The ALIS Conference Conclusions

The ALIS Conference is the largest hotel investment conference in the world with over 2,500 top industry leaders who discuss trends and identify opportunities for the year ahead.

Eleven executives, Dan Meub, CEO, and Dan Lulich, CTO, were in attendance to better understand new industry trends and struggles of modern hoteliers. Our executives share some of their conclusions from the ALIS Conference below.

Positive Expectations for 2013

In panel discussions bankers appeared comfortable and happy with government regulations; their expectations were as positive as anyone else’s. Here are some reasons why:

• Surprisingly, Asia and Europe are expected to stay relatively flat; whereas in the US regulations in banking industries are helping the US maintain growth much like last year.
  • Supply remains flat, yet demand continues to increase, which means cost and revenue go up.
  • Evidence from 2012, especially Q4, point to continued growth.
• Tech stocks are flattening. Products like Apple and Dell are reaching a plateau in product life cycles, so safer investments like hospitality are gaining interest.
• We may never see 2007 again. In 2007 there was irrational and erratic behavior, which often have serious and just as steep downfalls.
• Many variables are adding to stability. Strong demand, less supply, and perceived optimism among consumers, hoteliers, investors, technology and service providers should contribute to industry stability.
• Trends will continue to 2016. Growth is expected to happen gradually which allows for longer sustained growth and less volatility in the market.
• Less uncertainty. In 2008 people just didn’t know if they were going to have jobs, which created a downturn in consumer activity. Now, people are starting to feel more job security.
• Growth in limited service. Consumers are looking to save money with more affordable rooms that provide just the essentials, meaning economy properties should see growth.

Renovations That Count

With many properties making over a billion dollars a year, it can come as a surprise that hospitality management scrupulously maximizes revenue by optimizing operations. There is little to no renovation that includes knocking out walls or major construction. Costs are optimized at every level from painting over wallpaper to laying new flooring right over the previous existing marble floors.

• Renovations will replace development beyond continuing development that was postponed during the recession.
• Technology will play a major role as many hotels adapt to the digital age.

Overall, there was positivity in the air and reinvigorated life pumped into the hospitality industry as they prepare for a new wave of growth. Hoteliers can count on increased demand but should also acknowledge that consumers’ expectations have changed along with technology. Hotels should be pulling out all the stops to influence consumer spending in their industry.

Even with the recession four years behind us, our values and priorities have changed and show no signs of returning to where they were in 2007. This is a good sign that we will find steadier and maintained growth if we speak to today’s guests who are tech-savvy, more frugal, yet willing to spend on things they perceive as valuable.

For more about ALIS read our article ALIS: The First Days’ Highlights from Eleven’s CEO.

How are you preparing for technology in 2013?