MICE – Trends for hoteliers

According to Great Hotels Organisation, the top trends for hoteliers for meetings and incentives are:

- Many companies are again favouring face-to-face meetings. Budgets for meetings and incentives are cautiously growing in comparison to last year and are predicted to increase further in 2011.

- Proving return on investment (ROI) is a big challenge that is becoming increasingly important for buyers. Special offers and packages are becoming more popular.

- Shorter lead times are becoming a noticeable trend, often booked only a few months before the event is to take place.

- Buyers with short lead times are more likely to go to suppliers with whom they have a good relationship as they can rely on them for a fast response and the need for flexibility. Suppliers who want to win business should be investing in face-to-face meetings and focusing on creating good working relationships with buyers.

- Buyers are looking for flexibility, added value without extra cost and fast responses to Request for Proposal (RFPs). Suppliers need to be flexible with a variety of deciding factors such as dates, price, cancellation and deposit procedures and payment options in order to stay ahead of the competition.

- Many buyers are specifically seeking hotels that have addressed some elements of sustainability and green programmes as companies aim to reduce the environmental impacts associated with meetings.

- Many buyers are utilising social media tools such as Tripadvisor to seek feedback on venues as well as developing relationships through social media with suppliers they’ve already met. Suppliers are also promoting their venues through social media.

Fastest Drop In Brits Traveling Abroad In 2009

According to the Office for National Statistics, the number of trips made by Brits to foreign countries fell at the fastest rate since the 1970s in 2009; from 69 million in 2008 to 58.6 million in 2009. 23% less visits were made by UK residents abroad for business purposes in 2009 compared to the previous year. There was a drop of 15% in visits made for holiday reasons and a drop of 6.5% for visiting friends and relatives. The combined visits to France and Spain still amount to 21.3 million of the total 58.6 million visits abroad that Brits made. Mexico suffered a 41% fall in visits from UK but Egypt, Jamaica and Lithuania saw rises. Brits spent £5.1 billion less in 2009 despite the fact that a Brit’s average length of stay abroad has extended from 9.9 nights in 2007 to 10.5 nights in 2009.

A drop from 31.1 million to 29.9 million was recorded for foreign visits to UK. However, holiday-specific trips to the UK by overseas visitors rose in 2009, by 0.5 million from 10.9m in 2008 to 11.4m in 2009. Earnings from visitors from abroad rose from £16.3 billion to £16.6 billion. London remains the most popular city for foreigners, followed by Edinburgh, Manchester, Birmingam, Glasgow, Liverpool, Bristol, Oxford and Cambridge.

Mainland Chinese: Most Frequent Outbound Travelers

The Visa and Pacific Asia Travel Association (PATA) Asia Pacific Travel Intentions Survey 2010 reveals that mainland Chinese travelers plan to travel most out of all Greater China travelers. On an average, mainland Chinese travelers are planning for 7.4 business and leisure trips in the next two years, compared with the 5.6 and 4.5 trips anticipated by Hong Kong and Taiwan travelers.

Asia Pacific continues to be the number one destination region for Greater China leisure travelers over the next two years, followed by Western Europe and North America. Hong Kong remains a top leisure travel destination. Australia and Japan are the top picks in Asia Pacific over the next two years. One in three intends to take four to six domestic holidays in the next two years.

Natural scenery, sunshine and beaches and new places are key attractions for mainland Chinese. They are willing to pay extra for good food, cultural experiences and exotic destinations. They also have a preference for environment friendly tourism and cultural immersion programs.

Almost 80 percent of mainland Chinese travelers go online for travel information. Popular online sources are online travel guides (general and search engine), travel forums and travel agent booking websites.

Americans Willing to Spend Most; Dutch Are Number One Travelers

According to a global GfK Association study, Americans are willing to spend more money on travel than any other country while the Dutch travel for the longest periods of time.

Overall 18% Americans are willing to spend more than 2,472 dollars per person compared to 6% Europeans. In Europe, British (16%), Dutch (13%) and Swedes (11%) top the list for those who would spend more than 2,472 dollars per person per year on travel.

Swedes (87%), Dutch (85%) and Belgians (77%) are most likely to travel and Bulgarians will travel the least (70%). 17% of Dutch take a vacation for five weeks or longer, which – taking into account the expenditure – makes the Dutch number one travelers.

In almost all countries, young people are most likely to travel in their leisure time. Germany is the only country in which there is no discrepancy in age as the older German citizens are in a better financial situation compared to other countries.

People from the Southern European countries are particularly keen on staying in their home country: almost 70% of Portuguese, Spanish, and Italian citizens and 60% of the French enjoy spending their time off at home. Majority from Brazil (90%) and from Turkey (95%) also do not travel abroad. 80% of Americans spend their vacation on home turf.

