
projected that the average daily rate
of the hotels will go up by 4.9%
fiscal year 2024.
Consumer Protection Laws:
Consumer protection creates a
sense of trust within all the
travelers. 700 million international
travelers traveled to the United
States in 2022 alone with the major
chunk coming from countries like
Canada- 26.9%, Mexico-23.1%,
japan-4.4%, United Kingdom5.8% and China- 3.8%.
Knowing that as tourists they have
a legal recourse in case of unfair
practices and disputes, encourages
these tourists to choose the United
States as their travel destination
which in turn enhances the tourism
business and helps the hotel and
hospitality industry with their
business.
Florida is one of the most sought
after locations in the US and with
laws protecting the guests within
the state hotels, it boosts tourism for
them.
IMPACT ON HOTEL AKA:
In June, 2022, Hotel AKA charged
its visitors an average of $225.03
per night which is a 49% jump from
the pre-pandemic rates of $150.02
in June, 2019.
Hotel AKA increased its ADR from
$292 to $314 considering the
increased demand and the season.
This has impacted the hotel
positively and it has been able to
come closer to their goal of setting
the average annual ADR at $367.
This shows that the travel ban
removals helped Hotel AKA
Brickell. The hotel saw a lot of
group movement which lead to the
increase in occupancy levels to
approximately 85% which was
higher than the average national
occupancy rate of 66%.
The hotel currently sits at an
average occupancy of 90% with
major group movements happening
and the no restrictions on the
international travel expects to invite
a large number of foreign travelers
primarily
countries.
from
the
Hispanic
ECOLOGICAL
Subcategory
Natural
Resources
Sources
1) Sustainability
Guide
https://www.revno
mix.com/ultimateguide-tosustainability-inthe-hospitalityindustry/#:~:text=
Sustainability%20
in%20the%20hosp
itality%20industry
%20favors%20hot
els%20in%20the
%20best,the%20h
ospitality%20indu
stry%20is%20ecot
ourism.
2) Key
Sustainability
Trends
https://www.spglo
bal.com/esg/insigh
ts/featured/special
-editorial/keysustainabilitytrends-that-willdrive-decision-
Value Drivers
Forces Driving Change
Sustainability
Increase In Sustainable Prcatices
Sustainability in the hospitality
industry favors hotels in the best
ways. They manage resources and
save money on energy and water.
They serve as a hospitality industry
marketing tool to draw guests who
care about the environment. The
durability
of
sustainable
employment
practices,
implemented in recent years in
response to significant shifts in
workforce expectations, will be
challenged by recessionary risks in
many markets. Meanwhile, new
human rights regulations will
introduce additional requirements
for company supply chain
management.
Sustainability practices in the
hospitality industry can help reduce
costs and increase revenue in the
long run. Sustainable growth will
give way to regenerative growth
and a
growing emphasis on familyfriendly
services
and
environmentally conscious venues.
ompanies in the hospitality sector
can save money by implementing
sustainable
practices.
Energy
conservation can
involve more than just utilizing
renewable energy sources, cutting
waste, and putting policies in place
that facilitate recycling and reuse.
Booking.com's annual survey of
global travelers has been tracking
tourists’ intent to stay at sustainable
accommodations since 2016. In the
2022 study, 78 percent of
respondents indicated that they
intended to book sustainable
accommodation options at least
once in the following year. This
Environmental Sustainability: As
sustainability
becomes
more
important to society, hotels that
implement eco-friendly practices
such as energy conservation,
recycling, and reduced water
consumption tend to attract
making-in-2023
environmentally conscious guests.
A 2021 study found that 81% of
3) What are LEED travelers surveyed said they plan to
Certifications
choose
a
sustainable
https://support.usg accommodation option in the
bc.org/hc/encoming year. The
us/articles/121271 share of green-minded travelers has
81820435risen consistently over the past 6
Applying-LEED- years that the survey was
to-hospitality-and- conducted.
venue-projects
The
LEED
green
building
4) LEED In
certification program provides the
Motion
framework for building and
https://readymag. operating hotels sustainably. Green
website/usgbc/hos buildings use on average 26% less
pitality/about/
energy, emit 33% less carbon
dioxide, use 30% less indoor water,
5) Cornell LEED
and send 50%‐75% less solid waste
Study
to landfills and incinerators. The
https://sha.cornell. opportunities for hospitality venues
edu/about/newsto integrate green building
andstrategies into their design,
publications/news/ construction, and daily operations
newsdetails.html?i makes business sense and can be an
d=1018
important part of a company’s
commitment to sustainability.
