By Howard Roth, Global Real Estate Leader EY
Long gone are the days when luxury travel was a privilege reserved for the wealthy. Todays consumers have more access to these services thanks to disruptive low-cost airlines and mobile booking sites.
Recently, Ive spoken with several travel providers who are racing to enhance the consumer experience, win new business and, ultimately, customer loyalty. Here are some highlights from those hospitality and travel leaders:
Supply, meet demand
Travel and tourism make up 9% of global GDP, and the industry is the worlds largest employer, responsible for one in 11 jobs. However, as big as the industry is, it has the potential to be a lot bigger. Within the next decade, it is anticipated that this industry will create an additional 75 million jobs. Look at the numbers and youll see why: the tourist population has doubled in the past 20 years and is expected to double again over the next 20 (reflecting the same increases in the middle-class population).
Customer demands, theyre a-changing
Such tremendous growth has changed the face of the travel and tourism industry. As more capital flows from east to west, as the middle class continues its surge, and as the Millennial generation which within 10 years will be in its peak earning, spending and travel years demands faster, customized services, many accommodation providers have moved toward a model that caters to these changing demographics.
Mobile travel services will continue to be a hot platform, as will social media, digital innovation and analytics tools in a bid to engage customers and build loyalty. By using the information captured by these tools, differentiated experiences are created, which motivate customers to visit more frequently, stay longer and spend more. Hotels, trending public
Recent hotel IPOs in the US have largely been driven by major private equity players. Several years of steady revenue growth and limited additions to supply have enhanced investor confidence, particularly where a dynamic growth story exists for the future. Other large, private owners have clearly taken notice, and this hotel IPO and venture capital trend will likely continue for large portfolio owners with the right economics and growth stories.
Hilton Worldwide, which in 2007 agreed to an all-cash buyout by the Blackstone Group, is a great example of the benefit of leveraging private equity funding. Chris Nassetta, President and CEO, shared with us his own experience. Since taking the buyout, he said, We have become the fastest-growing lodging company in the world with growth in rooms at 37%. We have the largest pipeline in our history, with nearly 200,000, and more new rooms under construction than anyone else in the industry. Most importantly, weve received a great reception upon our return to the public markets and are feeling very positive.
The rest is here:
EYVoice: Travel And Hospitality Trends for 2015
- Seaching for Condors in the Andes - November 8th, 2009 [November 8th, 2009]
- Visiting "The Mayor" again - November 8th, 2009 [November 8th, 2009]
- The fantasy boot in my dream of childhood - November 8th, 2009 [November 8th, 2009]
- Day 53 54 55 - November 8th, 2009 [November 8th, 2009]
- www.acb.my - November 8th, 2009 [November 8th, 2009]
- day 22 - November 8th, 2009 [November 8th, 2009]
- Hoover Dam Grand Canyon Byrce Canyon and another little incident... - November 8th, 2009 [November 8th, 2009]
- Amazing first week - November 8th, 2009 [November 8th, 2009]
- It's Been Awhile - November 8th, 2009 [November 8th, 2009]
- Busan - November 8th, 2009 [November 8th, 2009]
- Existential Migration: Feeling at Home as the Foreigner - November 8th, 2009 [November 8th, 2009]
- Passport Chop - November 8th, 2009 [November 8th, 2009]
- Travel Photography with a Disposable Camera (it’s NOT an oxymoron) - November 8th, 2009 [November 8th, 2009]
- Miss Travel Girl - November 8th, 2009 [November 8th, 2009]
- Cape to Cairo - November 8th, 2009 [November 8th, 2009]
- Alison Travels - November 8th, 2009 [November 8th, 2009]
- True Nomads - November 8th, 2009 [November 8th, 2009]
- How the Economy Affected 16 Travellers in 2009 - November 8th, 2009 [November 8th, 2009]
- Do Travel Disasters Make the Best Travel Stories? - November 8th, 2009 [November 8th, 2009]
- The Mother of All Trips - November 8th, 2009 [November 8th, 2009]
