five forces shaping the global lodging industry
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Five Forces Five Forces Shaping Shaping The Global The Global
Lodging IndustryLodging Industry
Five Forces Five Forces Shaping Shaping The Global The Global
Lodging IndustryLodging Industry
2005 National Travel MONITOR 2005 National Travel MONITOR
Converging ForcesConverging Forces#1: The ascent of leisure travel#1: The ascent of leisure travel
2005 National Travel MONITOR 2005 National Travel MONITOR
Italy 42France 37Germany 35Great Britain 28Canada 26Japan 25USA 13
Source: WTO
Number of Vacation Days Per Year
2005 National Travel MONITOR 2005 National Travel MONITOR
The Busiest Night Of The Week?
The Busiest Night Of The Week?
SaturdaySaturday
2005 National Travel MONITOR 2005 National Travel MONITOR
I am actively seeking ways to use new technology in order to reduce my business travel in the future 35%
I am actively seeking ways to use new technology in order to reduce my business travel in the future 35%
Attitudes Toward Business Travel
Attitudes Toward Business Travel
20052005Agree:Agree:
†
2005 National Travel MONITOR 2005 National Travel MONITOR
2005 National Travel MONITOR 2005 National Travel MONITOR
2005 National Travel MONITOR 2005 National Travel MONITOR
Converging ForcesConverging Forces#2: The commoditization of air transportation#2: The commoditization of air transportation
2005 National Travel MONITOR 2005 National Travel MONITOR
An Uplifting Experience?An Uplifting Experience?
2005 National Travel MONITOR 2005 National Travel MONITOR
2005 National Travel MONITOR 2005 National Travel MONITOR
64%
54%
16%22% 20%
24%
0%
10%
20%
30%
40%
50%
60%
70%
LEGACY CARRIERS LOW FARE CARRIERS REGIONAL CARRIERS
Passengers By Carrier Type (2000 V 2003)
Passengers By Carrier Type (2000 V 2003)
-8.60% -9%
-0.80%
-4.20%
-10.00%
-8.00%
-6.00%
-4.00%
-2.00%
0.00%
2001 2002 2003 2004
YEAR-OVER-YEAR CHANGE IN AVERAGE DOMESTIC FARES
Average domestic fare down 22%
in 4 years.
Average domestic fare down 22%
in 4 years.
Source: IATA, 2005.
2005 National Travel MONITOR 2005 National Travel MONITOR
Converging ForcesConverging Forces#3: The rEvolution#3: The rEvolution
2005 National Travel MONITOR 2005 National Travel MONITOR
Sources Used When Planning A VacationSources Used When Planning A Vacation
23%
10%11%
56%
Travel agentonly
Internet only
Travel agentand Internet
Neither travelagent norInternet
(Leisure Travelers Who Use Airlines/Hotels)(Leisure Travelers Who Use Airlines/Hotels)
2005 National Travel MONITOR 2005 National Travel MONITOR
Broadband AccessBroadband Access
11%
11%
15%
18%
18%
23%
26%
50%
57%
0% 10% 20% 30% 40% 50% 60%
ENGLAND
ITALY
FRANCE
GERMANY
SWEDEN
U.S.
JAPAN
CANADA
SOUTH KOREA
AMONG HOUSEHOLDS WITH INTERNET ACCESS
Source: Yankee Group, 2003Source: Yankee Group, 2003
2005 National Travel MONITOR 2005 National Travel MONITOR
Online Planning And Buying
Online Planning And Buying
In the travel category– More looking than booking– Low conversion rates
Control of transactions– Shopping “BOTS”
In the travel category– More looking than booking– Low conversion rates
Control of transactions– Shopping “BOTS”
2005 National Travel MONITOR 2005 National Travel MONITOR
Meta Search:The Next Horizon
Meta Search:The Next Horizon
“Just keep lookin’ and you’ll get a better deal.”
“Just keep lookin’ and you’ll get a better deal.”
• Growing sense of suspicion about whom to believe because of the filters applied to the information served
– Increased reliance on “objective” sources
– Growing use of blogs
• Growing sense of suspicion about whom to believe because of the filters applied to the information served
– Increased reliance on “objective” sources
– Growing use of blogs
2005 National Travel MONITOR 2005 National Travel MONITOR
.travel.travel
2005 National Travel MONITOR 2005 National Travel MONITOR
Converging ForcesConverging Forces#4: The vigilante consumer#4: The vigilante consumer
2005 National Travel MONITOR 2005 National Travel MONITOR
Strategic ControlStrategic Control
Agree: The single most important change created by the Internet is giving consumers
like me greater control.
