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The Future of Hospitality | The Emerging View Insights from Mul0ple Expert Discussions Around the World

Future of Hospitality The Emerging View 09 10 15

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Page 1: Future of Hospitality   The Emerging View 09 10 15

TheFutureofHospitality|TheEmergingViewInsightsfromMul0pleExpertDiscussionsAroundtheWorld

Page 2: Future of Hospitality   The Emerging View 09 10 15

ContextComprising9.5%ofglobalGDPin2014,hospitalityisasignificantindustrywiththeabilitytoshapemarkets.Itreceivesmuchrecogni0on,focusandconcernfromawiderangeofindividuals,organisa0ons,des0na0onsandgovernments.

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FutureAgendaTheFutureAgendaistheworld’slargestopenforesightprogram

thataccessesmul0pleviewsofthenextdecadesoallcanbebePerinformedands0mulateinnova0on.

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LookingForwardsOrganisa0onsincreasinglywanttoiden0fyandunderstand

boththean0cipatedandunexpectedchangessothattheycanbebePerpreparedforthefuture.

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FutureAgenda1.0TopInsightsfor2020Fromthe2010program,52keyinsightsonthenextdecadeweresharedwidelyandhavebeenextensivelyusedbyorganisa0onsaroundtheworld,

includingmanyinthehospitalitysector.

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FutureAgendainNumbersThefirstFutureAgendaprogrammeengagedawiderangeofviewsin

25countries.FutureAgenda2.0hasdoubledtheface-to-faceinterac0onandsignificantlyraisedonlinesharing,debateanddiscussion.

FutureAgenda1.01HOST16TOPICS25COUNTRIES50WORKSHOPS1500ORGANISATIONS

FutureAgenda2.050HOSTS25TOPICS40COUNTRIES100WORKSHOPS2500ORGANISATIONS

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FutureAgenda2.0TopicsThesecondversionoftheFutureAgendaprogramistakingplaceduring2015andhasbeenaddressing20topicsvia100eventsin50ci0esin40countriesinpartnershipwitharound50corehosts.

Ageing

CiQes

Company

ConnecQvity

Data

EducaQon

Energy

Food

Government

Health

Learning

Loyalty

Payments

Privacy

Resources

Transport

Travel

Water

Wealth

Work

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ContextAnini0alperspec0veontheFutureofTravelkickedofftheFutureAgenda2.0

globaldiscussionsregardinghospitalitytakingplacethrough2015.Thissummarybuildsontheini0alviewandhasbeenupdatedthroughout.

Ini0alPerspec0vesQ42014

GlobalDiscussionsQ1/22015

InsightSynthesisQ32015

SharingOutputQ42015

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IHGPartnershipFutureAgendawouldliketothankIHGwhohelpedtomakethese

globalconversa0onsonHospitalityandtheFutureofTravelpossible,suppor0ngeventsinmanyloca0onsaroundtheworld.

IHG®(InterCon0nentalHotelsGroup),oneoftheworld’sleadinghotelcompanies,hasabroadporaolioofninehotelbrands,includingInterCon0nental®Hotels&Resorts,HotelIndigo®,CrownePlaza®Hotels&Resorts,HolidayInn®Hotels&Resorts,HolidayInnExpress®,StaybridgeSuites®,CandlewoodSuites®,EVEN™HotelsandHUALUXE®HotelsandResorts.IHGfranchises,leases,managesorownsover4,700hotelsand697,000guestroomsinnearly100countries,withalmost1,200hotelsinitsdevelopmentpipeline.IHGisfocusedoninnova0onandusesconsumerinsightstostrengthenitsexis0ngbrands,andtoinformthelaunchofnewbrands(HUALUXE®HotelsandResorts&EVEN™Hotels)tocapturemoreofthegrowingdemandthanitsexis0ngbrandscanachieve.

