Disruptive Trends MASTER CLASS Flashcards
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How has the hotel industry impacted by globalisation? What s the history of hotel?
Globalization; trade agreements shaped the phenomena of globalization of business; goods and people, and then
- migration of people, Airline has become a commodity
2.Structure of hotel industry (separation of bricks and brains)
- Connectivity and productivity mega trends shaping our lives since 20 years Sabres
- Brand proliferation
- Trends: Share of products sold online is about 60% because of connectivity.
- Robotization of work by 2050 30% of our jobs will be gone
What is the latest trend in the industry?
Trend on life style transformationTechnology in generalShare of products sold online / That means psychography Robotisiation of work by 2015 to 30% ofTrendHow people approach their life, the way life structured. Make and Keep friends, relationship, what they do with phones etc BIIGGEST CHANGE;There has been a Shift in the way people do thing, because the life style transformation which obviously has an impact on the way we have to build the hotels (IBIS). How we allocate space to different things. Its not much about how things change, but the rate of change, today it changes radically.
Define Life style transformation?
There has been a lifestyle transformation, how people approach their life, the way life structured. Make and Keep friends, relationship, what they do with phones etc, so there has been a Shift in the way people do thing, because of that life style transformation which obviously has an impact on the way we have to build the hotels (IBIS). How we allocate space to different things. Its not much about how things change, but the rate of change, today it changes radically.
How does the life style transformation impact hotel business?
because the life style transformation which obviously has an impact on the way we have to build the hotels (IBIS). How we allocate space to different things. Its not much about how things change, but the rate of change, today it changes radically.
What was the most significant evolution step in the hotel industry?
1993 START OF ASSET HEAVY AND ASSET LIGHT STRATEGY;bricks and brains change Marriott international and Host Marriott (which was reorganize in the legal entity status of a REIT, which is a real estate investment trust which is a special vehicle to avoid double taxation. First time hotels companies started separating expertise, property itself (acquisition, maintenance, divestment 2) operator job running hotels, asset light strategies
What are the latest trends?
Today they target more life style orientated hotels than price point orientated hotels
What is the history of OTAs?
90s electronic related Saber; 1990s RMS electronic system enable airlines to sell tickets, spun off from American air and saber created 1996 Travelocity and spun it off now bought by expedia; Expedia is owned Microsoft. 93 started wave of asset light strategies.98 Priceline, today global
How is the hotel structure today!
In the Creation and capture of Value is divided into four parts; Brands, operators (GM), Distributors (Agoda etc), Owners.
What is Today’s hotel structure?
Interstate is the largest hotel operator in the USA (specialize in operation of hotels who works for companies like Blackstone group or with others with a mgmt. agreement in exchange for a fee. Business owner (blackstone) has a Franchise with IHG but managed & operated by Interstate. And then priceline selling the rooms. Dominant model for the structure of industry today.
What is the evolution in the hotel industry?
Major evolution Globalisation; expansion of Business. Disintegration; split betw operators, started to specialise, Brand started to specialise, and ownership side also started to specialise, Life Style trends, Proliferation of brands respond to that life style trends.
Today’s Hotels!
Economy brand; falls within certain price points Midscale brand; within two different points
People are not price point sensitive, people are life style sensitive i.e. Moxi (Marriot and Ikia}; they target people not by price but with certain type of living, behavior and Eco consciousness, living in different ways Connectivity
Disruption of Sales channel; hotelier didn’t understand the importance and failed to commit sufficient resources to the development of on line channels. Emergence of reviews increase transparency of the whole business for customers (star system becomes less relevant due to reviews and also not price point sensitive)
Four parts of today’s hotel schools?
Operators, brands, distributors, and owners (four type of expertise)
1-Real Estate component Finance and development (Asset management, feasibility studies, valuation investment analysis, property development etc
2-Ecommerce and distribution train people about the distiution landscape, reviews, social media
3-Branding
4-Entrepreneual for people to start their own business, and operating.
What is important for tomorrow’s hotelier?
Challenge will be to remain expert in a field that remains relevant. So being able shift from real estate to something else will be important.
What is hotel industry?
Old hotel school, it is not people industry, which is asset heavy with where we have strict hierarchy with less interaction with people; i.e. housekeepers.
