SUPPORTING THE GLOBAL HOSPITALITY TRENDS

GUGLIELMO L. BRENTEL

APRIL 2016

TRENDS IN THE GLOBAL HOSPITALITY INDUSTRY

of WORLD GDP

9,8%

OUR INDUSTRY TODAY

1/11 JOBS WORLDWIDE

TRAVEL & TOURSIM CONTRIBUTED A TOTAL OF

US$ 2.4 TRILLION TO THE WORLD GDP

Sources:

• WTTC Economic Impact of Travel & Tourism: 2015 Annual Update Summary

• WTTC: Economic Impact of Travel & Tourism 2015-Autumn Update (Nov 2015)

Europe 41%

Asia & Pacific 30%

Americas 14%

Africa 7%

Middle East 8%

2030 Projections

INTERNATIONAL TOURIST ARRIVALS BY REGION

Europe 51%

Asia & Pacific 23%

Americas 16%

Africa 5%

Middle East 5%

2014

Europe 46%

Asia & Pacific 26%

Americas 15%

Africa 6%

Middle East 7%

2020 Projections

1.2 Billion

FASTEST GROWING MAJOR COUNTRIES: INDIA, CHINA, THAILAND, INDONESIA, PERU AND KENYA

Sources:

• WTTC Economic Impact of Travel & Tourism: 2015 Annual Update Summary

• UNWTO Tourism Insights 2015

1.4 Billion 1.8 Billion

OUR INDUSTRY TOMORROW

Expected to continue exceeding

the wider economy and outpacing

the majority of other sectors

3.8%

Of which 39% in

Asia Pacific

1.5 MILLION

Reaching close to 350 Mio

jobs worldwide

+72.9 Mio NEW JOBS FORECAST BY 2025 ANNUAL GROWTH RATES

FROM 2015-2025 GUEST ROOMS

IN GLOBAL PIPELINE

Sources: WTTC Economic Impact of Travel & Tourism: 2015 Annual Update Summary

STR Global Pipeline Outlook, October 2015

IN 2025, TOTAL TRAVEL & TOURISM FORECASTED TO CONTRIBUTE:

10.5% TO THE WORLD GDP

10.7% TO GLOBAL EMPLOYMENT

TECHNOLOGY INDUCED CHANGES

1970

3 Weeks

1980

3 Days

1990

3 Hours

2000

3 Minutes

2010

3 Seconds

Time required to make a hotel reservation in NY (from Switzerland)

2016

Immediate

THE CONNECTED CUSTOMER 2016

• Buying decision controlled by the customer

• Fully transparent prices on the net

• Reliance on social media and peer reviews to

select a location / hotel

• New technology-enabled marketing channels

• Use of concurrent devices for search, selection

and booking

• Shift of mindset towards sharing economy

Urgent need to regain the high ground and stop the uphill battle

ONLINE TRAVEL AGENCIES ARE SURFING THE CONNECTED WAVE

• OTAs control customer data and loyalty

• Some hotels give them the best price for a room

• Commissions rising due to increased cost of Google

clicks

• Competition reduced to best pricing and/or

commission levels

• Aspiration towards market domination

• Expected market entry of Google

DIGITAL DISRUPTION HAS ALREADY STARTED

Source: ibmforentrepreneurs.com

World’s largest taxi company owns no taxis (Uber)

Largest accommodation provider owns no real estate (Airbnb)

Largest phone companies own no telco infrastructure (Skype, WeChat)

World’s most valuable retailer has no inventory (Alibaba)

Most popular media owner creates no content (Facebook)

Fastest growing banks have no actual money (SocietyOne)

World’s largest movie house owns no cinemas (Netflix)

Largest software vendors don’t write the apps (Apple, Google)

Opportunities:

• Target longer stays

• European vacation time VS disposable income

• Philosophy: “Quality will create Quantity”

Value Proposition:

• Location, Location – Experience, Experience

• Pay only for the services you use

Competitive advantages:

• Expert in Digital, Mobile and Social Media

• Big data and opt-in customer profiling

Quality Control - Critical Success Factor:

• Dual Customer and Host feedback

Business Model:

• Commissions: 3% Host & 9 % Client

“Only one trained Hotelier in the company”

AIRBNB – LIVING VS. TRAVELING - WHAT HOTELIERS CAN LEARN...

Launched in 2008, 2mio listings worldwide:

WHAT IT MEANS FOR TRADITIONAL HOTELIERS

REGAIN DIRECT ACCESS TO CLIENTS FROM OTAs, AIRBNB AND ALIKE:

• REINFORCE DIGITAL SKILLS

• PRESENT YOUR PREMISES WITH EMOTION THROUGH STORYTELLING

• OFFER AN EXPERIENCE - NOBODY TRAVELS FOR A BED

• CONVERT CLIENTS OF ALL AGES TO FANS / FOLLOWERS

• FACILITATE A COMMUNITY AROUND THE CUSTOMER

• IMPROVE COMPETITIVENESS IN PRICING AND CANCELLATION POLICIES

OR ELSE: GIVE UP YOUR BRAND AND PROFIT TO OTAs AND …

… END UP JUST CLEANING YOUR ROOMS

THE SEVENTIES ARE DEFINITELY OVER…

TRENDY NEW INNOVATIVE PROJECTS GET OFF THE GROUND

MORE THAN A HOTEL… SOME OFFER A DESTINATION

OTHERS DEVELOP HYBRID FLAT / HOTEL MODELS

CLEAR POSITIONING ENABLES DIFFERENTIATION

Family Millennials

Retirees Business travelers

OTHER INDUSTRIES DIVERSIFY THEIR PRODUCT PORTFOLIO TO SURVIVE

THE WATCH INDUSTRY HAD TO REINVENT ITSELF -- ALL BUT A TIME PIECE

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EHL VISION / MISSION

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‘What are EHL Students?’

