Five Forces Shaping The Global Lodging Industry

1. Five Forces Shaping The Global Lodging Industry

2. Converging Forces • #1: The ascent of leisure travel

3. Number of Vacation Days Per Year Italy 42 France 37 Germany 35 Great Britain 28 Canada 26 Japan 25 USA 13 Source: WTO

4. The Busiest Night Of The Week? Saturday

5. 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% †

8. Converging Forces • #2: The commoditization of air transportation

9. An Uplifting Experience?

11. Passengers By Carrier Type (2000 V 2003)

12. Average domestic fare down 22% in 4 years. Source: IATA, 2005.

13. Converging Forces • #3: The rEvolution

14. Sources Used When Planning A Vacation (Leisure Travelers Who Use Airlines/Hotels)

15. Broadband Access Source: Yankee Group, 2003

16. Online Planning And Buying • In the travel category • More looking than booking • Low conversion rates • Control of transactions • Shopping “BOTS”

17. Meta Search: The Next Horizon

21. “Just keep lookin’ and you’ll get a better deal.”

22. 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

23. .travel

24. Converging Forces • #4: The vigilante consumer

25. Strategic Control Agree: The single most important change created by the Internet is giving consumers like me greater control.

26. 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

27. Autonomy Agree: I rely more on my instincts than the opinions of experts.

28. “My IQ Is Higher Than Average” Agree: 63%

29. Agree: Marketers and advertisers don’t treat consumers with enough respect. 62%

30. Agree: Very little, if any, marketing and advertising I see has any relevance to me. 59%

31. Refused To Buy A Product Or Service In The Past Year As A Form Of Activism

32. Personal Authenticity: Clarity of values; conviction they are right for you; courage to act on them.

33. New Attitude Toward Business

34. Business On My Terms

35. Converging Forces • #5: Emerging markets

36. If There Were Only 100 People

37. 57 would be Asians • 21 would be Europeans • 8 would be Africans • 5 would be Americans

38. 12 would speak Mandarin Chinese as their first language • 7 would speak English as their first language

39. 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

40. 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

41. The Unpredictable Force:Concerns About Safety, Security and Hygiene

42. Uncontrollable but significant negative impact on demand • Potential impact on national tourism policies

43. 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

44. A Vacation Is A Birthright

45. Yesawich, Pepperdine, Brown & Russellwww.ypbr.com