7:02 PM 2015 Travel, Hospitality, and Leisure Outlook | ||||
#travel market # 2015 Travel, Hospitality & Leisure Industry OutlookInterview with Guy LangfordWhere do you see the opportunities for growth in your sector?US THL companies performed very well in 2014 and they are expecting continued robust growth in 2015. US visitor exports—the measure of money spent by international tourists—are expected to increase four percent to $200 billion in 2015, thanks to improvement in the global economic environment and increasing income levels in emerging markets.¹ THL companies based in the US will continue to seek out international growth opportunities, especially in the faster growing regions of Asia and Latin America. But for THL players, international expansion does not necessarily imply the kinds of “brick-and-mortar” organic capital investment that is common in other industries. Rather, THL players are increasingly using an “asset-light” strategy in which they expand their brand footprint globally without taking on huge capital investment and by exploring joint ventures with local partners. Hotel chains are using this approach in seeking entrée into newer markets through licensing agreements with local operators. Similarly, restaurants are using the asset-light franchise model that works so well for them domestically as they explore opportunities in foreign markets. At the same time, restaurants are collaborating with local companies in these foreign markets to assist with everything from site selection to designing menus and complying with local business standards. Organic service expansion remains an important part of airline global growth strategy. Yet, airlines too employ an asset-light partnership approach in expanding service globally. Alliances such as OneWorld, for example, allow passengers on US airlines to book travel through the domestic carriers but fly on a foreign carrier. Such models let US carriers expand service into foreign markets without incurring the route expansion costs of actually servicing them. Of particular note, US sports teams and leagues are finding fans internationally—boosted by technology drivers, mobile and social—leading to increasingly global brands. That trend will continue, especially in the brand-conscious leagues such as the National Football League (NFL) and National Basketball Association (NBA). Indeed, the success of the NFL games in London—now at three games per season—has prompted discussion to expand into other markets throughout the UK and Continental Europe.
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