6) Climate Action LEED buildings enjoy an increase
https://sustainable in cost-savings, decrease in annual
hospitalityalliance operating costs, higher ROI for a
.org/ourbuilding and an increase in asset
work/climatevalue.
action/
The impact on the economy of
7)
hotels is equally impressive in
https://sustainable scale: $163 billion in direct sales
hospitalityalliance and $41 billion in profits. A study
.org/reducefrom Cornell University – The
plastic-worldImpact of LEED Certification on
environment-day/ Hotel Performance – finds that
hotels gain a revenue benefit when
8)
they are LEED-certified.
https://www.mews
.com/en/blog/hotel Recycling
-wastemanagement
Concerns about the immense use of
was a slight decrease from 2021 but
an increase from 2020, showing a
general upward trend towards a
greater
willingness
amongst
travelers to seek out sustainable
accommodation options. This
positive trend is not limited to
environmental sustainability but
also local economies and cultures.
Hospitality and venue spaces such
as
hotels,
motels,
resorts,
convention
centers,
stadiums/arenas and other public
assembly spaces have several
unique considerations that warrant
a more specific LEED offering.
LEED strategies for hospitality
addressesnew construction and
major renovations, new and
existing commercial interiors, and
existing building projects - giving
project teams more solutions than
ever.
As of December 2023, there are
over 3,700 LEED‐certified and
registered lodging and hotel
projects representing 1.46 billion
sq.ft or 135 million sq.m of built
spaces.
LEED-certified
and
registered public assembly spaces
such as convention centers,
stadiums, and community centers
represent over 5,650 projects and
single-use plastic containers from
the hotel industry have arisen in the
past few years. This challenge
provides an opportunity for the
hospitality industry to lead a global
transition to a more regenerative
future, but it’s not always clear how
hotels can go beyond eliminating
these prominent products, to
implement a reduction in use of
10)
plastics across their operations and
https://advertising. supply chains.
expedia.com/blog/
sustainability/sust
ainable-tourismdemandrises/#:~:text=Con
sumers%20are%2
0looking%20for%
20sustainable%20t
ravel%20options&
text=Compared%2
0to%20prior%20tr
ip%20behavior,gr
owing%20opportu
nity%20in%20sust
ainable%20travel.
9)
https://impact.eco
nomist.com/sustai
nability/net-zeroand-energy/datapoint-the-rise-ofthe-sustainabletourist
1)
Water
Conservation https://19january2
017snapshot.epa.g
ov/www3/waterse
nse/docs/saving-
876 million sq.ft or 81 million sq.m.
Businesses who participate in
incentiveprograms are rewarded
with tax write-offs, insurance
premium cuts, financial awards,
and
expedited
regulatory
permitting. Hotels have
the ability to undertake financially
responsible
and
sustainable
investments. Over time those can
result in significant cost savings
and return on investment.
Replacing
packages
of
green
friendly
Modern hotels are replacing their
old habits from using single-use
shampoo bottles to refillable
bottles. This not only helps the
environment but also sned a
message to the guests that the hotel
is green-friendly. No waste of
unused towels, this is why it’s a
modern hotelier’s job to work
towards zero waste, only washing
linens and towels when fully
necessary, and replacing individual
amenities with refillable bottles.
Paper receipts, registration cards
and invoices are the main
offenders, and they are ancient
practices that are ripe for
digitalization as well as helping the
environment.
This would cut costs for many
hotels and increment the interest of
many new guests.
(a) Problems with high water More and more hotels have stated
outsourcing their laundry services
consumption
in an aim to save water, others have
Water is one of the most important started asking guests if they want
natural resources. Even though the fresh linen which helps save the
water-inhotels_fact%20she
et_508_Mar2016.
pdf
2)
https://www.triple
pundit.com/story/
2015/savingwaterhospitality/31901
Unites States of America is a water
rich country, it has started seeing
water shortages or deteriorated
quality of water in several parts of
the country primarily because of
climate change, population growth
and inefficient use of water.
Water used in hotels and lodging
facilities across the United States
accounts for 15% of the total
commercial water use in the
country.
