Hospitality brands & their upcoming business brand
Published on : Thursday, March 22, 2018
The basic of the hospitality industry are showing all signs of growth. As per the UN’s World Tourism Organization (UNWTO), arrivals in terms of overseas tourists are expected to rise by over 3 percent every year to reach 1.8 billion by 2030. At the same time, the World Travel & Tourism Council (WTTC) forecasts that every year, the hospitality industry will develop in value on average by 3.9 percent over the coming 10 years to $11.5 trillion – just somewhat less than the entire economy of China today.
Besides, the industry is quite nervous as the landscape of the hospitality sector undergoes a period of major change. The entry of tech-platforms like Airbnb, the supremacy of online travel agencies like Priceline.com and Expedia in the distribution chain, and main collaboration as seen with Starwood and Fairmont Raffles Hotels International (FRHI) are all having a deep impact on conventional hotel brands and their business models.
Therefore, what will be the next step in the development of hotel brands?
As most hotel brands are going through similar ups and downs and opportunities, there does not appear to be a single approach to handle these new dynamics efficiently and the big players are all reacting to it in a different manner.
For instance, Marriott is going for scale with the attainment of Starwood and is building coalition with Alibaba, one of its strategic partners.
Accor is hedging its bets by obtaining the start-ups related to hospitality-tech and platforms
Hilton is all geared up in making definite deals and investments into their own technological potential
IHG has spent in lifestyle space heavily and currently has the highest number of rooms in this segment
The development and changes of hotel companies – from owner-operator to brands
It’s not first that the hotel industry has been compelled to become accustomed to a rapidly-changing industry landscape – there have been basic alterations before and the most successful brands have succeeded in adapting to them.
Tags: Hospitality brands, UNWTO, WTTC