1. Five Forces Shaping The Global Lodging Industry

2. Converging Forces
#1: The ascent of leisure travel

3. Number of Vacation Days Per Year
Italy 42
France 37
Germany 35
Great Britain 28
Canada 26
Japan 25
USA 13
Source: WTO

4. The Busiest Night Of The Week?
Saturday

5. Attitudes Toward Business Travel
2005
Agree:
I am actively seeking ways to use
new technology in order to reduce
my business travel in the future % †

8. Converging Forces
#2: The commoditization of air transportation

9. An Uplifting Experience?

11. Passengers By Carrier Type (2000 V 2003)

12. Average domestic fare down 22% in 4 years.
Source: IATA, 2005.

13. Converging Forces
#3: The rEvolution

14. Sources Used When Planning A Vacation
(Leisure Travelers Who Use Airlines/Hotels)

15. Broadband Access
Source: Yankee Group, 2003

16. Online Planning And Buying
In the travel category
More looking than booking
Low conversion rates
Control of transactions
Shopping “BOTS”

17. Meta Search:
The Next Horizon

21. “Just keep lookin’ and you’ll get a better deal.”

22. Growing sense of suspicion about whom to believe because of the filters applied to the information served
Increased reliance on “objective” sources
Growing use of blogs

23. .travel

24. Converging Forces
#4: The vigilante consumer

25. Strategic Control Agree: The single most important change
created by the Internet is giving consumers
like me greater control.

26. Strategic Control Want to participate in the creation of new options
Personalize products and services
Want to control the transaction
Through access to comparative pricing

27. Autonomy Agree: I rely more on my instincts
than the opinions of experts.

28. “My IQ Is Higher
Than Average”
Agree: 63%

29. Marketers and advertisers don’t treat consumers with enough respect.
Agree:
Marketers and advertisers don’t treat consumers with enough respect.
62%

30. Agree:
Very little, if any, marketing and advertising I see has any relevance to me.
59%

31. Refused To Buy A Product Or Service In The Past Year As A Form Of Activism

32. conviction they are right for you; courage to act on them.
Personal
Authenticity:
Clarity of values;
conviction they are right for you; courage to act on them.

33. New Attitude Toward Business

34. Business On My Terms

35. Converging Forces
#5: Emerging markets

36. If There Were Only 100 People

37. 57 would be Asians
21 would be Europeans
8 would be Africans
5 would be Americans

38. 12 would speak Mandarin Chinese as their first language
7 would speak English as their first language

39. 52 would be female
48 would be male
70 would be non-white
30 would be Caucasian
70 would be non-Christian
30 would be Christian

40. 80 would be living in sub-standard housing
70 would be unable to read
2 would own a computer
1 would have a college education

41. The Unpredictable Force: Concerns About Safety, Security and Hygiene

42. Uncontrollable but significant negative impact on demand
Potential impact on national tourism policies

43. Converging Forces The ascent of leisure travel
The reinvention of air transportation
The rEvolution
The vigilante consumer
Emerging markets
….and a growing concern about safety, security and hygiene

44. A Vacation Is
A Birthright

45. Yesawich, Pepperdine, Brown & Russell www.ypbr.com