The hotel industry is projected to grow at a CAGR of 3.51% until 2020, facing challenges from low interest rates and market competition, leading to consolidation and overcapacity issues. However, opportunities exist through specialization, digitalization, and differentiated services such as coworking spaces, which can create additional revenue streams. Implementing the 'future work' concept can position hotels as agile workplaces and enhance their competitive advantage in a changing market.

1. Future Work@Hotel Industry
Version: November 2016

2. Although the hotel market is growing sustainable and
stable…
Future Work@Hotel Industry
The proposed CAGR of the market until 2020 is 3.51%
and is accompanied by generally stable and resilient
hotel utilization rates of roughly 70%.

3. …the combination of low interest rates and the intense
market competition is threatening many market players…
Future Work@Hotel Industry
Existing overcapacities are aggravated by the current period of low interest rates
An intense consolidation of the market is caused by investment
of the big market players in properties in “B or C-locations”
Price competition is strengthened by most players’ lack of differentiation
The thread to be overtaken by substitutes is intensified by the markets’ low pace
of innovation

4. …and thus, the management is facing crucial challenges
in the near future!
Future Work@Hotel Industry
“In this industry a strong consolidation wave is going on.”
Otto Lindner, Chairman of the “Hotelverband Deutschland” (IHA)

5. 5
Despite its challenges, change is offering tremendous
opportunities.
Use of core competencies, location advantage, digitalization, and chances to
generate comparative advantages and sustainable growth
Change
Utilize core
competencies
+ Properties in top locations
+ Gastronomical and technical
infrastructure
+ Professional service staff
+ Broaden the existing brand
awareness and brand image on
other business areas
Chances
+ Abolishment of the best
price condition for the travel
portal
+ Superior marketing
opportunities for Value-
Added-Services
Advantage
Germany
+ Mideast conflict increases
the location attractiveness
+ Stable market growth
Digitalization
+ Missing innovation
abilities of the others
+ Generate first-mover-
advantages
+ Stimulate customer needs
Future Work@Hotel Industry

6. 6
Exploiting trends to sustain a stronger differentiation to
temper the intensity of competition.
Future Work @Hotellerie
Source: FutureHotel Fraunhofer Institut
A clear market positioning is facilitated by the stimulation of the business travelers’ needs
with providing convenient processes (Smartphonekey, Mobile Check-In) and maintaining
agile working (Co-Working Spaces).
“The future of every hotel is based on
specialization.“
Marco A. Gardini, professor for tourism management, University of Kempten

7. 7
• 45.6 % of the business travelers work while staying in the hotel
• 80.2 % of them would like to have a suitable working space
• IT- and gastronomical infrastructure is already available or a modification to
higher standards is possible without high costs
• Attractive locations for business travelers and local coworkers
• Functions as both a differentiation possibility and a value added service that
provides additional revenue streams while simultaneously reinforcing the
gastronomical turnover
Especially the addition of coworking spaces to the hotels’
product portfolio offers cost efficient sales potential.
Future Work@Hotel Industry
The hotel as a workplace possesses unutilized revenue potential that can be
sustained without large investments.

8. 8
An image makeover of the modern hotel is possible…
Future Work@Hotel Industry
…from an accommodation option to an
agile workplace!

9. 9
By implementing the “Future
Work” concept, hotel chains
can create an unique selling
point. Thus, they capable of
differentiating themselves
effectively. This provides the
possibility to sustain long-
term comparative
advantages. Detecon is able
to show off many successful
references within their long
work experience within this
consulting field:
TOOLS
Future Work@Hotel Industry
…with the assistance of a capable partner who is able to
guarantee a clever implementation.
Mobile and user orientated IT-solutions that suit
the use-case hotel are enabler for the
implementation of “Future Work”
It is possible to connect with people from
comparable business levels in similar or related
industries while using the hotel as a workplace.
The resulting input increases the ability to
innovate. Building up this particular Image can
offer comparative advantages for the hotel.
PLACES
PEOPLE
An aggregated concept for the hotel lobby, with
room components that provide possibilities for
group work, furthers networking in an informal
atmosphere. Above that, agile working can be
maintained by offering a coworking space in the
hotel.
The “Future Work” approach of Detecon can help to strength the core business of the hotel market
and to develop new business areas as well as additional revenue streams.

10. 10
Do not hesitate to contact us!
Verena Vinke
Consultant
Transformation & Peoplemanagement
Mobile: +49 151 11 856 948
Verena.Vinke@detecon.com
Marc Wagner
Partner
Global Lead Transformation, Peoplemanagement
& Integral Business
Mobile: +49 175 2206049
Marc.Wagner@detecon.com