Briefing: Global business in the face of uncertainty

According to a report from Markit and CIPS, the UK services economy rebounded in August with The Business Activity Index up to 52.9 in August, from 47.4 in July. But we live in a global world and work in an international industry so global forecasts and upsets are always in mind. Markit and CIPS also state that Eurozone economic growth is at a 20-month low in September. FocusEconomics panelists see GDP in China rising 6.6% this year with a slow down to 6.3% next year. This is still positive but reflects a change from recent years.

This week our hospitality experts discuss market uncertainty and global business:

The month-on-month gain in the UK business activity index, at 5.5 points, was the largest observed over the 20-year survey history, following a record drop of 4.9 points in July. This goes to show how changeable today’s economy is.

Markit’s Eurozone PMI® Composite Output Index suggests that the economy is losing, rather than gaining, momentum  as the average index reading over the third quarter (52.9) is below that of quarter two (53.1).

According to FocusEconomics there is suggestion that things are looking in Russia up as GDP fell just 0.6% annually in Q2, the smallest decrease since Q1 2015.

As our experts discuss above long term confidence is difficult with so many factors possibly affecting business. But all business that embrace the international perspective are more expectant of these changes and better equipped to perform in all weathers.

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Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Upgrading room technology

According to a 2015 Lodging Technology Study, properties last year were allocating nearly 17% of their overall IT budget to guestroom technology. The study also found that 45% of properties had planned to upgrade their wireless in 2015.

Demands on bandwidth are ever increasing as more internet enabled devices are entering the hotel space, and are being used for streaming and other demanding tasks. Guests expect a smooth and speedy internet connection and will become frustrated by a substandard connection.

In this briefing experts discuss hotel technology and demand for wi-fi:

Hospitality Technology’s 2015 Lodging Technology Study highlighted another area where technology is being upgraded – entry to the hotel room. In 2015, 34% of properties were upgrading their room looks to use electromagnetic keycards (RFID keys) or smartphones as keys.

Individual room thermostat controls have also allowed hotels to improve their energy efficiency as it has meant that heating could be off in rooms that are unoccupied. This can also please guests as it allows them to adjust the temperature to one that suits them.

Next Gen thermostats are not the only smart objects appearing in rooms.  According to Travel and Leisure, Starwood hotels can convert any appliance in the hotel room to a smart object, which would be controlled through an app.

Today’s traveller will bring his or her own mobile devices to a hotel, but that is not say their hotel experience cannot be improved with high quality in room technology. The Lodging technology study showed that at the beginning of 2015 15% of hotels were using Smart TVs and a further 16% were expected to add them. These Smart TVs allow the guest to connect to access TV or films that they may have a subscription to through an account such as Netflix or Amazon. 36% of properties planned to add or enhance HD content.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Unique experiences engage guests

According to research by Gallup, luxury brands have the highest customer engagement level of all hotel segments, with 33% of luxury guests being fully engaged in a brand.

In the luxury/high end market, excellent service and memorable experiences are more important to guests than getting a bargain, so the potential for brand loyalty is higher. But it is becoming more and more difficult for hotels to offer a truly unique experience and keep up with what guests want.

In these videos industry experts discuss how they are attracting guests:

Engagement is important because, according to Gallup; ‘Hotel guests who are fully engaged spend 46% more per year than actively disengaged guests.’ If guests are engaged and returning to the same brand or property time and again, then these guests must be recognised and valued, as discussed above by Dan Wakeling. Gallup’s 2014 Hospitality Industry study found that ‘79% of guests who strongly agree that the hotel they visit most frequently takes care of their well-being, are fully engaged,’

Those who are willing to pay more for a high end stay have more requirements on their minds than a king size bed. Research by Booking.com found that sustainability is increasingly sought after and that ‘sustainable travellers’ were 50% more likely to intend to book more luxury accommodations in 2015 than they did in 2014, as compared with other traveller types.

The way that people engage with brands has changed. So how can one hotel make itself stand out over another?

The Zighy Bay Resort in Oman gives guests the option to paraglide into the resort on arrival.

In Sweden guests can stay in an Ice Hotel.

Some hotels and restaurants are epitomising ‘luxury’ by offering diamonds as part of their package.

And, as mentioned in the above video, Club Med offers a Cirque du Soleil experience.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Routes to a successful hospitality career

The Guardian has ranked the University of Surrey no1 for hospitality courses in the UK, with a satisfaction score of 93.1%. Traditionally hoteliers start at the bottom of the ladder and work their way up, learning on the job. Today, Surrey is just one of many universities that are offering aspiring hospitality professionals a chance to learn before starting their career path with the company that’s right for them. Many hospitality brands also have programmes to train young people and graduates into the industry.

In these videos our experts discuss learning and development, and finding career success:

Many young people in the UK will be heading to university come September, some to hospitality courses, and they will have plenty of choice as to where they can study.

Surry gained top rank within the hospitality, event management & tourism subject area, from the Guardian newspaper. 93.1% of final year students who completed the National Student Survey were satisfied with the course and 68% had a job in the area or were in higher education after 6 months. Other top universities for hospitality include Coventry, Robert Gordon, Oxford Brooks, and Derby, which had top place in last year’s ranking.

Some students may venture further afield to the top ranking universities on an international level. École Hotelière de Lausanne won best hospitality management school 2014 at the Worldwide Hospitality awards. This Swiss university has been around since 1893.

After university, or in some cases instead of, young people may enter the industry through a programme with a hotel brand.

Hilton is an active graduate recruiter globally, they run formal entry programmes for graduates in Europe and visit key hospitality schools and campus events.

Marriot also has a Leadership Development Program for graduates called Voyage which is available in more than 30 countries.

A great career takes planning and thought, and it can be beneficial to start gaining the experience you need as early as possible. For those who have been in the industry some years there will still be scope for development and much to learn, they should think carefully about their next steps. There is of course no substitute for experience, a passion for the business, and finding the right fit for you.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do so here. It’s free.

Video clips produced by yBC for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Meta-disruption in hotel bookings

According to Statistica, over 35% of Millennial and Gen X travellers (all adults under 48) use ‘meta-search’ when planning travel, allowing them to automatically combine search engine results. It is ten years since the launches of two well-known meta-search sites Kayak and Trivago in 2005. In 2015 meta-search is one technology that is developing fast and impacting on hoteliers. According to Skift, changes to Google’s hotel finder search will make Google a big player in the meta-search arena this year.

With the hospitality booking landscape constantly changing these videos have expert discussion on approaches to distribution:

Meta-search allows the consumer to limit the amount of ‘clicks’ from the beginning of their holiday internet research to their booking. While the actual booking is made with the OTA or the hotel the search site allows the researcher to compare deals on the same trip across different sites. This ease and efficiency has made meta-search popular. With consumers choosing to use this shortcut it is important for hospitality businesses to consider whether or not they are showing up in the search results. To appear in meta-search results hoteliers can list themselves on the website (an option on sites such as TripAdvisor or Kayak), or on an OTA (Trivago only lists OTA inventory), which tend to be more prominent in results.

Trivago is the world’s largest online hotel search with 100% growth every year since 2008. It shows results from 266 booking sites (which encompasses 726,065 hotels).

Kayak receives over one billion queries each year. It also has a mobile app which has been downloaded 40 million times.

Metasearch is also frequently used for booking flights on sites such as Monomondo, Skyscanner, and Travel Supermarket.  There is even an apartment specific meta-search site Apartum for consumers preferring alternative accommodation to hotels.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by yBC for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

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