By Howard Roth, Global Real Estate Leader EY <\/p>\n
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. <\/p>\n
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: <\/p>\n
Supply, meet demand <\/p>\n
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). <\/p>\n
Customer demands, theyre a-changing <\/p>\n
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. <\/p>\n
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 <\/p>\n
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. <\/p>\n
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. <\/p>\n
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The rest is here:<\/p>\n
EYVoice: Travel And Hospitality Trends for 2015<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" 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. Continue reading