3)
https://www.miam
idade.gov/global/s
ervice.page?Mdui
d_service=ser1495
2220915981
4)
https://www.sfwm
d.gov/communityresidents/homeow
ners/MultiFamily-andCommercialBuildings
5)
https://www.respo
nsiblestay.org/wat
er-conservation/
6)
https://www.gstco
uncil.org/bookingcom-2023sustainable-travelreport/
water that would have been used for
washing.
Miami-Dade
government
encourages hotels to practice water
conservation methods within the
hotel by giving them rebate on the
purchase and installation of smart
and high-efficiency toilets and
other free fixtures.
It also provides them with free
water saving shower faucets.
Under the South Florida Water
Management program, hotels are
required to label their appliances to
indicate that they are water
efficient.
83.1% hotels in Florida have started
using native and drought-tolerant
plants to cut down on water used in
irrigation practices.
Nearly 99.3% hotels in Miami have
already
implemented
water
efficiency measures.
Research shows that in an ideal
scenario a 300-room hotel uses
60,000 gallons of water on a daily
basis and nearly 200 gallons of
water are used per room alone.
Impact of increased water
conservation methods on hotels:
Practicing water conservation has
helped hotels save on to energy
costs that are associated with
treating the water, maintenance
costs that are incurred to maintain
Tourism Activities and Impact:
the quality of water, has reduced the
7)
Increased
tourism
activities water bills and help save the costs
https://www.world
contribute to various environmental that are incurred to treat waste
wildlife.org/threat
issues in urban areas.
water.
s/waterPeople in general have become
scarcity#:~:text=
Accommodation Facilities:
sensitive towards saving the
Water%20pollutio
n%20comes%20fr
om%20many,can
%20leach%20into
%20underground
%20aquifers.
8)
https://www.scien
cedirect.com/scien
ce/article/pii/S240
5844023110322#:
~:text=Tourism%
20activities%2C%
20including%20in
creased%20transp
ortation,of%20che
mical%20products
%20%5B50%5D.
Expansion of accommodation
facilities as a response to tourism
growth
can
impact
the
environment.
environment and willingly opt for
options that are more sustainable.
Practicing water conservation also
helps improve the brand image
within the customers
Waste Generation:
Tourism activities contribute to
increased waste generation in urban
areas.
Poor
Waste
Management
Techniques:
Inadequate waste management
practices associated with tourism
75% of travelers now want to travel
contribute to water pollution.
sustainably as found by a survey
done by booking.com. the same
Tourist Use of Chemical Products:
study also mentioned that 43%
The use of chemical products by
travelers were willing to pay more
tourists adds to the pollution of
than the usual rate for green
urban water bodies.
certified hotels that practiced water
conservation.
Hence.
Practicing
water
conservation helps hotels to boost
hotel
revenues
while
also
contributing
towards
the
environment.
Incorporation of proper water
management systems are essential
to sustainable practices.
Wastewater Discharge:
Tourism-related activities may lead
to the discharge of wastewater into
urban water bodies.
Water Pollution Consequences:
Urban water bodies are at risk of
heightened pollution due to several
factors associated with tourism.
Overall Impact on Urban Water
Quality:
The cumulative effect of these
factors can result in a decline in the
quality of urban water bodies.
TECHNOLOGICAL
Subcategory
Sources
Digital Guest 1)
https://hospitalityt
Experience
ech.com/2019customerengagementtechnologystudy?from=gate
Value Drivers
Forces Driving Change
With no question, this generation
has been influenced by new
emerging technologies. Due to the
constant use of phones, tablets and
laptops, new hospitality customers
feel
more
satisfied
when
technology is involved during they
stay at hotels and different
activities:
As technology innovations have
made its way into our daily life,
travelers lifted the bar for hotels to
deliver an outstanding experience.
Guests at modern hotels not only
expect technologies that are
available in their homes but an
elevated experience as well. The
Internet of Things (IoT) has made
2)
https://www.room
dex.io/the-digitalguest-experiencegives-guests-whatthey-want/
Historically, hotels guest services
were considered a personal touch
from
a
person-to-person
experience.
The
Hoteliers
constantly claim that the industry
will be one of the last to submit
themselves to a full technological
3)
interaction with their clients, or at
https://www2.delo least to minimize the human
itte.com/us/en/pag interactions. However, this might
es/consumerbe true for the “Old-school” clients,
business/articles/h as years pass by, the new type of
otel-guestguest staying at hotels switches.
experienceThe Millennials were raised during
strategy.html
a time where technologies were part
of their lives since they were kids.
