2005 Top Ten Global Issues And Challenges In The Hospitality Industry
Hospitality Net - Industry News | By The International Society Of Hospitality Consultants (ISHC)---------------------------------------------------------------------------------------------------------------------------------------------
1. Global Uncertainty
2. Human Resources Issues
3. Branding Issues
> A proliferation of brands and branded hotels worldwide that is leading to the commoditization of the hotel product.
> Increased competition between the brands is leading to amenity creep, and diverging interests between owners and brands.
> Instilling authenticity of local culture into brand standards remains a challenge.
4. Financial Viability
5. Technology
The hospitality industry must do a better job of managing technology and addressing the challenges posed by new and changing technology. Specifically, the industry must align technology investment with business objectives, address aging and inadequate infrastructure (at both the corporate and the property levels); and learn to better utilize technology in marketing to guests, training employees, yield management, and meeting customer requirements.
6. Customer Issues
Customer issues present a challenge to the industry in several ways:
Increasing loss of control over the customer - The use of the Internet, homogenization of the hotel product and increased corporate oversight has reduced the amount of control that operators have over the customer.
Changes in the customer - Hotel customers are changing due to demographics (the aging of the baby boomer generation) and due to lower transportation costs that promote travel.
Changes in customer expectations - Customer expectations are changing as consumers become more sophisticated and better educated.
7. Operating Cost Creep
8. Supply Issues
9. Safety and Security
10. (Tie) Distribution Channel Management
In 2005 it is expected that price sensitivity will continue to drive consumer buying behavior in virtually every segment. Pricing structures will need to demonstrate price integrity across all distribution channels—not just electronic ones. The potential challenges are formidable: lead times to booking continue to shrink; the move toward real time inventory becomes paramount, impacting technology, product categories, segments and channels; and the desire to track and manage every revenue stream in every channel means that distribution channel management transitions to a focus on the most profitable customer.
10. (Tie) Airlines in the 21st Century
It is important to closely monitor the fundamental changes occurring in the airline industry and their potential impact on the hotel industry for the viability of the hotel industry depends greatly on airline lift capacity, service and convenience in travel as well as the cost of airline travel.
posted by Jen @ 1:38 pm
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