An Industry Research on the Hospitality Industry

January 2022

Country Report – Global Coverage

Target Sector – Hospitality Industry

Report Coverage –

An Industry Research on the Hospitality Industry

Industry Ecosystem –

• Industry collectively includes Travel, Lodging, Event Management, Food, and Beverage, Recreation and Entertainment
• Major Industry Players –

1. Travel – Expedia, Qatar Airways, Avis, etc
2. Lodging – Hilton, Marriot, Caribbean, etc
3. Event Management – HICAP, Ovation Productions, etc
4. Food and Beverage – Starbucks, Subway, Compass Group, etc
5. Recreation and Entertainment – Universal, Disney Land, etc

Executive Summary –  

1. Hospitality industry is likely to reach USD 6,087 Bn in 2025, recovering from COVID-19 impact as travel restrictions become relaxed globally.
2. Industry continues to witness growth both in terms of operating and financial performance, mainly driven by mergers and acquisitions.
3. Hospitality industry’s digital mission is to create and continually innovate exceptional, immersive guest/passenger experiences.
4. Industry is focusing on IoT, VR/AR to deliver a rich and satisfying experience to travelers.
5. Hospitality industry is embracing digital transformation for omnichannel ordering and distribution, connected experience, and operational agility.
6. Industry players are prioritizing technology investments to streamline their processes, reduce costs, increase revenue generation and improve the level of customer experience.

Industry Overview –

• Market Overview –

1. Growth in the hospitality market is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact
2. Based on the market segmentation, industry experienced the highest growth in the food & beverage sector driven by an increase in food deliveries and cloud kitchen

• Trends, Drivers & Challenges –

1. Trends – In the post-COVID environment, hotels are focusing on innovative solutions that set them apart from industry incumbents by providing an exceptional guest experience. Hoteliers boost their bleisure travel bookings and use the trend to attract more planners. Hoteliers boost their bleisure travel bookings and use the trend to attract more planners.
2. Drivers – Consumers are focused on experiential travel, spending more money on dining out, travel, and recreation.
3. Challenge – Driven by growing customer expectations related to hygiene standards, exceptional service, and customized experiences, the industry is facing a vast set of challenges like the outbreak of COVID-19 pandemic, change in guest expectations, change in the technology landscape, and growing local hospitality hosts and rising competition.

• Impact of Covid 19 –

4. It is estimated that travel and tourism will experience an economic loss of over USD 4.7 trillion in global GDP if the situation of the pandemic does not improve shortly.
5. Customers are preferring increased frequency of cleaning and disinfecting procedures to improve their stay in hotels post-pandemic.
6. Digital Technologies such as cloud, robots, AI & analytics have emerged as essential for hospitality businesses in a post-pandemic future.

• Key Players –

1. Compass Group plc provides food and support services across five market sectors, operating in around 45 countries. The company’s priority is organic growth and continues to focus on driving new business, retention, and consumer sales
2. Starbucks is an international chain of restaurants that retails handcrafted coffee, tea, and fresh food items. As part of its continued expansion plan, the company is focused on elevating the customer experience, strengthening its market position, and investing in innovation to meet customer demand.
3. Hilton Worldwide Holdings Inc. is an American multinational hospitality company that manages and franchises a broad portfolio of hotels and resorts. Hilton’s strategic objectives include the continued expansion of its global footprint and leveraging digital technologies to enhance customer experience.

Recent Developments across the hospitality industry –

• New hospitality technology entrants – Technology has become a key component in the hospitality industry to impress guests, streamline operations and generate more revenue.
• Mergers & Acquisitions –

1. Players in hospitality industries seek to expand their portfolios through targeted acquisitions of smaller regional chains.
2. Players in hospitality industries through strategic acquisitions seek to enhance industry positions and business capabilities.
3. Players in hospitality industries continue to expand into new markets and grow share in those markets through strategic acquisitions.

Technology Landscape –

• IT Spending –

1. Not just client experience transformation, the hotel industry is also investing in technology to optimize its internal operations.
2. Internationally, the hospitality industry is forecasted to increase IT spending by 2025 to increase revenue and improve customer experience.

• Technology Trends –

1. Investments in technology are made to streamline processes, reduce costs, lower staff workloads, and improve the level of customer experience delivered.
2. The usage of QR codes in hotels can streamline daily operations, improve ROI, increase customer retention, and deliver a high level of customer service.

• Tech Players –

1. Accenture is among the leaders in the industry, providing consulting services, whereas Sabre is a technology company, specifically serving the hospitality industry. It serves travel companies to keep pace with their competitors by providing digital solutions by transforming them into intelligent operations.
2. Atos delivers a wide range of innovative solutions that allow hospitality organizations to enhance customer experiences and optimize business processes.
3. Cognizant helps organizations to transform themselves by offering products, services, and infrastructure to serve the new age traveler.
4. Infosys partners with travel and hospitality enterprises to navigate business challenges and grow revenue by modernizing the IT infrastructure, reservation systems, customer service, and back-office processes.
5. Wipro leverages technologies like Big Data analytics through Opera Signal Hub and cognitive computing platform through Wipro HOLMES.
6. Sabre Corporation is the technology provider, offering software, data, mobile, and distribution solutions to the global travel industry.

• Deal Analysis –

3. The maximum number of deals is expected to be renewed in 2024 and 2025 to witness the lowest TVC renewal (USD 3.185 Billion)
4. Accenture and Atos lead with the maximum number of deals
5. Managed and Cloud Software Services lead with the maximum number of deals

Why should you read this report?

This report intensely illuminates the research on the Hospitality Industry in India with insightful analytics on the industry and its aspects.