After multiple discussions around the world, this is an emerging view on the future of hospitality being shared for further comment and feedback. Events hosted by IHG (Intercontinental Hotels Group) including workshops in London, Dubai, Singapore and New York have explored key drivers of change. Other events elsewhere have added in additional perspectives.

1. The Future of Hospitality | The Emerging View
Insights from Mul0ple Expert Discussions Around the World

2. Context
Comprising 9.5% of global GDP in 2014, hospitality is a significant industry with
the ability to shape markets. It receives much recogni0on, focus and concern
from a wide range of individuals, organisa0ons, des0na0ons and governments.

3. Future Agenda
The Future Agenda is the world’s largest open foresight program
that accesses mul0ple views of the next decade
so all can be bePer informed and s0mulate innova0on.

4. Looking Forwards
Organisa0ons increasingly want to iden0fy and understand
both the an0cipated and unexpected changes
so that they can be bePer prepared for the future.

5. Future Agenda 1.0 Top Insights for 2020
From the 2010 program, 52 key insights on the next decade were shared
widely and have been extensively used by organisa0ons around the world,
including many in the hospitality sector.

6. Future Agenda in Numbers
The first Future Agenda programme engaged a wide range of views in
25 countries. Future Agenda 2.0 has doubled the face-to-face interac0on
and significantly raised online sharing, debate and discussion.
Future Agenda 1.0
1 HOST
16 TOPICS
25 COUNTRIES
50 WORKSHOPS
1500 ORGANISATIONS
Future Agenda 2.0
50 HOSTS
25 TOPICS
40 COUNTRIES
100 WORKSHOPS
2500 ORGANISATIONS

7. Future Agenda 2.0 Topics
The second version of the Future Agenda program is taking place
during 2015 and has been addressing 20 topics via 100 events in
50 ci0es in 40 countries in partnership with around 50 core hosts.
Ageing
CiQes
Company
ConnecQvity
Data
EducaQon
Energy
Food
Government
Health
Learning
Loyalty
Payments
Privacy
Resources
Transport
Travel
Water
Wealth
Work

8. Context
An ini0al perspec0ve on the Future of Travel kicked off the Future Agenda 2.0
global discussions regarding hospitality taking place through 2015. This
summary builds on the ini0al view and has been updated throughout.
Ini0al
Perspec0ves
Q4 2014
Global
Discussions
Q1/2 2015
Insight
Synthesis
Q3 2015
Sharing
Output
Q4 2015

9. IHG Partnership
Future Agenda would like to thank IHG who helped to make these
global conversa0ons on Hospitality and the Future of Travel possible,
suppor0ng events in many loca0ons around the world.
IHG® (InterCon0nental Hotels Group), one of the world’s leading hotel companies, has a broad poraolio of
nine hotel brands, including InterCon0nental® Hotels & Resorts, Hotel Indigo®, Crowne Plaza® Hotels &
Resorts, Holiday Inn® Hotels & Resorts, Holiday Inn Express®, Staybridge Suites®, Candlewood Suites®,
EVEN™ Hotels and HUALUXE® Hotels and Resorts.
IHG franchises, leases, manages or owns over 4,700 hotels and 697,000 guest rooms in nearly 100
countries, with almost 1,200 hotels in its development pipeline.
IHG is focused on innova0on and uses consumer insights to strengthen its exis0ng brands, and to inform
the launch of new brands (HUALUXE® Hotels and Resorts & EVEN™ Hotels) to capture more of the
growing demand than its exis0ng brands can achieve.

10. The Future of Hospitality | The Emerging View
This document provides an overview of what we heard from mul0ple expert
voices around the world – on the future of hospitality, how the sector is
changing, what is driving this change and how it may evolve.
Increasingly
Borderless
World
The
Hospitality
Employer
Brave,
Sustainable
New World
New Business
Models
Sharing
Control
Importance of
Community
Being Human

11. Increasingly Borderless World

12. Increasingly Borderless World
For many, the opportunity for travel and tourism has become more
accessible and seamless, opening up markets, borders and experiences.
For others who are able to afford travel, or at least more extensive travel,
for the first 0me in their lives, the opportunity itself is change enough.
Travel across borders will always introduce cultures, behaviours and
values. These will at 0mes create market-forming environments and
powerful exchanges of cultural learning. At other 0mes, and in some
loca0ons, a clash of cultures will be evident. Authen0c and genuine
experiences will be sought by some, but at what expense to local
communi0es?
Eastern growth will influence much in the hospitality space – food &
beverage and décor for example – and smart hospitality organisa0ons will
expertly demonstrate a healthy blend of east with west.

