With the last few months of 2015 quickly coming to a close, the hospitality industry is able to look back on the past few years with a growing optimism for the trends of 2016 and beyond. Specifically, business and leisure travel have increased steadily in the last two years, and is projected to continue along this trend.
Renewed Confidence Since 2008
There are several factors for this renewed confidence in the hospitality and travel industries, but a the most significant one is the economic recovery from the financial crisis of 2008-2009. The resurgence of these industries can clearly be seen in the statistics provided by the Global Business Travel Association (GBTA):
“After hitting its nadir at the end of 2009, global business travel spending has increased 38 percent on a nominal level, according to GBTA’s Business Travel Index.”
Building off of the economy’s renewed desire to travel, the hospitality industry has been expanding and developing new properties, renovating old infrastructure, and improving its service offerings. So far, the overall projections look better than they have for quite some time, and the GBTA additionally issued this statement regarding the upcoming year:
“While we would like to see the overall growth numbers more consistent, signs are good for a solid end to 2015 and a robust 2016,” said Brian Triplett, SVP, Head of Commercial Product, Visa Inc. “These increases in business travel will drive the transition to electronic payments. In turn, this will help companies reduce costs and track and pay for business-related travel expenses more simply and more efficiently.”
Understanding This Trend
The travel and hospitality industry’s rise in popularity is due to a myriad of factors. However what is arguably the most significant of these is the building design styles & services that have been updated to attract and accommodate Millennial business/leisure travelers (we wrote a blog about this earlier if you’re curious).
An online article by Building Design + Construction highlighted some of these factors in 2014:
- Demand for sustainable, healthy, locally authentic properties, with an eye toward attracting Millennials.
- Adaptive reuse of interesting non-hotel buildings that provide a strong sense of place and, often, tax advantages.
- Renovation of existing hotel properties to meet pent-up demand and rising consumer expectations.
- Renewed popularity of large projects mixing hospitality, residential, workplace, entertainment, sports, and other functions.
- Rise of the value-oriented “select-service” category, bridging the gap between luxury and economy.
The hospitality and travel industries can expect to see these trends continue to gain importance among traveling adults. This especially true since more and more Millennials are approaching the age in their lives where they are more often engaging in business and leisure travel. So it seems that this trend will only increase during the coming years.
These, however, are just the trends that we as a hospitality logistics company have noticed. If we are missing anything, please don’t hesitate to comment about it on our twitter page with the hashtag #futurehospitality.
Axis Worldwide offers a wide spectrum of “Industrial & Hospitality” supply chain logistics/managed freight services for Fortune 500 companies. Our expertise, experience, and buying power allows us to offer the best transportation rates and frequent transit times within the US, Canada, Mexico, Asia and Europe. Through our licensed, US bonded facility in Southern California and other facilities, we provide warehouse and distribution solutions to our clients. Our freight services include air freight, both domestic and international, ocean import/export, less than truckload, full truckload, and emergency ground expedites. We also provide emergency air freight services 24/7.