Changing Demographics—As millennials begin to enter their peak spending years and replace baby boomers, establishments will need to revamp their approach by offering a different or unique experience to customers.
Transportation Prices—Low transportation prices have eased travel expenses since 2014, supporting demand for accommodation. However, as travel prices recover, consumers are likely to spend more cautiously on lodging.
Cybersecurity—Recent cyber attacks on major hotel chains are leading to a heightened emphasis on cybersecurity. Firms will be forced to upgrade their security systems to protect their brand names, which will in turn translate into additional costs for the industry.