Home' Hotel Management : HM February 2018 Contents C
entral banks have lowered interest rates, which has given people cash to spend,
supported by quantitative easing through buying assets to appreciate their
value. Now that this job is done, and unemployment is the lowest it’s been in
10 years, people are assuming it’s time to raise interest rates, however we don’t
believe this to be the case.
In normal times, deflation in considered by central bankers as a destructive force. That
is because a reduction in the price of goods is usually associated with a slowing economy
and increased unemployment. In this case, however, deflation is a good thing – at least
Everything from Uber to Airbnb, to the advent of fracking technology, has increased
the supply of certain materials and services, catapulting competition and putting pressure
on prices. Whilst this paints a rosy picture for some; technological disruption poses
increasing threats to traditional, long-established industries.
There are four main focus areas we see for the hospitality and tourism industries in 2018.
RISE OF THE SHARING ECONOMY
The hotel industry is one of the fastest growing sectors of the world, as well as an integral
and indispensable part of the hospitality industry we serve. While the hotel industry
has shown little signs of slowing down over the years, even during economic recessions,
the rise of peer-to-peer markets – collectively known as the ‘sharing economy ’ – has
streamlined the process for supplier market entry, facilitated searchable listings for
consumers, and kept overheads low.
As the size of the sharing economy has grown, so has the magnitude of its economic
impacts. With Airbnb’s peer-to-peer hospitality exchange service now valued at over
US$10 billion, the industry outflows don’t just stop at the hotel room – it impacts the
money guests would have spent on food and beverages at the hotel’s restaurants and bars.
CREATING EXPERIENCES KEY TO CUSTOMER LOYALTY
We all know Airbnb’s services are less than imperfect with many people opting to stay in
our hotels for their additional services, luxury and security. This is why customer loyalty
is more important than ever in ensuring repeat business. Hotel chain brands or well-
designed rooms and facilities are no longer enough anymore – it’s about the experience.
‘GREENING’ HOTEL OPERATIONS
With renewable energy coming in, older coal-fired generation shutting down and half-
built energy policy continuing to boil, Australia’s power storm is expected to continue
in 2018 with electricity bills predicted to rise sharply in the first quarter. Energy
management and conservation programs are also integral for hotels to mitigate exposure
to dramatically escalating energy costs.
ATTRACTING, DEVELOPING AND RETAINING TALENT
As our industries continue to rapidly grow, so does the need for new workers each year.
However, restricted labour market mobility, seasonality of demand particularly in regional
areas, considerable growth in consumer demand and labour competition from other sectors
Chief Executive Officer
Global pickup in growth is the strongest it has
been in 18 to 20 years.
all combine to create substantial labour market gaps across
the industry. The productivity growth of the tourism and
hospitality industry is crucial to Australia’s successful and
ongoing transition from a resources-based economy to a
THE ROLE WE PLAY
As the national superannuation fund for hospitality,
tourism, recreation and sport, we are committed to going
the extra mile in the sectors and communities we serve.
One way we are playing our part in bridging this labour
market gap is through enabling outstanding talent to
be developed and promoting hospitality as a rewarding
career option through a range of scholarships with the
William Angliss Institute, The International College of
Management and the Melbourne Food and Wine Festival.
Hostplus is also dedicated to creating brighter futures
for all Australians. Last financial year (30 June 2017), we
were delighted to again achieve the number one position
as the best performing Balanced fund in the country,
delivering a 13.2 per cent return to our one million
members. Our 144,000 employers, predominantly from
the hospitality and tourism industries, have enjoyed our
industry-leading returns over one, three, five and seven
years – according to SuperRatings’ SR50 survey.
In conjunction with providing the best value
superannuation offering, we continue to innovate and
adapt to changing member and employer needs. In the
past 12 months, we have launched three new investment
options, secured our second round of insurance premium
savings in less than two years and guaranteed these
through to 2020, as well as transitioned to daily unit
pricing allowing close-to real time balance updates and
faster investment switching.
We look forward to continuing this strong momentum
and success from 2017, having been awarded Money
magazine’s Best Balanced and Lowest Cost Super
Fund awards, alongside Rainmaker SelectingSuper’s
MySuper Product of the Year Award and the Long-Term
Performance Award. My team is dedicated to working
closely with our employers and their staff to make 2018
another prosperous year.
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