Slide 1: Webjet Hotel Industry Briefing held at UBS
Webjet Hotel Industry Briefing held at UBS. 3 November 2023 Webjet Limited is pleased to provide the attached Hotel Industry Briefing presentation which was approved by Managing Director, Mr John Guscic, and delivered by Euromonitor International at UBS today. Authorised for release by the Chair. Fo
Slide 2: A Global Outlook on Travel and Deep-dive into the Hotel Wholesale Industry
A Global Outlook on Travel and Deep-dive into the Hotel Wholesale Industry November 2023 Compiled by Euromonitor International
Slide 3: About the Speakers
INTRODUCTION 2 About the Speakers Jonathan York General Manager & Senior Consulting Manager Jonathan is the General & Senior Consulting Manager based in Hong Kong, responsible for supervising and direct research of custom projects across various industries. Aside from custom research, Jonathan has p
Slide 4: Euromonitor proprietary information notice
This PowerPoint presentation includes proprietary information from Euromonitor International and cannot be used or stored with the intent of republishing, reprinting, repurposing or redistributing in any form without explicit consent from Euromonitor International. For usage requests and permission,
Slide 5: Contents
4 Contents Who is Euromonitor International? Session 1: Global Travel Outlook • Global Outlook on Travel • Europe: New Challenges to Overcome • Americas: Onwards and Upwards • Asia Pacific: Slow and Steady Recovery • Key Takeaways Session 2: Hotel Wholesale Industry Overview • Project Introduction •
Slide 6: Euromonitor International's global network and coverage
WHO IS EUROMONITOR INTERNATIONAL 5 Euromonitor International’s global network and coverage
Slide 7: World's leading independent strategic insights company
WHO IS EUROMONITOR INTERNATIONAL 6 World’s leading independent strategic insights company with large experience in the tourism sector OUR SERVICES OUR EXPERTISE • Syndicated market research • Over 30 industry insights • Consulting • Full macroeconomic insights EXPANSIVE NETWORK • Consumer behaviour
Slide 8: Euromonitor International Solutions
WHO IS EUROMONITOR INTERNATIONAL 7 Flexible solutions to be customized according to the clients’ business and geographical needs Euromonitor International Solutions: SYNDICATED WEB SCRAPED CUSTOMIZED ADVISORY RESEARCH DATA INTELLIGENCE SERVICES • Market sizes and forecasts for • Passport: Global SKU
Slide 9: Session 1 Global Outlook on Travel
8 Session 1 Global Outlook on Travel
Slide 10: Travel is set for accelerated growth
9 Travel is set for accelerated growth International travel is powering forward, with global inbound arrivals expected to increase 26% by 2028 since the pandemic
Slide 11: Domestic travel powers recovery and growth
GLOBAL OUTLOOK 10 Domestic travel powers recovery and growth Inbound and Domestic Tourism Spending Forecast to 2028 5,000 4,500 4,000 3,500 US$ billion 3,000 2,500 2,000 1,500 1,000 500 0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Inbound Tourism Spending Domestic Tourism Spending Source: Eur
Slide 12: Europe: New Challenges to Overcome
11 Europe: New Challenges to Overcome
Slide 13: Fastest growth categories in Europe
12 Guided Tours Festivals & Leisure Duty-free Events Shopping 6.8% 7.9% 11% Fastest growth categories in Europe 2023-2028 % CAGR Fixed exchange rates, current prices Source: Euromonitor International – Passport Travel, 2024 edition, published in August 2023
Slide 14: War and cost of living crisis cause further pain
