Skip to main content

What to expect in summer travel 2018

Have you made any travel plans for the summer? If not, it is probably a good time to do so.  

As a matter of fact, it is now also a good time for business operators in the hospitality and tourism industry to revisit their existing summer plans and make adjustments if necessary. But first, let’s check what we can expect in this year’s summer travel.


The Positive

Positive growth can be expected due to the following reasons:

·      The unemployment rate continues to fall, with an estimation of going below 4 percent by the summer. Companies located in areas with low unemployment rates have already voluntarily increased the hourly wages and/or add more benefits to their staff members. The improving economy will encourage more people to travel. 
·      The minimum wage is also on the rise. Many areas across the nation have set a schedule to raise the minimum wage (e.g., to $15 an hour by 2020 in Los Angeles). Meanwhile, a most recent relay organized by the workers at the major airports serving the New York City is pushing to increase their minimum wage to $19 an hour by the fall of 2023, leading another wave of raise. People may hence spend more on trips as they are expecting to get more incomes in the near future.
·      Many hotels and restaurants have made innovative changes in service operations with the aids of technology, helping them offset some of rising labor costs while keeping the price at a reasonable level.
·      Hotel chains are getting bigger through acquisitions and mergers, which allows the big players to lower some of the overhead costs and offer more diverse products.  
·      The reinvented and improved loyalty programs begin to take effects, encouraging more loyal customers to travel over the summer. The most recent update is about the Hilton Honors Program, with several significant upgrades to ensure the hotel’s frequent travelers stay happy.

The Negative

Meanwhile, there are a few concerns that deserve our close attention, including:

·      Gas price is on the rise, reaching the highest point in recent years.
·      Prices for hotels, restaurants, and air tickets are going to increase as employers pass some of the rising labor costs to customers and with a higher gas price.
·      Worker shortage has become a big challenge facing the restaurant and hotel industry, which is normally the case when the unemployment rate is low.
·      For years, foreign investments, especially the ones from mainland China, have shown great interest in the hospitality and tourism sector. Even though China has slowed down its overseas investments, there are still many new hotels and restaurants in the pipeline that are ready to open for business. Tougher competitions are expected as more inventory is added to the market.
·      The competitions among Airbnb, OTAs (online travel agents), hotels, and other travel companies are going to heat up as Airbnb strives to become a mega tourism company. Airbnb also debuted two new brands/products recently, which could become an even bigger threat to hotels.
·      The uncertainties from the global market, such as the possible trade war between China and the U.S., add additional concerns to travelers as they make plans for summer travels.  

Will more Americans travel in the summer then?

It is likely that more people will travel in the summer as the economy continues to improve even though there are still some uncertainties in the market. I, however, am not sure if people are ready to spend a lot more on summer travels. Facing the record high gas price in recent years, I also believe short road trips will remain a very popular form of travels as consumers are trying to lower their travel expenses.     

Overall, do you feel more positive or negative about the market? What do you expect from the hospitality and tourism industry this summer? 

Note: This discussion is also available on MultiBriefs.com. The picture was downloaded from Travel365.md.

Comments

Popular posts from this blog

Luxury vs. Millennials and Their Technology: The Ritz-Carlton (By Julia Shorr)

Embodying the finest luxury experience, The Ritz-Carlton Hotel Company, LLC has been established since 1983. In 1998, Marriott International purchased the brand offering it more opportunity for growth while being independently owned and operated. They are known for their enhanced service level as the motto states, “Ladies and Gentlemen serving Ladies and Gentlemen”. The luxury brand now carries 97 hotels and resorts internationally and is attempting to keep the aspects of luxury while keeping up with the trends of the technologically improving generations. The Varying Demographics of the Target Market The Ritz-Carlton’s typical target market includes: business executives, corporate, leisure travelers, typically middle-aged persons and elders, and families from the upper and upper-middle class section of society .   This infers a large range of types of travelers in which all are similar in that they are not opposed to spending extra for the luxurious ambiance. However, with

The challenges of SB 93 (California Senate Bill No. 93) will impose on the employers and their human resource management team (by Brittany Schaffer)

The COVID-19 pandemic started in early 2020, and it has caused massive changes within a short period of time. One of the most rememberable effects of the COVID-19 pandemic was that businesses had to come to a complete halt, forcing them to lay off employees. California's unemployment rates went up.  Now that the stay-at-home orders have lifted, people start to come out. Businesses are now reopening, looking to rehire their laid-off employees. Before the pandemic, employers had the option of recalling only a certain number of laid-off employees they would want to rehire based on employees' job performance. That option had been changed after Governor Gavin Newsome signed into law - Senate Bill 93, which went into effect on April 16th, 2021. The California Senate Bill No. 93 (SB 93) According to SB 93, companies in specific industries, mainly the hospitality industry, have the obligation to provide job opportunities in written form to qualified employees being laid off due to COVI

The complicated situation of tattoos in the workplace (by Harry Law)

Tattoos are a form of expression that convey the individuality of their owners. They can represent a multitude of things, like a tie to a family member, a favorite quote with a special meaning, or even a favorite cartoon character. Tattoos also can carry great cultural and/or religious significance. Every tattoo is unique and says something about the individual person who wears it. The problem that many companies face is when a tattoo is considered appropriate and when it should be covered.  Employees are after all the faces of a company, so the tattoos on their bodies are connected to and represent that company as well. Some workplaces have instituted rules and regulations when it comes to their employees’ tattoos, but there can be negative consequences when a company goes too far in telling their employees what they can and cannot do with their own bodies. The Disney Company has recently changed its policy on tattoos. Disney’s goal is to create a magical, fantasy experience for their