- A story by Kudra Ricketts - December 13th, 2009 [December 13th, 2009]
- Auckland City - December 13th, 2009 [December 13th, 2009]
- Another Published Article Penny - December 13th, 2009 [December 13th, 2009]
- A Sparkling Xmas Surprise Penny - December 13th, 2009 [December 13th, 2009]
- Sandboarding - December 13th, 2009 [December 13th, 2009]
- The Way Of Make Money In Runescape - December 13th, 2009 [December 13th, 2009]
- Highway 1 California - December 13th, 2009 [December 13th, 2009]
- cancun on thanksgiven - December 13th, 2009 [December 13th, 2009]
- On tour with Louise and Zane 46 students - December 13th, 2009 [December 13th, 2009]
- Hvad vi har lavet siden Gili - December 13th, 2009 [December 13th, 2009]
- Thailand Check. Laos here we come. - December 13th, 2009 [December 13th, 2009]
- Team America - December 13th, 2009 [December 13th, 2009]
- Tour Operator of Bangladesh Sundarbans Adventure Tour Package - December 13th, 2009 [December 13th, 2009]
- The Last Leg - December 13th, 2009 [December 13th, 2009]
- Dec 13 2009 - December 13th, 2009 [December 13th, 2009]
- Latest Border News - December 13th, 2009 [December 13th, 2009]
- The Wandering Soul’s Wander Tales - December 13th, 2009 [December 13th, 2009]
- Adventure Rob - December 13th, 2009 [December 13th, 2009]
- The Golden Papaya - December 13th, 2009 [December 13th, 2009]
- Support Passports with Purpose 2009 - December 13th, 2009 [December 13th, 2009]
- Vagabonding at 60 - December 13th, 2009 [December 13th, 2009]
- The Books that Inspired Us to Travel in 2009 - December 14th, 2009 [December 14th, 2009]
- Zululand drakensberg Lesotho and the wild coast - December 14th, 2009 [December 14th, 2009]
- The Beautiful Higlands - December 14th, 2009 [December 14th, 2009]
- Loch Ness to Inverness and Culloden - December 14th, 2009 [December 14th, 2009]
- Aqaba The Little Merman - December 14th, 2009 [December 14th, 2009]
- Royal Deeside and the Castle Trail - December 14th, 2009 [December 14th, 2009]
- Southward in the Rain to Glamis Castle and Crail - December 14th, 2009 [December 14th, 2009]
- Iguassu Falls - December 14th, 2009 [December 14th, 2009]
- Stirling Castle and Edinburgh - December 14th, 2009 [December 14th, 2009]
- Edinburgh Old Town - December 14th, 2009 [December 14th, 2009]
- Galapagos II - December 14th, 2009 [December 14th, 2009]
- El Chalten and Fitz Roy Massif - December 14th, 2009 [December 14th, 2009]
- Semuc Champey - December 14th, 2009 [December 14th, 2009]
- Mechanical Problems in Flight - December 14th, 2009 [December 14th, 2009]
- "ACDC Tour Budapest without a satnav" - December 14th, 2009 [December 14th, 2009]
- Liat Airlines Stay Away - December 14th, 2009 [December 14th, 2009]
- Bariloche - December 14th, 2009 [December 14th, 2009]
- Lundi Macon - December 14th, 2009 [December 14th, 2009]
- Planning Australia Tour in Best way - December 14th, 2009 [December 14th, 2009]
- Family Fun In Breckenridge Colorado - December 14th, 2009 [December 14th, 2009]
- 5 Weeks in Australia - December 14th, 2009 [December 14th, 2009]
- The Movies and Music that Inspired Us to Travel in 2009 - December 16th, 2009 [December 16th, 2009]
- A wonderful Japanes experience - December 16th, 2009 [December 16th, 2009]
- So traveling again to a new part of the world - December 16th, 2009 [December 16th, 2009]
- Kangaroo roo roo a pinapple shake a tree.... - December 16th, 2009 [December 16th, 2009]
- Cutting wedding cost in the depression - December 16th, 2009 [December 16th, 2009]
- Pineapple Farm - December 16th, 2009 [December 16th, 2009]
- South India Chennai Pondicherry Auroville... - December 16th, 2009 [December 16th, 2009]
- Back to Amarpurkashi Village Life... - December 16th, 2009 [December 16th, 2009]
- MIA - December 16th, 2009 [December 16th, 2009]
- The most northern of Thailand - December 16th, 2009 [December 16th, 2009]
- Photo's - December 16th, 2009 [December 16th, 2009]
- Trip to Marleshwar - December 16th, 2009 [December 16th, 2009]
- Season's Greetings from Berkeley - December 16th, 2009 [December 16th, 2009]
- Small hiccup - December 16th, 2009 [December 16th, 2009]
- Thailand Laos and Vietnam in Three Weeks - December 16th, 2009 [December 16th, 2009]
- On the road again - December 16th, 2009 [December 16th, 2009]
- Part Two The Map Part Way in Cabal - December 16th, 2009 [December 16th, 2009]
- Heading Back North - December 16th, 2009 [December 16th, 2009]