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TheFutureofHospitality|TheEmergingViewThisdocumentprovidesanoverviewofwhatweheardfrommul0pleexpertvoicesaroundtheworld–onthefutureofhospitality,howthesectoris

changing,whatisdrivingthischangeandhowitmayevolve.

IncreasinglyBorderlessWorld

TheHospitalityEmployer

Brave,SustainableNewWorld

NewBusinessModels

SharingControl

ImportanceofCommunity

BeingHuman

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IncreasinglyBorderlessWorld

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IncreasinglyBorderlessWorld

Formany,theopportunityfortravelandtourismhasbecomemoreaccessibleandseamless,openingupmarkets,bordersandexperiences.Forotherswhoareabletoaffordtravel,oratleastmoreextensivetravel,forthefirst0meintheirlives,theopportunityitselfischangeenough.Travelacrossborderswillalwaysintroducecultures,behavioursandvalues.Thesewillat0mescreatemarket-formingenvironmentsandpowerfulexchangesofculturallearning.Atother0mes,andinsomeloca0ons,aclashofcultureswillbeevident.Authen0candgenuineexperienceswillbesoughtbysome,butatwhatexpensetolocalcommuni0es?Easterngrowthwillinfluencemuchinthehospitalityspace–food&beverageanddécorforexample–andsmarthospitalityorganisa0onswillexpertlydemonstrateahealthyblendofeastwithwest.

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IncreasinglyBorderlessWorld

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SeamlessCrossBorderTravelSmartvisas,indeed,smart0cke0ngingeneralformasstransit

providesatangiblewayforwardinaddressingsomeofthebarrierstotheseamlessgrowthofcrossbordervisitornumbers.

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DoublingofInternaQonalTourismIn2012thenumberoftouristscrossinginterna0onalbordersreachedover1bn.Muchofthedemandisfuelledbyrisinghouseholdincomesinemergingeconomies…Interna0onaltouristarrivalsareexpectedtoreach1.8bnby2030

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CulturalRelevantConundrumInanincreasinglyglobalanddiverseworldhowwillbrandsembracena0onalconsciousnessandtouchconsumerswhosena0onaliden0tyisdisconnected

towheretheylive?Howwillbrandsreconnectwiththediaspora?

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AnQ-TourismIncreasingnumbersoftouristsdescendingontradi0onaldes0na0onswill

giverisetolocalisedcommunitybacklashandinevitableregula0on-perhapsdrivingtravellerstonew,morewelcoming,des0na0ons.

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ChineseConvenienceTheglobaltravelinfrastructurehasbeenbuiltfor,andby,westerntravellers.ThiswillbereimaginedfortheChinese-goingbeyondcongeeforbreakfastto

amoresubtleunderstandingofwhatis‘convenient’forChinesetourists.

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ChineseTourists150millionoutboundChinesetouristsandatotalof500mmoremobileAsianswillneedplacestostayinothercountriesthatalignbePerwith

theirspecificculturalnormsandexpecta0ons.

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TribalTourismWithglobaltravelincreasinglydemocra0sed,cultureclashesarelikely,leadingtothephenomenaofinsularityabroad,culture-specifictouristenclavesand

prejudice-drivenaPemptstoaPractsome,whilediscouragingothers.

Page 21: Future of Hospitality   The Emerging View 09 10 15

EasternCentricityWithChina’s500m-strongmiddle-classburgeoningandtravelbarriersdiminishing,WesternandEasternculturesmeetand

feedoffoneanother,shiringglobalnorms.

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ChineseTouristDemographicsMoreChineseoutboundtouristsareexpected,butliPleaPen0onhasbeen

paidtotheirdemographics.Growthsofarhasbeenintheyoungandwealthy,butthenextdecadewillseeariseoflesswealthyandolderChinesetourists.

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GlobalCommutersCommunica0onstechnologiesincreasinglyallowhigh-endworkerstobemoreflexibleintermsofwheretheychosetolive.Global,andperhapslong-haul,commu0ngwillbecomenormal,drivingnewcommutertravelservices.