EUROPE: NEW CHALLENGES AHEAD 13 War and cost of living crisis cause further pain Europe Travel and Tourism Forecast Sales Index 2019-2028 250 200 2019 = 100 150 Pre-COVID 100 Recovery Line 50 0 Short-Term Inbound Hotels Airlines Domestic Surface Travel Experiences Rentals Tourism Spending Modes Spen
Slide 15: Americas: Onwards and Upwards
14 Americas: Onwards and Upwards
Slide 16: Fastest growth categories in North America
15 Duty-free Shopping Other Experiences Medical Tourism 9% 7% 7% Fastest growth categories in North America 2023-2028 % CAGR Fixed exchange rates, constant prices Source: Euromonitor International – Passport Travel, 2024 edition, published in August 2023
Slide 17: Domestic tourism is a major strength
AMERICAS: ONWARDS AND UPWARDS 16 Domestic tourism is a major strength Americas Travel and Tourism Forecast Sales Index 2019-2028 250 200 2019 = 100 150 Pre-COVID 100 Recovery Line 50 0 Short-Term Airlines Hotels Domestic Experiences Surface Travel Inbound Rentals Spending Modes Tourism Spending 2019
Slide 18: Asia Pacific: Slow and Steady Recovery
17 Asia Pacific: Slow and Steady Recovery
Slide 19: Fastest growth categories in Asia Pacific
18 Wellness Theme Parks Food & Dining 15% 14% 13% Fastest growth categories in Asia Pacific 2023-2028 % CAGR Fixed exchange rate, constant terms Source: Euromonitor International – Passport Travel, 2024 edition, published in August 2023
Slide 20: Cautious approach to reopening delays recovery
ASIA PACIFIC: SLOW AND STEADY RECOVERY 19 Cautious approach to reopening delays recovery Asia Pacific Travel and Tourism Forecast Sales Index 2019-2028 250 200 2019 = 100 150 Pre-COVID 100 Recovery Line 50 0 Inbound Hotels Domestic Airlines Short-Term Surface Travel Experiences Tourism Spending Rent
Slide 21: Key Takeaways
20 Key Takeaways
Slide 22: Cautiously optimistic; Threats ahead
21 Cautiously optimistic Threats ahead
Slide 23: Session 2 Hotel Wholesale Industry Overview
22 Session 2 Hotel Wholesale Industry Overview
Slide 24: Contents
23 Contents Session 2: Hotel Wholesale Industry Overview • Project Introduction • Value Chain Introduction • Global Hotel Wholesale Industry Overview • Regional Hotel Wholesale Industry Overview • Outlook of the Hotel Wholesale Market • Q&A
Slide 25: Project Introduction
24 Project Introduction
Slide 26: Research scope
PROJECT INTRODUCTION 25 Research scope Research Objectives ✓Assess the market dynamics for the hotel retail and wholesale industry ✓Review the global hotel value chain ✓Validate market trends, drivers and constraints ✓Establish the market size for hotel room retail and wholesale industry Project Sco
Slide 27: Research methodology
PROJECT INTRODUCTION 26 Research methodology PASSPORT DATABASE SECONDARY RESEARCH TRADE INTERVIEWS ANALYSIS & ACCESS AND INTERNAL REPORTING EXPERTS • Euromonitor Passport • Secondary research on official • 50 trade and expert • Data modelling, cross checking database access for statistics (annual re
Slide 28: Dedicated project team
PROJECT INTRODUCTION 27 Dedicated project team Senior Business Development Global Project Manager Senior Support Head of Travel Industry Shruti Balachandar Jonathan York & Zoe Zhou Caroline Bremner Account Manager Singapore In-Country Analysts Central Analyst In each of the 7 regions Timeline Week 1
Slide 29: Definitions
PROJECT INTRODUCTION 28 Definitions Hotel Wholesalers : Hotel wholesalers generally sit between travel agents and travel suppliers (i.e. hotels) to act as a middleman, sourcing and acquiring products (rooms, rates, packages) in bulk before selling them on to various clients (e.g. travel agents, OTAs