13. Increasingly Borderless World

14. Seamless Cross Border Travel
Smart visas, indeed, smart 0cke0ng in general for mass transit
provides a tangible way forward in addressing some of the barriers
to the seamless growth of cross border visitor numbers.

15. Doubling of InternaQonal Tourism
In 2012 the number of tourists crossing interna0onal borders reached over
1bn. Much of the demand is fuelled by rising household incomes in emerging
economies… Interna0onal tourist arrivals are expected to reach 1.8bn by 2030

16. Cultural Relevant Conundrum
In an increasingly global and diverse world how will brands embrace na0onal
consciousness and touch consumers whose na0onal iden0ty is disconnected
to where they live? How will brands reconnect with the diaspora?

17. AnQ-Tourism
Increasing numbers of tourists descending on tradi0onal des0na0ons will
give rise to localised community backlash and inevitable regula0on
- perhaps driving travellers to new, more welcoming, des0na0ons.

18. Chinese Convenience
The global travel infrastructure has been built for, and by, western travellers.
This will be reimagined for the Chinese - going beyond congee for breakfast to
a more subtle understanding of what is ‘convenient’ for Chinese tourists.

19. Chinese Tourists
150 million outbound Chinese tourists and a total of 500m more mobile
Asians will need places to stay in other countries that align bePer with
their specific cultural norms and expecta0ons.

20. Tribal Tourism
With global travel increasingly democra0sed, culture clashes are likely, leading
to the phenomena of insularity abroad, culture-specific tourist enclaves and
prejudice-driven aPempts to aPract some, while discouraging others.

21. Eastern Centricity
With China’s 500m-strong middle-class burgeoning and travel
barriers diminishing, Western and Eastern cultures meet and
feed off one another, shiring global norms.

22. Chinese Tourist Demographics
More Chinese outbound tourists are expected, but liPle aPen0on has been
paid to their demographics. Growth so far has been in the young and wealthy,
but the next decade will see a rise of less wealthy and older Chinese tourists.

23. Global Commuters
Communica0ons technologies increasingly allow high-end workers to be more
flexible in terms of where they chose to live. Global, and perhaps long-haul,
commu0ng will become normal, driving new commuter travel services.

24. The Hospitality Employer

25. The Hospitality Employer
The hospitality industry is a huge and diverse employer and this workforce
is more connected today than ever before. The workforce is also more
aware of rights, responsibili0es and opportuni0es. Coupled to this is a
growing belief that all organisa0ons, hospitality or otherwise, have a
greater role to play with regards to society’s greater good.
We can expect the sector to experience its own ‘upgrade’ of staff
prac0ces in areas such as training, use of data and dealing with customers
– all geared toward an improved guest experience and a more sa0sfied
workforce. Technology will play a role as it becomes more engrained in
the processes of travel and tourism, for traveller and provider alike.
Par0cular groups of emphasis include women as they realise more
opportuni0es, migrants who will con0nue to make their mark on
economies and ageing popula0ons, as they grow in number (in many
countries) and demonstrate leadership in the marke0ng of wisdom.

26. The Hospitality Employer

27. BeVer Employers
Given that the travel and tourism industry is a huge employer,
the development of and 0ghter controls on employment rights
are likely to be a significant factor in the future.

28. SaQsfying a BeVer Educated Workforce
As travel industry employees are more educated, increased pressure is placed
on management to bePer serve the workforce and their needs. A greater focus
on human capital develops leadership and embraces diversity.

29. Learning to Upgrade
A shir occurs in how educa0on is delivered across the service industry globally.
Blended learning, bePer brand applica0on and capacity building in HR, results
in a more data-led, mul0-skilled workforce and so a bePer guest experience.

