Sir David Michels on the shape of the coming recovery

The outlook for 20 key markets, from China and the USA to Germany, Brazil and Libya

Is it time to change in-room technology standards ?

How the crisis will affect luxury in 2010

Editorial input from 25 hotel industry CEOs

2010W h a t t o e x p e c t i n t h e y e a r a h e a d

This excerpt from the Hotel Yearbook 2010 is brought to you by :

Ecole hôtelière de LausanneThe Ecole hôtelière de Lausanne (EHL) is the co-publisher of The Hotel Yearbook. As the oldest Hotel School

in the world, EHL provides university education to students with talent and ambition, who are aiming for

careers at the forefront of the international hospitality industry. Dedicated to preparing tomorrow’s executives

to the highest possible level, EHL regularly adapts the contents of its three academic programs to reflect the

latest technologies and trends in the marketplace. Since its founding in 1893, the Ecole hôtelière de Lausanne

has developed more than 25’000 executives for the hospitality industry, providing it today with an invaluable

network of contacts for all the members of the EHL community. Some 1’800 students from over 90 different

countries are currently enjoying the unique and enriching environment of the Ecole hôtelière de Lausanne.

Boutique DESIGN New YorkBoutique DESIGN New York, a new hospitality interiors trade fair, will coincide with the 94-year-old International

Hotel/Motel & Restaurant Show (IH/M&RS). Designers, architects, purchasers and developers will join the hotel

owners/operators already attending IH/M&RS to view the best hospitality design offerings as well as explore a

model room, exciting trend pavilion and an uplifting illy® networking café.

Hospitality Financial and Technology Professionals (HFTP)HFTP provides first-class educational opportunities, research and publications to more than 4’800 members

around the world. Over the years, HFTP has grown into the global professional association for financial and

technology personnel working in hotels, clubs and other hospitality-related businesses.

Bench EventsBench Events host premier hotel investment conferences including the International Hotel Investment Forum ;

the Arabian Hotel Investment Conference and the Russia & CIS Hotel Investment Conference. Bench Event’s

sister company, JW Bench, is a benchmarking company that has launched the Conference Bench and the

Productivity Bench. An industry first, the Conference Bench, measures performance data for conference space

in hotels throughout Europe.

Cornell University School of Hotel AdministrationFounded in 1922, Cornell University’s School of Hotel Administration was the first collegiate program in

hospitality management. Today it is regarded as one of the world’s leaders in its field. The school’s highly

talented and motivated students learn from 60 full-time faculty members – all experts in their chosen disciplines,

and all dedicated to teaching, research and service. Learning takes place in state-of-the-art classrooms, in the

on-campus Statler hotel, and in varied industry settings around the world. The result: a supremely accomplished

alumni group-corporate executives and entrepreneurs who advance the industry and share their wisdom and

experience with our students and faculty.

HsyndicateWith an exclusive focus on global hospitality and tourism, Hsyndicate.org (the Hospitality Syndicate) provides

electronic news publication, syndication and distribution on behalf of some 750 organizations in the hospitality

vertical. Hsyndicate helps its members to reach highly targeted audience-segments in the exploding new-

media landscape within hospitality. With the central idea ‘ONE Industry, ONE Network’, Hsyndicate merges

historically fragmented industry intelligence into a single online information and knowledge resource serving

the information-needs of targeted audience-groups throughout the hospitality, travel & tourism industries…

serving professionals relying on Hsyndicate’s specific and context-relevant intelligence delivered to them when

they need it and how they need it.

WATGOver the course of the last six decades, WATG has become the world’s leading design consultant for the hospitality

industry. Having worked in 160 countries and territories across six continents, WATG has designed more great

hotels and resorts than any other firm on the planet. Many of WATG’s projects have become international

landmarks, renowned not only for their design and sense of place but also for their bottom-line success.

www.watg.com

HOTELyearbook2010

TRAVEL IN 2010

We asked leading travel industry futurist ROHIT TALWAR, CEO of London-based FAST FUTURE RESEARCH, to explore the bigger-picture trends and developments that could shape the travel and tourism landscape in 2010.

New ways to see the world

Here are my top ten forecasts for global travel in 2010 :

1. Air today, gone tomorrow

As airlines continue to struggle, airports will be under intense

pressure to diversify their business models and ensure they

can survive under even the worst-case economic scenarios.

When the final calculations are done, the airlines globally

will have lost $8-10 billion in 2009. In addition, the pattern

of airline closure continues : airlineupdate.com lists 90 airline

failures and 7 mergers for 2008 and a further 32 failures and 6

mergers for 2009. We can expect 30 to 40 more failures and

further mergers by the end of 2010. This will result in further

reductions in schedules and flight frequencies – particularly for

routes in Europe and the US. This could lead to airports having

to close and will create major challenges for some destinations

in attracting sufficient travelers.

2. Staycationing

Nervous consumers, in Western economies in particular, will

continue to exercise caution in their spending decisions for fear

of a « double-dip recession. » The middle classes will stay at

home in large numbers and vacation in their own country.

3. Asia Asia

The speed with which Asian economies are recovering from

the downturn is highlighting their increasing power and

importance. This will see a significant rise in business tourism

as foreign firms tour the region in search of partners

and opportunities.

4. Rail reborn

The arrival of more high-speed trains in Europe and

environmental considerations will see a significant rise in

people taking vacations by rail.

5. Cruise it or lose it

A massive recent increase in capacity, coupled with sluggish

demand, will result in continued bargains for cruise passengers

– particularly in the US.

6. Mind the gap

Rising numbers of people of every age group will choose to

take a year, half-year or quarter off to do extended travel –

possibly combining working opportunities and volunteer work

on their travels.

7. Agent seeks model for profitable relationship

The desperation to find a viable travel agency business model

will intensify. As airline commissions continue their inevitable

slide to zero, agents will find themselves squeezed as they

struggle to compete with Internet travel booking services for

straightforward transactions like airline ticketing. Only those

who can provide a truly fantastic service will be able to charge

their customers a fee for the value added. Otherwise they will

have to choose between turning the customer away or doing

the airline booking for free in the hope of building customer

loyalty and then charging the customer fees for other more

complex bookings in the future.

8. We love Grandma

Stresses in the workplace and concerns over job security will see

increasing numbers of parents choose to stay at home and work

while their children take vacations with their grandparents.

9. Ethnocations

The quest for authenticity means people will increasingly seek

out the opportunity to visit and live with tribal people in their

indigenous habitats.

10. The world in your hand

2010 will be the year when we see an explosion of take-up

in the travel applications that are emerging for smartphones

such as the Apple iPhone. You’ll be able to get background

information on every cultural site you visit, see animations

or videos of how people used to live in ruined cities such as

Pompeii, check out what every seat looks like on a particular

plane before making your choice, swap your home for a

vacation and receive instant personalized offers as you walk

past particular shops in a tourist destination.

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labClient:Publication:Insertion Date:Size:Colour/Trim:Position:

PricewaterhouseCoopersHotel Yearbook8:12:2009Full PageFull Colour with BleedN/A

Problems?Contact: Jody Louie+44 20 7663 7119jody@madebylab.com

pwc.com/climateready+44 (0) 207 804 5399

Climate change legislation is coming.

PwC is helping clients across the hospitality and leisuresectors to prepare for and mitigate against the financial impacts.

Are you ready?

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