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Hospitality Industry Trends
The foundation of the hospitality industry is customer service, a concept shared by all segments within the industry. Yet maintaining hospitality-related services is anything but a leisure activity.
The challenges of the modern hospitality landscape can be overwhelming. But with more than 150 professionals dedicated full time to the hospitality industry, we combine decades of real-world experience with our trusted methodology to provide a robust range of services.
Whether your focus is on accommodations, gaming, food and beverage, private clubs, resorts, or a combination of these sectors, we can provide the services tailored to help with your ﬁnancial, compliance and strategic business needs.
There are a number of challenges that hospitality companies must face to stay competitive, manage their margins and remain in compliance with government regulations:
- Consolidation: Acquisitions by major hotel and gaming chains have smaller brands concerned about their ability to compete with large hotel and casino management companies. Yet some companies are avoiding destination locations and attracting young target demographics through unconventional branding, enabling them to compete on their own terms with ﬁve-star hotels.
- Changing consumer preferences: There was a time when hotels could boast the best restaurants, but that may no longer be the case. Consumers are spending more on travel and entertainment experiences; a casino or restaurant may no longer be the destination but just one step along the journey.
- Technology: Automation is changing the hospitality experience, allowing guests to check into a hotel, store luggage and order room service without talking to or seeing hotel personnel. Technology is replacing legacy systems and better integrating the front and back offices. Data mining and analysis are also enabling management to tailor their marketing communications to individual customer preferences and enhance guest experiences.
- Capital: Hospitality development in the United States is increasingly being ﬁnanced by overseas investors as well as other emerging sources, such as crowd-funding initiatives. But convincing lenders and other stakeholders to support development means being able to provide a distinctive brand experience in a highly competitive marketplace.
- Disruption: They may not be signaling the end of traditional gaming and hotels, but the disruptions caused by e-gaming and home-sharing organizations are certainly challenging the industry. While older customers are accustomed to standard accommodations and live gambling, younger consumers are attracted to innovative lodging and online gaming experiences. Hoteliers and casino management companies will need to address these changing consumer preferences.
- Growth and competition: Many casinos are adding nongaming amenities such as golf courses, restaurants, lodging and other attractions; hotels are investing in high-tech amenities to attract a younger demographic. These efforts can distinguish a franchise from its competitors as well as generate income as consumer interest shifts away from core attractions.
- Workforce: New overtime rules for nonexempt employees, a rising minimum wage and a tight labor market are having an impact on all hospitality venues.
- Margin management: In a franchise environment—whether it is a casino, hotel or restaurant—controlling margins requires standardization of common processes. From buying equipment to hiring staff, accounting procedures to tax compliance, operators need to keep a close watch on cost-containment opportunities.