30. 21st Century OrganisaQons
The emerging organisa0on feels very different from c20th companies -
collabora0ve, crowd-funded, flaPer, human-focused, hyper-specialised,
informal, localised, out-sourced, project-based, purpose-led and virtual.

31. Technology Takeover
There is a widespread fear that the rise of robots - or more exactly, a
combina0on of compu0ng power, algorithms and robo0cs - will destroy
the labour market, even, possibly, the very idea of labour value.

32. Feminine Spirit
Leading organisa0ons, in par0cular those in the West, promote and
invest in women, bePer represen0ng the popula0ons that they serve.
Many benefit from doing so.

33. PosiQve ImmigraQon
Economists agree that immigra0on is good for economies. Migrants tend to be
younger, more enterprising, and economically ac0ve, and their effect on
wages, economic growth and tax contribu0ons is almost completely posi0ve.

34. Good Jobs
Companies out-perform through a combina0on of bePer wages, investment
in training, and appropriate technological investment to support staff… High
value work benefits individuals, businesses, as well as society as a whole.

35. Making Work Work (for People and Work)
We will see a shir in priority from ‘money maPers’ to ‘meaning maPers’.
This will lead to the emergence of community and wellbeing
managers in organisa0ons and new ways to measure success.

36. Wisdom Workers
Focus is on enabling reinven0on stemming from opportuni0es created by
non-linear career paths and innova0on networks, giving rise to the ‘wisdom
worker’ - where experience is the cri0cal addi0on to skills and intelligence.

37. SupporQng the Ageing Workforce
As major economies suffer from increasing dependency ra0os, the challenge
of suppor0ng an increasingly older workforce demands rethinking of life-long
learning and broader acceptance of the cost of part-0me flexible jobs.

38. Customers Before Shareholders
Driven by changing views of their social value, corpora0ons will
increasingly seek to focus more on real customer needs and so decrease
emphasis on short-term pressure from shareholders.

39. Brave, Sustainable New World

40. Brave, Sustainable New World
Responsible behaviour and ac0ons permeate the crea0on of a more
sustainable hospitality sector – on behalf of providers and travellers alike.
From the traveller and guest point of view, a greater awareness is firmly in
play. This awareness could well affect when and where they travel, what
organisa0ons and brands they engage with and what they do or expect to
be done when they arrive.
For the industry, responsible behaviour begins with aspects of efficiency
waste avoidance and waste reuse. But it certainly does not end here.
Many guests will increasingly expect greater transparency in supply chains,
the demonstra0on of the supplier making a posi0ve local impact – perhaps
with guest involvement – and a fluency in the incorpora0on of green
design into the fabric and processes of the experience.

41. Brave, Sustainable New World

42. Two Main Challenges
There are two main challenges ahead for the development of a robust travel
and tourism industry: how to grow further to deliver jobs, exports, economic
growth and development, and in doing so, how to manage this sustainably.

43. PosiQve Local Impact
Travellers will base buying decisions not only around comfortable beds, leisure
facili0es or cultural aPrac0ons, they will also choose to stay in places where
staff are being treated well and the local economy is not being exploited.

44. More, Not Less Waste
While many aspire to a zero waste system, we see growing
volumes of waste especially in ci0es, par0cularly food waste
– 30% of which is now thrown away every day in Europe.

45. Digital Transparency
Innova0on will drive improvements in resource produc0vity: Digital
connec0vity will provide greater transparency on how we use our resources
and the environmental, social and financial impact of their use.

46. The Bio-sphere
The bio-sphere will come to be seen as just another resource,
albeit one which demands a ‘give and take’ rela0onship rather
than simple extrac0on and exploita0on.

47. Growing Consumer Awareness
The dream of affordable travel is being obscured by climate change and a
growing awareness among consumers that sustainability and responsible travel
are set to impact how we understand, embrace and manage our holiday plans.

48. Green Design Reshapes Lifestyles
From eco-friendly but small-scale consumer goods, to green consciousness
at the scale of city and building planning, green design and green-designers
are likely to start reshaping our lifestyles and changing our energy use.

49. Responsible and Inclusive
Look out for growth in travel focused on learning about, experiencing
or posi0vely affec0ng ecological conserva0on, economic development
and local community improvements, cultural respect or human rights.

