The Travel, Hospitality and Leisure practice of UK-headquartered Deloitte Touche Tohmatsu Limited, referred to more often as Deloitte and known for its audit, consulting, tax, and advisory services, has posted an updated summary of key issues facing the travel, hospitality and leisure sector.
Deloitte’s Travel, Hospitality and Leisure practice serves companies across multiple categories including aviation and transportation, gaming, hotels, restaurants and food service, and sports and has a staff of 1,450 worldwide. Its key issue updates are designed to keep its sector’s businesses apprised of developments affecting their activities (and, no doubt, to attract clients). Here’s how Deloitte summarizes the key issues:
—Many Travel, Hospitality and Leisure players are increasingly using an “asset-light” strategy in which they expand their brand footprint globally without taking on huge capital investment and by exploring joint ventures with local partners.
—Technology, mobile, and social drivers are contributing to an increasing number of global brands.
—Everyone should consider the table stake attributes —comfort, price, food taste, loyalty programs, among many other things. Yet, players across the Travel, Hospitality & Leisure spectrum should grow smartly, and not try to be all things to all people.
—Companies should consider the regulatory framework of each domestic and foreign market that they serve.
—While looking for international growth avenues, especially in politically sensitive regions, Travel, Hospitality & Leisure players need to consider their risk management strategies.
—Customers have different appetites in sharing personal information with companies but each customer wants to ensure that personal data finds safe custody.
—The risk of cybersecurity breaches looms large, especially in consumer sensitive sectors.
—Whether Travel, Hospitality and Leisure companies’ legacy systems are good enough to catch up with innovative breaches is a question that needs deliberation.
—To “win the Millennial,” any consumer-facing business should understand the needs and desires of this critical consumer demographic.
—Millennials have a robust appetite for innovative technology and they often want a customized experience. Consumer engagement is not something that begins at the company’s front door; it typically begins with online search and should be ongoing and evolving.
—They want transparency and the sense that they are receiving “value for money.”
—Many consumers feel free Wi-Fi in a hotel or restaurant is ”table-stakes” and no longer a novelty.
—Social Media continues to get stronger and influences the purchasing decision.
—Emerging technologies including keyless entry and digital payments are being introduced in more markets and are expected to continue to surface in the coming year.
—Emerging platforms are gradually becoming mainstream and challenging established players. In the race of traditional vs. alternative, the winners will likely be those who can create value for customers that they can experience and measure.