Direction and Health of the Hospitality Industry:

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A presentation given as part of my interview for my current position.

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Direction and Health of the Hospitality Industry:

  1. 1. Direction and Health of the Hospitality Industry: What are the Trends for Graduates David L Jones, Ph.D. Associate Professor
  2. 2. What Ever It Was That Got You ToWhere You Are Today, Is Not Sufficient to Keep You There
  3. 3. How I’ll Address Topic Yesterday, today & tomorrow’s global hospitality industry – Asian perspective Emerging opportunities Millennial education
  4. 4. Center of Excellence in Hospitality Industry Early Years – Europe Shift to North America in 20th Century Today – Asia  “Asian Wave”
  5. 5. Legacy for Today & Tomorrow – Global Leadership Europe  Art of business  Hotelier North America – USA  Business of the business  Global development leader  Innovation Asia  Service culture of the business  Customer relationship leader  People!!
  6. 6. Direction of Global Leadership Anywhere & anyway Learning from Asia
  7. 7. Understanding Asia Direction and Health
  8. 8. Service Leadership CharacteristicsWhat Makes Asia the Leader?
  9. 9. Qualities of Service Leaders  Service Vision  Focus on details  Bond with customer  Belief in Others  Capacity of others to achieve  Love of the Business  Pass it on to others  Passion for service  Integrity  Doing the right thingBerry, 1995
  10. 10. Understanding the Lifetime Value of the Customer Lifetime value view, not transaction view – Chinese Guanxi Revenue and profits by average customer over a lifetime by segment Increase average purchase, frequency of visit, life Key to Asian hotel leadership
  11. 11. Asian Principles “3 Plus 1 Factor” Respect for elders “Face”  Giving it Work before self  Importance of the status of working for a hotel Plus factor: Educational Sponges
  12. 12. Healthy and Prosperous Greater ChinaParticularly Mainland China
  13. 13. USA Corporate Presences in Greater China Other Industries  GM  China exceeds USA in 2010  Dell Computer  China is 2nd  Coach  China is fastest growing market Hospitality Industry  Yum Brands (KFC, Pizza Hut)  2011 China overtaken USA as top profit maker  Las Vegas Sands and Wynn  Revenues are 3 times more in Macao than LV  Starwood & Marriott  Mainland China largest market outside USA
  14. 14. People!!!!What about the “peopleware”?
  15. 15. What are the population comparisons?China 1.3USA 0.3 0.06 UK 0 0.2 0.4 0.6 0.8 1 1.2 1.4 POPULATION
  16. 16. War for Talent By 2025 Mainland China will have 23 cities with 5 million or more population  No shortage of people Getting best and brightest, then keeping them  60% of college grads don’t find jobs  Yet, they well change jobs for RMB 500 extra per mos. (less than USD 86) Expat or Local?  Salaries in Mainland MICE industry almost equal to those in Singapore Biggest issue – Lack of Middle Management
  17. 17. What About Mainland China Service Quality and Industry Knowledge? Change in past 20 years Spoken English – Very Good! International brands versus domestic brands Commitment to training Ability to develop and retain Middle Managers Service is part of the culture
  18. 18. Outbound Chinese –USA’s Future Tourist
  19. 19. 100 million outboundChinese tourists by 2015!!
  20. 20. Mainland China Travel Spending by outbound Chinese tourists ranked fourth-largest worldwide in 2010.  Up 20.4% year on year Top outbound market by 2020 – UNWTO
  21. 21. Approved Destination Status (ADS) Visa approval for leisure travel  Approved travel agents and wholesalers Selected countries  USA is ADS countries Biggest issue is USA visa, not China  Obama speech at Walt Disney World – Jan. 19  Increase China and Brazil by 40% in 2012
  22. 22. Mainland ChineseOutbound Tourist Profile
