Demographics and growing economies are changing the shape of future travelers in the world. What factors is the future of hospitality looking to deal with?
Nowadays, flights have reached an accessibility in price that allows almost anyone to get on a plane and see the world.
In fact, between 2017 and 2036, the number of airline passengers is expected to grow at a compound annual growth rate (CAGR) of 4.7 percent. Furthermore, due to the emerging economies middle class access to the market, aviation demand is set to be fueled by the rising affluence of the middle classes in emerging markets.
Going more in detail, Chinese travelers are becoming always more frequent. As Thanos Papasavvas, Founder & CIO, ABP Invest says: the traffic of travelers is growing also due to the expanding Chinese middle class.
Furthermore, emerging economies are expected to play a key role in the growth of travelers. Within the next decade, the number of households making at least US$ 100,000 annually will increase by 30 million, with one out of three of these households located in emerging markets. And just as affluence in these markets continues to rapidly grow, so does their spending on travel. There is a projected growth of $1.3 billion in transportation spending in the period going from 2012 to 2020.
Therefore, leading hotels, recognizing this trend, are now focusing much of their new investments in Asia, with properties being opened in all price tiers, in particular luxury brands.
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