How Is The European Economy Affecting The Hospitality Industry?
The debt crisis affected many countries, such as Portugal, Ireland, Greece and Spain – it left them with huge deficits that they will continue to try get out of for the next decade. Although, current statistics have shown that the hospitality industry was not as affected by the European economic crisis like they had expected. The industry has not necessarily seen a massive drop in hotel bookings, but they have rather seen a change in consumer, which hotels will have to deal with. A crisis like this forces hotels to either adapt or shut down.
Like all industries an economic crisis will most definitely affect it in some way or another, although this has been one industry that saw a change like no other.
An Increase in the Emerging Markets
The emerging consumer is the consumer to place your attention on, instead of the established consumer. Emerging markets have great demographics that include young career starters; these people have just started earning money and are keen to start travelling. This means that young people in the emerging markets will quickly move into middle class and up, which in turn means a greater spending percentage on luxury items and travelling.
Women in BRIC (Brazil, Russia, India and China) countries have seen an increase in education and are going on to make a career for themselves, this enables families to bring in two incomes, which enables more consumer spending. The most interesting statistics to take into consideration are that these emerging consumers make up 3.4 billion people, 20% of this market has the same spending power as the average consumer in a developed nation and by 2020 it is said that the women in emerging markets will spend more than European spending.
An Increase in Bargain Shopping
Consumers who are travelling now EXPECT some sort of discount, free night, free dinner etc. The economic crisis has left consumer trying to get the best deal for the money spent. They understand and pick up that even though the United Kingdom saw two big events this year (The Queens diamond Jubilee and the Olympic Games) they still did not receive as many visitors as expected. Consumers are not stupid, they can pick up on any sign of weakness and realize that in a down economy getting a good deal is easy.
People still want to enjoy life and take a holiday, since the downfall of the economy people are choosing to travel locally instead of more expenses trips overseas. The hotel industry is therefore still benefiting and is seeing more local visitors.
Nicole de Freitas has a keen interest for the hotel industry and still goes on regular holidays to her favourite 4 start hotels Ireland.