Published on February 23, 2014
Future of Hotels and Irish Hospitality Industry Dr Patrick Dixon Chairman Global Change Ltd
ALL BIG TRENDS ARE RELATED What will Irish Hotel Industry look like in 2020 ? Downturn is (almost) history but customers have CHANGED
Tourism in Ireland EU 7bn Around 200,000 jobs - 4.5% of GDP 50,000 in hotels and guest houses 11% of all workers in Ireland
Visitors to Ireland The Gathering 2013 Overseas visitors up 7% US visitors up 15% 265,000 extra visitors was huge achievement in difficult economic situation
6,000 extra hotel beds in boom - only 1500 lost in last 3-4 years - 70% bed nights are Irish customers
Hotel Occupancy and Rates will continue to recover
Hotel Occupancy and Rates will continue to recover
Experiences Matter Most
Strategies often overtaken by events World can change faster than you can hold a board meeting
You need more than one strategy to grow your hotel business
GLOBAL ECONOMY WILL GROW 2014-2020
WGP 1980-‐2013 (%,constant prices)
US GDP 1980-‐2013 (%,constant prices)
EU GDP 1980-‐2013 (%,constant prices)
Vietnam GDP 1985-‐2011
Republic of Ireland boom was fed by low Euro interest rates Low borrowing costs, high inflation, fixed exchange rate
2% inflation target likely to be discarded
£ 375bn • $2.3 trillion US + $65bn per month
Euro to Pound -‐ managing risk
>40% WDP by 2015 IMF - adjusted for Purchasing Power Parity
$3.4 trillion Reserves
300 million move to ciSes in China Rapidly growing middle class = travellers
FUTURE of TRAVEL will be DRIVEN by
EMOTION and desire for EXPERIENCE
“Great hotel guest experiences” Mystery Shopping 39
80% lost in seconds
Online travel revoluSon Hotels, conference centres and travel agents need to respond instantly to e-‐mail
What can hotel call-‐centre see ?
LEISURE GROWTH MARKETS
People Eat Out More
Breaks – Stress-‐Busters • • • • Luxury and pleasure Impulse buying Special treats Many more short citybreaks – at all times of year • Second main holidays / adventure / activity eg winter sun
5% in UK will take an adventure break in 2014
Tailor made holidays / mulS-‐desSnaSon luxury
City breaks now as popular as beach holidays for UK residents
Stag weekend / Hen weekend Average UK 15-‐24 year old took 5 breaks last year
21,000 marriages a year in Ireland and global trend is more elaborate
EU 600 million • 5000 brides confetti.co.uk
Desire to be Diﬀerent
Memories and Moments
BUSINESS GROWTH MARKETS
68,000 overseas visitors to Dublin conferences in 2013 Ireland events market EU100m a year
Making it more Personal
Demand for unusual venues is growing
Business mixed with Leisure • 33% of tourism spending in London is by business travellers
OLDER GUESTS GROWTH MARKET
1 billion over 60 year olds in 10 years
Europe Dying 4 couples to produce single great-grand child in some nations
75% of all US and UK wealth owned by those over 65 -‐ mostly women
Rest -‐ Reading
IMPACT OF ONLINE ON HOTELS IN 2014
Would recommend you to a friend ?
"Perfection!," TripAdvisor Member, FEb 17, 2014 This was a most beautiful Paris hotel. Delightful, all perfect. We will stay again v soon. "Terrible! TripAdvisor Member, Jan 23, 2014 Terrible place, rats, dirty, noisy - sick with food poisoning for 2 weeks. Nearly died.
1 trillion pages a month
1 Billion accounts
e-‐commerce hits $1.5 trillion 2014 12% all UK retail
Huge growth aggregators
Italy: 58% increase in aggregator sales of insurance in ﬁrst 6 months of 2013 v 2012
2014 ruling by Oﬃce of Fair Trading allows Online Travel Agents to discount hotel rooms, paid out of their own margins
Hotel booked on arrival in city
Why can’t I ﬁnd a place to stay?
LocaSon MarkeSng is next BIG THING
• Zettabyte Exabyte Petabyte Terabytes = 1024 Exabytes = 1024 Petabytes = 1024 Terabytes = 1024 Gigabytes BIG Data
• Home • Work • Online • Offline • Sales • Entertain • Phone • Mobile • Chat • Mobile KNOW YOUR CUSTOMER Travel and Room Preferences
HOW TO AMAZE YOUR GUESTS
Night Flight or Day Flight Going out or coming home? – work, food, drink, chat, party, unwind, dark, quiet, sleep, leave Best for Business Out / Back
Junk but no iron
The only hotel value worth having Treat every customer as if a member of your own family or a friend eg web / phone
RESOURCES >500 videos of Keynotes http://www.youtube.com/pjvdixon Global Trends Website: http://www.globalchange.com
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