4)
This change in the demographics of
guests in hotels comes with much
https://www.usert needed changes in old practices.
esting.com/blog/di Implementation of technologies
gital-experienceduring their stays is a key
travel-hospitality
component of increasing the
satisfaction rate. According to a
5)
Deloitte study, more than twothirds (67%) of hotel guests said
https://www.medi they felt most satisfied when
apost.com/publica empowered
with
digitized
tions/article/37520 technology, allowing them to cater
8/
their hotel experience to their
personal preferences.
6)
A) Room Reservations
https://www.autoh
ost.ai/digitalThe use of mobile apps is a key
transformationcomponent to engage technologies
hospitalitywith guests, As per a poll done by
industry/
Media
Post,
mobile,
not
surprisingly, is the top device when
7)
traveling. Some 86% of travelers
use their mobile device while on
https://www.innqu vacation to research activities,
est.com/blog/hosp venues and events and make
italitypurchases. The top three most
transformingwanted technologies by guest are,
digitized-guestRoom reservation (76%), Ability to
its way into the industry already,
with leading hotels implementing
smart home technology. Guests can
control lighting, air conditioning,
and other facilities through voice
assistant technology such as
Amazon’s Alexa. As the public
adapts to using these technologies
in their own homes, they expect it
to be available when they travel.
These trends have made a
substantial impact on the industry,
and its satisfaction rate from guests.
According to a survey conducted by
Hospitality Technology, 72% of
guests said they are likely to return
to a property when the tech they
want is available. Not just
technologies embedded within the
hotels premises are wanted by new
travelers, but also the easy user
interface, allowing them access to
their reservation and check in and
out.
In the midst of so much change,
hotels have an opportunity to stand
out among younger generations by
getting to know their preferences
and finding new ways to offer them
a unique and authentic guest
experience. That is why the
constant try and error of new
technologies is very important in
every single hotel. Hoteliers need to
get to know their clients and suit
their needs. As the new generation
of travelers enter the industry, their
needs shift. Millennials are
becoming the highest spending
clients in the industry. A Forbes
article noted an Expedia study in
which 80% of survey respondents
between the ages of 18 and 34— a
cohort that includes younger
millennials and the older members
change reservations (65%), and of Generation Z — said they would
Redeem compound/ gift cards be willing to pay to upgrade their
8)
(62%).
experience. However these are only
a few examples of technologies that
https://blog.pressr
were able to be successfully
eader.com/hotels/a
implemented in the industry.
-look-at-howMoreover, hotels need to allocate
hotel-guesttheir resources to develop new
demographics-aretechnological methods that would
shifting-and-whatappeal to their guests. And the
millennials-want
infopicture below demonstrate the
technologies that are spent the
9)
most.
experiences/
https://blog.pressr
eader.com/hotels/t
hese-millennialand-gen-z-traveltrends-areshaping-thefuture-ofhospitality
B) Automatization of check
In/Out
A 2021 survey of hoteliers in Asia,
Europe, and North America
revealed that 70% of respondents
were looking to digitize hotel
information and 57% wanted to
digitize the check-in and check-out
process. This has become the new
norm for most hotels. The process
of online check in and out relieves
the stress that those annoying
processes can take.
Impact:
If new technologies keep getting
implemented in the industry, it will
show a positive impact on the
revenue growth. global sales of
smart hospitality services are
expected to increase at a CAGR of
24.5% from 2023 to 2033.
Hotel AKA Brickell was able to
increase their ADR from $150.02 to
$225.03 since the pandemic. THis
is mainly because new technologies
were implemented to minimize the
human interactions, cultivating new
clientele.
Green
Technologies
1)
https://telkonet.co
m/wpcontent/uploads/2
023/03/Hospitality
-2023-greentechnology-inHotels_TKOI.pdf
As we mentioned above, the new
era of travelers has disrupted the
industry. Millennials are the new
travelers and the hotel industry
needs to suit their preferences.