50. Importance of Community

51. Importance of Community
In the tradi0onal sense, community speaks of aPachment to a
geographical loca0on and the people within that locale. For travellers, this
defini0on holds much meaning as some will do their best to leave the
beaten path and to ‘discover’ a more genuine and authen0c experience.
But community has a much broader meaning concerning those who share
a common thread, interest, ac0vity, family 0e or friendship. This
descrip0on is especially important in today’s phenomenally connected
world. Today, community can be more fluid and of the moment, morphing
and developing (or disbanding) as the mood and circumstances dictate.
What community is not is a market segment, determined by age and which
is stable and predictable. Who is in and who is out of the community is
determined by the community itself – not by organisa0ons and loyalty
plans. And what is key for hospitality providers is knowing when to be a
part….and when to stand well clear.

52. Importance of Community

53. Community-based Tourism
Community-based tourism is on the rise with holidaymakers eschewing the
crowded beaches and all-inclusive packages to enjoy a more authen0c
experience living in the culture rather than observing it from the outside.

54. Pop-up Economies
Crowd-sourcing will enable ‘pop-up economies’ where communi0es pool
resources and so reduce the need for government involvement. The downside
is that communi0es create their own iden0ty making “them and us” obvious.

55. More Niche Groups
More alterna0ve groups, niche cults and ideologies bring together like-minded
people from across tradi0onal boundaries. Brands adapt to this rise by crea0ng
more niche product categories catering for smaller, dispersed 'tribes’.

56. ‘Bleisure’ and ‘SabbaQcaQon’
Travel con0nues to evolve in line with changing work paPerns and career
aspira0ons; being able to work-away, take longer breaks off-grid, and even
job-share and job-switch, become significant drivers of future travel offers.

57. Maturing Millennials
Digital na0ves seek authen0c, unique experiences to fit with flexible careers,
and balance instant gra0fica0on with civic-mindedness - As they mature and
become the dominant travel audience, which mo0va0ons will win out?

58. MulQ-GeneraQonal Travel
Many elect to travel together as mul0-genera0on groups of both families and
mixed friends. They look for vaca0ons that keep everyone happy and, as such,
stress many systems based on delivering segmented experiences.

59. Travel Mindsets, Not Segments
Through bePer staff training and improved use of connected data, travel
organisa0ons are able to target based on situa0ons, not segments, allowing
the mindset of the guest – not an age bracket – to drive their experience.

60. Mass Medical Tourism
In key loca0ons where hotel footprints align with the medical facili0es,
there will be growing demand for accommoda0on for pa0ents,
their families and healthcare professionals.

61. Live Experiences
Live sport and fes0vals are put on a pedestal - aPrac0ng cross-overs
with other industries and greater technical innova0on to enhance
fan interac0vity and audience engagement.

62. Sharing Control

63. Sharing Control
Personalisa0on, peer power, aggrega0on, choice, these are all words of
immense meaning to travellers and guests. They trumpet the arrival of
control that lies with the individual. For organisa0ons, these same words
mean a new way of working where some0mes they lead, some0mes they
follow. It also means that control and decision-making is shared.
With so much individuality in play, it is fair to ask if loyalty s0ll exists. It
does, but loyalty con0nues to spread far away from what a brand says it is
or does, to that plus what others say about the brand. Trust lies in
networks of friends, family and peers and loyalty is present as long as you
provide goods and services that travellers and guests want to buy. Here
today, gone tomorrow rings very, very true.
Technology plays a part as augmented travel enables try-before-you-buy
experiences, devices rule the roost and wifi nomads travel as and when it
suits them, as long as they can plug in every few days.

64. Sharing Control

65. Consumer Power
The consumer is likely to gain the upper hand in terms of
the power dynamic and principles such as ‘great customer service’
will no longer be a nego0able.

66. Personalised Choice
Consumers enjoy a world where choice is a commodity but where trusted
opinions play a cri0cal role in guiding and assis0ng decisions or, for some
individuals, reducing choices on their behalf.

