Briefing: Mobile is now the leading digital platform

A new report by comScore has found that mobile is now the leading digital platform. The report found that total activity on smartphones and tablets accounts for 62% of time spent on digital media. It states that mobile applications alone now represent the majority of digital media usage (54%).

This has implications for many of the processes within the hospitality industry. In this briefing four hospitality experts discuss embracing mobile:

As discussed in our briefing at the beginning of the year, 2015 always had the potential to be the tipping point for mobile commerce. Mobile capabilities are increasing all the time. This year saw the release of Apple’s iPhone 6, and rumours are already flying about the iPhone 7. Meanwhile Google’s AMP Project aims to speed up page loading times on its mobiles so they are more convenient to use.

According to a report by Forrester there are 30 billion mobile moments happening every day. These moments are defined by Forrester as times when somebody turns to their mobile phone in order to get information or a service immediately. They also found that 70% of US adults spending almost two hours per day on their mobiles. So when someone turns to their phone for a mobile service. Will you be there?

Whilst mobile use is increasing, research shows that smartphone ownership is nearing saturation. Pew Research Center has found that 86% of Americans own a smartphone, up only 1% from 2014. At the same time ownership of computers and laptops has reduced from 89% in 2012 to just 78% in 2015, again highlighting the switch to mobile devices including smartphones and tablets.

So what’s to come for hospitality and mobile use in 2016? A report from eMarketer has predicted that “In 2016, 51.8% of travellers who book trips via digital means will do so using a mobile device” The report also states that; “Out of the 48.5 million US adults who book trips via mobile this year, 78.6% (38.1 million) will use a smartphone to do so.”

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Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Hospitality professionals start small & seize opportunity

In a Survey by the American Hotel & Lodging Association, more than half of respondents said 50% or more of their managers began their hotel careers in an entry-level position. Half said that 50% or more started in minimum wage positions.

With the growth the industry is seeing at the moment, job opportunities are coming in fast. Getting each new operation up and running opens up a variety of vacancies. New entry level roles could be the starting point for a great career for those applying.

In these videos four successful hospitality professional discuss handwork, dedication and passion for the industry:

More opportunities may become available within existing hotels if leaders are confident in the market remaining positive. The Barclays Employers’ Survey 2015 found that ‘77% of business still think that sales lead to job creation – as opposed to job creation leading to sales’.

It has been reported that the opening of the new InterContinental London – The O2 this year, would create 650 new jobs (including peak time temporary roles). The hotel is managed by The Arora Group under a franchise arrangement with the InterContinental Hotels Group (IHG).

A new hotel by the Beannchor Group in Belfast made local news for creating 100 new jobs, whilst in Glasgow a new Radisson hotel was reported to be bringing 60 new jobs opportunities to the area.

This summer, Travelodge created a new careers website in order to drive recruitment for 750 new jobs; 600 in existing hotel and 250 in new hotels to be opened before the end of the year.

One company pushing to get young people to start their career in hospitality is Hilton, which has an annual Global Career Awareness Month. In May they hosted 750 events globally reaching 90,000 young people.

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Video clips produced by ybc.tv for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Independent hotels find platforms for growth

Independent hotels have more access to technology and distribution channels than ever before. Could this help them compete with the groups?

According to a report from PWC; ‘about 40-60% of Europe’s hotels are currently estimated branded’. There are more unbranded hotels in rural areas than in cities and airports. The report also states that branded hotels across Europe are set to increase.

So how can independent hotels keep growing? Our experts discuss:

There is a mix of, technology companies, OTAs, and hospitality companies offering services for independents. These include: TripAdvisor, WorldHotels, and ChoiceHotels as above. Plus Umi Digital, AccorHotels, Sabre, TravelClick, and more.

This is a big market to tap. Almost 40% of the UK hotel market is independent hotels, according to a report from STR global. In August last year independent hotels in the UK had a better ADR than branded hotels, at £119 compared to £79. STR’s report indicates that this is largely due to the tendency for independent hotels to be a classed as upscale or luxury, whilst there is a strong economy hotel segment of branded hotels. The report also found that occupancy in branded hotels last year was 4% better than independents (73% vs 77%).

Upscale boutiques are in demand in America. According to a report from The Highland Group, the boutique hotel industry in the US is growing at a 3.1% annual pace and demand is growing at 6.7%. The report classes boutique hotels as ‘independent or part of small brands’ with ‘40 to 300 guest rooms’ and ‘generally upscale to luxury’.

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Video clips produced by yBC for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Hotels invest in innovative design

Last month IHG announced plans to open a new Hotel Indigo in The Sustainable City (TSC), a new large scale community development in Dubai. The city is intended to have the highest sustainability standards and the new Hotel Indigo will match this with a building designed to recycle all waste water and use 100% solar power. Also in May an innovative hotel design Snoozebox won the Good Design Award Trophy in the Architectural Design category at the Good Design awards in Sydney.

In this briefing four experts discuss the value of innovative design:

Great design ideas are helping hotel companies modernise, differentiate, increase sustainability, and tap into new markets.

Snoozebox is a self-contained portable hotel which can be set up at events and festivals as an alternative to camping. Each room has an ensuite wet room bed a TV and wi-fi. Each pod room is 7.5 square metres. Snoozebox is providing accommodation at many of the festivals around the UK this year including Glastonbury.
IHG’s Hotel Indigo brand has been around since 2004, it is focused on design with each hotel intended to reflect the area it is in and look like a boutique hotel despite being part of a brand.

