Hospitality as known today is on the brink of extinction: Future-gazing into the industry’s survival ladder

We predict and speculate that at least 50% of hotels as we know them today will either shut down, merge, or completely pivot in the next 10 years. The world is rapidly changing - and the hospitality players will either step up their game or be completely left behind in not more than a decade.

The question is no longer if your hotel or accommodation will be affected, but how deeply and how soon.

 

As whisperers of hospitality’s future, we’re here to map the extinction ladder, decode its signals, and spotlight how your business can increase its odds of not just surviving - but thriving.

 

Cultural resistance to change

 

The hospitality industry - particularly larger hotel chains - has long been known for its slow modus operandi and resistance to change. Let’s be fairly honest: as long as an organization remains utterly self-absorbed, stuck in legacy thinking, and cushioned by short-term wins, it will not feel an urgency to adapt.

 

But the biggest threat to survival is, and always has been, the inability to pivot. To shift. To admit that what’s working today is light-years behind what could be working tomorrow.

 

Many of today’s hoteliers still think they “don’t have a problem.” But the future is an arrow - and it’s aimed straight at your weakest spot. Your Achilles heel.

 

Let’s break down exactly why hospitality sometimes behaves like a dinosaur: too big, too proud, and far too slow to evolve.

 

 

The barriers that don’t just slow innovation - they actively invite extinction

 

It’s not just nostalgia for the past, nor the lack of intelligence - it’s a cocktail of outdated thinking, fear, and short-sightedness. Here are the main culprits behind the industry’s slow pace of adaptation to novelties:

 

1. Legacy Thinking

“This is how we’ve always done it” is the most dangerous sentence in the business. It signals comfort over evolution - and comfort is the enemy of growth.

 

2. Fear of Complexity

New technology is often perceived as too complicated, too disruptive, or simply too unfamiliar. Instead of seeing innovation as a strategic advantage, it’s seen as a threat to the status quo.

 

3. Lack of Resources and Know-How

One of the biggest obstacles is either a lack of the financial resources or knowledge that would allow businesses to upgrade to the next level. But if you stall, hoping the wave of change will somehow miss you, we are here to tell you: it won’t.

 

4. Short-Term Focus

Most hoteliers are focused on putting out daily fires - not building fireproof systems. Immediate operational needs constantly win over long-term investments, especially if the benefits aren't instantly visible.

 

5. Internal Resistance and Fear of Job Loss

Change doesn’t only scare management. Staff often fear that automation or AI will replace them. Without a clear internal narrative around evolution, even the best-intended tech rollout can be sabotaged from within.

 

The Extinction Ladder: Where are you standing?

 

We’ve identified 5 “personalities”. Where does your business stand?

 

  1. The Oblivious – Hotels that are blind to change, still running on outdated systems and mindset.
  2. The Resistant – Aware, but in denial. Blame external factors and refuse to act.
  3. The Reactive – Start moving only when it’s already too late.
  4. The Adaptive – Making changes, but lacking long-term vision or innovation.
  5. The Evolutionaries – Proactive disruptors shaping the new hospitality era.

 

 

The big question - what does tomorrow morning look like on the planet Earth and in your lobby?

 

Before we talk about smart pillows, AI concierges, or whether the check-in desk will still exist, we need to zoom out.

 

Because hospitality doesn’t exist in a vacuum. It is, as any other ecosystem, part of the whole and influenced by global movements. It’s a mirror of humanity - and humanity is standing at a major crossroads.

 

What tomorrow looks like on planet Earth will define what hospitality looks like, feels like, and even means.

 

The future of humanity might very likely split into extremes- one driven by exponential technology, automation, and AI-powered abundance, and the other marked by fragmentation, control, and digital surveillance.

 

Most likely, we’ll live in a chaotic mix of both. Some regions can become hyper-optimized, data-driven ecosystems where frictionless luxury is the norm; others can retreat into slow, human-centered, off-grid experiences.

 

Hospitality won’t be spared - it will either evolve into a high-tech, emotionally intelligent service engine, a sanctuary of raw authenticity, or collapse under the weight of irrelevance.

 

Guests, too, might divide somewhere along the line of extremes: some may seek seamless, predictive, always-on environments that require zero effort; others might crave meaning, connection, and presence, choosing places that offer depth over convenience.

 

The question for every hotel is simple but not easy: which type of future human are you building for - and are you doing it consciously, or blindly slipping into whatever comes next?

 

 

Forget accommodation - let’s talk ecosystems and microcosmoses!

 

Today, most businesses are still trapped in binary thinking. A hotel is seen as a single entity, detached from the environment that surrounds it. But in reality, no hospitality space exists in isolation. Every property - whether it’s a luxury hotel, boutique retreat, or off-grid cabin — is part of a larger living system: cultural, environmental, technological, and social. A hotel is a node in a dynamic microcosmos that includes everything from local communities and ecosystems to digital infrastructure, guest expectations, and smart city networks.