Agree: The single most important change created by the Internet is giving consumers
like me greater control.
AGREE63%
2005 National Travel MONITOR 2005 National Travel MONITOR
Strategic ControlStrategic Control
Want to participate in the creation of new options– Personalize products and services
Want to control the transaction– Through access to comparative
pricing
Want to participate in the creation of new options– Personalize products and services
Want to control the transaction– Through access to comparative
pricing
AutonomyAutonomy
62%
74%
55%
60%
65%
70%
75%
2002 2005
Agree: I rely more on my instinctsthan the opinions of experts.
Agree: I rely more on my instinctsthan the opinions of experts.
2005 National Travel MONITOR 2005 National Travel MONITOR
“My IQ Is Higher Than Average”
Agree: 63%
“My IQ Is Higher Than Average”
Agree: 63%
Agree:
Marketers and advertisers don’t treat consumers with
enough respect.
62%
Agree:
Marketers and advertisers don’t treat consumers with
enough respect.
62%
Agree:
Very little, if any, marketing and
advertising I see has any relevance to me.
59%
Agree:
Very little, if any, marketing and
advertising I see has any relevance to me.
59%
33% 41%
2001 2005
Refused To Buy A Product Or
Service In The Past Year As A
Form Of Activism
Refused To Buy A Product Or
Service In The Past Year As A
Form Of Activism
PersonalAuthenticity:
Clarity of values;
conviction they are right for
you; courage to act on them.
PersonalAuthenticity:
Clarity of values;
conviction they are right for
you; courage to act on them.
New Attitude Toward Business
New Attitude Toward Business
Business On My TermsBusiness On My Terms
IT'S USUALLY NOT NECESSARY TO PAY FULL PRICE FOR MOST GOODS AND
SERVICES BECAUSE YOU CAN GENERALLY FIND THINGS ON SALE
AGREE92%
2005 National Travel MONITOR 2005 National Travel MONITOR
Converging ForcesConverging Forces#5: Emerging markets#5: Emerging markets
2005 National Travel MONITOR 2005 National Travel MONITOR
If There Were Only 100 PeopleIf There Were
Only 100 People
2005 National Travel MONITOR 2005 National Travel MONITOR
57 would be Asians21 would be Europeans8 would be Africans5 would be Americans
57 would be Asians21 would be Europeans8 would be Africans5 would be Americans
2005 National Travel MONITOR 2005 National Travel MONITOR
12 would speak Mandarin Chinese as their first language7 would speak English as their first language
12 would speak Mandarin Chinese as their first language7 would speak English as their first language
2005 National Travel MONITOR 2005 National Travel MONITOR
52 would be female48 would be male
70 would be non-white30 would be Caucasian
70 would be non-Christian30 would be Christian
52 would be female48 would be male
70 would be non-white30 would be Caucasian
70 would be non-Christian30 would be Christian
2005 National Travel MONITOR 2005 National Travel MONITOR
80 would be living in sub-standard housing
70 would be unable to read2 would own a computer1 would have a college education
80 would be living in sub-standard housing
70 would be unable to read2 would own a computer1 would have a college education
The Unpredictable Force:The Unpredictable Force:Concerns About Safety, Security and HygieneConcerns About Safety, Security and HygieneThe Unpredictable Force:The Unpredictable Force:
Concerns About Safety, Security and HygieneConcerns About Safety, Security and Hygiene
• Uncontrollable but significant negative impact on demand
• Potential impact on national tourism policies
• Uncontrollable but significant negative impact on demand
• Potential impact on national tourism policies
2005 National Travel MONITOR 2005 National Travel MONITOR
Converging ForcesConverging ForcesThe ascent of leisure travel
The reinvention of air transportation
The rEvolution
The vigilante consumer
Emerging markets
….and a growing concern about safety, security and hygiene
The ascent of leisure travel
The reinvention of air transportation
The rEvolution
The vigilante consumer
Emerging markets
….and a growing concern about safety, security and hygiene
A Vacation Is A BirthrightA Vacation Is A Birthright
Yesawich, PeYesawich, Pepperdine, Brown & pperdine, Brown & RussellRussell
www.ypbr.comwww.ypbr.com
Yesawich, PeYesawich, Pepperdine, Brown & pperdine, Brown & RussellRussell
www.ypbr.comwww.ypbr.com
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