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TheHospitalityEmployer

Page 25: Future of Hospitality   The Emerging View 09 10 15

TheHospitalityEmployer

Thehospitalityindustryisahugeanddiverseemployerandthisworkforceismoreconnectedtodaythaneverbefore.Theworkforceisalsomoreawareofrights,responsibili0esandopportuni0es.Coupledtothisisagrowingbeliefthatallorganisa0ons,hospitalityorotherwise,haveagreaterroletoplaywithregardstosociety’sgreatergood.Wecanexpectthesectortoexperienceitsown‘upgrade’ofstaffprac0cesinareassuchastraining,useofdataanddealingwithcustomers–allgearedtowardanimprovedguestexperienceandamoresa0sfiedworkforce.Technologywillplayaroleasitbecomesmoreengrainedintheprocessesoftravelandtourism,fortravellerandprovideralike.Par0culargroupsofemphasisincludewomenastheyrealisemoreopportuni0es,migrantswhowillcon0nuetomaketheirmarkoneconomiesandageingpopula0ons,astheygrowinnumber(inmanycountries)anddemonstrateleadershipinthemarke0ngofwisdom.

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TheHospitalityEmployer

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BeVerEmployersGiventhatthetravelandtourismindustryisahugeemployer,thedevelopmentofand0ghtercontrolsonemploymentrights

arelikelytobeasignificantfactorinthefuture.

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SaQsfyingaBeVerEducatedWorkforceAstravelindustryemployeesaremoreeducated,increasedpressureisplacedonmanagementtobePerservetheworkforceandtheirneeds.Agreaterfocus

onhumancapitaldevelopsleadershipandembracesdiversity.

Page 29: Future of Hospitality   The Emerging View 09 10 15

LearningtoUpgradeAshiroccursinhoweduca0onisdeliveredacrosstheserviceindustryglobally.Blendedlearning,bePerbrandapplica0onandcapacitybuildinginHR,resultsinamoredata-led,mul0-skilledworkforceandsoabePerguestexperience.

Page 30: Future of Hospitality   The Emerging View 09 10 15

21stCenturyOrganisaQonsTheemergingorganisa0onfeelsverydifferentfromc20thcompanies-collabora0ve,crowd-funded,flaPer,human-focused,hyper-specialised,informal,localised,out-sourced,project-based,purpose-ledandvirtual.

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TechnologyTakeoverThereisawidespreadfearthattheriseofrobots-ormoreexactly,a

combina0onofcompu0ngpower,algorithmsandrobo0cs-willdestroythelabourmarket,even,possibly,theveryideaoflabourvalue.

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FeminineSpiritLeadingorganisa0ons,inpar0cularthoseintheWest,promoteandinvestinwomen,bePerrepresen0ngthepopula0onsthattheyserve.

Manybenefitfromdoingso.

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PosiQveImmigraQonEconomistsagreethatimmigra0onisgoodforeconomies.Migrantstendtobe

younger,moreenterprising,andeconomicallyac0ve,andtheireffectonwages,economicgrowthandtaxcontribu0onsisalmostcompletelyposi0ve.

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GoodJobsCompaniesout-performthroughacombina0onofbePerwages,investmentintraining,andappropriatetechnologicalinvestmenttosupportstaff…Highvalueworkbenefitsindividuals,businesses,aswellassocietyasawhole.

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MakingWorkWork(forPeopleandWork)Wewillseeashirinpriorityfrom‘moneymaPers’to‘meaningmaPers’.

Thiswillleadtotheemergenceofcommunityandwellbeingmanagersinorganisa0onsandnewwaystomeasuresuccess.

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WisdomWorkersFocusisonenablingreinven0onstemmingfromopportuni0escreatedbynon-linearcareerpathsandinnova0onnetworks,givingrisetothe‘wisdomworker’-whereexperienceisthecri0caladdi0ontoskillsandintelligence.

