The COVID-19 pandemic has hit the hotel sector particularly hard. Guest stopped making bookings or cancelled existing bookings and rooms remained empty. The ‘new normal’ will reveal which business models are viable and which need an upgrade. So what could work?

Budget hotels could dispense with superfluous gadgets and switch over to smaller premises with fewer rooms. They would also have to minimise personnel costs and eliminate cost-intensive items that are unrelated to room accommodation. This clear focus could help budget hotels to remain relevant in the future.

Digital hotels also have a forward-looking focus based on strong digital platforms that handle routine tasks, which saves personnel costs. Guests operate completely autonomously, using their smartphones as room key, to control room technology and for payments. As a result, the hotel staff have more time to focus on guest well-being.

It remains to be seen which of the hotel concepts will be successful in the future. However, it is already obvious that the winning concept will have a clear focus and be adapted to all the challenges.