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The Hospitality Industry is facing serious Challenges

By Raysonho @ Open Grid Scheduler / Grid Engine - Own work, CC0, https://commons.wikimedia.org/w/index.php?curid=40687981

The sector of tourism employs 5 times more staff than the automotive manufacturing, 5 times more than the global chemicals industry and 2 times more than the global communications industry (Fig.Tourism & Travel). And it is obviously a growing industry. The continuous extension of airport capacities throughout the world is glaring proof of this. It is estimated that more than 900 million passengers travelled by Air in the EU in 2015. But today, the hospitality industry must adapt quickly for at least one basic reason: the Internet which already enables almost 50% of the world's population to have instant access to travel offers worldwide and also to price-comparisons websites. It is beyond doubt that the digital marketing will be key to the future development of this sector. The emergence of multi-sided technology platforms such as Airbnb puts pressure on the whole hospitality chain. Since 2008, over 35 million people have found accommodation using the services of this company. A recent study found that each 10% increase in supply on Airbnb causes a decrease of 0.37% in monthly hotel revenue (Rep.Boston University). As a result, the traditional hospitality sector will have to actively pursue its technological transformation and adjust its prices downward to the market situation. But the other great challenge for this industry will be to recruit and retain the talented staff which is fundamental in this type of industry. Indeed, this sector must be dedicated to service excellence because staff quality will remain an important driver of client satisfaction. In this field, new technologies and human capital go together.

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