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SupporQngtheAgeingWorkforceAsmajoreconomiessufferfromincreasingdependencyra0os,thechallengeofsuppor0nganincreasinglyolderworkforcedemandsrethinkingoflife-long

learningandbroaderacceptanceofthecostofpart-0meflexiblejobs.

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CustomersBeforeShareholdersDrivenbychangingviewsoftheirsocialvalue,corpora0onswill

increasinglyseektofocusmoreonrealcustomerneedsandsodecreaseemphasisonshort-termpressurefromshareholders.

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Brave,SustainableNewWorld

Page 40: Future of Hospitality   The Emerging View 09 10 15

Brave,SustainableNewWorld

Responsiblebehaviourandac0onspermeatethecrea0onofamoresustainablehospitalitysector–onbehalfofprovidersandtravellersalike.Fromthetravellerandguestpointofview,agreaterawarenessisfirmlyinplay.Thisawarenesscouldwellaffectwhenandwheretheytravel,whatorganisa0onsandbrandstheyengagewithandwhattheydoorexpecttobedonewhentheyarrive.Fortheindustry,responsiblebehaviourbeginswithaspectsofefficiencywasteavoidanceandwastereuse.Butitcertainlydoesnotendhere.Manyguestswillincreasinglyexpectgreatertransparencyinsupplychains,thedemonstra0onofthesuppliermakingaposi0velocalimpact–perhapswithguestinvolvement–andafluencyintheincorpora0onofgreendesignintothefabricandprocessesoftheexperience.

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Brave,SustainableNewWorld

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TwoMainChallengesTherearetwomainchallengesaheadforthedevelopmentofarobusttravelandtourismindustry:howtogrowfurthertodeliverjobs,exports,economicgrowthanddevelopment,andindoingso,howtomanagethissustainably.

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PosiQveLocalImpactTravellerswillbasebuyingdecisionsnotonlyaroundcomfortablebeds,leisurefacili0esorculturalaPrac0ons,theywillalsochoosetostayinplaceswherestaffarebeingtreatedwellandthelocaleconomyisnotbeingexploited.

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More,NotLessWasteWhilemanyaspiretoazerowastesystem,weseegrowingvolumesofwasteespeciallyinci0es,par0cularlyfoodwaste–30%ofwhichisnowthrownawayeverydayinEurope.

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DigitalTransparencyInnova0onwilldriveimprovementsinresourceproduc0vity:Digital

connec0vitywillprovidegreatertransparencyonhowweuseourresourcesandtheenvironmental,socialandfinancialimpactoftheiruse.

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TheBio-sphereThebio-spherewillcometobeseenasjustanotherresource,albeitonewhichdemandsa‘giveandtake’rela0onshiprather

thansimpleextrac0onandexploita0on.

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GrowingConsumerAwarenessThedreamofaffordabletravelisbeingobscuredbyclimatechangeanda

growingawarenessamongconsumersthatsustainabilityandresponsibletravelaresettoimpacthowweunderstand,embraceandmanageourholidayplans.

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GreenDesignReshapesLifestylesFromeco-friendlybutsmall-scaleconsumergoods,togreenconsciousnessatthescaleofcityandbuildingplanning,greendesignandgreen-designersarelikelytostartreshapingourlifestylesandchangingourenergyuse.

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ResponsibleandInclusiveLookoutforgrowthintravelfocusedonlearningabout,experiencingorposi0velyaffec0ngecologicalconserva0on,economicdevelopmentandlocalcommunityimprovements,culturalrespectorhumanrights.

