One of the most elementary microeconomic principles is the law of supply and demand. And what the last 2 years have shown us, in the midst of a global pandemic, is that the demand for hospitality services has declined following major changes in consumer behavior. The recent cancellation of Adele’s concert in Las Vegas demonstrates the impact COVID is still having on the industry despite travel “opening up”, with half her team being unable to work.

But it’s not all doom and gloom. With restrictions being lifted and people desperate to go on canceled holidays, travel is on the rise once more. In addition to this, hotels can take advantage of the increase in digital nomads and those mixing business with leisure. In fact, it is possible we will soon expect to see demand outstripping supply.

Conferences and Events

Even as the world opens up, the impact of the pandemic is still being felt as organizers question the purpose of their face to face events. The recent disruption has seen dramatic improvements to digital experiences, with sophisticated virtual participation options. Organizations will look to offer hybrid events so more people can participate, but don’t think a webcam in the corner of a live event will suffice. Event managers will need to focus just as much on the virtual production as the live.  Make sure you and your technology are ready to cater for rise in the demand of hybrid meetings.

While the demand for virtual experiences will rise, humans still need physical interaction and so celebrate your property’s spaces; can you host outdoor breakout sessions? Do you have areas that cater well for team building and social interaction? What can your hotel offer that a virtual conference cannot?


Following two years of cancellations and postponement, rising demand for wedding venues will make it difficult for couples to find places to wed over the next few years. According to The Knot, 2.6 million weddings will take place in the US in 2022, which can result in vendors finding themselves overbooked and pushing up prices. The wedding industry is facing a number of supply and demand challenges with flower supply issue, high cost of raw materials and staff shortages.

With so many couples unwilling to delay their plans much longer, if you have not considered hosting weddings before, now is the time to adapt. Repurpose meeting and conference spaces which will see less demand. Outdoor weddings are increasingly popular, so look at how you can make patios flexible, with room for tented areas.

Changing demographics of travelers

With flight prices making travel more accessible, younger generations are becoming the predominant type of traveler, with youth travelers expected to take 320 million international trips. Emerging markets are also going to have an impact on the demand for venues: As the Chinese economy grows, so does the number of Chinese travelers.

A McKinsey report believes we might be at the threshold of a new age of travel. The Hospitality Industry needs to be prepared to increase capacity or else travelers will be forced to endure long wait times and inflated prices.

Supply chain shortages

From airlines to car rentals, hotels to restaurants, the entire travel supply chain is showing signs of strain. Hotel managers, caterers and event planners are all grappling with the fall-out of an evolving workforce. In addition to supply shortages, Covid has seen many hotel staff return to home countries or seek jobs elsewhere.

In the United Kingdom, where Brexit is adding to the challenges, more than one in ten workers left the hospitality sector last year. Be mindful that your teams are dealing with a lot of stress, trying to figure out how to work around these challenges, and support them wherever possible.

Look at your benefits packages and take a holistic approach to staff well-being to avoid burnout and increase employee retention.

How to get ahead of hospitality supply and demand challenges?

Invest in your digital operations – the customer experience is shaped by the whole journey and travelers need more help than ever. Property Management Software will help all your processes run smoothly, reducing potential pain points.

McKinsey’s research makes it clear: “By streamlining processes, personalizing the customer experience and investing in digital analytics can allow companies to identify opportunities to differentiate their services. Hotels will be able to discern emerging trends and hiccups before they turn into nightmares.”

Keep looking for methods to automate operations, freeing up time to focus on providing exceptional customer service by ensuring your PMS system can handle anything the future throws at you.