Tuesday marked the four-year anniversary of President Obama’s signing of the Travel Promotion Act into law. The law, which led to the creation of the first-ever marketing plan to attract international visitors to the United States, was lauded at the time as a dire necessity needed to regain the country’s dwindling share of international travel. But what has it done since then?
Quite a lot, as it turns out.
Brand USA highlighted a few of its accomplishments this week. They include:
- In fiscal year 2013, Brand USA’s marketing efforts from eight of the markets where it has fully deployed its marketing strategies generated 1.1 million incremental visitors who spent $3.4 billion on purchases and U.S. carriers travel/fare receipts, resulting in $7.4 billion in total sales, which supported more than 53,000 new U.S. jobs.
- Brand USA has a 97% partner retention rate, which enabled the group to double its funding and expand its partner base more than three-fold—from 87 core partners in fiscal year 2012 to 339 in fiscal year 2013.
- In fiscal year 2014, the consumer advertising efforts will expand to 10 key markets, with travel trade outreach in 20 key markets, and co-op marketing even beyond that.
- Brand USA has established a marketing platform that adds and creates value for partners and offers a national scope. This includes more than 100 co-op programs and 24 international trade shows, plus sales missions, megafams and much more.
U.S. travel industry professionals still have a lot of work to do if they hope to lure their proportionate share of the 1.6 billion international arrivals projected by 2020, according to the figures from the United Nations World Tourism Organization. The country ranked first in tourism receipts during 2012, according to the most recent UNWTO statistics available. It ranked second in overall arrivals, behind France.
They can’t do it alone, however. If the Travel Promotion Act showed us anything, it’s that some government intervention can be a very good thing.
Fortunately, the travel industry has a worthy advocate in its corner with Penny Pritzker, whose family owns Hyatt Hotels Corporation. After serving as President Obama’s campaign finance chairwomen in 2008 and his co-chair in 2012, she was named U.S. Commerce Secretary in June 2012.
She’s already proven influential in that short window, as made evident by her recent remarks to the U.S. Travel Association.
“I was pleased that White House chief of staff Denis McDonough singled out this industry as a second-term priority when he stopped by the Commerce Department’s board meeting last month,” she said, according to a Politico report.
“I hope that signals to you what a priority your industry is for President Obama and the entire administration. Travel and tourism is a priority not only because it is a major driver of economic recovery but also because the partnership between government and industry—all of you—is so fruitful.”
Here’s hoping the industry is able to reap those fruits of the global travel bounty for four more years and beyond.
Now on to the usual goodies …
What’s making me happy this week
I’ve written above about the benefits of travel to the U.S. economy, but there are plenty of gains to be had by all. That’s why I was thrilled to see this number: 320,000—as in the projected number of jobs created by the hotel sector in Africa.
Research undertaken by W Hospitality Group estimates 136,000 new jobs will be created in 2014, 87,000 in 2015, 70,000 in 2016 and 27,000 thereafter based on signed contracts from international brands plus regional brands and non-branded developments to come.
The hotel sector as a global job creator? How can that not put a smile on your face?
Stat of the week
A lot of good data points coming out of the International Hotel Investment Forum in Berlin this week, but the one that caught my eye in particular was this one: €7.7 billion ($10.6 billion). That’s the total transaction volume across Europe during 2013, up 39% from 2012’s tally, according to HVS London.
Transaction activity was driven by portfolio deals in 2013, recording 48% growth on 2012 levels, totaling €3.3 billion ($4.6 billion).
Quote of the week
“During the past five years, and through some very challenging global economic conditions, Eric provided leadership that strengthened Wyndham Hotel Group’s service to its franchisees, expanded its hotel management offerings, and significantly grew its global footprint. As a well-respected hotel industry veteran, Eric brought real passion for hospitality to Wyndham, and leaves our hotel division set on a strong course for the future. We thank him for his leadership, congratulate him on his legacy within our industry, and wish him all the best in the future.”
—Stephen P. Holmes, chairman and CEO, Wyndham Worldwide, in a news release announcing the departure of former hotel division President and CEO Eric Danziger, who will be replaced 28 March by the company’s timeshare president and CEO Geoff Ballotti.
I always appreciated the candor and charm of Danziger, a venerable hotelier who exuded a sense of welcome whether during formal interviews or casual encounters.
I recall fondly one year in Phoenix during the Lodging Conference when the executive invited the trade press for drinks and hors d'oeuvres at his nearby home. It takes a confident man to welcome the wolves into his den, but he did so graciously, making the rounds to ensure his 10 or so guests were each comfortable and well attended to.
I doubt we’ll receive that type of invitation from another hotel executive anytime soon.
Reader comment of the week
“The real problem is that property ‘decision makers’ are typically older and more fixed in their ways, managing properties the way they did just ten and twenty years ago. The new age, and the data that technology delivers, completely changes the way hospitality is delivered to the masses. Rate efficiency, demand forecasting, and yield strategies are no longer static policies but organic in nature. Data is now instant and any decision not made a la data is probably the wrong one. Telling someone who’s been serving an industry for 30 years that everything they’ve built their career on is obsolete, now that is a tough sell.”
—Reader “Dustin Lyle” noting a very real roadblock to the advancement of revenue management to revenue strategy, as reported in the aptly titled “From revenue management to revenue strategy.”
The piece, written by our London reporter Terence Baker, was derived from a roundtable I moderated at the Hospitality Technology Europe conference last month. It was a fascinating discussion that provided a glimpse into the future of this ever-evolving discipline. I just hope stubborn decision-making doesn’t thwart the potential for progress.
Email Patrick Mayock or find him on Twitter.
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