The hospitality industry is experiencing a transformative moment. As we welcome 2024, the focus on personalization and experiential value has never been greater. Today’s travelers expect more than just accommodation—they seek immersive, memorable experiences that enhance every moment of their journey. Fueled by younger generations like Gen Z and millennials, there is an increasing demand for customized, experience-driven travel. This shift presents new challenges and an incredible opportunity to reimagine hospitality services through technology.
Our work with hospitality leaders reveals some compelling insights: while technology enables personalization at scale, many providers still rely on legacy systems for critical guest interactions. According to McKinsey & Company, 47% of experience bookings occur offline, highlighting significant room for digital transformation.
The research also identifies distinct traveler segments, each requiring tailored approaches:
- Social Adventurers (25%): Seek social media-inspired, dynamic itineraries
- Independent Explorers (24%): Value authentic, self-directed local experiences
- Relaxed Researchers (22%): Prefer flexibility and value-conscious options
- Guided Tourists (10%): Choose structured, planned experiences
Roberto Martínez, President of Encora, frames the opportunity: "Our research demonstrates the need to eliminate friction points throughout the customer journey. As preferences evolve, particularly among younger travelers, technology must adapt to effectively engage, convert and retain both guests and industry talent."
Working alongside hospitality providers, we're implementing practical solutions that drive measurable outcomes. Our approach focuses on three primary levers:
- Leveraging data analytics to deliver personalized guest experiences
- Modernizing core systems to improve operational efficiency
- Developing seamless digital interfaces that enhance guest satisfaction
Shridhar Padmanabhan, Senior Vice President of Travel & Hospitality at Encora, speaks to this evolution: "The travel landscape continues to transform - from shifting consumer preferences to emerging platforms. Our focus remains on helping clients achieve customer delight through innovative solutions."
Our commitment to industry advancement extends beyond client engagements, and to creating collaboration opportunities for the industry to progress as a whole. As the exclusive sponsor of the 2024 Hotel Visionary Awards, we support organizations leading digital transformation in hospitality. This aligns with our mission to enable technological and operational innovation across the sector.
Fabiana Moura, Encora's Senior Vice President and SME of travel & Hospitality observes: "Travel has evolved into an experience where each journey reflects the individual traveler. Success now depends on delivering value at every touchpoint, not just the destination."
As we look ahead, Encora remains focused on developing and implementing practical solutions that drive tangible results for our hospitality clients while enhancing the guest experience. Through a combination of technical expertise and industry knowledge, we are helping providers navigate this transformation with confidence.
