Future and Outlook on Hospitality Industry - Research Paper Example

Lecture: Future & outlook on hospitality industry According to reports “Hotels 2020: Beyond segmentation, ” s would liketo either have the biggest share of having the say, or take full control over what services they expect to received and what they wish to pay for. Six hundred and ten tourists were surveyed as a section of the research and it shows that 92 % think that by the year 2020 hotel customers anticipate their stay to be adopted around a list of choices they create at the time of booking and before they set in. The survey looked at the way all the features of the hotel knowledge might, be modified in the future. Things like letting the customers decide which communication method is preferable for them (media, email, phone text or mail), and having take charge of the kinds of communications sent to them, to give choices on their in-check process, in-room technology or pricing mold. The survey also shows that by 2020, over eighty percent of the clients will be able to decide on the size of room they want to stay in, the bed size, business machines and other facilities for purposes of bookings and payments. The chief executive of Fast Future Research and the report writer, pointed out that, the desire for hotel customers to have the say and control over their experience, is creating big changes. The study foresees appearance of “whole service model” that shifts away from the normal hotel packages to a service option menu, where clients choose their specific needs. The world has been hit by the present financial depression. With not much flexible income, the industries have been affected (Kraft & Mantrala 320). According to the experts, there is good news for the year 2011. The scenery is developing rapidly as new machinery increase the need for hotels to become more societal and viral in their advertising efforts. The demand from customers is causing hotels to make intensive efforts on being environmental friendly. Alternatively, there are other sections in the industry that you could go for as a customer. Cruise industry is one of them. It is one that I would advice you to pick, if you were not for the hotel or restaurant type of hospitality industry. Anyway, I will come to this segment later as I would like to outline a few pros and cons of the hotel industry to you (Kraft & Mantrala 96). Let us look at what the professionals of the industry and projecting on performance in 2011. The projections by Smith Travel Research (STR), and everything shows that there will be a drastic change in the improvement. The researchers trail supply, require data for the businesses, and offer expensive market share analysis for all main international hotel chain and brands. Over 5 million hotels rooms are represented by STR and they are known to be the world is leading sources of historical hotel presentation trends. Hotels in the US are expected to experience increase in three main performance measurements, which are: Occupancy: 1.8% increase to 58.5% Average Daily Rate (ADR): 4.2% increase to US$ 102.21. RevPAR: 6.1% increase to US$ 50.78 A small increase of (0.7%) in supply will be experienced in the industry while a 2.5% increase will occur generally in demand. This news will thrill the hotel owners since it will be a great relief for them and the hospitality professionals. The experts detected the increase in 2009, and have been seeing it improve in 2010. Which should go on in 2011 and 2012? Mark Lamnno, CEO of STR said the tough fundamentals that hotels went through in 2010 will end up in a faster turnaround than predicted, he also said that while this force ended up in quickly improving occupancies last year, we sought to find rebounding rates to help in RwvPar growth in 2011 and 2012. By the time we are in the middle of 2011, we may not have experienced fast and hastening room rates and by the time reach 2012, we will now anticipate the growth of room rates to equal or exceed the boom years of 2006 and 2007. According to the findings, I have in this research, I feel that there are the best choices of business in this industry if you have to venture into it. As much as there will be need for you to take customers decisions most of the time with the hotel business, or also face fuel problems with the cruise business, the future is promising for both businesses. Therefore, your business will definitely be the source of your success in the future years. As 2011 and 2012 have been predicted to be the time when this business should be at its pick, I would seriously advice and convince you that you should go for it. This is 2011 and if you go for it now, within the next one year you will have unbelievable results. Therefore, 2011 has been a big improvement in both the segments, and is therefore, a better year as far as hospitality industry business is concerned. The indicators in this particular year are positioned towards great developments in all the three main performance capacity for the hotel and cruise business. If the calculations are true, then we will witness the industry moving up toward where it was in 2005 numbers. As much as this is good news, the decision makers must be aware of latest features, which are now steering the business (Kraft & Mantrala 220). Another suggestion I would recommend to you in the hospitality industry, is the cruise industry segment. As much as it is not safe from the deteriorating financial system, the cruise trade has a reputation for standing strong in the tough economic times. That was between 1990 and 2001. In spite of those times, this industry was amazingly flexible in spite of the economic recession. Hanrahan Dan, CEO and President of Celebrity Cruises and Amazara cruises, quote the cruise product’s wonderful value at a cheaper price as the key reason for hopefulness. He noted that Americans still love holidaying, but they want what goes well with their money. He said the reality that touring offers such value, is the reason the cruise industry endures this storm so far. He also said that about 20 to 50 percent cruises are low-priced compared to the vacations on land. I would like to introduce you to Criuse Lines International Asscociation (CLIA). This is an NGO that is stands for 25 cruise lines around the world. It operates together with travel agents that deal with booking cruises. That means its key apprehension is the security and comfort of the cruse industry. Therefore, this organization has contributed so much to the success of this particular industry by putting up a number of very important measures, to ensure the success of the industry. They have been positive all the way. Its job in the industry is to, encourage all