67. Travelers in Control
Connec0vity everywhere will redefine research, decision-making, marke0ng
and experiences. This leads to a richer environment for travellers and the
opportunity for them to ‘make it their own’ including the spontaneous.

68. Peer Power
Aggrega0on occurs in hotel/peer review sites alongside integra0on with
consumers’ personal trusted networks. This gives guests advice
they can trust and greater consistency of ra0ngs globally.

69. Device is King, Consumer is Queen
The device is the focus of the future – it knows where you are, what you
redeem and will consolidate all your informa0on. Travel brands have to
understand the ways devices will mediate their rela0onships with customers.

70. The Composite Consumer
Flexible digital iden00es allow consumers to connect with each other even
as they connect with brands. Loyal rela0onships will be made not just with
individual customers but also with families, couples, and groups of friends.

71. Diluted Value of Loyalty
Consumers will increasingly face the problem of having a wallet fat with loyalty
cards. In this scenario, the value of loyalty may become diluted, the consumer
may become overloaded, eventually disengaging from loyalty altogether.

72. Augmented Travel
Virtual try-before-you-buy travel experiences, and augmented travel
experiences emerge as key offers from innova0ve travel providers
- enabling sophis0cated personalisa0on of experiences.

73. Valuing Time
Technology-enabled connec0ons provide more headspace and heart-space
that displace the frustra0ons and ‘lost 0me’ that travellers needlessly suffer.
This helps them to get more value from their 0me spent travelling.

74. Wi-fi Global Nomads
For some in the knowledge economy the poten0al for con0nuous travel,
blended with part-0me work, is focused on ‘wi-fi hopping’for regular access
to high-speed connec0vity - no maPer where in the world they are.

75. Extreme Customer Centricity
Customer engagement will become a core func0on that cuts across tradi0onal
silos, and helps to focus en0re businesses on the contextual needs and value
opportuni0es for different audiences at different stages of a customer journey.

76. New Business Models

77. New Business Models
The Sharing Economy is a significant industry model that is rewri0ng the rules,
par0cularly in hospitality. You don’t need to look any further than AirBnB and
Uber to appreciate the power that a sharing dynamic possesses. The matching
of unmet needs with underu0lised assets is at the core of sharing. What must
also be appreciated is that travellers and guests respond well to organisa0ons
that connect them to other organisa0ons. The ability to form and make best
use of partnerships will be highly valued.
New ways of working will also be inspired by individuals and organisa0ons
making good use of brief moments of aPen0on and by the ability to act on
upstream knowledge. Short, sharp and accurate ways of assis0ng travellers
and guests will be appreciated.
Nevertheless, seamless end-to-end experiences are s0ll expected. This not
only calls for a significant integra0on effort on behalf of the supplier, but it
raises the ques0on of who is liable when things don’t go according to plan.

78. New Business Models

79. ConsolidaQon of Travel VerQcals
The pull of large industry players aiming to improve efficiencies and the push
of market disrup0ons such as AirBnB and Uber lead to increased consolida0on
and integra0on within tourism boards, hotel brands, travel agencies etc.

80. Brand Alliances
We will see a set of consumer expecta0ons that brands will no longer be able
to deliver alone. Strategic brand alliances, designed to deliver sophis0cated
choice and content, to complex consumer needs, are likely to emerge.

81. The Sharing Economy will be RegulaQon-light
Consumers will become more loyal to business models that connect them to
other people. Personal rela0onships will dominate - but within the safety of
recognised global networks that act as insurance/reassurance for users.

82. 10 Seconds of AVenQon
Increased consumer choices and channels leave brands figh0ng for 10 seconds
of aPen0on. A new paradigm will emerge, based on dynamic, fast-moving,
calls to ac0on rather than long-term rela0onships with delayed rewards.

83. Deeper Loyalty
While travellers are used to points, many see the need for deeper rela0onships
with the hotels they prefer to visit, rather than a global poraolio that share
the same brand. They seek closer rela0onships around their real needs.

84. Up-Stream Insight
Companies and networks have, and act on, very early insight on future ‘intent
to travel’ and customise services to suit. Exis0ng hotel brand rela0onships are
by-passed by those more ‘in the know’ about guest interests.

