Hotel Industry - A brief industry analysis (Marketing)

1.     DEMOGRAPHIC

Fact: Immigration has been increased, and international migration accounts for 69.4% of Canada’s population growth in 2015’s 3^rd quarter.

This is an opportunity because this trend strengthens Canada’s diversification, which is an attractive factors to international tourists.

http://www.statcan.gc.ca/pub/91-002-x/2015003/part-partie1-eng.htm

2.     SOCIO-CULTURAL

Fact: Canada’s festivals and events impact many aspects of the country, especially travel.  Canada has many festivals and events that represent the specific cultures of different cities/provinces/territories across Canada.

This is an opportunities because large festivals and events attracts a large number of visitors and tourists when they occur. Tourists come to explore and enjoy Canadian’s culture through those events, which have been specifically organized and marketed.

Sources:

http://caen-keepexploring.canada.travel/explore#/exf-sortby/recommended/exf-theme/7/exf-view/grid   (explore Canada)

http://www.parl.gc.ca/Content/HOC/Committee/412/FINA/WebDoc/WD6615327/412_FINA_PBC2014_Briefs/FestivalsAndMajorEventsCanada-e.pdf  

3.     ECONOMIC

Fact and trend: Lower gas price reduces fuel cost, accordingly leads to lower airfare.

This is an opportunity because travellers can buy air tickets at better prices, which may increase the demand of travel.

Sources:

http://www.npr.org/2016/01/20/463724352/as-oil-plummets-cheap-jet-fuel-means-better-travel-deals

4.     TECHNOLOGY

Fact and trend: Travel apps on smartphones become a trend in young travellers.

This is an opportunity because youngsters tend to spend more. The convenience of smartphones and apps accommodate them to find hotels and reviews, do booking and share information together.

http://www.mergentonline.com.library.sheridanc.on.ca/reportssearchresults.php?pagetype=industryreportsresults&scrollToTable=off&page=1&searchinput=&compnumber0=&compoperator=and&datestartuserdef=&dateenduserdef=&dateoperator=and&indchked%5B%5D=5010&indregoperator=and&regchked%5B%5D=10&search=Search  

Name of report: North America Hospitality & Tourism Sector, A Company and Industry Analysis, December 2015 (page 16)

5.     REGULATORY

Fact: The overhaul of Temporary Worker Program applies more enforcement on workers. For example: temporary employers are required to re-apply every year instead of 2 years; application fee increases from $275 to $1,100 per worker

This is a threat because those changes cause negative affects on the hotel industry, ie. Labor shortage.

Sources:

https://www.gowlings.com/KnowledgeCentre/article.asp?pubID=3707&lang=0  (Overhaul of Canada’s Temporary Foreign Worker Program)

http://www.hotelassociation.ca/reports/news%20releases/Temporary%20Foreign%20Worker%20Program%20Overhaul%20Will%20Lead%20to%20Greater%20Lodging%20Industry%20Labour%20Shortages.pdf

6.     COMPETITIVE/INDUSTRY

Fact: While other markets, ie. US, Australia, are investing much more in marketing campaigns to attract Chinese travellers, who are significantly lucrative segment for travel industry, Canada reduces the budget for marketing.

This is a threat because the promotion of competitors and the budget cutting of Canada loosen Canada tourism’s competitiveness and encourage Chinese tourists to other destinations.

            Source:

http://www.mergentonline.com.library.sheridanc.on.ca/reportssearchresults.php?pagetype=industryreportsresults&scrollToTable=off&page=1&searchinput=&compnumber0=&compoperator=and&datestartuserdef=&dateenduserdef=&dateoperator=and&indchked%5B%5D=5010&indregoperator=and&regchked%5B%5D=10&search=Search

Name of report: North America Hospitality & Tourism Sector, A Company and Industry Analysis, July 2015 (pare 21)