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IDC FutureScape: Worldwide Hospitality, Dining, and Travel 2020 Predictions

IDC FutureScape: Worldwide Hospitality, Dining, and Travel 2020 Predictions

This IDC study explores how hospitality, dining, and travel organizations are responding to the drivers of business and offers guidance on actions to consider. Hospitality organizations, in the new digital era, are responding to a wide range of political, economic, social, cultural, technological, legal, and experiential forces with new business and technology investment strategies. Increasing market pressures, sweeping regulations, and changes in consumer expectations for experiential hospitality call for the industry to act in innovative ways that meet rising expectations, improve outcomes, and deliver value. Consistent themes emerge in how hospitality, dining, and travel organizations are addressing improving business outcomes amid all this transformation, as follows:The industry is digitally transforming, by realigning business strategies, business processes, and technology investments to improve productivity and consumer experience.Investments include new cloud-based platform foundations for financial, asset and people/workforce management, net in-room and on-property digital experiences, and improved reservations systems.Artificial intelligence (AI) is woven throughout, as it improves personalization from a consumer experience perspective and execution from a workplace perspective."Hospitality organizations are playing catch-up — but are doing so at an accelerating pace as the need for digital transformation has become clear. The IDC 2020 worldwide hospitality industry predictions provide a glimpse into how hospitality, dining, and travel organizations will be investing over the next five years to attract and maintain customer loyalty by improving convenience, service, and value in the new digital era," says Leslie Hand, IDC GVP, Retail Insights. "Some of the hot topics covered are privacy, the gig economy, and voice-enabled engagement."

Please Note: Extended description available upon request.


IDC FutureScape Figure
Executive Summary
IDC FutureScape Predictions
Summary of External Drivers
Predictions: Impact on Technology Buyers
Prediction 1: By 2023, 20% of Hospitality Organizations Will Embrace a Complete Cultural Shift with Leadership Championing Disruptive Innovation, Driving Investment That Launches the Next Stage of Growth
Associated Drivers
IT Impact
Guidance
Prediction 2: By 2021, 60% of Major Dining Brands Will Use Consent-Based Approaches to Maximize the Value of Contextualized Customer Engagement and Automated Conversations, Driving a 20% Increase in Frequency
Associated Drivers
IT Impact
Guidance
Prediction 3: By 2024, 50% of Hospitality Organizations Overall Will Implement AI-Enabled Software Solutions and Only 20% of Those Will Successfully Differentiate Services by Leveraging the Full Capabilities of AI
Associated Drivers
IT Impact
Guidance
Prediction 4: By 2023, New On-Premises Digital Services for Hotel Operators Will Drive a 10% Increase in Revenue Through Partnerships with Other Service Providers
Associated Drivers
IT Impact
Guidance
Prediction 5: By 2023, 90% of Hospitality and Dining Enterprises Will Enlist Temporary Workforces Through Digital Services, Improving Customer Satisfaction by 10% While Reducing Salary Expenses by 10%
Associated Drivers
IT Impact
Guidance
Prediction 6: By 2023, 35% of Large Hospitality, Dining, and Travel Companies Will Have Partnered with Retailers for Collaborative Services to Increase Customer Visit Frequency and Satisfaction
Associated Drivers
IT Impact
Guidance
Prediction 7: By 2020, More than 50% of Hotel Brands Will Have Launched at Least One Co-Innovation Program and 15% Will Start to Generate Revenue by Selling Tech IP
Associated Drivers
IT Impact
Guidance
Prediction 8: By 2025, 5G Will Have Enabled Innovative IoT Use Cases, Resulting in Hospitality Organizations Allocating 25% of Their IT Budgets to Deploying Connected Devices and Connectivity Management Solutions
Associated Drivers
IT Impact
Guidance
Prediction 9: By 2020, 30% of Major Hospitality Brands Will Be Leveraging Voice-Activated Digital Assistants for Customers' Use, Increasing Customer Experience Metrics by at Least 10%
Associated Drivers
IT Impact
Guidance
Prediction 10: By 2023, the 25% of Hospitality Organizations That Have Linked Self-Service Technology Strategy to DX Will See a 10% Increase in Net Margin and a 15% Increase in Customer Loyalty
Associated Drivers
IT Impact
Guidance
Advice for Technology Buyers
External Drivers: Detail
Accelerated Disruption: Navigating Business Challenges as Volatility Intensifies
The Platform Economy: Competing at Hyperscale
Sense, Compute, Act: Maximizing Data Value
Crisis of Digital Trust: Escalating Threats Mandate Strategic Responses
Intelligence Everywhere: AI's Opportunity and Implications
Rising Customer Expectations: More Convenience, Customization, and Control
The Future of Work: Agile, Augmented, Borderless, and Reconfigurable
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