Redefining Hospitality: Navigating Change Through Design, Technology, and Sustainability

The hospitality industry has been going through significant shifts, expediated by the pandemic, all of which have been driven by several factors including changing customer profiles, shifting consumption patterns, intensifying competition, growing segmentation, dwindling differentiation, diminishing brand loyalty, evolving value orientation, escalating concern for the environment, continuing consolidation, and increasing power of digital. With these changes, hotel operators are seeking out ways to distinguish themselves in this dynamic market from developing new business models to investing in sustainable practices and more.

In UNStudio’s latest report “Home away from Home? Far-reaching trends are currently redefining hospitality. How can design help to point it in the right direction?”, we spoke with our own team of experts, consulted recent travel reports and surveys, and carried out numerous interviews with experts from within the travel industry and beyond. The report delves into the shifts within this market and posits the question: What can we as designers do to facilitate these changes to the hospitality industry?

In the below article, I will investigate three topics which I believe are shaping how we think about designing for this evolving hospitality landscape: consumer preferences, advancements in technology and a focus on sustainability.

According to experts, the years following the height of the covid pandemic the new normal in the hospitality industry is now ‘no normal’; it is ”’not about making up for lost time; it’s about making up your own time.’” From upscale hotels to vacation resorts, and from corporate travel to student accommodations and extended stay options for digital nomads, guests of all ages who prioritise value are looking for hospitality venues that provide distinctive experiences and genuine authenticity. With tailored experiences that promote engagement with local culture and cuisine, to opportunities for social interaction and a focus on sustainability, wellness, and health-oriented amenities, the evolving demographics of guests are shaping a diverse range of new strategies, offerings, and environments.

Running parallel to this change are hotel operators and brands which have to remain flexible enough to accommodate customer needs while also capitalising on their target audiences and positioning themselves for long-term success.

Garett Hwang, Director of our Hong Kong office, quite rightly explains the role the architect plays in striking a balance between these needs, in a podcast episode we recorded for this report. Here, she says, “it's interesting because clients, especially those with experience in operating hotels, usually have a clear understanding of the market they're targeting. The challenge lies in creating a diverse experience that maximises income. The goal is to make the hotel as diverse as possible, allowing it to build its brand and remain flexible”.

Architects and designers can start addressing these challenges once they thoroughly understand their clients' business models and the needs of their customers or tenants. This knowledge is crucial because they are ultimately tasked with designing experiences tailored to these specific end users.

One way to tailor experiences to visitors is exploring how designers can integrate technology into the project. Don’t forget, however, that hotels are a ‘high-touch’ business, meaning that the business prioritises building strong relationships with their clients or customers, often through direct communication. As such, we need to consider the growing spectrum of desires and provide services that work for all. Hotels like The Social Hub (TSH) or Yotel, have embraced a hybrid model that allows its guests to choose whether they want their interactions to be with a human being or an app. Contactless services such as mobile check-in, digital keys and tablet or voice-controlled room automation have also become increasingly popular, primarily because they simplify the guest journey by reducing physical contact points and wait times. However not everybody favours such anonymous efficiency. Many guests still prefer a touch of human interaction and personal service during their stays.

According to a research by McKinsey, as documented in their ‘State of Tourism and Hospitality 2024’ report, although older travelers appreciate the convenience that technology can offer, they prefer human contact in many contexts. For example, 44 percent of baby boomers—versus only 30 percent of other respondents—say they value having a travel agent book an entire travel experience for them. And only 42 percent of baby boomers have used a mobile app to book transportation, versus 71 percent of other respondents.

Our role as designers is to facilitate these two user groups and allow hotels to provide the right options for all stakeholders. In terms of spatial design, TSH has implemented sensor-based monitoring systems across their properties. This technology allows them to continuously refine and enhance their spaces by analyzing guest usage patterns.

Taking a cue from the communication style of Airbnb Superhosts, the citizenM hotel brand also enhances guest familiarity by utilising popular communication tools like WhatsApp. This enables their staff to maintain constant communication with guests, promptly address their requests, and offer personalised services. Likewise in the luxury segment, guests benefit from tech-driven hyper-personalisation, ensuring that their experience and room setup are fully customised to their preferences and comfort even before they arrive.

While this is an added layer to the final hotels design, don’t forget that UNStudio also receives incredible data from clients, which enables us to conduct our own research into user behaviour, forecasting trends and tendencies. Astrid Piber, Partner and Senior Architect here at UNStudio’s Amsterdam office, explained in the same podcast episode that “in terms of design, it's about creating a chain of events for clients to choose from, crafting an inspiring day or week at the destination … In the past, hotels catered to either leisure or business travellers, but now, especially post-pandemic, there's a blend of travellers. We need to provide flexibility and cater to all types of users. Our design tools help us understand not just one type of user, but allow for a multitude of experiences within the hospitality environment.”

To this point, we re-emphasise these emerging connections client and consumer requirements and the ways design can play a role in considering both. Another segment where these connections are growing ever-more important is sustainability. In a 2023 survey by the World Tourism Organisation (UN Tourism, the United Nations agency dedicated to promoting responsible, sustainable, and universally accessible tourism), 73% of global travelers expressed a preference for staying in hotels that have adopted sustainable practices. This poses a challenge for certain establishments, including clients and hotel operators who often ask how choosing sustainable designs makes financial sense.

However, hotel owners are facing more inquiries about their sustainability efforts, with stakeholders such as banks and investors demanding greater commitment to ESG (environmental, social, and governance) initiatives. According to a Cornell roundtable, increasing carbon reporting requirements are expected to drive more investment in properties to reduce emissions. Rising insurance costs and climate change resiliency are also significant concerns, prompting some ownership groups to use climate studies to proactively mitigate risks and reduce insurance expenses by improving asset resiliency.

In conversation with Amanda Ho, founder of Regenerative Travel, a global community of independent hotels that exemplify regenerative principles—focused on restoring and enhancing ecosystems, communities, and cultures, we discussed how design plays a vital role in regenerative hospitality. She explains that “hotels integrate design with nature, creating spaces that reflect and honor the local environment and culture … Sustainable building materials, renewable energy sources, and eco-conscious architectural practices are woven into the fabric of the hotels’ identities, ensuring that design not only supports sustainability but also enhances guests' connection to the place.”

This connection to place shed more light on the S(ocial) and G(overance) of ESG principles. Arjan Pit, Managing Director in our Dubai office, touched on  UNStudio’s holistic approach to sustainability in our global podcast episode. He says, “Hotels here aren't just for guests; they're meeting places for locals, hosting birthday parties and social events. This social aspect can be expanded, making hotel lobbies accessible for work and leisure without charge. This development of the social role of hotels is growing, enhancing their function as community hubs”.

Gone are the days of the one-size-fits-all, generic hotel that can only be distinguished by its star rating. Today local context, hybrid stay models, value-driven guest experiences, bespoke services, tech-enabled convenience, extensive amenities, careful branding and a strong social media presence enable hospitality businesses to capitalise on their target audiences and position themselves for long-term success.

Read the full report here.