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Five Forces Shaping The Global Lodging Industry. Converging Forces. #1: The ascent of leisure travel. Number of Vacation Days Per Year. Italy 42 France 37 Germany 35 Great Britain 28 Canada 26 Japan 25 USA 13 Source: WTO. The Busiest Night Of The Week?. Saturday.
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Converging Forces • #1: The ascent of leisure travel
Number of Vacation Days Per Year Italy 42 France 37 Germany 35 Great Britain 28 Canada 26 Japan 25 USA 13 Source: WTO
The Busiest Night Of The Week? Saturday
Agree: 2005 Attitudes Toward Business Travel I am actively seeking ways to use new technology in order to reduce my business travel in the future 35% †
Converging Forces • #2: The commoditization of air transportation
Average domestic fare down 22% in 4 years. Source: IATA, 2005.
Converging Forces • #3: The rEvolution
Sources Used When Planning A Vacation (Leisure Travelers Who Use Airlines/Hotels)
Broadband Access Source: Yankee Group, 2003
Online Planning And Buying • In the travel category • More looking than booking • Low conversion rates • Control of transactions • Shopping “BOTS”
Meta Search: The Next Horizon
Growing sense of suspicion about whom to believe because of the filters applied to the information served • Increased reliance on “objective” sources • Growing use of blogs
Converging Forces • #4: The vigilante consumer
Strategic Control Agree: The single most important change created by the Internet is giving consumers like me greater control.
Strategic Control • Want to participate in the creation of new options • Personalize products and services • Want to control the transaction • Through access to comparative pricing
Autonomy Agree: I rely more on my instincts than the opinions of experts.
“My IQ Is Higher Than Average” Agree: 63%
Agree: Marketers and advertisers don’t treat consumers with enough respect. 62%
Agree: Very little, if any, marketing and advertising I see has any relevance to me. 59%
Refused To Buy A Product Or Service In The Past Year As A Form Of Activism
Personal Authenticity: Clarity of values; conviction they are right for you; courage to act on them.
Converging Forces • #5: Emerging markets
57 would be Asians • 21 would be Europeans • 8 would be Africans • 5 would be Americans
12 would speak Mandarin Chinese as their first language • 7 would speak English as their first language
52 would be female • 48 would be male • 70 would be non-white • 30 would be Caucasian • 70 would be non-Christian • 30 would be Christian
80 would be living in sub-standard housing • 70 would be unable to read • 2 would own a computer • 1 would have a college education
The Unpredictable Force:Concerns About Safety, Security and Hygiene
Uncontrollable but significant negative impact on demand • Potential impact on national tourism policies
Converging Forces • The ascent of leisure travel • The reinvention of air transportation • The rEvolution • The vigilante consumer • Emerging markets ….and a growing concern about safety, security and hygiene
A Vacation Is A Birthright