ehma cyprus 2016 - "drivers & trends of luxury hospitality"
TRANSCRIPT
SUPPORTING THE GLOBAL HOSPITALITY TRENDS
GUGLIELMO L. BRENTEL
APRIL 2016
TRENDS IN THE GLOBAL HOSPITALITY INDUSTRY
of WORLD GDP
9,8%
OUR INDUSTRY TODAY
1/11 JOBS WORLDWIDE
TRAVEL & TOURSIM CONTRIBUTED A TOTAL OF
US$ 2.4 TRILLION TO THE WORLD GDP
Sources:
• WTTC Economic Impact of Travel & Tourism: 2015 Annual Update Summary
• WTTC: Economic Impact of Travel & Tourism 2015-Autumn Update (Nov 2015)
Europe 41%
Asia & Pacific 30%
Americas 14%
Africa 7%
Middle East 8%
2030 Projections
INTERNATIONAL TOURIST ARRIVALS BY REGION
Europe 51%
Asia & Pacific 23%
Americas 16%
Africa 5%
Middle East 5%
2014
Europe 46%
Asia & Pacific 26%
Americas 15%
Africa 6%
Middle East 7%
2020 Projections
1.2 Billion
FASTEST GROWING MAJOR COUNTRIES: INDIA, CHINA, THAILAND, INDONESIA, PERU AND KENYA
Sources:
• WTTC Economic Impact of Travel & Tourism: 2015 Annual Update Summary
• UNWTO Tourism Insights 2015
1.4 Billion 1.8 Billion
OUR INDUSTRY TOMORROW
Expected to continue exceeding
the wider economy and outpacing
the majority of other sectors
3.8%
Of which 39% in
Asia Pacific
1.5 MILLION
Reaching close to 350 Mio
jobs worldwide
+72.9 Mio NEW JOBS FORECAST BY 2025 ANNUAL GROWTH RATES
FROM 2015-2025 GUEST ROOMS
IN GLOBAL PIPELINE
Sources: WTTC Economic Impact of Travel & Tourism: 2015 Annual Update Summary
STR Global Pipeline Outlook, October 2015
IN 2025, TOTAL TRAVEL & TOURISM FORECASTED TO CONTRIBUTE:
10.5% TO THE WORLD GDP
10.7% TO GLOBAL EMPLOYMENT
TECHNOLOGY INDUCED CHANGES
1970
3 Weeks
1980
3 Days
1990
3 Hours
2000
3 Minutes
2010
3 Seconds
Time required to make a hotel reservation in NY (from Switzerland)
2016
Immediate
THE CONNECTED CUSTOMER 2016
• Buying decision controlled by the customer
• Fully transparent prices on the net
• Reliance on social media and peer reviews to
select a location / hotel
• New technology-enabled marketing channels
• Use of concurrent devices for search, selection
and booking
• Shift of mindset towards sharing economy
Urgent need to regain the high ground and stop the uphill battle
ONLINE TRAVEL AGENCIES ARE SURFING THE CONNECTED WAVE
• OTAs control customer data and loyalty
• Some hotels give them the best price for a room
• Commissions rising due to increased cost of Google
clicks
• Competition reduced to best pricing and/or
commission levels
• Aspiration towards market domination
• Expected market entry of Google
DIGITAL DISRUPTION HAS ALREADY STARTED
Source: ibmforentrepreneurs.com
World’s largest taxi company owns no taxis (Uber)
Largest accommodation provider owns no real estate (Airbnb)
Largest phone companies own no telco infrastructure (Skype, WeChat)
World’s most valuable retailer has no inventory (Alibaba)
Most popular media owner creates no content (Facebook)
Fastest growing banks have no actual money (SocietyOne)
World’s largest movie house owns no cinemas (Netflix)
Largest software vendors don’t write the apps (Apple, Google)
Opportunities:
• Target longer stays
• European vacation time VS disposable income
• Philosophy: “Quality will create Quantity”
Value Proposition:
• Location, Location – Experience, Experience
• Pay only for the services you use
Competitive advantages:
• Expert in Digital, Mobile and Social Media
• Big data and opt-in customer profiling
Quality Control - Critical Success Factor:
• Dual Customer and Host feedback
Business Model:
• Commissions: 3% Host & 9 % Client
“Only one trained Hotelier in the company”
AIRBNB – LIVING VS. TRAVELING - WHAT HOTELIERS CAN LEARN...
Launched in 2008, 2mio listings worldwide:
WHAT IT MEANS FOR TRADITIONAL HOTELIERS
REGAIN DIRECT ACCESS TO CLIENTS FROM OTAs, AIRBNB AND ALIKE:
• REINFORCE DIGITAL SKILLS
• PRESENT YOUR PREMISES WITH EMOTION THROUGH STORYTELLING
• OFFER AN EXPERIENCE - NOBODY TRAVELS FOR A BED
• CONVERT CLIENTS OF ALL AGES TO FANS / FOLLOWERS
• FACILITATE A COMMUNITY AROUND THE CUSTOMER
• IMPROVE COMPETITIVENESS IN PRICING AND CANCELLATION POLICIES
OR ELSE: GIVE UP YOUR BRAND AND PROFIT TO OTAs AND …
… END UP JUST CLEANING YOUR ROOMS
THE SEVENTIES ARE DEFINITELY OVER…
TRENDY NEW INNOVATIVE PROJECTS GET OFF THE GROUND
MORE THAN A HOTEL… SOME OFFER A DESTINATION
OTHERS DEVELOP HYBRID FLAT / HOTEL MODELS
CLEAR POSITIONING ENABLES DIFFERENTIATION
Family Millennials
Retirees Business travelers
OTHER INDUSTRIES DIVERSIFY THEIR PRODUCT PORTFOLIO TO SURVIVE
THE WATCH INDUSTRY HAD TO REINVENT ITSELF -- ALL BUT A TIME PIECE
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EHL VISION / MISSION
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‘What are EHL Students?’
