To accommodate a broader spectrum of events beyond MICE, hotels are implementing changes.

“Hotels need to be agile enough to adapt to the evolving needs of diverse event types and cater to the unique preferences of different audiences,” says Bracciani.

For instance, flexible event spaces are becoming increasingly common. “Large ballrooms are now often designed to be easily subdivided into smaller, more intimate spaces,” says Bracciani. “This flexibility allows hotels to attract a wider range of events, from intimate weddings to larger business conferences.”

Many hotels are rolling out new technologies to enhance the experience within their venues, such as the use of holographic projections, which allow for seamless integration of in-person and virtual attendees.

A notable example is Marriott Hotel in Adelaide, which launched AI-driven technologies including high-quality real-time translations and tracking cameras for speakers to improve audience engagement in the venue.

Technology is also playing a crucial role in addressing operational challenges that have a substantial impact on the bottom line, particularly in traditionally labor-intensive functions like the front office and food and beverage (F&B).

“Issues such as rising inflation and staffing shortages are urging hotels to become more creative in optimizing their existing resources,” says Bracciani.

For instance, Singapore’s Millennium Hotels and Resorts introduced an AI-powered voice assistant that integrates cloud-based phone systems, task management, in-room dining, and smart room controls — minimizing manual tasks and streamlining overall operations in their properties.

Leveraging technology is especially crucial for hotels to cope with large events while maintaining profitability in the face of rising inflation, Bracciani says.

“Key industry benchmarks like average daily rate (ADR), occupancy, and revenue per available room (RevPAR) have demonstrated significant growth, but escalating operational costs are outpacing this growth and eroding profitability.”