2017 travel and hospitality industry outlook
Era of growth and transformation
Globally the travel and hospitality industry is undergoing growth and transformation. A combination of forces reshaped the travel landscape in 2016, 2017 does not look too different.
In this year’s outlook, we reflect on some poewrful elements of change and how they may impact travel in 2017. A trend that should not be overlooked by travel and hospitality companies is the economic trend. The volitile global economy is one that needs to be monitored closely, as at the slight hint of financial difficulty, travel budgets are among the first to be cut. Factors such as the oil price andpolitical unrest are amoug the key drivers that impact the global economy.
Businesses are driven by customer demand. However customers’ values, preferences, needs and expectations are not fixed, nor are they the same across the globe. Changing consumer expectations will continue to force travel businesses to adapt in 2017. Also in the new year travel and hospitality companies need to take into considerations the technologies they implement in making the experaince that much more for consumers. With this said, this technology needs to meet the needs and expectations of the consumer otherwise it will not be adding value and the investments made into it will not yeild the expected returns. The promise of IoT goes beyond the customer experience. Hoteliers, airlines, and other travel companies can also leverage connected sensors to improve operational efficiencies such as energy and water consumption.
Finally, in 2017, travel companies should conceptualise their brands as platforms for new opportunity and growth. Travel is fragmented across many micro-experiences, customer experience will drive more loyalty than points. This year calls for a shift in thinking to make customer experience a critical focus and then the loyalty will follow.
In this report we cover
1. Economy – role the global economic climate plays in the success of the travel and hospitality industry
2. Consumer mindset – understanding what consumers what, need and expect from travel and hospitality companies
3. Enabling technology – in 2017 travel companies need to go beyond the “what” of technology and understand which technology consumers are ready to adapt
4. Platforms - With organic growth hard to come by, travel brands must realize the benefits of scaling across the travel experience—rather than only trying to grow within their vertical.
How can Deloitte help
Africa Travel, Hospitality and Services has a global network of experts who are commited to providing clients with tools to best nagovaget this ever evolving industry. We offer clients services to help them stay ahead of pack such as Governance, Risk and Regulatory, Technology and Cyber Risk and Resilience Services among others.