Slide 30: Value Chain Introduction
29 Value Chain Introduction
Slide 31: Emerging customer segments
VALUE CHAIN INTRODUCTION 30 Complex global hotel value chain Traditional Travel Agents Note: Typically, a hotel distributes either directly or through intermediaries. To sell to intermediaries, hotels use solutions Online Travel including Channel Managers, Switches, Extranet or GDS Agents Hotel Whol
Slide 32: Global hotel value chain overview
VALUE CHAIN INTRODUCTION 31 Global hotel value chain overview Global Hotel Room Guest Bookings 2022 Market Size in RSP: Direct to Intermediary US$503.7 B (a)+(b) (b) US$58.6 B Intermediaries US$272.9 B Hotel Hotels (OTAs, Tour operators Consumers Wholesalers etc.) Examples: Direct to Consumer US$230
Slide 33: Hotel wholesalers ensure global reach and greater certainty
VALUE CHAIN INTRODUCTION 32 Hotel wholesalers ensure global reach and greater certainty Benefits of hotel wholesalers – Hoteliers Hotel wholesalers operate in markets where the hotel does not have direct reach, and therefore can bring them Access to customers that they cannot reach through new their
Slide 34: One-stop shop for all of intermediaries' needs
VALUE CHAIN INTRODUCTION 33 One-stop shop for all of intermediaries’ needs Benefits of hotel wholesalers – Intermediaries Hotel wholesalers can provide intermediaries with access to a wide range of travel products e.g., insurance, car rental, attractions etc Access Hotel wholesalers offer reward poi
Slide 35: Global Hotel Wholesale Industry Overview
34 Global Hotel Wholesale Industry Overview
Slide 36: Global Hotel Industry
35 Global Hotel Industry Global Hotel Industry Global Hotel Wholesale Industry 2023-2027 CAGR US$503.7 B 2022 Global Hotel Room Guest Bookings 8.3% US$58.6 B US$272.9 B 2022 Global Hotel Room 9.1% 26% 7.7% Guest Bookings via Intermediaries 2022 Hotel Wholesale In retail value terms 2022 Global Hotel
Slide 37: Global hotel wholesale industry overview
GLOBAL HOTEL WHOLESALE INDUSTRY OVERVIEW 36 Full global recovery from the Covid-19 pandemic is expected by 2023, with MEA, LATAM, emerging while APAC, North America and Europe drive wholesale value sales Global Hotel Room Guest Bookings, Bookings via Intermediaries and 800 Bookings via Wholesalers,
Slide 38: Biggest regions for hotel guest bookings
GLOBAL HOTEL WHOLESALE INDUSTRY OVERVIEW 37 North America, APAC and Western Europe are the biggest regions for hotel guest bookings while Middle East and Africa will be growing fast over the forecast period Global Hotel Room Guest Bookings, US$ B Note: Bubble represent 2022 market size (US$ B) US$50
Slide 39: Hotel wholesale market size by region
GLOBAL HOTEL WHOLESALE INDUSTRY OVERVIEW 38 North America, Western Europe and APAC present great opportunities due to sizeable markets while emerging Middle East & Africa, Latin America are experiencing rapid growth Global Hotel Wholesale Market Size (wholesale value terms, US$ B) Note: Bubble repre
Slide 40: Regional Hotel Wholesale Industry Overview
39 Regional Hotel Wholesale Industry Overview
Slide 41: North America hotel room guest bookings
40 Hotel Room Guest Bookings, North America, 2018-2027F 2018-2022 CAGR: 1.4% 2023-2027 CAGR: 5.7% 250.0 $215.3 $193.4 $204.0 200.0 $172.7 $183.7 $148.5 $155.7 $157.2 48.0% 48.2% 150.0 US$ B $119.1 47.9% 47.9% 47.8% 50.7% 47.5% North America 100.0 50.4% $75.4 47.5% 50.0 47.4% 52.1% 52.1% 52.0% 51.8%
