I really enjoyed reading Piers predictions of trends int he Boutique market. Most fascinating was the change in room service! - Wilna 

Top ten boutique hotel future trends for 2014
Boutique Hotel News' Piers Brown gives his forecast of what the boutique hotel sector can expect to see during the coming year.

Hotel shopfronting
Hotel frontages will become more competitive places for advertising brands. It's not about an increased number parading affiliation plaques, or a multitude of front door or window stickers displaying the latest hotel recommendation or award for a variety of accolades - they're all too numerous, less noticeable and becoming distracting in nature. The majority are non-revenue generating for the hotelier welcoming the pre-booked guest. Even worse, many promote the very OTAs that take heavy booking commissions - why? That's a discussion for another time but we think there will be an increased focus on incremental direct revenue generation from appropriate third-party advertisers who value the space and a captive hotel guest demographic more. Expect to see more engaging hotel front window 'theatre' and digital brand advertising with heightened social media interaction popping up, particularly in high-value advertiser urban locations. Let's not forget, Selfridges, Oxford Street, London's prime retail store windows are amongst the most expensive in the world for brands to secure - tempted?

OTAs get closer to the hotel guest
These online travel agent technology companies are becoming a huge threat to direct hotel bookings, achieving expanding market share with heavy investment and increased customer (guest) loyalty based on price attractiveness. Price will remain a dominating factor. Expect to see OTAs collaborating more and purchasing 'high-touch' service travel agents or similar, as they look to get closer to guests in other ways, based on making the complete travel experience easier - keep an eye out for a splurge of complementing free mobile apps developed by OTAs too.    

Hostels create the 'pos(h)tel' experience
The luxury hostel category grows boutique and individual, taking form and design inspiration from the likes of 'boutique chic' Citizen M and Marriott's Moxy hotel brands. Upscale hostels are now a booming business with many urban locations offering flexible lodging pricepoints, safe and friendly accommodation and great value food and beverage options.They're gunning for Generation Y business all day long as increasingly sophisticated young travellers on a budget migrate for the homier comforts of a posh hostel. It won't be long before established hotel groups scoop up the major players in the sector in an effort to understand and retain this future hotel guest.
 
Mobile no more
The 'year of mobile' has come and gone as smartphone manufacturers show signs that mobile is no longer an emerging technology or media platform with flat revenues and declining average selling price for devices. Despite mobile accounting for 20 per cent of all travel sales, hoteliers battle to convert mobile users who are currently three times less likely to book a hotel room than those using a PC. Hotel marketers who proclaim themselves innovative and disruptive will already be looking elsewhere in the technological sphere for the next big thing.

Tangible technology
Cutting-edge hoteliers focus on 'wearable tech', with Google already pushing, albeit slightly odd looking,Google Glass to the market.  Applications are numerous and hotel marketing innovators envisage what's possible and wonder how and when these technologies will be adopted by business and the average consumer. We're likely to see front of house staff wearing Google glasses for guest facial recognition as early as the first quarter of 2014. Suffice to say hotel websites will place more focus on remote engagement to reflect "what's happening in the hotel right now" with real time applications.
 
Hotel reviews come clean
Cleanliness is always a top priority for guests, and boutique hoteliers have an obligation to provide their guests with a safe and secure environment. Housekeeping practices vary across brands and properties with little or no standardization industry wide. The current validation method for hotel room cleanliness is a visual assessment, which has been shown to be ineffective in measuring levels of sanitation. Expect more regular and thorough contamination checks by hotel owners with adenosine triphosphate (ATP) measuring devices for instance, that determines microbial contamination on surfaces, and ultraviolet light pens for detecting stains invisible to the naked eye. Don't be surprised to see fanatical hotel reviewers carrying this handy tool!

Luxury leaves the middle-class developed world behind
For the luxury traveller who can still afford the high-end, things are going great.
However, technology and the free flow of information continue to remove middle-class jobs, and those that remain do not pay what they once did. The cost of being middle class has increased out of proportion to the cost of merely living. This has ramifications from a boutique hotel guest booking, spend and hotel management wage perspective. Any middle class is essentially an urban phenomenon. In days past, when a town and its hotel industry fell into decline, its middle class disappeared. But as a new town rose in tandem with hotel development, a new middle class would spring up as if by magic. And that's what is happening now. A new middle class is appearing in Russia, India, China and the Middle East, and it's perhaps no surprise future projected hotel new builds in these areas tower over everywhere else.

