The Global Hotels And Resorts

1602 WordsMar 4, 20167 Pages
Leo’s Analysis Our industry, the Global Hotels and Resorts, experienced strong growth over the five years to 2015. Over the five-year period, both consumers and businesses became more confident about their finances and spent freely on luxuries, including travel. This culminated in a substantial increase in travel rates and hotel room and occupancy rates, two indicators of a hotel 's performance. Travel spending has also picked up quickly, especially in emerging economies where tourism is on the rise. Global tourist arrivals are expected to increase an annualized 4.8% over the five years to 2015 to reach 1.2 billion. As a result of these positive trends, industry revenue is expected to increase an annualized 4.6% over the five years to 2015…show more content…
International tourist arrivals in emerging economy destinations, such as Asia, Latin America, Eastern Europe, the Middle East and Africa, will grow at double the pace of destinations in developed economies. The largest growth will likely be seen in Asia and the Pacific, helping emerging economies surpass developed economies as the favored destination for tourists by 2015. To keep up with the aggressive rise in travel rates in these regions, more hotels and resorts will be built, which should increase the proportion of industry revenue generated and drive industry revenue growth as a whole. Over the five years to 2020, revenue is projected to increase at an annualized rate of 3.4% to $978.7 billion. In 2016 there will be some new trends emerging as hotels will have to compete with growing popularity of companies such as Airbnb. Millennials have shifted the focus from hotel loyalty to more novelty related experiences. The overarching experience that many of these hotels in the industry are shifting to is updated bars and lounges that spill into the lobby. Renovation will be on the upswing over the next few years as guests desire more technology, more stimulating social experiences, and better food and snack choices. Hotels will be looking to charge more fees and surcharges on amenities as occupancy rates increase. This goes without saying, demand drives prices, and the hotel industry will be in the driver’s seat in the coming years. Key external drivers
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