The 2025 hospitality forecast
Travel disruption. The cost-of-living crisis. The deflation of the post-pandemic demand bubble. Staffing costs and retention. There are a multitude of reasons that make the coming year a challenge for hoteliers and hospitality in general. A recent PWC report suggests that growth in demand for hotel stays is set to stall in 2024[1] and only marginally improve in 2025[2], and that this will affect the wider regions as much as London hotels. Hoteliers will be looking ahead to see how they can overcome this predicted stall in bookings. So where do the opportunities to influence bookers lie?
Changing behaviour
The first port of call for most customers looking to book a hotel is their mobile phone or desktop. Booking online is now the most common way to book, with around 86% of UK travellers opting for online travel agents[3]. It’s expected that this figure will only keep on growing. Browsing online is popular (Expedia research showed 60% of UK travellers did not have a specific destination in mind or considered multiple destinations) and reviews are a key driver in the decision-making process[4].
TripAdvisor alone is home to around 1 billion reviews globally, so there is no shortage of opinions shared. Ipsos MORI carried out research for this popular site and found that 8 out of 10 people always read online reviews before they book a hotel[5]. More than half said they would never book a hotel that had no reviews. According to researchby Condor Ferries, guests are prepared to pay more for accommodation that has a higher review rating[6] and 32% of peoplewould filter out hotel with rating below four[7].
Paying attention to online reviews
Reviews fall under what is sometimes called ‘social proof’, where people look to others to influence their choices. For the 18–34-year-olds who have grown up in a tech-connected world, online reviews are trusted as much as personal recommendations. As reviews become ever more important in attracting guests, forward-thinking hoteliers will be looking at the ways in which they can increase their ratings[8]. So, what measures can hotels take to positively influence their reviews in a cost-effective way?
Review your coffee strategy
Coffee is the answer. It sounds simple (and it is) but coffee has a real impact on the guest experience. People love their coffee. Globally, 2.25 billion cups of coffee are consumed every single day[9]. UK consumers drink 98 million cups of coffee each day, with 24% of them drinking coffee at least once a day and 35% of them enjoying a cup several times during the day[10].
Every hotel will have a slightly different need for their coffee offering, driven by the consumer touchpoint. Whether this is leveraging a premium, branded coffee offering to drive F&B revenue in the bar, or whether it is to serve a good value, reliable cup of quality coffee at breakfast, you need a coffee partner to support the range of your guests’ needs.
Hotels aligning with renowned coffee brands can enhance guests’ satisfaction and operational success by leveraging the trust, quality, and reputation associated with these brands. Offering a prestigious coffee brand within a hotel, boosts the perceived value of the service and can enhance the hotel’s image. This association also demonstrates quality and serves as a compelling selling point[11].
Coffee becomes a hot topic across online reviews
Now that hotels have a more discerning nation of coffee drinkers to impress, the results can be seen across online reviews. The coffee experience, whether good or bad, can be a huge factor in influencing how people rate their hotel experience. A study found that up to 35% of just one hotel’s review content includes comments about coffee[12].
Unfortunately, 75% of hotel guests are unsatisfied with the coffee in their rooms, citing it poor or average[13]. Worryingly for hoteliers, 30% say this affects whether or not they return[14]. It’s also worth noting that for hotel guests, breakfast will often be the final part of their stay. So, the quality of the coffee, and the breakfast, is the very last taste of their visit they’re left with. This is crucial in informing the review and rating process.
Meeting hotel guest expectations
For hotels with meetings and events capability, driving revenue through bookings and upselling is key. Coffee can be a real value-add in this space for attendees and having a premium, branded coffee offering is an opportunity to impress and drive more bookings. Costa Coffee provides a familiar, trusted and well-loved brand for corporate bookers. Partnering with a coffee solution provider, like Costa Coffee Professional, can enhance the experience at every touchpoint and for every type of customer streamline processes, simplify daily operations and drive cost efficiency. Having better coffee on offer reflects well on the overall hotel experience, and also on the client hosting the meeting. It’s one of those seemingly small details that actually has an enormous impact on the experience and can actually make meetings and events more enjoyable[15].
Simply upgrade your coffee offering
Offering better coffee doesn’t have to be expensive or complicated. Costa Coffee Professional has developed a range of coffee machines that work exceptionally well in the hotel spaces. Our quality coffee machines mean barista training and large footprints aren’t necessary to elevate your customers’ coffee experience. At Costa Coffee Professional we’ve matched 50 years of coffee heritage and hospitality experience with the innovation expertise and disruptive technology used in the Costa Express solutions, which have been offering great quality coffee, fast and conveniently in the coffee ‘to-go’ category. Our emphasis is on designing end-to-end coffee solutions that look, feel, taste and work better by design, simplifying the hotel’s facilities managers and staff daily operations whilst offering a unique coffee experience to customers at every corner of the hotel.
Largest coffee variety in the smallest footprint
Our Pacto range provides compact bean to cup machines that offer a large choice of coffee and beyond-coffee drinks ideal for the hotel’s breakfast area, to help hoteliers create a unique lasting impression to their guests. They’re designed to be easy to use, with a HD touchscreen and user-friendly ergonomics minimising the need of a skilled staff to operate and maintain the machine. Your guests can enjoy barista quality coffee they love and are familiar with. To simplify the daily operations of hotel facility managers, Pacto machines feature automated stock ordering, real-time operational alerts, and automatic updates remotely to ensure you never run out of stock.
Coffee solution perfect for meeting room and conference spaces
For meeting rooms and conference spaces, our Podio range offers everything attendees could need. All Podio machine models in the range, each combine elegant design with all the convenience of a capsule machine solution delivering barista-quality coffee, every time. This is achieved through a unique double filtration method and pre-infusion technology to give a clearer taste and a richer aroma. Serving up barista-quality drinks couldn’t be easier. Guests can help themselves by using the machine’s intuitive interface. Maintenance is a breeze, as stock is monitored, remotely, ensuring minimal business disruption.
Hitting the sustainability spot
Sustainability is increasingly important for the hotel industry, with 73% of travellers expressing a desire to travel more sustainably in a 2023 Booking.com survey[16]. At Costa Coffee Professional, we know that sustainability is a fundamental goal for all hoteliers operating hotels of any size. Therefore, we’ve done the same when looking for ways to help support your business with your sustainability objectives.
When it comes to the environment, we’re finding ways to work with and support farmers in sustainable operations that look after their livelihoods too. Our Roastery, opened in 2017, was the first roasting facility to achieve the BREEAM Outstanding sustainability certification. Through our Costa Foundation, we find ways to make things better for people and communities all around the world too. In 2022, the Costa Foundation celebrated building 100 schools, changing the life stories of 100,000 children.
Serving your guests better
From customer service to the coffee offering, hoteliers know that the smallest details can have the greatest impact on their guests’ experiences. The coffee you serve leaves a lasting impression and is often the final impression as a drink enjoyed at breakfast before departure. In a UCC Coffee survey, 1 in 3 respondents said that bad coffee would deter them from staying at the same hotel twice[17]. Better coffee can help hoteliers power up their reviews and guests’ loyalty. It goes beyond the first sip and continues long after they’ve left their online review, which has proven power to influence other potential guests. A cup of delicious barista-quality coffee can enhance your guests’ experience and drive more revenue for your business.