The global recession has affected almost every industry in one way or another over the past 18 months and travel and tourism is no exception. Hoteliers the world over have seen occupancy levels drop off as more and more people looked to stay at home for their annual vacation. Whilst hotels in the budget category have shown a degree of resilience against the mighty credit crunch, the luxury brands have endured a rockier time. That is until now….
Last month the worlds leading hoteliers gathered in New York at the International Hospitality Industry Investment Conference to examine what lies in store for the remainder of 2009 and beyond. On the whole the event was largely positive with many recognisable brands stating that they believed the worst was behind them. In fact some companies indicated they should start to see signs of the year improving. Many believe their remains considerable pent up demand from last year as many businessmen and companies put meetings on hold, Gary Mendell from HEI Hotels and resorts states “Even if there is a down market, you can’t not have people getting together for two years in a row” an opinion repeated by both the Hilton and Starwood Hotel Groups CEO’s.
This is undoubtedly some positive news, what is of even greater interest is the sentiment towards Brazil. Accor CEO Giles Pelisson spoke optimistically of the economies of Brazil and China saying they “have some muscle and can deliver the strongest growth”. With only 12% of hotels in Brazil having an affiliation with an internationally distinguished name, luxury hoteliers the world over are recognizing the importance of the Brazilian market.
The Luxury sector is an area of particular importance to Christopher Nesseta, CEO of the Hilton Hotels Group, he believes the coming decade is going to offer some exciting developments in the world of luxury services, and in a determined vote of confidence, Hilton are expanding their luxury presence worldwide by developing several new Waldorf-Astoria projects by the end of 2009. An attitude echoed by Frits van Paasschen the CEO of Starwood Hotels & Resorts.
This blog was adapted from the article Hotels CEOs: ‘The Worst Is Behind Us’ by Lauren Darson writing for www.management.travel
