Hospitality Vision - Global Performance Review
The clouds begin to gather
With plunging global economies and unprecedented bail-outs during 2008, it was only a question of time before tourism shared the pain. The first half of the year, when the financial crisis still had some way to go, most world regions were reporting double-digit growth in hotel performance until mid-way through the year. Then the deepening recession took its toll. As business travellers and tourists started to think twice about trips away, there was a significant slowdown in hotel performance in most world regions, particularly in the final quarter.
2009 will remain a challenging time for hoteliers and the strategy will be one of survival of the fittest. Hotels will need to focus on value for money more than ever before and concentrate on what they do best; providing service standards and customer service that delivers the brand promise. This will ensure brand standards are maintained and customers remain loyal. It is also a time for innovation where “capturing the imagination of the consumer” will mean protecting revenues and winning market share.
The outlook for 2009 is naturally cautious, with the World Tourism Organisation predicting either a stagnation or slight decline in international tourist arrivals, forecasting a drop of between -1% and -2%. Meanwhile, most economists are expecting the recession to hold down employment, and housing and equity markets for some time to come.
In this edition of the Global Performance Review, we present an analysis of hotel performance trends across the globe and see which cities have secured a place in one of the top 20 ranking tables.
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