The recently concluded Restaurant Leadership Conference (RLC) 2025 provided valuable insights into the current and future landscape of the restaurant industry. Here are 9 key takeaways for the industry.
While the hospitality industry prioritizes guest experience, traditional metrics like RevPAR (revenue per available room) limit focus to room occupancy. To truly embrace a guest-centric approach, hotels should adopt RevPAG (revenue per available guest). Unlike RevPAR, RevPAG measures the total revenue generated per guest across all property touch points, including rooms, food and beverage (F&B), spa services, and parking.
India remains the leading primary source market for Sri Lanka, holding a significant share ranging from 14.9% to 26.8% for the period between February 2025 and September 2024 (SLTDA Monthly Tourist Arrivals Reports 2024/2025). It is imperative for Sri Lanka to stay attuned to the evolving needs and expectations of this crucial Indian consumer base. Recent research by MMGY Travel Intelligence sheds light on key trends in Indian international traveler behavior and emphasis on safety and convenience, influence of Social Media, Sustainability are among the trends.
The shift in consumer demand towards standalone Branded Residences managed by luxury brands reflects a growing preference for exclusivity and privacy. Noteworthy is the participation of not only hotel brands like Four Seasons and Ritz-Carlton but also Automotive and Fashion brands such as Mercedes-Benz, Porsche, Giorgio Armani, and Baccarat in locations like Dubai and Miami (C9 Hotel works Market Research).
The F&B industry is undergoing a transformation with a strong emphasis on sustainability and personalized experiences. Restaurants are now focusing on long-term strategies that incorporate AI, sustainability, and immersive elements to prioritize value-driven dining over fleeting trends. Judit Szöllősi, F&B Concept Developer at Conceptional, foresees key trends shaping the industry:
The year 2025 is set to be transformative for hotel marketing, driven by the fusion of technology and sustainability. Adaptability will be the key factor for hotels to thrive in this evolving landscape shaped by travelers' heavy reliance on technology throughout their journey, from bookings to experiences. Patrick Landman - CEO and Founder - WIWT, recognizes AI-Driven guest engagement, Hyper-Personalized marketing campaigns, Social Media, and Sustainability as a core marketing strategy as top hospitality marketing trends for 2025.
In 2025, the business travel industry is placing a strong emphasis on sustainability. Corporate Requests for Proposals (RFPs) now consider sustainability data not only for compliance but also for long-term business competitiveness. Federico Vignati, Principal Executive at CAF - Development Bank of Latin America, underscores this shift. Natasha Montesalvo, Principal Consultant at Earthcheck, highlights how this change is reshaping hotel competitiveness towards sustainability, necessitating sustainability data in corporate RFPs and fostering new business models for business events.
Boutique hotels are at the forefront of innovation by pushing boundaries, setting trends, and creating memorable experiences in comparison to larger brands that struggle to replicate. This spirit of innovation at boutique properties will continue in 2025 by driving changes in both demand side and supply side. The demand side trends include AI-driven personalization, transformative and customized wellness experience that align with personal health goals, hyper-personalization, hyper-local, hyper-seasonal F&B offerings, membership-driven hospitality and preference for independent hotels either newly built or renovated. On the supply side, while AI will reshape operations and marketing, employee education and development cannot be overlooked due to the human connection that boutique hospitality is known for. Frances Kiradjian Founder/CEO of Boutique & Luxury Lodging Association (BLLA) reports following trends;
Personalization or hyper personalization are buzz words flooding many current articles. Personalization simply means departure from one-size-fits-all approach to delivering bespoke moments that resonate with each guest. However, one should dismiss the misconception that personalization is exclusively technological. It is no doubt a human concept where technology and automation can be enablers for hotels to tailor interactions to guests online.
Performance measurement is a must for any organization but tracking the right metrics matters. It seems that the old metrics used by the hotels are being replaced by new generation of hospitality metrics due to the influence of technology. Mews report (Jan, 2025) suggests thought provoking new metrics for the hotels to track.