Hospitality & Leisure Focus Group Quarterly Update – Q1 2016

Published on 2016-06-01

Recently, the Chamber set up a Hospitality & Leisure Focus Group (H&L FG) to better serve some of the members interests and to attain a clearer picture of the current and future hospitality & leisure landscape.

Recently, the Chamber set up a Hospitality & Leisure Focus Group (H&L FG) to better serve some of the members interests and to attain a clearer picture of the current and future hospitality & leisure landscape. The FG is made up of a mixture of Executives from Hotels, Clubs & Leisure, Airlines, Travel Companies & Restaurants and for anyone else who would like to join, then please contact Josh Lane at the Chamber.

Update

In an industry as diverse as Hospitality & Leisure an understanding of trends in specific areas within the sector is crucial. One thing that’s stands out is that the middle class expectations, even in a city such as Shanghai will continue to grow, from an ability to travel and experience and then come home wanting more of the same.

Through this many respected consultants and industry executives expect that there will be considerable growth in areas of wellness, lifestyle, dining and affordable luxury.

Over the next 10 years, hospitality with-in China is reported to become a US$100b industry with 8 rooms per 1,000 capita, this is still below the present UK level of 10 rooms per 1,000 capita, but with the population of China, it is of course an amazing amount. Also the outward bound travelers will reach an estimated 200m by 2020, mainly driven by the growth and spending power of the middle class. Domestically 63% of budget hotels are for leisure versus 42% of high end accommodation.

Therefore, when they are returning home to China, they want to continue with those experiences they enjoyed from the overseas travel. So focus from the international companies into building up the brand loyalty for when they return home, will be very important.

Travelers both inside China and outward bound are becoming more sophisticated. People are looking for an improvement in the quality of life. This has seen a large increase in leisure and vacation travel in China and even the growing popular “Staycations” in some of the leading hotels in Shanghai.

People are now wanting relaxation rather than a tight tour schedule and so self-planned holidays and leisure activities are becoming the norm. This has an effect on smaller businesses who do require to be able in the digital market place to have a significant presence.

Obviously some of the relevant dining apps and other booking sights have now become the norm, but how long will it be before people are expecting that little bit more of old fashioned personalization. So the market will need to continually innovate and develop new models and formats and leverage synergies through differentiation and through a mixture of products and partners.

The government will of course continue to shape the market and through its identification that tourism is a core growth, then this will have a positive effect on our businesses. However, one area that continues to be difficult will be hiring and retaining the quality staff needed to offer that consistent level of service.

Through the Hospitality & Leisure Focus Group we will be looking to explore the various trends, see how it affects the relevant businesses in the Chamber and also look how, as a diverse group, we can look to support each other, either through partnerships, working with the various hospitality colleges, to strengthen our businesses in the coming years.

Learn more about the Hospitality & Leisure Focus Group>>