Direction and Health of the Hospitality Industry:

Direction and Health of the Hospitality Industry: What are the Trends for

Graduates

David L Jones, Ph.D.Associate Professor

What Ever It Was That Got You To

Where You Are Today, Is Not Sufficient to

Keep You There

How I’ll Address TopicYesterday, today & tomorrow’s global

hospitality industry – Asian perspective

Emerging opportunities

Millennial education

Center of Excellence in Hospitality Industry

Early Years – Europe

Shift to North America in 20th Century

Today – Asia“Asian Wave”

Legacy for Today & Tomorrow – Global Leadership

Europe Art of business Hotelier

North America – USA Business of the business Global development leader Innovation

Asia Service culture of the business Customer relationship leader People!!

Direction of Global LeadershipAnywhere & anyway

Learning from Asia

Understanding Asia

Direction and Health

Service LeadershipCharacteristicsWhat Makes Asia the

Leader?

Qualities of Service Leaders

Service VisionFocus on detailsBond with customer

Belief in OthersCapacity of others to achieve

Love of the BusinessPass it on to othersPassion for service

IntegrityDoing the right thing

Berry, 1995

Understanding the Lifetime Value of the Customer

Lifetime value view, not transaction view – Chinese Guanxi

Revenue and profits by average customer over a lifetime by segment

Increase average purchase, frequency of visit, life

Key to Asian hotel leadership

Asian Principles“3 Plus 1 Factor”

Respect for elders

“Face”Giving it

Work before selfImportance of the status of working for a

hotel

Plus factor: Educational Sponges

Healthy and Prosperous

Greater ChinaParticularly Mainland

China

USA Corporate Presences in Greater China

Other Industries GM

China exceeds USA in 2010 Dell Computer

China is 2nd

CoachChina is fastest growing market

Hospitality Industry Yum Brands (KFC, Pizza Hut)

2011 China overtaken USA as top profit maker Las Vegas Sands and Wynn

Revenues are 3 times more in Macao than LV Starwood & Marriott

Mainland China largest market outside USA

People!!!!

What about the “peopleware”?

What are the population comparisons?

0.06

0.3

1.3

0 0.2 0.4 0.6 0.8 1 1.2 1.4

China

USA

UK

POPULATION

War for Talent

By 2025 Mainland China will have 23 cities with 5 million or more population No shortage of people

Getting best and brightest, then keeping them 60% of college grads don’t find jobs

Yet, they well change jobs for RMB 500 extra per mos. (less than USD 86)

Expat or Local? Salaries in Mainland MICE industry almost equal to those

in Singapore

Biggest issue – Lack of Middle Management

What About Mainland China Service Quality and Industry Knowledge?

Change in past 20 years

Spoken English – Very Good!

International brands versus domestic brands

Commitment to training

Ability to develop and retain Middle Managers

Service is part of the culture

Outbound Chinese –USA’s Future Tourist

100 million outbound Chinese tourists by

2015!!

Mainland China TravelSpending by outbound Chinese tourists

ranked fourth-largest worldwide in 2010.Up 20.4% year on year

Top outbound market by 2020 – UNWTO

Approved Destination Status (ADS)

Visa approval for leisure travel Approved travel agents and wholesalers

Selected countriesUSA is ADS countries

Biggest issue is USA visa, not ChinaObama speech at Walt Disney World – Jan. 19Increase China and Brazil by 40% in 2012

Mainland Chinese Outbound Tourist

Profile

eLong – Hotel Guest Decision Making

1. Prices

2. Location

3. Description of facilities

4. Review of other users

Chinese Luxury Tourist (CLT) – Regions to be visited

Market Probe Travel & Tourism Group, 2011

Chinese Luxury Traveler – Best Hotel/Airline Brands


Chinese Luxury Traveler – Class of Service


Reaching the Mainland Chinese

Tourist

Internet & Social MediaNumber of Chinese Internet users has

grown by 1500% since 2000

Currently456 million Internet users

32% penetration compared to 80% in USA

800 million mobile users

Most engaged country online – 92%

More bloggers than Europe and USA combined

Inbound Tourism –Mainland China as the Destination of Choice

International ArrivalsInternational arrivals staying at least one

night reached 55.66 million in 2010, up 9.4 percent on 2009

China's appearance in the top three was its first, according to the UNWTO

Where did they come from?

Where did they go?

China MeetingsICCA – China jumped from #19 to #9 on the

list of countries drawing the most association business

PCOsMCIKellen

Where Do You Hold It?Beijing

Shanghai and Yangtze River DeltaHangzhou, Suzhou, Nanjing, Ningbo

Pearl River DeltaGuangzhou, Shenzhen

Second Tier CitiesChengdu, Xi’an, Wuhan, Xiamen, Dalin,

Qingdao, Kunming, Chongqing

SARs – Hong Kong & Macau

Secondary City in Mainland China

Chongqing Example50 – 4 & 5 Star hotels by 2015

International brands – Marriott and IHG

Advantages:Convenient transportationCheaper than other big citiesAbundant tourism productsDifferent itineraries

Emerging Opportunities

Tomorrow’s Opportunities

Sustainability

Social Networking

Mobile Access

Collaborative Consumption

Need for Sustainability & CSR

Sustainability at All Levels

Hotel development and operations L.E.E.D. ISO 14001 Green globe

Conventions and events BS 8901/ISO 20121 APEX green standards GRI

Tourism Eco-tourism Sustainable development- PATA

Social NetworkingSocial Networking Sites

Review Networking Sites

Mainland China Misconceptions

Mobile Access

Collaborative Consumption in Hospitality

46 confidential

11%10%

18%

27%22%

32%

43%45%

57%

49%53%

67%(Licensed drivers only)

% Likely

Home or vacation sharing programs

Car sharing programs

Media sharing programs

55 years or more45-54 years18-34 years 35-44 years

Millennials Embrace Sharing Economy

How likely are you to participate in each of the following sharing programs?

Asked only in 2011

Millennial Education

Different Expectations

How the recession shaped Millennial and hiring managers attitudes about Millennias’ future careers – Levit & Licuna (2011) Commiissioned by Career Advisory Board of DeVry University

Good News for Postgraduate Education

How the recession shaped Millennial and hiring managers attitudes about Millennias’ future careers – Levit & Licuna (2011) Commiissioned by Career Advisory Board of DeVry University

Millennial Education Global expertise

Beyond the boarders of the USACross-cultural issuesMulti-lingual capabilities

Business acumenMore than just operations

Innovation & ChangeEmbracing the emerging

How do we get there?

Finding Our “Blue Ocean”

Academic PerspectiveFour legged stool

FacultyUniversity resourcesStudentsIndustry

Research – application

Degrees – co-creation with industry

Postgraduate education

To Be Fond Of Learning Is Near To Wisdom

Confucius

The Possession of Facts is Knowledge,

the Use of Them is Wisdom

Thomas Jefferson

Thank You