Analyst Insight by Wouter Geerts - Travel Analyst, Lodging
Starwood Hotels and Resorts’s future is still uncertain, and while possible acquisition suitors have come and gone, the industry still believes that eventually some M&A developments will happen. In May I discussed what a takeover by Wyndham Worldwide would look like, but concluded that neither company would gain strategically in terms of geographical coverage from a takeover.
Some new developments have now put a possible merger between Starwood and Intercontinental Hotels Group on the cards. Intercontinental recently sold its Hong Kong flagship to a consortium for £604 million, rumoured to be an effort to bring in the cash needed for a merger. This briefing discusses how this scenario differs from the Wyndham case, and highlights again that the global hotel chains might be better off considering their options with local players.
Continue reading "The Rumour Mill Keeps Turning – Will Starwood Go Intercontinental?" »
Analyst Insight by Shreyansh Kocheri - Research Analyst
Just as Nepal was recovering from a decade long political uncertainty, the country was hit by an earthquake of magnitude 7.9Mw in April 2015, with aftershocks being felt even in May. In the short term, various tourism segments will be negatively impacted by this; however it is expected that Nepal’s inbound arrivals will bounce back by the end of 2016.
Tourism a key contributor to the Nepalese economy
The Nepalese economy witnessed its strongest real GDP growth of 5.5% in 2014 due to a rebound in agriculture and increased domestic demand. Tourism is an important industry for Nepal’s economy and is also one of the key sources of foreign exchange and revenue. According to the World Travel and Tourism Council (WTTC), the total direct contribution of travel and tourism to Nepal’s GDP was NPR75.6 billion, contributing 4.2% of the whole economy GDP in 2014.
Continue reading "Nepal’s Tourism Shaken by Natural Calamity" »
Analyst Insight by Wouter Geerts - Travel Analyst
Greece’s future in the Eurozone is on a knife-edge. Recent developments seem to secure Greece’s position in the Eurozone, but the future remains extremely uncertain. This uncertainty, combined with other volatility like the tragic events in Tunisia, greatly impacts the travel industry. According to the World Travel and Tourism Council (WTTC), the wider tourism industry in Greece accounted for 17.3% of GDP in 2014, meaning that any impact on the tourism industry will have a significant impact on the wider economy of Greece.
Here, I will discuss two scenarios for the short to mid-term future of tourism in Greece, taking into account the correlation between GDP and arrivals performance, and the benefits of the “should I stay or should I go now” options. Future scenarios of the Greek economic outlook by Euromonitor International’s Economies team provides a useful framework to assess the different possible outcomes for tourism demand.
Continue reading "Grexit or Not: The Future of the Greek Travel Industry, In or Out of the Eurozone" »
Location: Sofitel Hotel, Sydney, Australia
Date: 27th-29th July 2015
Event Description: HotelsWorld comprises of three consecutive events over three days, including Hotels Investment World and Boutique & Lifestyle Hotels World. The theme of HotelsWorld 2015 is Think Global, Act Global...and Local as record numbers of inbound and outbound visitors to Australia and New Zealand take the region ever closer to regional and global markets, and as business and social networks break down geographic barriers for corporate and leisure travellers, both virtually and actually. Hoteliers everywhere are having to adapt daily, to meet guest needs in a world of change, and the event will cover this in its discussion of key issues, trends and opportunities in the world of hospitality.
Continue reading "Euromonitor to Speak at HotelsWorld Australia New Zealand 2015" »
Analyst Insight by Wouter Geerts - Travel Analyst
As the lodging industry is bending over backwards to keep up with consumer demands and the latest technologies in the sharing economy, the traditional concept of timeshare is at risk of becoming outdated. Timeshare developers were one of the first advocates of the sharing economy in the lodging sector, as their product offers the sharing of a holiday home, but the original long-term contracts for a specific period each year is an unattractive prospect for a growing group of consumers looking for new, exciting and authentic experiences every time they travel.
Tech-savvy Millennials are an increasingly lucrative target group, and timeshare developers and managers are investing to enhance and market the positive aspects of timeshare to attract these consumers. Increasing interventions from the industry demonstrate that short-term contracts and lifestyle brands are changing the industry positively, and could save the timeshare concept.
Continue reading "Looking Below the Surface: Millennials as Timeshare’s Saving Grace" »
Event Name: ITB Asia 2015
Location: Marina Bay Sands Expo and Convention Centre
Event Description: ITB Asia is a annually held three day B2B trade show and convention for the travel industry; it is designed to become the primary event for the Asia Pacific travel industry, much like its parent event – ITB Berlin. Now in its eighth year in Singapore, ITB Asia will taking place at Marina Bay Sands. It is organised by Messe Berlin (Singapore) Pte Ltd and supported by the Singapore Exhibition & Convention Bureau.
Presentation Topic: The New Online Traveler in Asia
Continue reading "Euromonitor to Speak at ITB Asia 2015" »
Analyst Insight by Angelo Rossini - Online Travel Analyst
In 2014, we saw increasing consolidation in the online travel agency sector, with Expedia and Priceline dominating it thanks to organic growth and acquisitions. Both companies achieved gross bookings of over US$50 billion in the past year. Expedia strengthened its leading position in North America through the Travelocity acquisition and is expected to grow further in this region in 2015 following its Orbitz acquisition, which is likely to be approved by the antitrust authorities. On the other hand, Priceline recorded strong organic growth worldwide, especially thanks to the continuous success of its Booking.com subsidiary.
The dominance of these two companies in the OTA sector could, however, be challenged in the next few years by new emerging players, including technology companies, generalist retailers and Chinese online travel agencies.
Top Global Online Travel Agencies by Value Sales: 2013-2014
Source: Euromonitor International
Continue reading "OTA Sector Between Increasing Consolidation and the Possible Rise of New Key Players" »
Analyst Insight by Shabori Das - Senior Research Analyst
Vistara is a new airline launched in January 2015 by Tata Sons and Singapore Airlines. The new airline is a premium player that will provide a three-tier system of pricing, which is new to the Indian aviation industry. With the launch of Vistara, the Indian aviation industry will witness an increase in the number of people travelling by air as the fleet size will increase, along with connectivity across major and minor cities, which will help to move traffic faster. However, this will definitely impact the load factor of other airlines, which is expected to go down. The duopoly of the scheduled airlines will also be challenged due to the new pricing system being offered by Vistara.
Vistara’s USP lies in its pricing strategy
The airline is the first in India to provide scheduled services with a three-tier fare system. The pricing strategy is similar to international airlines such as Virgin Atlantic and Cathay Pacific. This is expected to attract incoming tourists and corporate tourists – both domestic and international. The other two scheduled airlines continue to have only business and economy class in their pricing structures. Vistara, on the other hand, offers economy, premium economy and business class tickets. The pricing is quite different for each class, which is evident from the table below.
Continue reading "Vistara – a New Star in the Indian Sky?" »
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This podcast examines the performance and future strategies for LATAM Airlines based on the recently released Q1 results statement. Memership in the OneWorld Alliance will help the company strengthen it's international network, giving it strength beyond being the leading regional player. Additionally, updating its fleet of aircraft will help move the company into a more competitive position. Listen to the podcast for complete insights.
Continue reading "LATAM Airline's Strategic Objectives and Challenges" »