Hoteliers need to keep up with the
new trend in many aspects and
technology being one of the main
ones. mainly because technology is
2)
the fastest growing environment.
https://www.cvent New practices are more attractive to
.com/en/blog/hosp the new era of travelers. The
itality/green-hotel increment of interest into greener
technologies has become a major
3)
issue for hotels. Not only for the
https://www.open attractiveness of their product but
key.co/2022/06/30 also for the efficiency of their
/impact-of-green- management. Hotels especially
tech-on-hotelgenerate a lot of waste, and their
industry/
efficient management translate into
a cut of cost and therefore, growth
4)
in profit margins.
https://www.hotel
management.net/t Green Trends
ech/why-hotelsneed-to-focusAccording to Booking.com data,
sustainableas many as 61% of travelers are
technology
currently planning to stay at one
or more sustainable facilities during
5)
the coming 2023. Also, as studied
https://business.co in Forbes, millennials consider
mcast.com/comm social
responsibility
and
unity/browseenvironmental friendliness when
all/details/greenmaking their purchases, so brands
hospitalityhave to rise to these significant
sustainability-and- expectations millennials have when
efficiencyit comes to spending their money.
throughDue to the increment in interest on
connectedgreener practices, hotels feel the
technology
necessity of switching their
perspective on this matter. Even
6)
more
so
when
hoteliers
https://hospitalityt underestimate
this
topic
ech.com/hotel.Identifying customer needs is key
trend-surveyto standing out within a highly
reveals-prioritycompetitive market. Travelers
Investment
in
Green
Technologies
According to a report by
booking.com, 40% of hospitality
businesses are looking to become
more sufficient. With the new
technologies arising and the new
millennial coming into the industry,
the need to keep up with their need
to retain attention becomes a key
factor for the hospitality industry.
The market for green technologies
will reach new heights in the next
10 years, as shown in the graphic
below.
This graphic showing that more
hotels will be looking to invest
more money in developing their
green
technologies.
Hotel AKA will be impacted in its
profit margins since more money
will be used towards investing in
green technologies that will retain
current guests and attract new ones.
given-tech-greeninitiativesmillennial-desires
7)
https://www.forbe
s.com/sites/forbes
booksauthors/201
9/05/01/millennial
-spending-habitsand-why-theybuy/?sh=363b986
3740b
8)
https://www.ncbi.
nlm.nih.gov/pmc/a
rticles/PMC10016
176/
around the world are moving
toward the new values of
Sustainable Tourism, and it is time
for Hotels to make this shift in order
to offer them solutions that respect
the principles of sustainability
Innovation in green Tech
Automated Waste Management
The hospitality industry is also one
known for producing exorbitant
amounts of waste. From the excess
food that is thrown out each year, to
the overuse of plastics, water and
energy – there are many brands in
hospitality that are taking the right
steps
to
becoming
more
sustainable. These practices not
only satisfy the need of the new era
of travelers, but also contribute to
an increase in the profit margins
driven by the decrease in expenses
generated by the amount of waste.
As of 2018, 25% of domestic
properties have received a Green
Certification, the gold standard of
sustainability. IHG is the first
global hotel company to use the
Winnow Vision AI enabled
technology, which will help its
hotels achieve a 30% reduction in
food waste. A common practice in
hotels
nowadays
is
the
implementation of new softwares in
order to properly manage waste.
For example; Occupancy sensors:
not only do they help with engaging
with customers but also decrease
the amount of energy a hotel spends
per room by automating room
temperature setups, and monitoring
and gathering information about
behavioral patterns regarding
guests’ energy intake.
Green technologies play a crucial
role in protecting the environment
by reducing greenhouse gas
emissions, promoting renewable
9)
energy sources, and minimizing the
https://www.home use of fossil fuels. There are
biogas.com/blog/h numerous examples of green
otels-wastetechnologies that are making a
management/#:~:t positive impact on the environment.
ext=to%20hotel% Carbon Capture and Storage (CCS)
20operations.technology is crucial for reducing
,Worldwide%2C
carbon dioxide emissions from
%20hotels%20pro industrial processes and power
duce%20almost% plants. It works by capturing CO2
20300%2C000%2 before it is released into the
0tonnes%20of%2 atmosphere, transporting it, and
0waste%20each% storing it underground to prevent it
20year,scraps)
from contributing to the greenhouse
effect and mitigating climate
10)
change.Green technologies have a
https://www.open positive environmental impact by
accessgovernment reducing pollution and minimizing
.org/hospitalitythe
use
of
non-renewable
industryresources.By
adopting
these Hotel AKA Brickell could reduce
waste/51174/
technologies on a larger scale, we its waste by 27%, generating
can protect fragile ecosystems and greater profit margins
preserve biodiversity. Even more so
in an industry that generates a lot of
waste. Hotels produce 289,700
tonnes of waste each year,
including 79,000 tonnes of food
waste (9% total food waste from the
sector).
