THE HOSPITALITY INDUSTRY

Mr. Praba G MenonChief Operating Officer

He is a well-known and recognised personality

of the hospitality industry in Malaysia.

Praba G Menon, a self-made hotelier, grew

from the ranks of bus-boy to waiter, and now

commands the respect of his fellow associates

as the COO of a large hotel chain in Malaysia.

The industry is ever dynamic and exciting and so will be the talk.

He is enthusiastic in sharing his views on the

opportunities and challenges facing the

players, including the customers, in this

industry.

The Speaker

Anthony and a team of young adventure enthusiasts established AOS in 1976. His first job with AOS was a guide at the age of 17 years old. In 1976, he and a team of enthusiastic adventurers established Asian Overland Services Tours & Travel Sdn Bhd.

Mr. Anthony WongGroup Managing DirectorThe Frangipani Langkawi Resorts & Spa

His pet project, The Frangipani Langkawi Resort & Spa is a green hotel and he hopes to make it a showcase and model to encourage other hotels to shift towards greener practices.

As an established and distinguished speaker, Anthony is frequently invited to give talks and seminars on issues of the travel industry, and has featured on local television networks and media on his achievements and views on sustainable tourism.

His immense experiences and tireless efforts to promote eco tourism have been recognized locally and internationally with the numerous awards and accolades received.

The Moderator

What is it defined as?

It is in Service Industry, Including,

Lodging

Restaurants

Convention centers

Theme parks

Cruise lines

IRS, and

Others ( Transportation, Shopping )

Top 10 Hospitality Industry Trends-2013

Increase in Traveler’s Personal ValueExpect More International VisitorsA second look at RefinancingSocial Media & Mobile Will Be InseparablePhoto Sharing Will DominateMore Unrehearsed Marketing VideosRenewed Focus on Property WebsitesContent Marketing Will Replace Traditional AdvertisingGuests Will Crave Food, Not Celebrity ChefsMore Meeting Planner Via Social networks

Its magnitude!

A Multi Billion Dollar Business.

Many Learning Centers

Needs Of Trained Professionals.

Changing Landscape Of Entertainment,

Restaurants, Bars And Others.

The Faster Magnitude!

Grown very fast, especially in Malaysia.

the first hotel about 1957.

Then from 1973, grown from a million dollar business to a multi billion dollar business,

largely due to the drive by the Government & Private sectors

Grown, but….

Our neighbours grew faster.

IRS concept is largely becoming popular.

Sample IRS in Singapore – South

Africa :

Disneyworld, etc

Then there are new concepts :

Home stay

Vineyard stays (plantations)

Vacation homes

Budget airlines have made lodging

industry grow.

However……..

However…..

there are many

challenges

TOP 4 HOSPITALITY CHALLENGES TODAY

High fixed-costs and variable income.

Fluctuations in occupancy and room-rate

demand

Tight cost control.

Increasing expectations of Gen-Y Guests

excellent service.

A hard equation to balance.

competitive bar is raised higher:

proximity of destinations, and

24hrs a day without break.

advantage must be wrung from Technology.

Challenge #1 – Guest Profiling

Gathering and using Guest preferences and intelligence to,

Enable delivery of superior Guest experience. Enable data gathering and profiling Enable the business in making this data available using ITUse Business Intelligence with a twist. But how?

Challenge #2 – Social Media

Implementing and integrating new customer engagement channels by,

Using Social Media with contact centers for optimum efficiency?

Monitoring and careful intervention must be a priority for Hotels in 2011 and beyond

Looking at what other industries are doing and gain insight. (Data Protection Act)

Challenge #3 – The Demanding Customer

Having every guest touch point to

be a make-or-break experience, be an opportunity to win or lose the repeat business explore how these issues are actually communications-based, and leveraging how technology is to deliver.

Challenge #4 – Lowering Cost, Increasing Revenue

How to identify new revenue streams?

non-room revenue (e.g. banquet, spa, golf, conference rooms, and restaurants)Optimising technology used in staffing levels and the tool they useChanging technology use to streamline for maximum productivity and savings?

OTHER ISSUES AND TRENDS

Sustainable development calls for green hospitality,labor cost, multicultural issues and higher education.

Challenges that facing hospitality will include, operating , marketing issues, technological and economic issues. Identified ten key trends that,

We believe will shape the hospitality sector this year and for years to come include,Rapid growth in vacation ownership, integration & globalization, new management.

1. ISSUES IN HOSPITALITY INDUSTRY

1.1 Sustainable Development Calls for Green Hospitality

Going green is a white-hot issue in the hospitality-design

Working toward a carbon constrained future.

How to Sustain Success?

Cost?

Human Cost?

2. CHALLENGES CONFRONTING THE HOSPITALITY INDUSTRY

Managing Costs?

The Competition

Price War!

How to Market?

Sophistication of Guests

Technology Support

The Internet

Innovative Service Expectation

The Economy

Globalization

2.4.2 GlobalizationGlobalization dramatically,

influences the extent of travelaffects the economy of the nation, the economies of individual countries, and the world economyplays an increasingly larger role in the financial success of lodging properties. To compete, they must pay closer attention to the trends of globalization. The industry must reflect the requirements of the global village

3. TRENDS IN HOSPITALITY INDUSTRY

3.1 Rapid Growth in Vacation Ownership

Vacation ownership is the fastest growing segment

Fastest growing sectors of the travel and tourism industry.

Hospitality companies are adding brand power to the concept with corporations, and

Ever Four Seasons participating in an industry that has grown rapidly in recent years.

Vacation Sites

1. Resort Condominiums International (RCI), the largest vacation ownership exchange has more than 2.8 million member families living in 200 countries. three thousand seven-hundred participating resorts and members can exchange vacation intervals for vacations at any participating resort.

2. North America remains the global leader with ,nearly half of all the participating resorts and more than 2 million owners. Europe is second with approximately 22 percent of owners worldwide and more than 1,000 resorts.

3. Timeshare resorts are found around the globe in popular vacation areas near beaches, rivers, lakes, and mountains, and even in major cities.

Management

3.3 New ManagementThe complex forces

of capacity control,safety and security, capital movement, and technology issues

The growing complexityof the customer/employee interaction, driven by technology and the information age, will shape human resources needs in the future.

The customer, armed with more information, will expect staff to be at least as knowledgeable about the firm’s offerings as they are themselves.

The Future Focus

This will be difficult in an industry characterized by

low-skilled, low-paid personnel and

a high degree of cultural and behavioral diversity

Visioning the future: major forces driving change in the hospitality

seven areas decisive to the future development of the industry. Each is examined to determine the scope and complexity of the issue and the timing of its impact.

IN SUMMARY

Apart from these challenges, issues and trends, new rules and incentives must be in place to facilitate a green, carbon free environmental properties.Project management advisors/consultants must be proactive in thinking ahead to produce environmentally friendly properties.Does it stop here? No. We have to modernize the future development of the industry.

Praba