  23. 23. eLong – Hotel Guest Decision Making1. Prices2. Location3. Description of facilities4. Review of other users
  24. 24. Chinese Luxury Tourist (CLT) – Regions to be visitedMarket Probe Travel & Tourism Group, 2011
  25. 25. Chinese Luxury Traveler – Best Hotel/Airline BrandsMarket Probe Travel & Tourism Group, 2011
  26. 26. Chinese Luxury Traveler – Class of ServiceMarket Probe Travel & Tourism Group, 2011
  27. 27. Reaching theMainland Chinese Tourist
  28. 28. Internet & Social Media Number of Chinese Internet users has grown by 1500% since 2000 Currently  456 million Internet users  32% penetration compared to 80% in USA  800 million mobile users Most engaged country online – 92% More bloggers than Europe and USA combined
  29. 29. Inbound Tourism –Mainland China as theDestination of Choice
  30. 30. International Arrivals International arrivals staying at least one night reached 55.66 million in 2010, up 9.4 percent on 2009 Chinas appearance in the top three was its first, according to the UNWTO
  31. 31. Where did they come from? Where did they go?
  32. 32. China Meetings ICCA – China jumped from #19 to #9 on the list of countries drawing the most association business PCOs  MCI  Kellen
  33. 33. Where Do You Hold It? Beijing Shanghai and Yangtze River Delta  Hangzhou, Suzhou, Nanjing, Ningbo Pearl River Delta  Guangzhou, Shenzhen Second Tier Cities  Chengdu, Xi’an, Wuhan, Xiamen, Dalin, Qingdao, Kunming, Chongqing SARs – Hong Kong & Macau
  34. 34. Secondary City in Mainland China Chongqing Example 50 – 4 & 5 Star hotels by 2015 International brands – Marriott and IHG Advantages:  Convenient transportation  Cheaper than other big cities  Abundant tourism products  Different itineraries
  35. 35. EmergingOpportunities
  36. 36. Tomorrow’s Opportunities Sustainability Social Networking Mobile Access Collaborative Consumption
  37. 37. Need for Sustainability & CSR
  38. 38. Sustainability at All Levels Hotel development and operations  L.E.E.D.  ISO 14001  Green globe Conventions and events  BS 8901/ISO 20121  APEX green standards  GRI Tourism  Eco-tourism  Sustainable development- PATA
  39. 39. Social Networking Social Networking Sites Review Networking Sites
  40. 40. Mainland China Misconceptions
  41. 41. Mobile Access
  42. 42. Collaborative Consumption in Hospitality
  43. 43. Millennials Embrace Sharing Economy How likely are you to participate in each of the following sharing programs? (Licensed drivers only) 67% % Likely 57% 53% 49% 45% 43% 32% 27% 22% 18% 10% 11% Media sharing Car sharing Home or vacation programs programs sharing programsAsked only in 2011 18-34 years 35-44 years 45-54 years 55 years or more confidential 46
  44. 44. Millennial Education
  45. 45. Different ExpectationsHow the recession shaped Millennial and hiring managers attitudesabout Millennias’ future careers – Levit & Licuna (2011) Commiissionedby Career Advisory Board of DeVry University
  46. 46. Good News for Postgraduate EducationHow the recession shaped Millennial and hiring managers attitudesabout Millennias’ future careers – Levit & Licuna (2011) Commiissionedby Career Advisory Board of DeVry University
  47. 47. Millennial Education Global expertise  Beyond the boarders of the USA  Cross-cultural issues  Multi-lingual capabilities Business acumen  More than just operations Innovation & Change  Embracing the emerging
  48. 48. How do we get there?Finding Our “Blue Ocean”
  49. 49. Academic Perspective Four legged stool  Faculty  University resources  Students  Industry Research – application Degrees – co-creation with industry Postgraduate education
  50. 50. To Be Fond Of LearningIs Near To Wisdom Confucius
  51. 51. The Possession of Facts is Knowledge, the Use of Them is Wisdom Thomas Jefferson
  52. 52. Thank You

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