Relaxation is particularly high on the list of priorities among Europeans (58%), but not for Americans. The American’s preferred vacation pursuit visiting friends and relatives (25%) is the European’s fourth most popular activity (17%). However, Europeans enjoy going to bars, clubs and discos (16%) about the same amount as Americans (15%).

Discovery of new countries and cultures and visiting friends and family both come second in the rankings of all respondents’ favourite vacation activities (22%). Almost half of Belgian and Dutch respondents prefer sightseeing. However, only 8% of all respondents prefer to explore foreign cuisine.

Managing Trips: Travelers’ Demand More Personal Control

According to NCR survey, travelers demand more personal control managing their trip from departure to arrival. Results show travelers seek greater convenience and flexibility, including ability to manage itinerary changes and travel preferences via self-service channels.

80 percent of respondents would find it helpful if airlines gave them the control to search and select alternative flights in case of delays and cancellations.

73 percent of survey respondents will choose a travel provider that offered them greater control over managing their entire travel experience through self-service, by facilitating searching for, securing, or making changes to flight, car rental and hotel reservations.

Results indicate that airports, too, can impact passenger loyalty by helping travelers make the most of their time while waiting to board a flight by employing self-service technology to download movies and music (24 percent), to receive retail and concession offers based on preference and location (33 percent), and to pass through security using a mobile boarding pass (48 percent).

India Inbound: 65% decline from top 15

Out of the total decline of 1.74 lakh in the FTAs in 2009 as compared to 2008, top 15 countries accounts for 65% of the decline. The largest decline of 48% was observed for Bangladesh followed by UK 16%, and Japan 12%.

Nepal is the new entry to top 15 in place of Republic of Korea. While Russia and Malaysia have gained in the rank, Japan, China, Singapore and Italy have lost rank. Sri Lanka, Malaysia, Russia and Australia have even seen an increase in the FTAs of 12.7%, 10.7%, 3.8%, and 1.5% respectively in 2009 over 2008.

Rank in 2009	Country	FTAs in India in 2009	% Share in 2009
1	United States	803021	15.7
2	United Kingdom	748765	14.7
3	Bangladesh	458063	9.0
4	Sri Lanka	240836	4.7
5	Canada	221448	4.3
6	France	195307	3.8
7	Germany	193557	3.8
8	Australia	148846	2.9
9	Malaysia	134340	2.6
10	Japan	124219	2.4
11	Russian Fed.	97705	1.9
12	China	96997	1.9
13	Singapore	94754	1.9
14	Nepal	87487	1.7
15	Italy	77995	1.5
Total of top 15 Countries		3723340	72.9
Others		1385239	27.1
Grand Total		5108579	100.0

Hospitality Industry: Seven Key Drivers For Success

According to Deloitte report entitled, Hospitality 2015, the seven key drivers in determining success through 2015 and beyond are:

Mid-Market, Economy - Branded Products

In the emerging markets, the rise of the middle classes will create new demand for both leisure and business hospitality. The greatest future potential in these markets will lie in developing mid-market and economy-branded products aimed at the domestic traveler. By 2015, China and India will have absolute year-on-year tourism growth greater than the United Kingdom, France or Japan.

Baby Boomers And Middle Class

By 2015, U.S. boomers are forecasted to account for 60 percent of the nation’s wealth and 40 percent of spending. U.S. baby boomers will drive growth in hospitality in the leisure sector. The key to attracting boomers is appealing to their ‘forever young’ attitude and desire for experiential travel. The middle classes of China and India will also create changes as their travel patterns evolve from domestic to regional to international. India alone is forecasted to have 50 million outbound tourists by 2020

Ability To Harness Social Media

The growth of social media, the new form of communication and feedback is good news for consumers, and offers both threats and opportunities for operators. The most successful brands will be those that embrace and learn to harness social media rather than underestimate or fight against its influence.

Strategy To Retain Critical Employees

An average hotelier spends 33 percent of revenues on labor costs, but employee turnover in the industry is as high as 31 percent. Operators need robust strategic plans to retain their critical employees and manage turnover.

Investing In Technology

Hospitality companies must invest in technology. The battle to drive bookings through proprietary websites will continue, but all major operators will also develop applications and websites for mobile devices to meet consumer demands.

Implementing Sustainable Practices

Rising populations and increasingly scarce resources will provide a challenging business environment in which sustainability will need to be embedded within all facets of the hospitality industry.

Managing Crisis

The key to the hospitality industry’s survival of unpredictable shocks and minimizing their impact is to establish appropriate responses, protocols and risk management programs. Operators also need to capitalize on new opportunities that may present themselves in challenging times.