Video
VISION
TO BE THE PREMIER, WORLDWIDE REFERENCE IN HOSPITALITY EDUCATION
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MISSION
TO HELP TALENTED STUDENTS AROUND THE WORLD BUILD A SUCCESSFUL AND FULFILLING HOSPITALITY CAREER
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OUR DIFFERENCE
ROOTED IN SWISS VALUES
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EHL STRATEGY TO ADDRESS THE CHANGING LANDSCAPE
EHL GROUP STRATEGY 2016-2022
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Evolution of education portfolio and know-how
AXIS
03
Position as a thought leader
AXIS
01
AXIS
02 AXIS
04
AXIS
05
International development and expansion
Development of the EHL campus
Innovation and entrepreneurship
Building worldwide hospitality careers rooted in Swiss values
1. EVOLUTION OF EDUCATION PORTFOLIO & KNOW-HOW
We owe it to our students to relentlessly adapt our education portfolio to the needs of our rapidly expanding and changing industry, hence ensuring fast track careers to our graduates.
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EDUCATION PORTFOLIO
Bachelor in International Hospitality Management
Master in Global Hospitality Business
Executive MBA
Executive Education
Summer Academy
Vocational Diplomas
NEW
Functional training
Online Masters / education
Regional training
EHL Master Class in Culinary Arts
CURRENT
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WORLDWIDE ACADEMIC RECOGNITION
Association with University of Applied Sciences and Arts Western Switzerland (HES-SO)
Accreditation by the New England Association of Schools and Colleges (NEASC)
EMBA successful evaluation by the Swiss Agency for Accreditation and Quality Assurance (AAQ)
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EHL Group is an important ambassador for the Swiss
education system and values.
Our many academic and industry partnerships with
renowned global players inspire us to achieve new
heights and excellence in global hospitality education.
These partnerships allow us to successfully contribute
to the development of hospitality in emerging markets.
2. INTERNATIONAL DEVELOPMENT & EXPANSION
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INTERNATIONAL NETWORK
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Certified Schools
CESSA, Mexico City
Estácio Universidad, Rio de Janeiro
Sagesse University, Beirut
Ecole hoteliere at Lavasa, Lavasa
Beijing Hospitality Institute, Beijing
Hanyang University, Seoul
Dusit Thani College, Bangkok
King Abdulaziz University, Jeddah
Emirates Academy of Hospitality Management, Dubai
Consulting Offices
Beijing & Delhi
EHL HQ
Switzerland
APAC Regional Office
Singapore
Consulting Engagements
Algeria, China, Philippines, Angola
Partner Universities
Hong Kong PolyU
University of Houston
Rooted in the unique EHL spirit, studying, teaching and researching at EHL Group is an unforgettable experience.
Designed by students for students, the future campus will set new standards and embody the extraordinary sense of community and culture amongst EHL students and alumni.
3. DEVELOPMENT OF THE EHL CAMPUS
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A CAMPUS DESIGNED BY STUDENTS FOR STUDENTS
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By providing a campus and innovation cluster, we intend to offer a place for mind and heart, innovation and entrepreneurship.
Throughout their careers, hospitality managers have access to EHL expert knowledge, tailored programs and an inspiring exchange of ideas and opinions.
4. INNOVATION & ENTREPRENEURSHIP
Status:
850 Student Business Projects since 2001
Business Incubator on campus
30% of Alumni are CEO, Executives or Owners
Innovation & Entrepreneurship Bachelor courses
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Enabling a worldwide dialogue, researching new trends, assessing changing opportunities and risks and the ability to adapt swiftly is at the core of EHL’s drive.
Thus, EHL Group aspires to set the benchmark as a pioneer of hospitality knowledge, know-how and “intelligence de la main”.
5. POSITIONING AS A THOUGHT LEADER
Status:
100 articles published in 2014
Multiple sustainable ecofriendly initiatives on campus
CSR partnerships in developing countries
ALL THESE EFFORTS GEARED TOWARDS INDUSTRY RELEVANCE
International chains
19% Independent hotels
15% Restaurants & bars
11% Consulting
Bank, Finance, Real estate
7%
Retail & wholesale, Consumer goods
6%
Education
4% Travel agencies, theme parks, cruises
4% Healthcare & NGO
3%
HOTEL & F&B
50% OTHER SECTORS
50%
EHL Alumni - Sectors of work
FAST TRACK HOSPITALITY CAREERS
SWISSNESS Worldwide hospitality careers rooted in Swiss values
NUMBER 1 Hospitality management school
INTERNATIONAL REACH Supporting emerging markets
Sound strategy to support industry disruptions
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