Video

VISION

TO BE THE PREMIER, WORLDWIDE REFERENCE IN HOSPITALITY EDUCATION

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MISSION

TO HELP TALENTED STUDENTS AROUND THE WORLD BUILD A SUCCESSFUL AND FULFILLING HOSPITALITY CAREER

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OUR DIFFERENCE

ROOTED IN SWISS VALUES

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EHL STRATEGY TO ADDRESS THE CHANGING LANDSCAPE

EHL GROUP STRATEGY 2016-2022

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Evolution of education portfolio and know-how

AXIS

03

Position as a thought leader

AXIS

01

AXIS

02 AXIS

04

AXIS

05

International development and expansion

Development of the EHL campus

Innovation and entrepreneurship

Building worldwide hospitality careers rooted in Swiss values

1. EVOLUTION OF EDUCATION PORTFOLIO & KNOW-HOW

We owe it to our students to relentlessly adapt our education portfolio to the needs of our rapidly expanding and changing industry, hence ensuring fast track careers to our graduates.

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EDUCATION PORTFOLIO

Bachelor in International Hospitality Management

Master in Global Hospitality Business

Executive MBA

Executive Education

Summer Academy

Vocational Diplomas

NEW

Functional training

Online Masters / education

Regional training

EHL Master Class in Culinary Arts

CURRENT

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WORLDWIDE ACADEMIC RECOGNITION

Association with University of Applied Sciences and Arts Western Switzerland (HES-SO)

Accreditation by the New England Association of Schools and Colleges (NEASC)

EMBA successful evaluation by the Swiss Agency for Accreditation and Quality Assurance (AAQ)

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EHL Group is an important ambassador for the Swiss

education system and values.

Our many academic and industry partnerships with

renowned global players inspire us to achieve new

heights and excellence in global hospitality education.

These partnerships allow us to successfully contribute

to the development of hospitality in emerging markets.

2. INTERNATIONAL DEVELOPMENT & EXPANSION

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INTERNATIONAL NETWORK

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Certified Schools

CESSA, Mexico City

Estácio Universidad, Rio de Janeiro

Sagesse University, Beirut

Ecole hoteliere at Lavasa, Lavasa

Beijing Hospitality Institute, Beijing

Hanyang University, Seoul

Dusit Thani College, Bangkok

King Abdulaziz University, Jeddah

Emirates Academy of Hospitality Management, Dubai

Consulting Offices

Beijing & Delhi

EHL HQ

Switzerland

APAC Regional Office

Singapore

Consulting Engagements

Algeria, China, Philippines, Angola

Partner Universities

Hong Kong PolyU

University of Houston

Rooted in the unique EHL spirit, studying, teaching and researching at EHL Group is an unforgettable experience.

Designed by students for students, the future campus will set new standards and embody the extraordinary sense of community and culture amongst EHL students and alumni.

3. DEVELOPMENT OF THE EHL CAMPUS

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A CAMPUS DESIGNED BY STUDENTS FOR STUDENTS

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By providing a campus and innovation cluster, we intend to offer a place for mind and heart, innovation and entrepreneurship.

Throughout their careers, hospitality managers have access to EHL expert knowledge, tailored programs and an inspiring exchange of ideas and opinions.

4. INNOVATION & ENTREPRENEURSHIP

Status:

850 Student Business Projects since 2001

Business Incubator on campus

30% of Alumni are CEO, Executives or Owners

Innovation & Entrepreneurship Bachelor courses

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Enabling a worldwide dialogue, researching new trends, assessing changing opportunities and risks and the ability to adapt swiftly is at the core of EHL’s drive.

Thus, EHL Group aspires to set the benchmark as a pioneer of hospitality knowledge, know-how and “intelligence de la main”.

5. POSITIONING AS A THOUGHT LEADER

Status:

100 articles published in 2014

Multiple sustainable ecofriendly initiatives on campus

CSR partnerships in developing countries

ALL THESE EFFORTS GEARED TOWARDS INDUSTRY RELEVANCE

International chains

19% Independent hotels

15% Restaurants & bars

11% Consulting

Bank, Finance, Real estate

7%

Retail & wholesale, Consumer goods

6%

Education

4% Travel agencies, theme parks, cruises

4% Healthcare & NGO

3%

HOTEL & F&B

50% OTHER SECTORS

50%

EHL Alumni - Sectors of work

FAST TRACK HOSPITALITY CAREERS

SWISSNESS Worldwide hospitality careers rooted in Swiss values

NUMBER 1 Hospitality management school

INTERNATIONAL REACH Supporting emerging markets

Sound strategy to support industry disruptions

MAA Team Building photo slide show.pptx

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