Biggest Competitive Challenge in Hospitality to Come from Indirect Competition
Management consultancy PACE Dimensions released the first of three reports alerting incumbent businesses to significant change in the travel and hospitality industry. Over the next 10 years the biggest competitive challenges in travel and hospitality will not come from other airlines, travel, hotel or leisure companies, but from indirect competition.
These indirect competitors are “new market makers” who aggregate global demand and leverage market power to capture revenue and profit from incumbent players. The challengers include online retailers (Expedia, Priceline), media companies (Google, Trivago, Kayak), hotel and lodging companies (Airbnb) and food delivery services (Deliveroo, Grubhub).
The first report analyses the key drivers of digital disruption and changing customer expectations with insights from leading travel, hospitality and technology companies.
Tim Davis, founding partner at PACE Dimensions highlights the need for incumbent businesses to pay attention:
“Digital technology is enabling new business models and ways of working. Existing brands urgently need to examine their businesses end to end and reinvent themselves in order to compete successfully in the future," he said. "Those that execute well and move with speed can leverage their existing strengths and scale and transform their businesses for the next phases of growth. Those that don’t will struggle to survive over time.”
Two further reports are due to be released this autumn. These will focus on the leading strategies for success for incumbent businesses and the means to overcome barriers to change.
Full report available at:
https://pacedimensions.com/res
These indirect competitors are “new market makers” who aggregate global demand and leverage market power to capture revenue and profit from incumbent players. The challengers include online retailers (Expedia, Priceline), media companies (Google, Trivago, Kayak), hotel and lodging companies (Airbnb) and food delivery services (Deliveroo, Grubhub).
The first report analyses the key drivers of digital disruption and changing customer expectations with insights from leading travel, hospitality and technology companies.
Tim Davis, founding partner at PACE Dimensions highlights the need for incumbent businesses to pay attention:
“Digital technology is enabling new business models and ways of working. Existing brands urgently need to examine their businesses end to end and reinvent themselves in order to compete successfully in the future," he said. "Those that execute well and move with speed can leverage their existing strengths and scale and transform their businesses for the next phases of growth. Those that don’t will struggle to survive over time.”
Two further reports are due to be released this autumn. These will focus on the leading strategies for success for incumbent businesses and the means to overcome barriers to change.
Full report available at:
https://pacedimensions.com/res