Travel, Hospitality, and Leisure
Delivering industry insights
Travel, hospitality, and leisure companies—seeking growth—look to respond to the challenges of an increasingly multi-channel environment, where options are many and customer loyalty is at a premium. As companies grow, managing a talent pool that ensures superior customer engagement and personalized experience remains a key focus area.
About Deloitte’s THL practice
Deloitte’s travel, hospitality, and leisure (THL) sector offers a broad range of services to travel, hospitality, and leisure clients, including assisting clients with branding, operational planning, asset ownership and development, promotion and emerging technology to over 95% percent of the Fortune 5001 THL companies.
With over 850 professionals, Deloitte’s THL practice serves companies across multiple categories including aviation and transportation, gaming, hotels, restaurants and food service, and sports.
1Fortune, May 2014
Key issues affecting the THL sector
Consumer loyalty: Weaker job market likely results in poor consumer spending. New routes to market through social media and review sites, along with the growth of mobile technology, likely increases the need for THL companies to invest in technology and marketing. Greater transparency means the consumer can research and book directly through suppliers, search engines, comparison sites, affiliates, agents and more. Companies may need to have an efficient multi-channel distribution strategy.
Attracting and retaining talent: With growing global demand and geographic expansion comes the demand for more talent. CEOs will likely be challenged in finding, training, developing and retaining talent. Given the sophistication of international travelers, successful employees will need to understand how to cater to customers of different cultures. Training and retention of talent will likely require a significant investment from hospitality companies, but is important to success.
Global expansion and growth in emerging markets: As broadband connections and credit card penetration grow in these developing markets, online travel bookings are likely to increase, driving the need to access consumers in these new markets through online branding and marketing.
Improving operational performance and leveraging technology innovation: Successful industry operators may need to be aware of and be able to quickly adopt new technology for the purpose of information, promotions, bookings and reservations, and general management-control systems. Technical innovations can ease the business process and increase hassle-free experience for the customers. Potential creation of digital Innovation, technology as well as social media used as tools to attract travelers.
Competition: The biggest source of difficulty within the industry is likely the high level of competition. Furthermore, existing firms face the prospect of even higher competition given the low barriers to entry, which enable new players to easily enter the marketplace.