The hospitality industry’s major challenges for 2021

The hospitality industry’s major challenges for 2021

Hospitality businesses face various challenges in terms of trends and consumer expectations; the market is increasingly expanding, and businesses are trying to keep up.

It’s no secret that the hospitality industry has had a difficult year. So we’ve compiled a list of the top issues facing the industry so you can rebound and expand in 2021.


Self-check-ins, contactless service, online ordering, and payment via apps have become the latest standard in the hospitality industry over the last year.

It’s a challenge for the industry to have a thriving customer experience with a combination of human and tech-enabled interactions; consumers crave experience, so the business must do everything in its power to provide it. Organisations must have back-up plans to prepare for any problems thrown at them by the world of technology.


Customers give businesses online feedback through comments, ratings and images. Every year, these online platforms are becoming more popular.

Reviews and feedback have the potential to kill or glamorise businesses, so the industry must use these outlets to their benefit and manage their image, a challenge that businesses will face in 2021.


The hospitality industry has a high turnover rate, with about one-third of staff leaving after just six months on the job and around 45 percent staying for an average of two years.

With more workers expected to be employed every year, businesses must ensure that they have employees with good qualities, experience, and expertise to stay competitive.

Employee expectations are continually evolving and increasing, and businesses must keep up with the current developments to recruit and retain workers, which is proving to be a difficult task.


Environmental challenges continue to influence today’s hospitality industry, a primary priority for all organisations to engage in for the past ten years. Consumers want to know that the businesses they buy from are financially, socially, and culturally responsible. Sustainable practises help hospitality companies stand out. Consumers, especially Millennials and Generation Z, are willing to pay more for goods that do not damage the environment or wildlife.

A complete redesign of the organisation’s processes and goods to follow sustainability practises will be costly and ineffective. In contrast, incremental steps taken over time to pursue socially responsible standards will have a long-term impact on consumers and the community, enhancing the company’s credibility. When sustainability becomes a way of life for the general public and companies, businesses may face a significant challenge in the future.


Customers nowadays expect to be recognised and handled as people rather than as numbers in a computer system. Consumers demand more personalisation, but companies are still struggling to transform data and insights into action.

Customers’ past purchasing patterns and preferences are revealed due to this data, allowing the hospitality industry to tailor deals and promotions to individual customers. To maintain a competitive advantage, the industry must continuously develop fresh and unique ways to personalise a customer’s experience.


Loyalty programs are one of the most effective marketing tactics for attracting repeat customers, and most people expect a loyalty program when making a purchase. The hospitality industry competes with one another to attract a loyal customer base and offer customers the best offers and products.

When it comes to introducing a loyalty program, businesses face a variety of problems, the most common of which are inaccessibility and uncertainty, as specific consumers will refuse to engage in a scheme that is difficult to use or that people do not understand. Furthermore, loyalty schemes that are unappealing and irrelevant to customers are doomed to fail.

Posted at 12:08pm on Tuesday the 9th of March, 2021.

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