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ImportanceofCommunity

Page 51: Future of Hospitality   The Emerging View 09 10 15

ImportanceofCommunity

Inthetradi0onalsense,communityspeaksofaPachmenttoageographicalloca0onandthepeoplewithinthatlocale.Fortravellers,thisdefini0onholdsmuchmeaningassomewilldotheirbesttoleavethebeatenpathandto‘discover’amoregenuineandauthen0cexperience.Butcommunityhasamuchbroadermeaningconcerningthosewhoshareacommonthread,interest,ac0vity,family0eorfriendship.Thisdescrip0onisespeciallyimportantintoday’sphenomenallyconnectedworld.Today,communitycanbemorefluidandofthemoment,morphinganddeveloping(ordisbanding)asthemoodandcircumstancesdictate.Whatcommunityisnotisamarketsegment,determinedbyageandwhichisstableandpredictable.Whoisinandwhoisoutofthecommunityisdeterminedbythecommunityitself–notbyorganisa0onsandloyaltyplans.Andwhatiskeyforhospitalityprovidersisknowingwhentobeapart….andwhentostandwellclear.

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ImportanceofCommunity

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Community-basedTourismCommunity-basedtourismisontherisewithholidaymakerseschewingthe

crowdedbeachesandall-inclusivepackagestoenjoyamoreauthen0cexperiencelivinginthecultureratherthanobservingitfromtheoutside.

Page 54: Future of Hospitality   The Emerging View 09 10 15

Pop-upEconomiesCrowd-sourcingwillenable‘pop-upeconomies’wherecommuni0espool

resourcesandsoreducetheneedforgovernmentinvolvement.Thedownsideisthatcommuni0escreatetheirowniden0tymaking“themandus”obvious.

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MoreNicheGroupsMorealterna0vegroups,nichecultsandideologiesbringtogetherlike-mindedpeoplefromacrosstradi0onalboundaries.Brandsadapttothisrisebycrea0ng

morenicheproductcategoriescateringforsmaller,dispersed'tribes’.

Page 56: Future of Hospitality   The Emerging View 09 10 15

‘Bleisure’and‘SabbaQcaQon’Travelcon0nuestoevolveinlinewithchangingworkpaPernsandcareeraspira0ons;beingabletowork-away,takelongerbreaksoff-grid,andevenjob-shareandjob-switch,becomesignificantdriversoffuturetraveloffers.

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MaturingMillennialsDigitalna0vesseekauthen0c,uniqueexperiencestofitwithflexiblecareers,andbalanceinstantgra0fica0onwithcivic-mindedness-Astheymatureand

becomethedominanttravelaudience,whichmo0va0onswillwinout?

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MulQ-GeneraQonalTravelManyelecttotraveltogetherasmul0-genera0ongroupsofbothfamiliesandmixedfriends.Theylookforvaca0onsthatkeepeveryonehappyand,assuch,

stressmanysystemsbasedondeliveringsegmentedexperiences.

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TravelMindsets,NotSegmentsThroughbePerstafftrainingandimproveduseofconnecteddata,travel

organisa0onsareabletotargetbasedonsitua0ons,notsegments,allowingthemindsetoftheguest–notanagebracket–todrivetheirexperience.

Page 60: Future of Hospitality   The Emerging View 09 10 15

MassMedicalTourismInkeyloca0onswherehotelfootprintsalignwiththemedicalfacili0es,

therewillbegrowingdemandforaccommoda0onforpa0ents,theirfamiliesandhealthcareprofessionals.

Page 61: Future of Hospitality   The Emerging View 09 10 15

LiveExperiencesLivesportandfes0valsareputonapedestal-aPrac0ngcross-overswithotherindustriesandgreatertechnicalinnova0ontoenhance

faninterac0vityandaudienceengagement.

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SharingControl

Page 63: Future of Hospitality   The Emerging View 09 10 15

SharingControl

Personalisa0on,peerpower,aggrega0on,choice,theseareallwordsofimmensemeaningtotravellersandguests.Theytrumpetthearrivalofcontrolthatlieswiththeindividual.Fororganisa0ons,thesesamewordsmeananewwayofworkingwheresome0mestheylead,some0mestheyfollow.Italsomeansthatcontrolanddecision-makingisshared.Withsomuchindividualityinplay,itisfairtoaskifloyaltys0llexists.Itdoes,butloyaltycon0nuestospreadfarawayfromwhatabrandsaysitisordoes,tothatpluswhatotherssayaboutthebrand.Trustliesinnetworksoffriends,familyandpeersandloyaltyispresentaslongasyouprovidegoodsandservicesthattravellersandguestswanttobuy.Heretoday,gonetomorrowringsvery,verytrue.Technologyplaysapartasaugmentedtravelenablestry-before-you-buyexperiences,devicesruletheroostandwifinomadstravelasandwhenitsuitsthem,aslongastheycanplugineveryfewdays.

