Deloitte has unveiled a new report called “Hospitality 2015,” which outlines seven key trends that will help hotels attain growth over the next five years. Among the drivers:
1. Emerging markets
China and India will continue to be the key hospitality markets. By 2015, the report predicts that these countries will have absolute year-on-year tourism growth greater than the United Kingdom, France, or Japan. “The greatest future potential in these markets will lie in developing mid-market and economy-branded products aimed at the domestic traveler,” notes Alex Kyriakidis, Deloitte Touche Tohmatsu Global Tourism, Hospitality & Leisure leader.
2. Demographics
The U.S. baby boomers-who are forecasted to account for 60 percent of the nation’s wealth and 40 percent of spending in the next five years-as well as the emerging middle classes of China and India will create new travel patterns and demand. “Hospitality operators who understand the drives and needs of these growing demographics will reap the rewards and become the future leaders in the industry,” Kyriakidis says.
3. Social Media
Deloitte expects social media will continue to have a strong impact on the industry. “The transparency of social media will highlight any inconsistencies in the delivery of the brand and will provide a quick and enriching communication channel between brand and consumer,” says Robert Bryant, a partner at Deloitte UK. “The most successful brands will be those that embrace and learn to harness social media rather than underestimate or fight against its influence.”
4. Talent
An average hotelier spends 33 percent of revenues on labor costs, but employee turnover in the industry is as high as 31 percent. High employee turnover continues to plague the industry, and operators need robust strategic plans to retain their critical employees and manage turnover, according to the report.
5. Technology
To keep up with consumer demands, hotels should continue to invest in technology with a strong focus on developing applications for mobile devices.
6. Sustainability
Sustainability will become a defining issue for the industry in 2015 and beyond. Rising populations and increasingly scarce resources will provide a challenging business environment in which sustainability will need to be embedded within all facets of the hospitality industry.
7. Crisis Management
Establishing appropriate responses, protocols, and risk management programs is key to surviving-and minimizing the impact of-unpredictable circumstances.