The rise and fall of room service creates a new dining experience
Hilton Midtown New York's recent removal of room service sent shockwaves through the hotel industry. If management provide a service which is only marginally valued by the guest at best, then there is a strong motivation to end such a practice, and offer a simple, yet more streamlined approach to guest services. The elimination of room service also eliminates exorbitant service charges and guest complaints about cold food that's supposed to be hot, exorbitantly priced items and late deliveries. Ask yourself, whether removing room service and a food and beverage offering takes the experience out of your boutique hotel stay, or does it just make things a bit more streamlined, cut accommodation expenses and ensure a more "experiential" trip. For example, the recently opened Nadler boutique hotel in Soho, London encourages lodgers to dine in the local area because the offering is so good, liberating guests from the limitations of room service and restaurant fare. A grab and go breakfast offering like from the Aloft select-service brand with rooms designed with an empty fridge (no mini bar) for guests to use is the closest 'halfway house' option we've seen, catering to the ever more individually empowered guest who value their freedom and "no strings" approach. Denihan Hospitality's Affinia Hotels, a small luxury-boutique chain, has taken this approach one step further linking with the online grocer FreshDirect to provide specially packed meals for guests including healthy options. Through this partnership, Affinia Hotels can have guests' rooms fully stocked upon arrival, so that they feel like they're at home during their visit - hotel grocery delivery is not just for select-service, extended-stay or family resorts anymore.

Foodification
There is nothing more personal than food. Consumers today have an amazing personal connection with what they put into their bodies. Dining has become a comprehensive and interactive experience with diners becoming more knowledgeable about their food choice, peppering the waiting staff and chef with questions about sustainability, responsible husbandry, and local chef-prepared ingredients top dining trends. As a result, boutique hotels will focus on the trend of fresh, local and in season, displaying the percentage of locally sourced food or similar on the menu.  Current buzzwords include 'farm to fork' and the SLOW philosophy ( seasonal, local, organic and wild), 'snackification' and 'small-plate movement' - the trend of communal and informal eating. The lure of small portions that encourage diners to purchase additional dishes, therefore increasing revenue. Variations include a healthy eating / low calorie total meal approach. While product is everything, don't underestimate organisational innovation with hotels increasingly taking their food offering to the street. The "Taste by Four Seasons"food trucks for example.
 
More luxury retailers move into hospitality
With Millennials defining themselves more by what they do than what they own, luxury brands continue to dare to remain relevant with consumers whose appetite for luxury and definition of luxury is constantly changing. Luxury retailers are already expanding beyond fashion and accessories as they aim to keep their customers interested with a 360 degree experience, based on what they are buying, what they are eating, where they are staying and who they are listening to. Boutique hotel guests are looking for information not only from their family and friends, but also from brand experts - balancing professional and shareable opinions with personal advice.

Click here to read from  Piers.

I love reading about new trends and this article by Robert Rauch was particularly  insightful. Millennials rule and service levels increase! - Wilna 