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SharingControl

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ConsumerPowerTheconsumerislikelytogaintheupperhandintermsof

thepowerdynamicandprinciplessuchas‘greatcustomerservice’willnolongerbeanego0able.

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PersonalisedChoiceConsumersenjoyaworldwherechoiceisacommoditybutwheretrustedopinionsplayacri0calroleinguidingandassis0ngdecisionsor,forsome

individuals,reducingchoicesontheirbehalf.

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TravelersinControlConnec0vityeverywherewillredefineresearch,decision-making,marke0ngandexperiences.Thisleadstoaricherenvironmentfortravellersandtheopportunityforthemto‘makeittheirown’includingthespontaneous.

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PeerPowerAggrega0onoccursinhotel/peerreviewsitesalongsideintegra0onwith

consumers’personaltrustednetworks.Thisgivesguestsadvicetheycantrustandgreaterconsistencyofra0ngsglobally.

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DeviceisKing,ConsumerisQueenThedeviceisthefocusofthefuture–itknowswhereyouare,whatyouredeemandwillconsolidateallyourinforma0on.Travelbrandshaveto

understandthewaysdeviceswillmediatetheirrela0onshipswithcustomers.

Page 70: Future of Hospitality   The Emerging View 09 10 15

TheCompositeConsumerFlexibledigitaliden00esallowconsumerstoconnectwitheachotherevenastheyconnectwithbrands.Loyalrela0onshipswillbemadenotjustwithindividualcustomersbutalsowithfamilies,couples,andgroupsoffriends.

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DilutedValueofLoyaltyConsumerswillincreasinglyfacetheproblemofhavingawalletfatwithloyaltycards.Inthisscenario,thevalueofloyaltymaybecomediluted,theconsumermaybecomeoverloaded,eventuallydisengagingfromloyaltyaltogether.

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AugmentedTravelVirtualtry-before-you-buytravelexperiences,andaugmentedtravelexperiencesemergeaskeyoffersfrominnova0vetravelproviders

-enablingsophis0catedpersonalisa0onofexperiences.

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ValuingTimeTechnology-enabledconnec0onsprovidemoreheadspaceandheart-spacethatdisplacethefrustra0onsand‘lost0me’thattravellersneedlesslysuffer.

Thishelpsthemtogetmorevaluefromtheir0mespenttravelling.

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Wi-fiGlobalNomadsForsomeintheknowledgeeconomythepoten0alforcon0nuoustravel,

blendedwithpart-0mework,isfocusedon‘wi-fihopping’forregularaccesstohigh-speedconnec0vity-nomaPerwhereintheworldtheyare.

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ExtremeCustomerCentricityCustomerengagementwillbecomeacorefunc0onthatcutsacrosstradi0onalsilos,andhelpstofocusen0rebusinessesonthecontextualneedsandvalueopportuni0esfordifferentaudiencesatdifferentstagesofacustomerjourney.

