A presentation given as part of my interview for my current position.

1. Direction and Health of the
Hospitality Industry:
What are the Trends for
Graduates
David L Jones, Ph.D.
Associate Professor

2. What Ever It Was
That Got You To
Where You Are Today,
Is Not Sufficient to
Keep You There

3. How I’ll Address Topic
 Yesterday, today & tomorrow’s global hospitality
industry – Asian perspective
 Emerging opportunities
 Millennial education

4. Center of Excellence in
Hospitality Industry
 Early Years – Europe
 Shift to North America in 20th Century
 Today – Asia
 “Asian Wave”

5. Legacy for Today & Tomorrow –
Global Leadership
 Europe
 Art of business
 Hotelier
 North America – USA
 Business of the business
 Global development leader
 Innovation
 Asia
 Service culture of the business
 Customer relationship leader
 People!!

7. Direction of Global Leadership
 Anywhere & anyway
 Learning from Asia

8. Understanding Asia
Direction and Health

9. Service Leadership
Characteristics
What Makes Asia the Leader?

10. Qualities of Service Leaders
 Service Vision
 Focus on details
 Bond with customer
 Belief in Others
 Capacity of others to achieve
 Love of the Business
 Pass it on to others
 Passion for service
 Integrity
 Doing the right thing
Berry, 1995

11. Understanding the
Lifetime Value of the Customer
 Lifetime value view, not transaction view –
Chinese Guanxi
 Revenue and profits by average customer over a
lifetime by segment
 Increase average purchase, frequency of visit,
life
 Key to Asian hotel leadership

12. Asian Principles
“3 Plus 1 Factor”
 Respect for elders
 “Face”
 Giving it
 Work before self
 Importance of the status of working for a hotel
 Plus factor: Educational Sponges

13. Healthy and
Prosperous
Greater China
Particularly Mainland China

14. USA Corporate Presences in
Greater China
 Other Industries
 GM
 China exceeds USA in 2010
 Dell Computer
 China is 2nd
 Coach
 China is fastest growing market
 Hospitality Industry
 Yum Brands (KFC, Pizza Hut)
 2011 China overtaken USA as top profit maker
 Las Vegas Sands and Wynn
 Revenues are 3 times more in Macao than LV
 Starwood & Marriott
 Mainland China largest market outside USA

15. People!!!!
What about the “peopleware”?

16. What are the population comparisons?
China 1.3
USA 0.3
0.06
UK
0 0.2 0.4 0.6 0.8 1 1.2 1.4
POPULATION

17. War for Talent
 By 2025 Mainland China will have 23 cities with 5 million or
more population
 No shortage of people
 Getting best and brightest, then keeping them
 60% of college grads don’t find jobs
 Yet, they well change jobs for RMB 500 extra per mos. (less
than USD 86)
 Expat or Local?
 Salaries in Mainland MICE industry almost equal to those in
Singapore
 Biggest issue – Lack of Middle Management

18. What About Mainland China Service
Quality and Industry Knowledge?
 Change in past 20 years
 Spoken English – Very Good!
 International brands versus domestic brands
 Commitment to training
 Ability to develop and retain Middle Managers
 Service is part of the culture

19. Outbound Chinese –
USA’s Future Tourist

20. 100 million outbound
Chinese tourists by 2015!!

21. Mainland China Travel
 Spending by outbound Chinese tourists ranked
fourth-largest worldwide in 2010.
 Up 20.4% year on year
 Top outbound market by 2020 – UNWTO

22. Approved Destination Status
(ADS)
 Visa approval for leisure travel
 Approved travel agents and wholesalers
 Selected countries
 USA is ADS countries
 Biggest issue is USA visa, not China
 Obama speech at Walt Disney World – Jan. 19
 Increase China and Brazil by 40% in 2012

23. Mainland Chinese
Outbound Tourist
Profile

24. eLong – Hotel Guest Decision Making
1. Prices
2. Location
3. Description of facilities
4. Review of other users