Slide 42: North America hotel wholesale overview
REGIONAL HOTEL WHOLESALE INDUSTRY OVERVIEW – NORTH AMERICA 41 The increasing demand for business and leisure travel coupled with emergence of airlines and financial institutions provide new customer segments for wholesalers Hotel Wholesale Value Sales, North America, 2018-2027F Hotel Wholesale Overv
Slide 43: Western Europe hotel room guest bookings
42 Hotel Room Guest Bookings, Western Europe, 2018-2027F 2018-2022 CAGR: 1.6% 2023-2027 CAGR: 8.0% 300.0 $263.9 $251.3 $237.7 250.0 $222.3 $194.4 US$ B 200.0 55.6% $148.4 $152.7 $158.1 54.0% 54.9% 150.0 53.1% 52.6% Western Europe 100.0 51.0% 51.4% $91.2 51.7% $62.2 51.0% 45.1% 44.4% 50.0 50.2% 47.4%
Slide 44: Group travel and tours in Western Europe
REGIONAL HOTEL WHOLESALE INDUSTRY OVERVIEW - WESTERN EUROPE 43 Group travel and tours are a mainstay in Western Europe, providing opportunities for wholesalers to offer hotel rooms bundled with tours Hotel Wholesale Value Sales, Western Europe, 2018-2027F Hotel Wholesale Overview 40.0 • With a varie
Slide 45: Asia Pacific hotel room guest bookings
44 Hotel Room Guest Bookings, Asia Pacific, 2018-2027F 2018-2022 CAGR: -7.3% 2023-2027 CAGR: 10.0% 250.0 $208.9 $196.6 200.0 $182.0 $153.5 $161.2 $164.5 US$ B 150.0 $142.7 $113.1 61.2% 61.3% 61.2% $90.6 61.1% Asia Pacific 100.0 61.9% 61.0% $82.9 61.1% 61.3% 61.7% 61.2% 50.0 39.0% 38.9% 38.8% 38.8% 3
Slide 46: APAC attractive region for wholesalers
REGIONAL HOTEL WHOLESALE INDUSTRY OVERVIEW – ASIA PACIFIC 45 Affordable travel and wide range of experiential activities offered in APAC make it one of the most attractive regions globally for wholesalers to tap into Hotel Wholesale Value Sales, Asia Pacific, 2018-2027F Hotel Wholesale Overview 2018
Slide 47: Latin America hotel room guest bookings
46 Hotel Room Guest Bookings, Latin America, 2018-2027F 2018-2022 CAGR: 1.8% 2023-2027 CAGR: 10.5% 60.0 $50.6 50.0 $46.9 $42.6 $38.0 US$ B 40.0 $33.9 $29.3 $29.3 57.8% $27.2 57.6% 30.0 57.4% Latin America $22.4 57.3% 57.4% 20.0 57.9% 57.6% $12.7 57.2% 57.1% 10.0 56.5% 42.6% 42.4% 42.2% 42.1% 42.4% 4
Slide 48: Latin America wholesale opportunities
REGIONAL HOTEL WHOLESALE INDUSTRY OVERVIEW – LATIN AMERICA 47 Strong growth and development of players along the value chain provide opportunities for wholesalers to expand in the region, but currency fluctuations should be considered Hotel Wholesale Value Sales, Latin America, 2018-2027F 16.0 Hotel
Slide 49: Middle East and Africa hotel room guest bookings
48 Hotel Room Guest Bookings, Middle East and Africa, 2018-2027F Note: Occurrence of War and other geopolitical events so forecast must be used with discretion 2018-2022 CAGR: -5.8% 2023-2027 CAGR: 12.9% 60.0 $54.2 $48.3 50.0 $43.3 $38.3 $38.4 40.0 $34.6 $33.3 US$ B $27.3 68.7% Middle East and Afric
Slide 50: MEA wholesale overview
REGIONAL HOTEL WHOLESALE INDUSTRY OVERVIEW – MIDDLE EAST & AFRICA 49 Growing awareness of MEA as an attractive destination will push local players to rely on wholesalers to capture a greater share of international traveler spending Hotel Wholesale Value Sales, Middle East & Africa, 2018-2027F Hotel
Slide 51: Australasia hotel room guest bookings
50 Hotel Room Guest Bookings, Australasia, 2018-2027F 2018-2022 CAGR: -3.7% 2023-2027 CAGR: 8.7% 25.0 $20.7 $19.3 $17.9 20.0 $14.5 $14.8 $16.4 $14.9 $12.4 US$ B 15.0 63.1% 61.2% 62.4% $6.7 $8.2 59.8% Australasia 10.0 70.5% 71.4% 57.3% 58.6% 5.0 56.2% 65.3% 37.6% 36.9% 42.7% 41.4% 40.2% 38.8% 29.5% 2
Slide 52: Australasia wholesalers and Bleisure trend
