Hotel Development: Are You Ready For the Next Boom?
By Donald R. Boyken Chief Executive Officer , DRB Consulting, LLC | June 12, 2011
Anticipating where a market will be and then positioning your firm and its services for those future growth opportunities enables leaders to get ahead of the markets. One of the highest scoring Hockey players, Wayne Gretzky, is often quoted that his success was linked to being where "the puck" would be and not where it currently is. The same is true in business.
Over the last thirty-five years I have studied demographic and industry patterns. As a CEO, I understood that one of my key responsibilities was to look into the future, anticipate the markets and place my company clearly in the position to capitalize on the market trends. Demographic patterns have clearly been one of those tools I used to anticipate movement in the marketplace.
While individually people are unique, collectively they act and behave in patterns. This was made clear to me in 1988 when Harry Dent (www.hsdent.com) came to speak to a small group of CEOs. His views of demographic and behavior cycles at certain age groupings provide a foundation for my research. For example as a group, there are certain purchases people make as they get married and start a family. Industries affected by this pattern will be builders of starter homes and apartments, appliance and baby product manufacturers. I have followed the trends for multiple industries and other economists and found that their conclusions were also helpful guides for establishing business trends for my company and the industries were we offer services.
What has been interesting is in the industries that I have tracked, they each have their own unique patterns and just as predictable as the demographic patterns. These industry patterns will not serve a CEO in predicting the performance of an individual company however as an industry the movement will be clear and that movement can help a CEO see into the future to help place his firm in a position to capitalize on a particular industry trend.
The Hospitality industry has a repeatable pattern of recovery from economic downturns. Those CEOs who provide services to the Hospitality industry will do well to pay attention to these patterns and position their company's production capacity and marketing focus to provide products and services to the industry.
Effects on the Travel Industry