25. Chinese Luxury Tourist (CLT)
– Regions to be visited
Market Probe Travel & Tourism Group, 2011

26. Chinese Luxury Traveler –
Best Hotel/Airline Brands
Market Probe Travel & Tourism Group, 2011

27. Chinese Luxury Traveler –
Class of Service
Market Probe Travel & Tourism Group, 2011

28. Reaching the
Mainland Chinese
Tourist

29. Internet & Social Media
 Number of Chinese Internet users has
grown by 1500% since 2000
 Currently
 456 million Internet users
 32% penetration compared to 80% in USA
 800 million mobile users
 Most engaged country online – 92%
 More bloggers than Europe and USA
combined

30. Inbound Tourism –
Mainland China as the
Destination of Choice

31. International Arrivals
 International arrivals staying at least one night
reached 55.66 million in 2010, up 9.4 percent on
2009
 China's appearance in the top three was its first,
according to the UNWTO

32. Where did they come from?
Where did they go?

33. China Meetings
 ICCA – China jumped from #19 to #9 on the list
of countries drawing the most association
business
 PCOs
 MCI
 Kellen

34. Where Do You Hold It?
 Beijing
 Shanghai and Yangtze River Delta
 Hangzhou, Suzhou, Nanjing, Ningbo
 Pearl River Delta
 Guangzhou, Shenzhen
 Second Tier Cities
 Chengdu, Xi’an, Wuhan, Xiamen, Dalin, Qingdao,
Kunming, Chongqing
 SARs – Hong Kong & Macau

35. Secondary City in Mainland China
Chongqing Example
 50 – 4 & 5 Star hotels by 2015
 International brands – Marriott and IHG
 Advantages:
 Convenient transportation
 Cheaper than other big cities
 Abundant tourism products
 Different itineraries

37. Emerging
Opportunities

38. Tomorrow’s Opportunities
 Sustainability
 Social Networking
 Mobile Access
 Collaborative Consumption

39. Need for Sustainability & CSR

40. Sustainability at All Levels
 Hotel development and operations
 L.E.E.D.
 ISO 14001
 Green globe
 Conventions and events
 BS 8901/ISO 20121
 APEX green standards
 GRI
 Tourism
 Eco-tourism
 Sustainable development- PATA

41. Social Networking
 Social Networking Sites
 Review Networking Sites

42. Mainland China Misconceptions

44. Mobile Access

45. Collaborative Consumption in
Hospitality

46. Millennials Embrace Sharing Economy
How likely are you to participate in each of the following sharing programs?
(Licensed drivers only)
67% % Likely
57%
53%
49%
45% 43%
32%
27%
22%
18%
10% 11%
Media sharing Car sharing Home or vacation
programs programs sharing programs
Asked only in 2011 18-34 years 35-44 years 45-54 years 55 years or more
confidential 46

48. Millennial Education

49. Different Expectations
How the recession shaped Millennial and hiring managers attitudes
about Millennias’ future careers – Levit & Licuna (2011) Commiissioned
by Career Advisory Board of DeVry University

50. Good News for Postgraduate Education
How the recession shaped Millennial and hiring managers attitudes
about Millennias’ future careers – Levit & Licuna (2011) Commiissioned
by Career Advisory Board of DeVry University

51. Millennial Education
 Global expertise
 Beyond the boarders of the USA
 Cross-cultural issues
 Multi-lingual capabilities
 Business acumen
 More than just operations
 Innovation & Change
 Embracing the emerging

53. How do we get
there?
Finding Our “Blue Ocean”

54. Academic Perspective
 Four legged stool
 Faculty
 University resources
 Students
 Industry
 Research – application
 Degrees – co-creation with industry
 Postgraduate education

56. To Be Fond Of
Learning
Is Near To Wisdom
Confucius

57. The Possession of Facts
is Knowledge,
the Use of Them is
Wisdom
Thomas Jefferson

58. Thank You