Published on
November 20, 2025
Considering the rapid changes that continue to affect the travel and hospitality industry, it seems that hotels competing directly with Online Travel Agents (OTAs) are not the only option. Even partnerships with travel agencies are proving to be a more intelligent and more sustainable way forward. During the TravelDaily China Digital Intelligence Conference 2025 in the Greater Bay Area, industry experts shared their ideas on the main trends and prospects for hotels in the changing travel industry. The panel discussion “New Opportunities in the Hotel Business from the Travel Agency Point of View” has identified three main changes: increasing price sensitivity of inbound travelers, increasing competition in the accommodation offers, and a shift in the travel experiences offered.
Emerging Trends: Changing Traveler Preferences and Hotel Demands
One of the most notable trends discussed at the conference was the shift in traveler preferences. The growing number of inbound tourists, particularly from mainland China, is creating both challenges and opportunities for the hotel industry. As hotels face more competition than ever before, it is becoming evident that price alone is no longer the deciding factor for guests. Rather, the appeal of hotels increasingly lies in their ability to offer unique, engaging experiences that resonate with today’s diverse range of travelers.
Hotels and travel agencies must adapt to these changes to stay competitive. The conversation revealed that travelers are not just looking for a place to stay but a comprehensive experience that adds value to their trip. This growing demand for distinctive experiences requires hotels to rethink their approach to marketing, guest services, and partnerships with travel agencies.
Understanding the Inbound Traveler Segments: Differentiated Preferences
At the core of this shift is the division of inbound travelers into two primary segments: those coming from Europe and the United States, and those arriving from Southeast Asia. These segments, though both international, have distinct preferences and expectations when it comes to hotel accommodations. Understanding these preferences allows hotels and travel agencies to tailor their offerings effectively.
- European and American Travelers: These travelers tend to prioritize reliability and comfort, often seeking the familiarity of international chain hotels. These guests are looking for high-quality service and consistent experiences, which are typically offered by well-known global hotel brands. However, even within this segment, there is a growing interest in personalized experiences that offer a blend of luxury and local culture.
- Southeast Asian Travelers: In contrast, travelers from Southeast Asia are more value-conscious. This group is increasingly gravitating toward four- and five-star hotels that offer competitive pricing without sacrificing quality. For this segment, the focus is on getting the best possible experience for the money spent. Value-driven services, combined with high standards of comfort, are key factors in their decision-making process.
By understanding these diverse preferences, hotels can better align their offerings with the expectations of each traveler group. This also underscores the importance of travel agencies in curating and offering the right accommodations for these varied segments.
The Role of Travel Agencies in Enhancing Hotel Appeal
The relationship between hotels and travel agencies has become increasingly important. Travel agencies play a critical role in connecting hotels with travelers, particularly for those seeking curated travel experiences. As guests become more selective, travel agencies can help hotels reach the right audience by targeting the preferences and behaviors of specific traveler segments.
Travel agencies are also instrumental in streamlining the booking process and offering personalized recommendations to guests. For non-standard hotels, which may not have the widespread visibility of large hotel chains, partnering with travel agencies can help increase exposure to potential guests. By leveraging the established networks and reputation of travel agencies, hotels can significantly expand their market reach and attract a broader spectrum of customers.
The Importance of Creating Memorable Experiences
For high-end travelers, especially those seeking luxury and customization, the hotel experience must go beyond simply providing a place to stay. As the demands of these guests evolve, they are increasingly looking for seamless, unforgettable experiences that are not only comfortable but also visually appealing and Instagram-worthy. This new expectation emphasizes the growing importance of hotel aesthetics, service quality, and the ability to create experiences that guests will want to share with others.
Hotels must focus on providing a full-spectrum experience that appeals to the senses and creates lasting memories. This means offering not just a room but an immersive experience that blends luxury, local culture, and personal touches. Travelers want to feel like they are part of the destination, and hotels that succeed in offering this kind of experience are more likely to attract repeat customers and garner positive reviews, which are crucial for online reputation.
The Critical Role of Storytelling in Hotel Marketing
One of the most important takeaways from the panel discussion was the significance of storytelling in hotel marketing. In a world where consumers are overwhelmed with options, telling a compelling story can be a powerful differentiator. Hotels that are able to share the story behind their establishment—whether it’s rooted in local culture, history, or unique design—can captivate potential guests and create a more personal connection.
Storytelling goes hand in hand with the growing demand for experiential travel. Hotels that can convey a sense of place and immerse guests in the local culture are better positioned to stand out. This is especially true for travelers who are increasingly seeking authenticity over price-driven options. The focus is shifting from simply quoting prices to showcasing the experiences and memories that guests will have during their stay.
Enhancing Guest Retention: Beyond the Booking
While online exposure remains important for hotels, the experience after a guest arrives is equally critical. Retaining customers and ensuring repeat visits requires hotels to focus on the post-booking experience. From streamlined check-in processes to personalized guest services, the small details can have a big impact on guest satisfaction.
Hotels that invest in improving services such as payment processing, internet access, and communication with the front desk are more likely to retain guests. Travel agencies can play a pivotal role in ensuring that these elements are integrated into the travel experience. By collaborating with agencies that offer personalized travel solutions, hotels can improve the overall experience for their guests, making them more likely to return in the future.
Strengthening Hotel-Agency Partnerships for a Competitive Edge
The hotel and tourism sectors are undeniably interdependent as their trajectory advance. Specifically, non-standard hotels, should not be bound exclusively to private booking channels and should not compete directly with OTAs. Hotels should work with travel firms to increase their advertising, reach new market niches and provide more customized outputs. Such an alliance would help hotels and travel agencies to work on available market opportunities and build a more sustainable approach for tourism.
Embedding travellers’ preferences, and integrating new technologies to develop new authentic experiences, would help the hotel industry to build a competitive market, and develop a more sustained relationship with hotels. The hotel industry should be able to incorporate a paradigm shift from a price-driven focus to experience as the basis of competition. Collaborating with travel agencies will help provide the personalised experiences that travellers are looking for.