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NewBusinessModels

Page 77: Future of Hospitality   The Emerging View 09 10 15

NewBusinessModels

TheSharingEconomyisasignificantindustrymodelthatisrewri0ngtherules,par0cularlyinhospitality.Youdon’tneedtolookanyfurtherthanAirBnBandUbertoappreciatethepowerthatasharingdynamicpossesses.Thematchingofunmetneedswithunderu0lisedassetsisatthecoreofsharing.Whatmustalsobeappreciatedisthattravellersandguestsrespondwelltoorganisa0onsthatconnectthemtootherorganisa0ons.Theabilitytoformandmakebestuseofpartnershipswillbehighlyvalued.Newwaysofworkingwillalsobeinspiredbyindividualsandorganisa0onsmakinggooduseofbriefmomentsofaPen0onandbytheabilitytoactonupstreamknowledge.Short,sharpandaccuratewaysofassis0ngtravellersandguestswillbeappreciated.Nevertheless,seamlessend-to-endexperiencesares0llexpected.Thisnotonlycallsforasignificantintegra0oneffortonbehalfofthesupplier,butitraisestheques0onofwhoisliablewhenthingsdon’tgoaccordingtoplan.

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NewBusinessModels

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ConsolidaQonofTravelVerQcalsThepulloflargeindustryplayersaimingtoimproveefficienciesandthepushofmarketdisrup0onssuchasAirBnBandUberleadtoincreasedconsolida0on

andintegra0onwithintourismboards,hotelbrands,travelagenciesetc.

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BrandAlliancesWewillseeasetofconsumerexpecta0onsthatbrandswillnolongerbeabletodeliveralone.Strategicbrandalliances,designedtodeliversophis0cated

choiceandcontent,tocomplexconsumerneeds,arelikelytoemerge.

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TheSharingEconomywillbeRegulaQon-lightConsumerswillbecomemoreloyaltobusinessmodelsthatconnectthemtootherpeople.Personalrela0onshipswilldominate-butwithinthesafetyofrecognisedglobalnetworksthatactasinsurance/reassuranceforusers.

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10SecondsofAVenQonIncreasedconsumerchoicesandchannelsleavebrandsfigh0ngfor10secondsofaPen0on.Anewparadigmwillemerge,basedondynamic,fast-moving,callstoac0onratherthanlong-termrela0onshipswithdelayedrewards.

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DeeperLoyaltyWhiletravellersareusedtopoints,manyseetheneedfordeeperrela0onshipswiththehotelstheyprefertovisit,ratherthanaglobalporaoliothatsharethesamebrand.Theyseekcloserrela0onshipsaroundtheirrealneeds.

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Up-StreamInsightCompaniesandnetworkshave,andacton,veryearlyinsightonfuture‘intenttotravel’andcustomiseservicestosuit.Exis0nghotelbrandrela0onshipsare

by-passedbythosemore‘intheknow’aboutguestinterests.

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ChangingTravelMoQvaQonsDemographicshirsandtechnologydevelopmentsinfluencewhenandwhy

weneedtotravel.Mo0va0onsforworkandleisuremobilitybluranddynamicpricingandthesharingeconomydelivergreaterefficiencyinthesystem.

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TravellingLiabiliQesIntegrated,door-to-doortravelbookingandexperiencesmeanthatsingletravelplaaormserviceprovidersneednewmodelsofriskmanagementastheybecomeliableforawiderangeofac0vi0es.

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End-to-EndExperiencesTosimplifythecustomerjourneyandexploitinefficienciesacrossthetravel

eco-system,newtechnology-ledservicesdecoupleanddisintermediatecurrentproviders:Newseamless,integratedappsre-bundlethea-la-cartechoices.

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BeingHuman

Page 89: Future of Hospitality   The Emerging View 09 10 15

BeingHuman

Inahightechworld,doweassumethathumancontacthasdisappeared?Forsome,thisisn’taproblem,butformany,thehumantouchremainskey.Problem-solvingandpersonalisa0onremainasareaswhereitisacri0calcomponent.Nevertheless,showingahumansidecanbemoredifficultforsomeorganisa0onsastheymayfearrevealingtheirlessaPrac0veside.Yetwithincreasingtransparencyinplay,revealtheymust.Beinghumancanalsobeevidentinthekindsofservicessoughtbytravellersandguests,orprovidedbyhospitalityplayers.Well-beingcon0nuestobeanimportantfocusareaasdoesthemaximisa0onofmoments.Spacetooisanopportunityforhumantohumanconnec0onandfortheprovisionofa‘human’feelthroughprovisionofcomfort,securityandpersonalisedse{ngs.