 

If we want to talk about the future of hospitality, we must stop talking about hotels and start talking about the entire accommodation ecosystem - how it moves, how it breathes, and how it responds to the world around it.

 

Your property is not just four walls and a bed. It’s an interface between the guest and the world. And in the future, this interface will be powered by real-time data, emotion-sensing technology, regenerative design, and hyper-personalized digital layers that live and evolve with the guest.

 

Think TripAdvisor. It works as a database. But the next generation of hospitality platforms will be alive. They will adapt, respond, and co-create the experience with the guest - in real time.

 

The winners of tomorrow won’t build hotels. They’ll build living, breathing ecosystems that guests can step into, contribute to, and feel part of.

 

Predictions: The extinction / survival curve of hospitality

 

Welcome to the curve - not the performance bell curve you learned about in business school, but the evolution curve that will define who survives, who reinvents, and who quietly fades out of relevance.

 

Over the next 10 years, we’re not just going to see a few hotel closures or casual rebrands. We’re heading into a decisive transformation phase - where hospitality businesses will either adapt to entirely new ways of operating, or slowly get filtered out by changing guest behavior, tech innovation, AI, climate urgency, decentralized economies, and global shifts in value.

 

Here’s what the curve looks like:

 

At least 50% of hotels will not survive in their current form.

 

They’ll either shut down, get absorbed into larger entities, or pivot so drastically they’ll become unrecognizable. Why? Because “providing a place to sleep” is no longer a business model - it’s an afterthought.

 

Biggest Danger Zone?

 

The middle.

 

Mid-tier, average, unremarkable properties that try to “do a bit of everything” will be the first to fall. If your hotel is not clearly positioned - either as a high-tech service machine or an unforgettable experience - you’re already on the extinction path.

 

Who survives - Which path will you take?

 

The hospitality industry is no longer one industry. It’s splitting into multiple evolutionary branches — each with its own rules, values, and survival strategies. There’s no one-size-fits-all model. The future will belong to those who choose their lane consciously, not reactively.

 

Your property, your team, your technology stack, your design choices - they’ll all reflect which kind of tomorrow you’re building toward. So the question is no longer “how do we stay relevant?” It’s which world do we want to play in - and are we equipped to lead in it?

 

Here are the three dominant paths forming on the hospitality survival curve:

 

 

 

Path 1: The Smart Hotel

 

80% of mass-market hotels will become smart hotels (High-Tech Hybrid Model)

 

Survival Strategy: Efficiency, Automation, Tech-first Guest Experience

 

These players will be dragged - or leap - into automation, AI-driven personalization, and data-powered efficiency. Many will attempt to keep the “human touch,” but the real survivors will redefine it through emotional intelligence, bio-responsive design, and predictive guest flows.

 

Translation: The check-in desk will die. The smart mirror will welcome you by name.

 

 

Path 2: The Experiential Micro-Universe

 

15% of hotels will go fully boutique or experiential

 

Survival Strategy: Soul, Story, and Cultural Immersion

 

Small, soulful properties will thrive by going deep - not wide. They’ll become curators of meaning: slow travel sanctuaries, forest temples, ancestral kitchens, and culture-rich hideaways. These stays won’t just be memorable. They’ll be transformative.

 

Translation: No screen, no AI, just a sommelier who tells you his life story while pouring a local wine.

 

 

 

Path 3: The Decentralized Hospitality Ecosystem

 

5% of hotels will enter the decentralized, crypto-powered realm

 

Survival Strategy: Crypto, Co-Ownership, and Community Control

 

The boldest will step outside the system. DAOs, NFT-based loyalty, guest-owned resorts, and blockchain transparency will define this niche - starting in luxury, nomadic, and crypto-friendly spaces. These won’t be hotels. They’ll be ecosystems with a wallet address.

 

Translation: Your key is a token. Your stay is a vote. Your room is also an investment.

 

 

 

So, what now? Where to start and what to do?

 

You’re probably asking yourself what to do with all these insights. Where to begin? Who to trust? What’s worth the investment?

 

Here’s our advice: stay curious, stay informed, and stay close to the edge of what’s next. Keep reading our hospitality insights - we’re here to guide you through the noise and toward clarity.

 

And when you feel that inner shift - the urge to take real action - start by integrating Nevron solutions into your existing business model. Because future-ready hospitality doesn’t begin with a total reinvention. It begins with a strategic decision to evolve. It begins with the first step.

 

 

We’ll leave you with this:

 

The real survivors won’t be those who own hotels - it will be those who own the guest experience in a way that aligns with the future.

 

In short: Evolve or expire.

 

Because hospitality isn’t about rooms anymore. It’s about resonance. It’s about identity.

 

It’s about whether you dare to build the future - or wait for it to crush you.

Rok Kokalj

CEO & Co-founder at Nevron | Providing digital GEM solutions





Rok Kokalj
Rok Kokalj
CEO & Co-founder at Nevron | Providing digital GEM solutions
Published on May 8, 2025

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