SOCIO-CULTURAL
Subcategory
Demo
graphics
Sources
1) Florida
Population
https://worldpop
ulationrevie
w.com/states/flo
rida-populat ion
2) 2024 Florida
Population
https://www.ma
crotrends.ne
t/states/florida/p
opulation#:
~:text=The%20
population%
20of%20Florida
%20in,a%2
00.46%25%20i
ncrease%20f
rom%202019.
3) Florida's
Population
Keeps Rising
https://www.nbc
miami.com/
news/local/thehighest-its-e
ver-beenfloridaspopulation
-keeps-growingsee-where-n ewresidents-arecoming-fro
Value Drivers
Florida Population
According to the Census Bureau
in 2015 it was estimated the
population of the state had
reached 20 million people. In
terms of population density, the
state of Florida's surface area is
656,755 square miles. Based on
the surface area it equated to 353
people per square mile, making it
the 8th most densely populated
state in the US. The largest city
in Florida is Jacksonville with
over 900,000 individuals. The
largest county in the state is
Miami-Dade with 2 million
individuals
residing within
county lines. Since 2022 the
population in Florida has
increased 1.64%. As of July
2023, the population in Florida is
said to be 22,975,931.
If growth continues at roughly the
same rate, by the time that the
next Census is undertaken in
2020, the population will exceed
22 million. The population could
potentially surpass 26 million in
2030, driven by immigration
from both Northern US states and
other countries.
Race and Age
Forces Driving Change
Population Increase
As the population in Florida
continues to increase so will the
need for more jobs, hotels,
housing, resources and more.
Florida continues to grow as it
attracts people from other parts
of
the U.S., but that growth is
projected to slow in the coming
years as groups that have been
moving to Florida in droves get
older, according to state
Economists.
Population
projections through 2028 show
growth could begin to taper off.
The rate of growth is expected to
slow to 1.51 percent next year,
1.37 percent in 2025, 1.3 percent
in 2026, 1.24 percent in 2027 and
1.18 percent in 2028.
While the rate would slow, the
population would still increase
by an average of about 300,000
people a year during the period.
Central Florida will see the
biggest increase of developed
land because of an expected
surge in population and the
current low-population density
compared to South Florida. The
percentage of developed land
will go from 25 percent in 2010
m/3178314/
4) Forecast
Population
https://www.be
aconcouncil.
com/data/demo
graphic-over
view/forecastpopulation/
5) U.S. Census
https://www.cens
us.gov/qui
ckfacts/fact/table
/FL/PST04 5223
6) 2023
Demographics
https://www.mia
midadematt
ers.org/demogra
phicdata?id
=12&sectionId=
942
According to the Census Bureau,
the majority of the people living
in the state of Florida are White at
67.71%, African American at
15.74%, Asian at Native
American at 0.26% and other
races with 4.06%.In 2022, about
12.5 percent of the population in
Florida was between 25 and 34
years old. In that same year, a
further 11.7 percent of Floridians
were between the ages of 65 and
74 years old.
Florida's population under the
age of 18 is 4,261,313, as per the
latest U.S. Census Bureau. This
population is 19.97% of the total
resident population. Florida's
population aged 65 years and
above was 4,346,965.
7)
Florida Age
Population
https://www.neil
sberg.com/i
nsights/floridapopulation-b yage/#pop-by-age
Culture
1) Culture Values
https://hospitality
insights.eh
Organizational Values
to 48 percent in 2070 with
current growth trends and it will
be 40 percent in 2070.
Target Market Shift
The hospitality market has been
adapting to preferences and
behaviors of millennials, who
make up a significant portion of
the customer base. It is expected
that the focus will shift from
boomers to millennials in the
future years. Authentic cultural
encounters are crucial—60% of
millennials identify this as the
most important aspect of travel
and climate change is one of their
top worries. Travel is also
incredibly important to them.
With a global population of over
1.8 billion millennials, who
range in age from 27 to 42, there
are just as many distinctions as
there are commonalities.
