According to the Hellenic Chamber of Hotels in Greece, some 65% of hotels in the country are on the verge of bankruptcy. The outlook is equally dire in other tourist-heavy economies across Europe. EU officials are scurrying behind-the scenes to salvage what they can of the summer tourist season. From a supply-side perspective, policy initiatives … Continue reading European Travel Industry Withers Amid Coronavirus
Theme Parks Benefit From Unexpected Investors
Tottering theme parks may find new life in corporate venture capital, largely for knowledge-transfer reasons. And while it may be too early to identify a trend, we are intrigued by the announcement that China’s Fuson Group will be buying a minority stake of the Dutch-themed Huis Ten Bosch park in Nagasaki, Japan. Details of the … Continue reading Theme Parks Benefit From Unexpected Investors
Riyadh Drills for ‘White Oil’
Tourism has never been a priority in Saudi Arabia, ostensibly because of visitors’ lack of sensitivity to local customs. Peripatetic businessmen are one thing; individual or group travelers wandering about the country are quite another. Better to focus government energies on Muslim arrivals at Jeddah, en route to Mecca and Medina. All that is about … Continue reading Riyadh Drills for ‘White Oil’
China’s Middle Class Sours on Cruise Industry
The sky was the limit. According to the China Cruise & Yacht Industry Association, the number of cruises from Chinese home ports grew from 28 in 2008 to 927 in 2016. As recently as May 2017, Bloomberg ran an article entitled, “Cruises Boom as Millions of Chinese Take to the Seas.” That outlook is now … Continue reading China’s Middle Class Sours on Cruise Industry
Geography Lessons Are Expensive
Marriott usually excels in diplomacy. It has hotel properties in more than 120 countries and territories. However, the worldview held by one corner of its marketing department has landed the firm in hot water. Chinese authorities shuttered its local website, albeit only for a week, over an online survey. On the form, Marriott listed Tibet, … Continue reading Geography Lessons Are Expensive
Robots Streamline Air Travel
Airlines are getting serious about robots. Think ticketing kiosks on wheels, turbocharged with Siri. Air New Zealand just finished a test that involved using a robot to check-in passengers. The flag carrier is not the first to use robots to revamp customer service. There have been similar experiments in Seattle and Amsterdam. Eva Air uses … Continue reading Robots Streamline Air Travel
‘They Have a Credit Card or They’re Paying Cash’
Medical tourism is a cutthroat business. According to US-based Patients Beyond Borders, some 14 million patients worldwide visited overseas hospitals and clinics in 2016. The commercial intensity has much to do with the cash infusion at stake. So there is little surprise that Tucson—home to medical science-oriented University of Arizona—wants to get into the game. … Continue reading ‘They Have a Credit Card or They’re Paying Cash’
For Investors, Hotels Become Utilities
Shareholders may soon shift their attention from electric companies to hospitality-management firms for income considerations. Hoteliers have long mothered their profits to accommodate capital investment. Yet in a curious turn of tradition, InterContinental Hotels Group, the UK-based owner of the Crowne Plaza and Holiday Inn brands, declared a special dividend this week for investors based … Continue reading For Investors, Hotels Become Utilities
Hotel Investors Dismiss Large and Lumbering
Marriott is now on the defensive about its Starwood acquisition, heralding the benefit of choice. That notion rings hollow amid the current economic setting. Shareholders seem to agree; the stock price continues to languish. Corporate travel departments after all are charged with compressing travel costs, not expanding room-selection alternatives. In our view, the best news … Continue reading Hotel Investors Dismiss Large and Lumbering
Hotel Chains Take Aim at Online Agents
Expedia and Travelocity may have seen better days. The major hospitality brands increasingly prefer to sell their rooms through their own websites, rather than distribute that inventory through third parties. It seems that management companies have grown tired of carving up their profits and attracting flighty guests. Customer loyalty is an ever-growing business metric. The … Continue reading Hotel Chains Take Aim at Online Agents