It’s no secret 2020 was a very difficult year for anyone in the hospitality market. However, 2021 has seen business in this market picking up, and that includes airlines, hotels, restaurants and bars, and the return of in-person weddings. The current state of the market hasn’t fully rebounded, but it is promising.

Current State of Travel

Corporate travel has returned, although not to where it was 13 months ago. Leisure travel is improving. This past April, hotel occupancy reached 57.5%, which was the highest it had been since the start of the pandemic. In April, 65% of the members of the Global Business Traveler Association (GBTA) felt their employees were willing to travel for business, and that increased to 74% in May. The large jump over one month is just another example of growing confidence.

Future of Travel

Many are anticipating a sizeable increase in business soon because of “revenge travel” – which is the phrase for people taking huge blow-out trips after more than a year of lockdowns. In addition, travel agencies expect to see more solo trips: According to Booking.com surveys, the number of people planning to travel solo nearly doubled in July 2020. Many workers are extending their vacations so they can combine work and leisure, leading to longer stays, as well as hotels shifting priorities to provide an ideal working environment for guests. There’s also a new focus on local experiences, suggesting that places like wineries, museums, aquariums, historic sites and other tourist destinations would be smart to develop campaigns to attract more local customers.

What That Means for Promo

The options are endless, but the focus will remain on customer loyalty and employee appreciation.

• VIP gifting for loyal travelers who start booking again, as well as third-party and food vendors that offered extended terms for cruise lines
• High-end luggage or accessories to thank employees for picking up extra responsibilities because of layoffs
• Branded tech like chargers and earbuds for solo travelers
• Elaborate displays or offering a free gift with ticket purchase can attract locals to a business
• Hand sanitizer, no-contact tools (to press buttons or open doors), and even no-contact room cards and ID tags for all customers and employees
• Towels and duffel bags, perfect to welcome back vacationers

Current State of Restaurants & Bars

OpenTable, an online reservation service, has reported an increase in reservations for indoor dining since December of last year. Many restaurants are also hiring, and the return of football season has brought about extended hours and more restaurant and bar events around college and professional games.

Future of Restaurants & Bars

Since many restaurants fine-tuned their to-go service during the pandemic, consumers are more comfortable than ever ordering through a food delivery app or going to their favorite restaurant to pick up dinner curbside. Expect these services to continue to grow, and they’ll need promo to support their efforts. As temperatures drop and the colder weather sets in, restaurants will need extra sanitation stations, and customers will be pushing more for contactless payment options.

What That Means for Promo

There’s no shortage of swag opportunities, including:

• Branded drinkware for beer manufacturers
• New apparel for customers and staff
• Totes and bags for to-go orders
• Signage announcing curbside service or extended hours
• Sunglasses and lip balm – low-cost promos that are easy to give away on game day

Current State of Events

Large events are back, whether at conference centers, sports arenas or theaters. Attendance may not be what it once was, but there are plenty of people excited to see colleagues at trade shows and cheer on their favorite sports team. Venues each have their own sets of rules for attendees, and, as usual, selling branded merch is always a must. In-person weddings that were postponed are happening, and caterers, wedding venues, music entertainers and photographers are back to full work schedules on the weekends. Despite all of this, virtual events found their place – and likely aren’t going anywhere.

Future of Events

Restrictions tend to differ from location to location, and communication to attendees will be key. Marketing for future events will be back, increasing the need for marketing materials. Virtual events will continue to be a force, especially for businesses with an international presence, and even in-person events may offer special packages for virtual attendees and hire speakers who join virtually from anywhere in the world.

What That Means for Promo

The biggest opportunities we see involve marketing and communications for these events and vendors, along with lower-priced promos to help companies promote while still being budget-conscious:

• Promotional signage listing safety precautions for the venue
• Hand sanitizer, sanitation wipes or mask giveaways for attendees
• Branded sanitizing stations throughout the venue – could be a sponsorship opportunity for the event planner
• Gifts like T-shirts, journals or power banks shipped to virtual attendees
• Grab bags for physical attendees that contain low-cost items like pens, stickers, lapel pins and magnets

These are just some of the changes we’ve seen and expect in the hospitality market. Have you traveled or dined out recently? Attended a wedding or sporting event? What was your experience like? Let us know in our Facebook group.

 

Sources:

“8 Travel Industry Trends for 2021 (And Beyond).” Howarth, Josh. September 2, 2021. Exploding Topics.

“Big Markets: Hospitality.” Lavenduski, Sara. March 31, 2021. Counselor.

“Travel, Hospitality Starting to Rebound.” Ruvo, Christopher. March 22, 2021. PromoGram.