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BeingHuman

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DreamingofHumanityThenormwillbeautoma0on:machineswillrespondtohumanswho

respondtomachines.Humaninterac0onwillonlybeusedtoproblem-solveandprovidemorepersonalisedandpremiumservices.

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TheHumanTouchInaworldofglobalanddigitalmarke0ngandconsump0on,

consumerswillincreasinglyfavourthosebrandsthatcanoffermoreemo0onalengagements,andspecificallyhuman-to-humancontact.

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Love:WartsandAllWithcorporatetransparencybecominganecessity,businesseshaveto

addressitasbothanopportunityandathreat.Successfulbrandswillfindwaystotakecustomerswiththem-evenastheyrevealtheirlessaPrac0vesides.

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LengtheningRelaQonshipsWiththesectorunderaPackfromoutside,hospitalitycompaniesseetheneedfornewpointsofcontactthataredifferentfromthepast:Theywanttolengthenrela0onshipswithcustomersbothbeforeandarerthestay.

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MaximisingMomentsIndividualsseektomaximisethebenefitsofmomentsavailabletothem-

whetherefficiency,rest,enjoymentorotherwise-regardlessof0mespanandwhetherthemomentwasplannedorenforced.

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Mind,BodyandSpiritWewillseeagrowthintravelaimedatimprovementsinwell-being.Thiswillincludeareawakeningandrevisi0ngoflocalspiritualtradi0onsincountrieswheretravelandtravellershave,tonow,beenassociatedwithmodernity.

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SupporQngOverwhelmedTravellersWithaccesstoseeminglyendlessinforma0on,travellerswillcon0nuetoneedhelp‘connec0ngthedots’andfiltering.Thegatheringofusefullocalandauthen0cknowledgefrommeaningful(human)sourceswillbekey.

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DefiningMySpaceHospitalityorganisa0onsincreasinglyop0misetheexperienceofspace–bothphysicallyandexperien0ally-tohelptravellersfeelcomfortableandsecure.

Thisresultsinmorememorable,personalisedandefficienttravel.

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QuesQonsthatemerge

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QuesQonsthatEmergeFromthesediscussionsonandaroundthefutureofhospitality,thereseemstobeanumberofkeyques0onstobeaddressedbygovernments,companiesandindividuals–someglobalandsomemorelocalorregionalinfocus.

1.  Howwillasset-richhospitalitybrandsstrikeabalancebetweentheneedforcrucialinvestmentsinstafftraining,customerserviceandmee0ngsustainabilityaims,yetmaintainacompe00veedgewithasset-lightorganisa0onsbornofthesharingeconomy?

2.  Inanincreasinglytechnology-ledexperience,filledwithchoice,personalisa0onandconsumercontrol,howimportantwillthehumantouchbeandhowwillitbemademanifest?

3.  Hospitalityorganisa0onsneedtodealwithincreasedtransparency,lesswasteandtheneedforcrea0ngposi0velocalimpactinordertomeetchangingregula0onsandconsumerexpecta0ons.Howlongdotheyhaveandwhatarethepenal0esforge{ngitwrong?

4.  Willtheideaofcustomersegmentss0llexistinthehospitalityindustryin10years’0me?Ifso,howwillthisapproachadequatelyencompassregularlychangingcommuni0es?

5.  Willloyaltys0llbeaddressedviahospitalityloyaltyprogrammesmodelledontoday?Ifnot,whatwilltheylooklike?

6.  Howwilltheforcesofdisrup0vebusinessmodelsandtheneedforefficiencypitbrandsagainsteachotherat0mesanddrawthemtogetherinothersitua0ons?

7.  Howwillthebroadhospitalitylandscapechangeandhowsignificantwillthischangebe?

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