Digital Trends Travel Industry In 2015 And Beyond (2015)

Question: 1.What are the most impactful and change in trends? 2.What are the potential growth risks and obstacles? Answer: Hospitality Trends 2015 and Beyond The travel and tourism makes a contribution of around 9% in the global GDP and is the largest employer in the world and it is expected that the industry is going to create a job opportunity of around 75 million jobs. The tourist population in the last 2o years have doubled is also expected to get doubled in the coming 20 years (Mandabach). The various trends that include the fact that the millennial generation would be in its peak earning in the coming 10 years and there would be a huge demand for travel and tourism products and services and the demands have changed over the years and is also going to change in the future. The customers would demand faster and customized services. The mobile travel services together with social media and digital innovation and analytical tools would emerge as a hot platform to engage the customers and thus build loyalty. Article: Marriott International Unlocks the Future of Hospitality What are the most impactful change in trends? The use of mobile device to search for the travel options has increased but laptops and PCs are till the commonly used options for the search. 18% of the internet users tend to make use of the social media to research and plan their travel (Godbey). Among the age group of 16 to 24 years, around 44% of the individuals uses the social media that any other groups. Enhanced expectations on the part of the customers to interact with the products and brands. What are the potential growth risks and obstacles? The potential growth risks and the obstacles include the following: Lack of appropriate infrastructure Lack of experienced and qualified personnel Challenge of achieving the required service level Inadequate promotion and marketing i.e. not making an effective use of the digital media. Security issues like the cybercrime due to increase in the rate of online bookings and making payments online (Fitzpatrick). Regulatory issues The technological advancements are taking place and thus it becomes important that the technology need to be incorporated in the business for enhanced growth. Lodging Outlook What are the potential growth risks and why? The economic performance in the third quarter of 2015 lost its momentum in the fourth quarter and this was mainly because of the factors like weak inventory investment and net exports. The potential growth risks also include the less favorable financial conditions and less economic momentum. There are also downside risks to the GDP forecasts that include the sharper than expected in China, strengthening of the US dollar, widening conflict in Middle East and reduced pace of recovery in the prices of housing (Sheel). How is the supply line of hotels affecting the economic future? What is the strongest year the industry will see? The supply growth in the long term has reached the level of 1.9% and this has been the highest in the year 2016 as compared to the previous years since 2010. So this can be related to a marginal increase in the occupancy levels to 65.7% and so it would result in meaningful average daily rate increase (Jain). The year 2016 is the strongest year that the industry is seeing. References Fitzpatrick, Kate. "TRAVEL TECHNOLOGY". DIGITAL TRENDS FOR THE TRAVEL INDUSTRY IN 2015 AND BEYOND (2015): 5 - 8. Print. Godbey, G. "Time, Work, And Leisure: Trends That Will Shape The Hospitality Industry". Journal of Hospitality Tourism Research 17.1 (2014): 49-58. Web. Jain, Abhishek. "Average Daily Rate Reluctantly Takes The DriverS Seat". Hospitality Directions (2016): 1 - 3. Print. Mandabach, Keith. "Keep Current On Industry Trends". J Tourism Hospit 03.03 (2014): n. pag. Web. Sheel, Atul. "Trends In The Lodging Industry". The Journal of Hospitality Financial Management 9.1 (2015): vii-vii. Web.