Executive Report: Winter/Spring 2008
Record growth in 2007, what will this year hold?
As we start 2008, it’s worth pausing briefly to reflect that last year was undoubtedly one of the best for our industry since the 9/11 attacks and their worldwide consequences. We have seen record growth across all tourism sectors, with the emerging markets of China, India and the Gulf generating substantial opportunities. We have also witnessed Blackstone Group single handedly pulling off the largest public to private transaction in the hotel industry’s history, with the acquisition of Hilton Hotels Corporation.
Last year, more people than ever boarded planes for business or pleasure, and global air travel is flourishing. So – on the face of it – the outlook seems extremely positive. But if you look a little deeper, you’ll see that in the USA – the world’s largest tourism market – and in many Western European countries, there are signs that consumer confidence has started to be affected by the credit squeeze, largely off the back of the sub-prime mortgage crisis.
Historically, when consumer confidence falters, so does spending on leisure and travel. With this in mind, we need to make sure that no opportunity to keep costs down – or push revenues up – is ignored, so that whatever happens in the months ahead, the industry is in the best possible shape to respond.
For more information, download our Executive Report - Winter/Spring 2008 (PDF, 757KB)