Are you ready for a new year? I know I am. As we are looking forward to 2017, let's review some of the key events and discussions in 2016 as published at MultiBriefs.com.
Impacts from the major events in 2016
There were several surprising, if not revolutionary, changes in 2016 that need our special attention as we enter 2017. Here are some examples:
Donald Trump will officially become the 45th president of the United States after the inauguration on Jan. 20. I do not believe his presidency or his comments about illegal immigrants will stop people from traveling to the U.S., but his foreign policies — such as tighter border controls and new regulations or procedures of handling visas for temporary visitors — might have a negative impact. Meanwhile, Trump's infrastructure plan may boost the travel and tourism industry, providing easier, faster and safer access to a destination.
A growing number of terrorist attacks in Europehave made (or soon will make) it more difficult to travel from one country to another in Europe. Those tragic events also put people in great concern of their safety when traveling inside of Europe.
Brexit is probably the most shocking news in 2016 for Europeans. This past weekend, Italian voters rejected a batch of reforms, and the resounding defeat has led to the resignation of Prime Minister Matteo Renzi. Now, there is a strong chance Italy will become the second country to separate from the European Union (EU). The collapse of EU would make it more difficult to travel in Europe. The positive spin of Brexit is that the value of the pound is at a historic low, making a trip to Britain a great bargain.
The U.S. dollar remained strong in 2016, and this trend will probably continue in 2017. We can expect a more diverse mix of international travelers visiting the U.S. as the number of visitors from Canada and Mexico drops. Meanwhile, more Americans are expected to travel overseas.
2016 has been an exciting year for many hoteliers. Marriott and Starwood completed a merger and became the biggest hotel chain in the world. Yet the competition is just going to get tougher. For example:
Electronic word of mouth (eWOM) and online reviews deserve continuous attention from businesses. I am going to share the results of my research on online reviews as soon as my papers become available on the journals' websites.
Above is a highlight of the key events of 2016, as reflected in my discussions over the year. Do you recall any big events in 2016 that I missed? How would they impact the future of hospitality and tourism business?
The Year of 2017 has been a year full of renovations, many of which happened to take place within the hospitality industry. One specific topic is still, and might always be pondering in the minds of those in a hotel's or a resort's Marketing and Advertising Department. Who is the best market to cater to? Or more specifically --- Who is the best market to cater to for 2017-2018? Family vacationers could be the answer. Here is some insight into what families will be looking for and how a resort can get the businesses from family vacationers. The “adults-only” segment To answer this question, I took the liberty of investigating through last year's highlights to see what all the fuss was about for “adult-only” resorts and hotels. In 2016, "adult-only" resorts and hotels are popular among honeymoon goers, singles traveling, and overall, couples having some quality time to themselves. What drew them in were resorts based on a coastal, island settings. Such places as the …
The growth of Airbnb has made a significant negative impact on hotel business, even though the hotel industry has also been enjoying a steady long-time growth since 2009, as measured in almost all performance indicators including occupancy, average daily rate, revenue per available rooms and number of new hotels open for business.
For hotels, it is a loss of revenue (or uncaptured income) when a traveler chooses to stay in an Airbnb listing rather than a hotel room. Hotels have been trying hard to fight with Airbnb, but it does not seem any of their strategies can actually stop the growth of the room-sharing website. Besides hotels, Airbnb also makes a negative impact on online travel agents (OTAs), such as Expedia and Priceline, especially when Airbnb is aiming to become a true full-service travel enterprise. Because a large portion of OTAs' revenue comes from the commissions on hotel sales, it is also a loss of revenue for OTAs when a traveler books a room elsewhere, either on Air…
Hotels have been working hard to win more travelers to "book direct" on their companies' websites, but are consumers listening?
In fact, hotels are not alone. All service providers in the hospitality and tourism industry want their customers to make purchases directly on their websites, but consumers want to search and compare various options before making a decision.
So, to convince customers to purchase directly on the service providers' websites, companies must understand where their customers "hang out" in the cyber marketplace before they make the purchasing decision, as well as where they end up buying their services.
The white paper "Understanding the Travel Consumer's Path to Purchase" by Eye for Travel provides some business intelligence in that regard. The report combined a large panel consumer data of online transactions and surveys into the analysis, revealing the following results: The places where customers purchase a travel produ…