The hospitality industry will need to address five major issues over the next
three to five years, including brand, emerging markets, human capital,
technology and operating models.
These factors will be key drivers in determining winners and losers through 2010
and beyond, and will heavily impact shareholder value, according to a new report
by Deloitte and the Preston Robert Tisch Centre for Hospitality, Tourism and
Sports Management at New York University.
The Baby Boomers in the United States and Europe are a huge demographic with
enormous amounts of disposable income. Alex Kyriakidis, Global Head of Tourism,
Hospitality and Leisure at Deloitte says: “The percentage of the population aged
65 and over in Europe will increase from 15 percent in 2000 to nearly 25 percent
by 2015 and increased travel by the ‘silver’ segment will maintain Europe’s
position as the number one tourism exporting region, delivering some 730 million
travellers by 2020. This will provide an enormous opportunity for the hotel
sector, which should be developing strategies to market products to generational
segments now.
“In addition to addressing the needs of aging consumers, the hospitality
industry will need to address talent management issues, as aging populations
hamper the ability to find sufficient staff in some regions.”
In China, India and the Gulf States, both domestic and international travel
is booming, due to lower airfares and emerging middle classes keen to travel for
the first time. Between India and China, the report predicts that a total of
35,000 additional hotel rooms will be required to reach the same penetration as
in more developed countries, and the majority of these will be positioned in the
economy and mid-market segments. These new markets pose unique challenges in
politics and ownership, as well as in recruiting, training and retention of
local staff.
Alex Kyriakidis says: “While these emerging markets offer exceptional growth
opportunities, the world’s largest tourism market – the United States – still
has a way to go. Total travel and tourism spend in the US, both domestic and
outbound, is predicted to double from $830 billion to a staggering $1.6 trillion
by 2015, leaving room for growth, particularly at the luxury end of the market.”
The industry is historically in the lowest quartile of technology spending;
however, all the executives interviewed expected to increase IT investments,
particularly in reservations, distribution, loyalty programs, and customer
management. In the US and Western Europe more demanding customers have come to
expected more personalised service, and in the future hospitality suppliers will
need to consider online room selection and check-in, personalised bed (variable
firmness), and personalised in-room food and beverage offering.
Alex Kyriakidis says: “Historically, the airline industry has led the way,
with travellers showing greater preference for airline miles than hotel points,
willing to fly the same carrier despite inconvenient schedules. All CEOs
interviewed plan to spend more on IT, appreciating the opportunity to interact
directly with the guest maximises revenue, and avoids the potential merchant
intermediary costs which can be as high as 25% of room revenue.”
SOURCE: http://www.breakingtravelnews.com