In the year 2023, the worldwide hospitality industry reached almost $4.7 trillion (USD) and has a projection of $5.8 trillion (USD) by 2028, with a compound annual growth rate (CAGR) of 5.5 percent. As the hospitality industry grows steadily, hospitality digital signage has also become the industry standard to help hospitality cope with rapid changes, enhance guest experience, and create new ways to drive revenue.
What is Hospitality
Before we dive into how businesses use hospitality digital signage, we need to know what hospitality is. Hospitality has various definitions. Cambridge Dictionary defines hospitality as the work or business of providing food and drink, entertainment, hotels, etc. for guests or business partners.
What Sectors Are Included in Hospitality Industry
In general, the hospitality industry includes the following four sectors:
- Lodging
- Food & Beverages
- Recreation
- Travel & Tourism
How to Use Hospitality Digital Signage
For businesses in the hospitality industry, their goals are to create enjoyable customer experiences and increase revenue. As the hospitality industry continues to grow, many businesses have implemented hospitality digital signage to share and connect with customers while boosting revenues. In fact, the global hospitality digital signage (digital menu boards) market size reached $2476.13 million (USD) in 2021 and is estimated to reach $3680.0 million (USD) by 2027.
So, how does each sector use hospitality digital signage to its advantage?
1. Lodging (Hotels, Motels, Hostels, Inns etc.)
Hospitality digital signage has gained popularity in the hotel industry. A survey revealed that hotels which use digital signage for promotions and advertising received a 20% increase in revenue. Moreover, 60% of hotel guests reported that digital signage plays a big part in enhancing their experience.
With hospitality digital signage, hotels can share information with their guests, promote the amenities and restaurants, reduce guests’ perceived wait time, and more. Hotels can launch digital signage at the hotel’s entrance, at the lobby, and near the elevators.
Continue to learn how hotels can use digital signage effectively: How to Use Digital Signage for Hotels.
2. Food & Beverages
The food and beverage sector is the largest segment of the hospitality industry, with the restaurant industry being one of the largest components. There are many different types of restaurants, such as fine dining, casual dining, fast casual, fast food, and more.
Digital menu boards have become the industry standard for restaurants. They provide restaurants with an easy and effective way to manage their menus remotely. Moreover, digital menu boards present restaurants’ menus and promotions in a captivating way to motivate customers to make unplanned purchases and speed up their ordering process.
Continue to read more on how to use digital menu boards for restaurants: Top 8 Benefits of Using Best Digital Menu Boards for Restaurants.
3. Recreation & Entertainment
The recreation sector includes all businesses that provide entertainment services, such as sporting events, music concerts, theme parks, museums, theatres, and more. As people experience more stunning visuals, the recreation sector also adopts modern technology to bring their guest experience to the next level.
Hospitality digital signage offers recreation businesses an innovative and creative way to inform, engage, and advertise to their guests. Unlike traditional paper signage, digital signage presents images and videos vividly with captivating animation. Moreover, digital signage enhances queue management and significantly decreases perceived wait time by over 35%.
Continue to read how to use digital signage for recreation: Using Digital Signage in Theme Parks to Drive Revenue
4. Travel & Tourism
Travel and tourism is probably the most significant sector in the hospitality industry. Without travel and tourism, all other businesses may experience challenges thriving themselves (like how we witnessed this effect during COVID-19). Tourism motivates people to travel locally and globally so they can spend money on all other sectors involved in the hospitality industry.
The travel and tourism sector includes transport services, travel agencies, tour operators, cruises, and more. Businesses in this sector use hospitality digital signage similar to the other sectors. For example, travel agencies use digital signage near the storefront to promote travel packages and seasonal deals. Airports use digital signage to inform travelers with up-to-date information and promote local businesses. Cruises use digital signage to guide guests, promote amenities, and more.
How to Choose the Right Hospitality Digital Signage Provider For Your Business
There are many different service providers on the market that provide digital signage solutions. Ultimately, you will find 2 types of digital signage service providers: one is a service integrator and the other one is a total solution provider.
A system integrator is a provider that will put every component together but does not develop or create their own products. A total solution provider, on the other hand, designs and builds their own hardware and software to make sure all components work seamlessly together with the best performance possible. Additionally, a total solution provider usually offers many internal services, such as graphic design services and in-house technical support services.
Both service providers will be able to help you with your digital signage needs. However, it is highly recommended that you opt for a total solution provider. If you have any questions or concerns, they will be able to assist you and bring everything back on track promptly.
You can learn more about NexSigns’ Digital Signage solution and connect with us on Facebook, LinkedIn, Twitter, and YouTube to get the latest info on digital signage!