REGIONAL HOTEL WHOLESALE INDUSTRY OVERVIEW – AUSTRALASIA 51 Hotel wholesalers in Australasia should leverage on the Bleisure trend by focusing on offering travel products attracting business and leisure travelers Hotel Wholesale Value Sales, Australasia, 2018-2027F Hotel Wholesale Overview 4.0 • Hot
Slide 53: Eastern Europe hotel room guest bookings
Hotel Room Guest Bookings, Eastern Europe, 2018-2027F Note: Occurrence of War and other geopolitical events so forecast must be used with discretion 2018-2022 CAGR: -6.1% 2023-2027 CAGR: 11.4% 14.0 $11.7 12.0 $10.9 $10.0 10.0 $8.0 $8.6 $8.8 $7.6 US$ B 8.0 60.8% Eastern Europe $4.7 $6.2 60.8% 60.8% 6
Slide 54: Eastern Europe wholesale overview
REGIONAL HOTEL WHOLESALE INDUSTRY OVERVIEW – EASTERN EUROPE 53 Instability due to war and rising tour operator costs limit the growth of hotel wholesalers in Eastern Europe Hotel Wholesale Value Sales, Eastern Europe, 2018-2027F Hotel Wholesale Overview Occurrence of War and other geopolitical event
Slide 55: Outlook of the Hotel Wholesale Market
54 Outlook of the Hotel Wholesale Market
Slide 56: Global Hotel Wholesale Industry growth drivers
55 Global Hotel Wholesale Industry 2022 2027F 2023F-2027F CAGR US$825.4 B 2022 Global Hotel Room US$503.7 B 8.3% Guest Bookings US$465.3 B 2022 Global Hotel Room US$272.9 B 9.1% Guest Bookings via Intermediaries US$97.0 B 2022 Global Hotel US$58.6 B Addressable Market 7.7% Wholesale Value Sales 1 2
Slide 57: Travel is supported by macroeconomic growth
OUTLOOK FOR THE HOTEL WHOLESALE MARKET 56 Travel is supported by macroeconomic growth 1 External factors Improving • Asia Pacific (7.6%), Middle East and Africa (4.8%), and Australasia (4.2%) have the highest forecast GDP from 2023-2027. Macroeconomy • Global inflation is expected to continue fallin
Slide 58: Technology and process improvement at the forefront
OUTLOOK FOR THE HOTEL WHOLESALE MARKET 57 Technology and process improvement at the forefront 2 Service Improvement Technology • WebBeds Parity Monitor and Hotelbeds Parity+ aims to achieve Proprietary technology to zero BRGⁱ discrepancies, improves speed of resolving parity. reduce rate parity and
Slide 59: Penetrating new customer segments drives growth
OUTLOOK FOR THE HOTEL WHOLESALE MARKET 58 Penetrating new customer segments drives growth 3 Segment Expansion Emerging Customers • Wholesalers offer preferential rates for airlines, loyalty To capture new revenue programs, points redemption schemes, financial streams institutions. • Serve as an acco
Slide 60: Wholesalers evolve to become one-stop travel provider
OUTLOOK FOR THE HOTEL WHOLESALE MARKET 59 Hotel wholesalers evolve to become a one-stop travel provider that sustains growth in the long term 3 Segment Expansion Intermediary • Enables wholesalers to expand into new consumer Partnership segments. E.g., WebBeds partnering with Hopper To drive synergy
Slide 61: The road ahead for hotel wholesale industry
OUTLOOK FOR THE HOTEL WHOLESALE MARKET 60 The road ahead for hotel wholesale industry Global travel is set for accelerated growth Hotel wholesalers will continue to play a key role in • The return of international large-scale events, and the global hotel industry, now and in the future leisure and b
Slide 62: Q&A
61 Q&A
Slide 63: Thank you
Thank you Jonathan York, General Manager & Senior Consulting Manager Jonathan.York@euromonitor.com www.linkedin.com/in/jonathan-york Shruti Balachandar, Senior Consultant shruti.Balachandar@euromontior.com www.linkedin.com/in/shruti-balachandar