"Even
with the current climate of economic uncertainty, the THL sector may
have reason to be optimistic," said Adam Weissenberg , vice
chairman and U.S. leader of Deloitte's travel, hospitality and
leisure sector, Deloitte LLP. "However, there are a number of
issues THL companies should take into consideration in 2013,
including increased competition in the evolving marketplace, the
pressing need for brand differentiation and the use of technology to
improve customer service and operations."
According
to Deloitte's report, some key issues affecting the THL sector in
2013 include:
Heightened
domestic and global competition: Sector players face a strong level
of competition. Existing THL firms face the prospect of even higher
competition given the relative ease with which new players may enter
the marketplace.
Differentiation
through the 'upturn': Businesses competing fiercely for market share
may be forced to incur expenses to differentiate their offerings. If
the economic recovery is less than robust, customer pushback may
induce pricing pressures. The result may be a greater likelihood of
declining revenue and lower profits.
Global
expansion and growth in emerging markets: Business climate
improvements in established markets appear positive for industry
players. Still, many THL companies continue to focus on increasing
their presence in less saturated, faster growing emerging markets to
expand customer reach.
"THL
companies may better manage operations and help to achieve growth in
the year ahead by attacking business complexities to improve cost
structure amid heightened competition and by enhancing the consumer
experience to build loyalty," Weissenberg added. "Additionally,
companies should consider the growth potential of new markets, such
as those in Asia and South America, and harness technology to improve
operations and increase hassle-free experiences for customers."
