Five Forces Shaping The Global Lodging Industry

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Five Forces Shaping The Global Lodging Industry
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Converging Forces

• 1 The ascent of leisure travel

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Number of Vacation Days Per Year

• Italy 42
• France 37
• Germany 35
• Great Britain 28
• Canada 26
• Japan 25
• USA 13
• Source WTO

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The Busiest Night Of The Week?

Saturday
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Attitudes Toward Business Travel
I am actively seeking ways to use new
technology in order to reduce my business
travel in the future 35

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Converging Forces

• 2 The commoditization of air transportation

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An Uplifting Experience?
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Passengers By Carrier Type (2000 V 2003)
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Average domestic fare down 22 in 4 years.
Source IATA, 2005.
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Converging Forces

• 3 The rEvolution

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Sources Used When Planning A Vacation
(Leisure Travelers Who Use Airlines/Hotels)
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Broadband Access
Source Yankee Group, 2003
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Online Planning And Buying

• In the travel category
• More looking than booking
• Low conversion rates
• Control of transactions
• Shopping BOTS

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Meta Search The Next Horizon
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Just keep lookin and youll get a better
deal.
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• Growing sense of suspicion about whom to believe
  because of the filters applied to the information
  served
• Increased reliance on
  objective sources
• Growing use of blogs

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.travel
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Converging Forces

• 4 The vigilante consumer

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Strategic Control
Agree The single most important change created
by the Internet is giving consumers like me
greater control.


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Strategic Control

• Want to participate in the creation of new
  options
• Personalize products and services
• Want to control the transaction
• Through access to comparative pricing

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Autonomy
Agree I rely more on my instincts than the
opinions of experts.
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My IQ Is Higher Than Average Agree 63
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Agree Marketers and advertisers dont
treat consumers with enough respect. 62
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Agree Very little, if any, marketing and
advertising I see has any relevance to me. 59
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Refused To Buy A Product Or Service In The Past
Year As A Form Of Activism
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Personal Authenticity Clarity of
values conviction they are right for you
courage to act on them.
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New Attitude Toward Business
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Business On My Terms
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Converging Forces

• 5 Emerging markets

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If There Were Only 100 People
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• 57 would be Asians
• 21 would be Europeans
• 8 would be Africans
• 5 would be Americans

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• 12 would speak Mandarin Chinese as their first
  language
• 7 would speak English as their first language

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• 52 would be female
• 48 would be male
• 70 would be non-white
• 30 would be Caucasian
• 70 would be non-Christian
• 30 would be Christian

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• 80 would be living in sub-standard housing
• 70 would be unable to read
• 2 would own a computer
• 1 would have a college education

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The Unpredictable ForceConcerns About Safety,
Security and Hygiene
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• Uncontrollable but significant negative
  impact on demand
• Potential impact on national
  tourism policies

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Converging Forces

• The ascent of leisure travel
• The reinvention of air transportation
• The rEvolution
• The vigilante consumer
• Emerging markets
• .and a growing concern about safety, security
  and hygiene

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A Vacation Is A Birthright
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Yesawich, Pepperdine, Brown Russellwww.ypbr.com