CitizenM is another brand hinged on design. Its hotels incorporate bright colours, modern style furniture, ‘luxurious living room style lobbies’ and a 24hour canteen and bar to appeal to modern travellers and distinguish itself from more traditional hotel design.

The Good Design Awards is an annual international event which covers design in all industries. The European hospitality industry also has its own European Hotel Design Awards. Last year the wellness hotel the Lanserhof Tegernsee, Marienstein, Germany won the European Hotel Design of the Year Award at EHDA, and The Edible Hotel by Dexter Moren Associates won Tomorrow’s Hotel for a design with an open plan lobby, an edible wall, and an aquarium.

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Video clips produced by yBC for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: Hospitality is a valuable job creator

Travel & Tourism is one of the world’s largest industries and offers many fantastic opportunities for a great career. According to figures from WTTC the industry supports 277 million jobs and generates 9.8 per cent of world GDP. In the UK hospitality currently has a 3 million strong workforce and, in the run up to the general election, is being recognised as a key contributor to the UK economy.

In this briefing four experts discuss hospitality careers and share why they fell in love with the industry:

Key political parties in the UK have mentioned hospitality and tourism in their election manifesto’s, with each pledging to support the sector through various means. The recognition for this suburb industry has been welcomed by the British Hospitality Association, an organisation which campaigns for jobs and growth in the industry. The organisation is campaigning for 60,000 new job opportunities for young people in the UK by 2016 and has recently reached the 40,000 milestone. A report from the TourismAlliance, UK Tourism Statistics 2014, states that, ‘Tourism is the fastest growing sector in the UK in employment terms, responsible for almost one third of the net increase in UK jobs between 2010 and 2013.’

According to UNWTO one job in tourism generates 1.5 jobs elsewhere. UNWTOs publication Measuring Employment in the Tourism Industries says; ‘International tourism continues to exceed expectations, supporting economic growth in both advanced and emerging economies and bringing much needed support to job creation, GDP and the balance of payments of many destinations.’

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Video clips produced by yBC for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Briefing: 60% of Consumers are acting on their conscience

Consumers’ buying choices are increasingly influenced by the social responsibility that brands have displayed, according to new research by Nielson. In the survey, 60% of global online consumers said that they are willing to pay extra for products and services from companies that are committed to positive social and environmental impact. This has increased from 45% in 2011. These attitudes were found to be strongest in the Asia-Pacific (64%), Latin America (63%), and Middle East/Africa (63%) regions.

In this briefing experts comment on how responsible business practice can drive profits and corporate value:

In September in the UK an initiative called Social Saturday encouraged consumers to buy from social enterprises. In relation to this event Social Enterprise UK and the Cabinet Office polled British adults on their attitude towards social responsibility in business. 1 in 3 people surveyed said they feel ashamed when they buy from a socially irresponsible business and 26% said that there is a stigma attached to buying from socially irresponsible businesses.

But this is more than a passive reaction to corporate responsibility. Research by Cone Communications and Echo Research found that 27% of global consumers believed that consumers themselves can have significant positive impact through their purchases. The study surveyed 10,000 citizens in 10 of the largest countries in the world (by GDP), and found that 91% of people believe companies must go beyond the minimum standards required by law to operate responsibly. It would seem that this is a matter that people not only care about but are willing to confront. Nearly two-thirds of those surveyed (62%) said they use social media to address or engage with companies around CSR and 93% said they will be more loyal to a company that supports CSR.

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Video clips produced by ybc.hpgcms.wpengine.com for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

Gen Y seek freedom from old style management

Generation Y will be the largest part of the workforce in 2015. A new study from Ashridge Business School and MSLGROUP says that Generation Y have a completely different attitude to work. The study shows that Generation Y, also known as Millennials, no longer go into the world of work with the expectation of staying in one organization and working their way up. In fact, 43% of those surveyed worldwide said they intended to leave their current company in the next two years.

Experts from the hospitality industry comment on the Generation Y workforce:

Research shows that Generation Y would prefer to have some freedom to live their lives rather than dedicate all their time and energy to work. On average, 89% of the working under 30s surveyed by Ashridge in India, China, UK, France, USA and Brazil, said that work-life balance was important to them. This tallies with research by PwC in which 71% of their millennial employees said that work demands interfere with their personal lives. This report also found that: ‘Millennials do not believe that productivity should be measured by the number of hours worked at the office, but by the output of the work performed.’

Generation Y also wants a new type of manager. In the Ashridge survey, overall, less than a third (31%) felt the role their manager played fitted what they want. They consistently said their ideal manager would act as a friend or mentor. In their working lives, a sense of achievement, feeling valued or respected, and job security were also highly valued.

This week’s videos feature comment from:

  • Nicolas Mayer, Partner, Industry Leader – Lodging & Tourism, PWC on how to maximise your Gen Y workforce.

  • Karen Friebe, Partner, Berwin Leighton Paisner LLP on increasing flexibility in work.

  • Ömer İsvan, President, Servotel Corporation on working with a new generation of talent.

  • Wolfgang Neumann, President & Chief Executive Officer, The Rezidor Hotel Group on company leaders connecting with Gen Y staff on social media.

If you’ve been sent to this page and you’re not yet on the circulation list to receive these regular briefings and you would like to sign up, you can do see here. It’s free.

Video clips produced by ybc.hpgcms.wpengine.com for the Hospitality Channel, including interview from industry conferences such as the IHIF conference as well as specific Hospitality Channel shoots.

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