Baby Boomers aren’t going to be
able to keep up with the tech
savvy millennials and all the
changes happening in the
industry and the world around
them. Hence why the industry
and many sectors of the business
are gearing products and services
to millennials causeing a shift in
the target market audience. It is
forecasted that if the AKA in
Brickell shifts its focus from
targeting baby boomers and
focuses on millennials to have a
revenue growth of 20%.
Improvement in Customer
Service
Organizational values are the
l.edu/companyservice-cultu
redrivers#:~:text=
What%2
0can%20your%2
0leadership
%20do,by%20ha
ving%20th
eir%20input%20s
ought.
2) Culture in the
Hospitality
Industry
https://smallbusin
ess.chron.
com/organization
al-culturehospitalityindustry-12969.h
3) 5 Tips for
Health and
Wellness
https://www.penn
foundation
.org/newsevents/articlesofinterest/5wellnesspractices/
4) Trends in
Health and
Wellness
https://hospitality
insights.eh
l.edu/hospitalitytrends-well
Ness-andwellbeing
5) Employee
backbone of any company culture.
Organizational culture refers to
the beliefs, values and attitudes
that define a company. Together
with the social interactions within
a company, these values determine
how the culture evolves. Since
hospitality staff serve people, your
customers get a taste of what your
business is really like every time
the two interact. Managing your
hospitality culture, then, is crucial
if you strive to make the right
impression every time. When
employees know the company's
values, they are more likely to
collaborate and focus on a shared
organizational goal. Invest in
developing employee skill sets by
sending employees to conferences
and continuing education courses.
Employees can only embrace the
values if they resonate with them,
if you are going against their
beliefs it wil be challenging to get
them to do something for the
company they cannot agree with.
Provide regular training to
reinforce company values. While
most of your values remain
relatively the same, you will need
to make slight changes as your
business grows and the industry
revolves. That's why training is
crucial. It helps you fortify the
existing values and let employees
know of the slight changes.
Hospitality businesses must strive
to provide a high level of service
to guests to remain competitive in
the market.
Health and Wellness
A strong culture of service
excellence,
teamwork,
and
employee engagement can help
businesses deliver exceptional
guest
experiences,
improve
employee
satisfaction
and
retention, and drive long-term
success. Having employees who
share the same beliefs as the
company means no one is going to
challenge or question why
something is being done a certain
way. Employee retention helps
provide better service which will
also help retain customers and
even
bring
more
along.
When the employees are happy so
are the customers because they are
receiving better service, and better
customer service interactions.
Happy employees are more likely
to be creative and innovative in
finding solutions to customers
issues. Hotel should prioritize
employee happiness, this holistic
approach can lead to positive
feedback and customer growth.
If the hotel industry were to
improve their customer service it
can benefit revenue growth by
10%.
Revenue Growth
According to EHL, organizations
with a healthy culture are 1.5 times
more likely to report average
revenue growth of more than 15%.
Health related purchases are
becoming
more
common.
Purchases relating to health have
increased by 15% before the
Wellness
Programs
https://www.popp
ulo.com/bl
og/employeewellness-progr
Ams-examples
6) Global
Wellness Trends
https://www.glob
alwellnesss
ummit.com/welln
ess-workpl
ace-workplacewellness-fina
lly-starts-tomean-something/
The hospitality industry is poised
to embrace a new era of wellness
thanks to the growing emphasis
being placed on preventative
health measures for surviving
today's
environments.
With
travelers paying more attention to
their health and wellbeing, the
industry is responding with a
range of innovative solutions
designed to enhance the guest
experience. Balance is being
achieved through movements such
company-wide
vacations,
gatherings at wellness resorts and
social wellness clubs.
This growing interest in health
and wellness is not a surprise. The
Covid-19 outbreak has shone a
light on the importance of physical
and mental health issues. As a
result, according to a recent Hilton
report, 50% of travelers would like
to address their physical or mental
wellness while traveling. Guest
are increasing interested in
amenities such as spa services,
fitness centers, and healthy dining
options.
pandemic and up to 20% after the
pandemic. Which makes the
market growth 78%, generating
more revenue in this particular
sector.
Wellness packages, or travel
experiences
that
emphasize
holistic well-being like yoga
retreats, are expected to reach 29.3
billion this year, nearly reaching
the pre-pandemic level. The Covid
pandemic
highlighted
the
significance of problems related to
mental and physical health. The
global health and wellness market
has reached a market evaluation
of$1.5 trillion (about $4,600 per
person in the US) and is growing
at a rate of 5-10% per year.