85. Changing Travel MoQvaQons
Demographic shirs and technology developments influence when and why
we need to travel. Mo0va0ons for work and leisure mobility blur and dynamic
pricing and the sharing economy deliver greater efficiency in the system.

86. Travelling LiabiliQes
Integrated, door-to-door travel booking and experiences mean that
single travel plaaorm service providers need new models of risk
management as they become liable for a wide range of ac0vi0es.

87. End-to-End Experiences
To simplify the customer journey and exploit inefficiencies across the travel
eco-system, new technology-led services decouple and disintermediate current
providers: New seamless, integrated apps re-bundle the a-la-carte choices.

88. Being Human

89. Being Human
In a high tech world, do we assume that human contact has disappeared?
For some, this isn’t a problem, but for many, the human touch remains
key. Problem-solving and personalisa0on remain as areas where it is a
cri0cal component. Nevertheless, showing a human side can be more
difficult for some organisa0ons as they may fear revealing their less
aPrac0ve side. Yet with increasing transparency in play, reveal they must.
Being human can also be evident in the kinds of services sought by
travellers and guests, or provided by hospitality players. Well-being
con0nues to be an important focus area as does the maximisa0on of
moments.
Space too is an opportunity for human to human connec0on and for the
provision of a ‘human’ feel through provision of comfort, security and
personalised se{ngs.

90. Being Human

91. Dreaming of Humanity
The norm will be automa0on: machines will respond to humans who
respond to machines. Human interac0on will only be used to
problem-solve and provide more personalised and premium services.

92. The Human Touch
In a world of global and digital marke0ng and consump0on,
consumers will increasingly favour those brands that can offer more
emo0onal engagements, and specifically human-to-human contact.

93. Love: Warts and All
With corporate transparency becoming a necessity, businesses have to
address it as both an opportunity and a threat. Successful brands will find ways
to take customers with them - even as they reveal their less aPrac0ve sides.

94. Lengthening RelaQonships
With the sector under aPack from outside, hospitality companies see the
need for new points of contact that are different from the past: They want
to lengthen rela0onships with customers both before and arer the stay.

95. Maximising Moments
Individuals seek to maximise the benefits of moments available to them -
whether efficiency, rest, enjoyment or otherwise - regardless of 0mespan and
whether the moment was planned or enforced.

96. Mind, Body and Spirit
We will see a growth in travel aimed at improvements in well-being. This will
include a reawakening and revisi0ng of local spiritual tradi0ons in countries
where travel and travellers have, to now, been associated with modernity.

97. SupporQng Overwhelmed Travellers
With access to seemingly endless informa0on, travellers will con0nue to
need help ‘connec0ng the dots’ and filtering. The gathering of useful local
and authen0c knowledge from meaningful (human) sources will be key.

98. Defining My Space
Hospitality organisa0ons increasingly op0mise the experience of space – both
physically and experien0ally - to help travellers feel comfortable and secure.
This results in more memorable, personalised and efficient travel.

99. QuesQons that emerge

100. QuesQons that Emerge
From these discussions on and around the future of hospitality, there seems to
be a number of key ques0ons to be addressed by governments, companies
and individuals – some global and some more local or regional in focus.
1. How will asset-rich hospitality brands strike a balance between the need for crucial
investments in staff training, customer service and mee0ng sustainability aims, yet maintain a
compe00ve edge with asset-light organisa0ons born of the sharing economy?
2. In an increasingly technology-led experience, filled with choice, personalisa0on and consumer
control, how important will the human touch be and how will it be made manifest?
3. Hospitality organisa0ons need to deal with increased transparency, less waste and the need for
crea0ng posi0ve local impact in order to meet changing regula0ons and consumer
expecta0ons. How long do they have and what are the penal0es for ge{ng it wrong?
4. Will the idea of customer segments s0ll exist in the hospitality industry in 10 years’ 0me? If so,
how will this approach adequately encompass regularly changing communi0es?
5. Will loyalty s0ll be addressed via hospitality loyalty programmes modelled on today? If not,
what will they look like?
6. How will the forces of disrup0ve business models and the need for efficiency pit brands against
each other at 0mes and draw them together in other situa0ons?
7. How will the broad hospitality landscape change and how significant will this change be?

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