Top 10 Hospitality Industry Trends in 2014
By Robert Rauch, CHA

1. Millennials will become the core customer within the hospitality and travel industries over the next five to ten years. The majority of airlines, hotels and travel companies will benefit from this sector as they enter into their peak earning, spending and travel years. Within this group of GenY travelers, there are many different markets considering the fact that exploration, interaction and experience are the major focus of Millennials. Willing to pay more for a greater experience, "foodies" are a prevalent subset of this market; looking for an overall gourmet experience for a reasonable price will cause the industry to revamp their lobby bars, restaurants and food service. Internet bloggers, culture buffs, LGBT and Multi-generational travelers all looking for a unique, novel experience will command change within the market.
2. Speed and precision will be a requirement when it comes to accommodating Millennials in upcoming years according to Hotels.com's latest Hotel Price Index report. Fast booking, fast check-in, fast WiFi and fast responses to customer service needs will need to be implemented within hotels. Considering Millennials have no problems speaking up, if what they are seeking is not quick enough, they will turn to Twitter, Facebook, Yelp or TripAdvisor to voice their complaints.
3. WOW customer service will become even more influential this year. Service today consists of four levels: basic, expected, desired and WOW. Basic service can be found at the post office whereas expected service can be found at most fast food restaurants and many businesses. Desired service is often found at good hotels and restaurants but WOW Service is the only way to ensure repeat business. By creating an impressive, unique guest experience that exceeds all expectations, you are able to capture the customer.
4. Leadership is modeling the way and showing your management team how critical it is to "walk the talk." Each and every employee, including myself, all have something we can work on. Forming a connection with guests can improve dramatically with genuine, individual interaction. It is my goal as a leader to instill the value of building relationships by sharing the knowledge I have and learning from them as well. For instance, I run with our guests staying at the Hilton Garden Inn and Homewood Suites San Diego/Del Mar and offer personal training sessions for others.
5. Expectation of more international visitors. Average rates and occupancy levels in the U.S. are likely to increase over the next few years, influenced by a very new market. "Leisure demand from abroad, fueled in part by the new Discover America campaign, will stimulate a new demand" according to Arne Sorenson, President and CEO of Marriott Hotels & Resorts. China is preparing to send about 100 million leisure tourists into the international market every year. If the U.S. gets its typical share, that will mean an additional 10 million visitors from China alone. Considering the average Chinese traveler spends a week in the U.S., demand is created for an additional 70 million room nights in a market where prices are steadily rising. The globalization of travel will prove to be a massive force.
6. Social media and mobile will be inseparable. Social media and mobile already live in symbiosis and we will only continue to see them merge over the course of this year. Mobile activity has allowed social media to live in real time by allowing users to create updates, tag friends and check in on their mobile devices. Smartphones represent 50 percent of new mobile devices being purchased and the growth of connected devices will only continue to rise. Ericsson estimates that there will be over 50 billion connected devices in circulation by 2020, including laptops, tablets and smartphones. In North America, 2014 will mark the first year that online access is greater from mobile devices than a desktop or laptop. Keeping an eye out for authentic ways to make use of emerging social/mobile applications will be of great value to those in hotel marketing.
7. Content marketing will replace traditional advertising. Traditional advertising is rapidly losing value as hotel marketing professionals begin to take advantage of effective content marketing. Marketing's new mantra, "Brands must now act as publishers," has come about due to social media and its potential to engage in meaningful conversations with loyal fans and clients alike. You will be able to drastically reduce investments in traditional paid media by implementing media tools such as blogs, social media, newsletters, webinars, eBooks, photo or video sharing and shared media. If brands begin to "opt out" of being a producer, SEO efforts will be affected. Google is now weighing current content, social proof and author scores in their results ranking. Simply put, you need to create and share content while engaging people if you want to be recognized moving forward.
8. Renewed focus on property websites. Finding ways of encouraging direct bookings will be one of the most important parts of a marketing director's job in 2014. Considering travelers are increasingly taking their transactions online, the hotel's own website needs to become the most important avenue for bookings to gain the highest ROI. After American hotels spent an estimated $2.7 billion on OTA commissions, the rates rose and restrictions tightened. Hotels are looking at any and all ways to increase direct bookings in 2014. This means that hotel websites will need to create incentives through booking with them directly rather than via the OTAs. Fresh content, consistent updates of promotions and rich media will draw in the guests.
9. Review site tactics. According to The Wall Street Journal, Yelp reports 50 million users across its web and mobile platforms. TripAdvisor has become the world's most popular travel website with 34 million unique users each month. Google Places is the Yellow Pages of the digital age meaning that business listings also show up on iPhone searches as well as on Google Maps. In 2014 there is a need to:
   • Monitor Yelp, TripAdvisor and Google Places reviews and alert management of any low reviews twice a week
   • Comment on glowing reviews to thank them
   • Comment on low reviews and how the property intends to handle future situations
   • Feature Yelp deals
10. Reputation Management. There is much anticipation that reputation management will begin to dictate the hotel industry in upcoming years. Considering there are millions of reviews written each day across a plethora of different platforms, the world wide web has the power of influencing one's decision making process; being able to manage your businesses reputation will determine success or failure. TrustYou had made it their mission to influence travel decisions in a positive way, developing a technology and software making it simple to monitor, manage and market a businesses reputation. Another company, Flip.to, has been making strides to tap into the market of potential travelers' family and friends considering 70% of customers take recommendations from their family or friends when choosing a product, brand or business.

ROBERT A. RAUCH, CHA
Robert Rauch serves as President of R. A. Rauch & Associates, Inc. He is a nationally recognized hotelier serving clients in all facets of the industry. Rauch has over 35 years of hospitality-related management experience. Widely recognized as the "hotel guru," Mr. Rauch maintains a blog where he expounds upon insights and trends in the hospitality industry at www.hotelguru.com.