procedures that foster a safe, protected and strong cruise ship. It also trains and coaches the travel agent members to endorse and clarify the values, attractiveness, and ability to pay for a cruise vacation (Kraft & Mantrala 123). The executive for CLIA, discussed important information about the cruise industry’s positive predictions for 2011 based on distributions of 14 new ships. This record would break the traveler numbers and other expansions. The (NYC EDC) also disclosed findings that illustrated increase in the passengers’ and crew spending, in the city from 2009, and revelations from NYC & Company that customer and business tools will have improved information of New York City pre- and post-cruise visits to the Town, amidst other information. The leading cruise port in the U.S is the New York City and it is now displaying dramatic expansion. More tools are going to be in provision to customers and travel business as this segment enlarges, so they can benefit from pre-and post-cruise chances there in the five regions (Kraft & Mantrala 177). Another cruise region that appears to be growing very fast is the Asia Pacific cruise line industry. Apart from the New York region, this should be another best option area for cruise business that would grow rapidly. The Asian cruise industry has maintained its expansion due to the business popularity and customer’s ability to pay for services, even though from a little base. This development has been brought about by the financial recovery, return of international visits by tourists and good exchange rates. All these have turned Asia into a cruise value target. The fleet capacity has also shown a remarkable expansion, with fresh cruise operators coming in, constructions of ports, and outstanding rise in cruise passengers. Key factors like, international marketing segmentation, and others, are the ones to ensure the prospect expansion and practicality of the Asia Pacific Cruise Line. This is a universal overview of the existing trends chances, and future viewpoint of the Asia Pacific area industry line. From the CLIA reports that I have been reading, I have found out from the statistics that, 80% of North Americans are by far the largest group of cruisers now. That is after not having cruised much before, and so this is a significant number. This is an important number. Cruise holidaying adoption in Europe and overseas is evidently growing at a high rate. CLIA states that in 2009, 76.5% of travelers were from U.S and Canada while the rest 23.5% came from other parts of the world. If we compare, the worldwide cruisers in 2000 were less than 10% while CLIA has expected a raise of 6.4% in 2010 in travelers. As I said before if there were 14 new ships brought in, prediction about the travelers numbers will go up numerously as more ships are set to be introduced in 2012, which will bring the number of vessels to 23. Generally, the hospitality industry is probably set to add about 17% employment opportunities from 2004 to 2014. Job growth rate is expected at 14 percent in all the industries in the U.S. Full-time and part-time jobs are both accessible in hospitality, permitting elasticity for employees who would like to join the field. I have to discuss this factor affecting the industry too. The housing and food services department of the industry is always a hard job, because it makes only 8 percent of all employment in America. It gives employees a chance for job number too ratios of 2 to 5 of those who work in those places are part-timers (Kraft & Mantrala 111). The issue of employees mostly affects the industry due to its low wage income with small opportunities of progress. We have other areas like China, India, Russia, and Brazil having a huge number of middle class categorized travelers. These countries are known at the BRIC nations, and they boost almost 3 billion people or 42 percent of the people around the world. This causes the growth of world travelers and tourism as a whole, hence promoting the hospitality industry and providing more job opportunities. For all the business to be successful and grow more, employees with good skills will be required to work in those hotel and ships. Sporting events like the world cup and Olympics will in the near future put the upcoming businesses on the international stage. Brazil and Russia for example, are two countries that are expected to host the two events in the next the years. Needed facilities are expected to be constructed in the two countries and hospitality will be required there. Huge numbers of people from allover the world will be attending the events. They will need enough hotels, restaurants including enough staff and entertainment experts. If the markets would go on to invest on roads, airports and supporting transportation, this industry will keep on growing. Those who are in the industry will have their businesses bringing in tremendous profits. I predict there will be an unbelievable growth in the next less than five years if this do not change. According to cruise line, executives at Sea-trade Cruise Shipping Convention in Miami are held yearly. There was a glowing outlook on the cruise industry despite the evident oil prices and America’s market unwelcoming outlook (Kraft & Mantrala 210). All the same, despite the oil prices, not much is expected in on cruise prices in terms of discounts in the near future. This was pointed out by Cahill one of the executives in the of Sea-trade Cruise Shipping. He also stated that he thinks the costs will be much more flexible than most fore seers believe. Cruise ships are now situated all over the world, causing cruise lines to wade across the seas away from America’s financial anguish. All that is needed by the cruise industries is to be told where to take there business. As one of the executives of the A Norwegian cruise lines puts it, “we don’t have all the eggs in one basket anymore” he terms the Caribbean to still be the largest destination for ships, buts says it is a vote of no confidence. The executives also say that their next targets for the ships are Taiwan, Korea, and Singapore. They say that those are the latest terminals foreseeing the expansion. They say these terminals are not just meant for the American travelers but also for the people from the same areas. The cruise industry is not stopping there, but plans to go globally before it can settle down. Every detail about this business is promising and from all that we have discussed, I am sure you have no doubt on the type of business you would like to put up (Kraft & Mantrala 77). Works cited Manfred, Kraft and Murali, Mantrala. Retailing in the 21st Century: Current and Future Trends. New York, NY: Springer. 2010, Print. Read More