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Deloitte: Despite Economic Uncertainty, Travel, Hospitality and Leisure Companies May Have Reason to Be Optimistic for Growth in 2013

NEW YORK, Dec. 17, 2012 /PRNewswire/ -- Looking to the year ahead, travel, hospitality and leisure (THL) companies may have reason to be optimistic for renewed growth domestically, for the power of technology to transform the consumer experience and for the opportunity to capitalize on emerging market growth, according to Deloitte's 2013 Travel, Hospitality and Leisure Outlook released today.

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"Even with the current climate of economic uncertainty, the THL sector may have reason to be optimistic," said Adam Weissenberg, vice chairman and U.S. leader of Deloitte's travel, hospitality and leisure sector, Deloitte LLP. "However, there are a number of issues THL companies should take into consideration in 2013, including increased competition in the evolving marketplace, the pressing need for brand differentiation and the use of technology to improve customer service and operations."

According to Deloitte's report, some key issues affecting the THL sector in 2013 include:

  • Heightened domestic and global competition: Sector players face a strong level of competition.  Existing THL firms face the prospect of even higher competition given the relative ease with which new players may enter the marketplace.
  • Differentiation through the 'upturn': Businesses competing fiercely for market share may be forced to incur expenses to differentiate their offerings. If the economic recovery is less than robust, customer pushback may induce pricing pressures. The result may be a greater likelihood of declining revenue and lower profits.
  • Global expansion and growth in emerging markets: Business climate improvements in established markets appear positive for industry players. Still, many THL companies continue to focus on increasing their presence in less saturated, faster growing emerging markets to expand customer reach.

"THL companies may better manage operations and help to achieve growth in the year ahead by attacking business complexities to improve cost structure amid heightened competition and by enhancing the consumer experience to build loyalty," Weissenberg added. "Additionally, companies should consider the growth potential of new markets, such as those in Asia and South America, and harness technology to improve operations and increase hassle-free experiences for customers."

A copy of the report is available on Deloitte's website at: www.deloitte.com/us/thl2013 .

About Deloitte's THL Practice
Deloitte's THL sector offers a broad range of services to travel, hospitality and leisure clients, including research, branding, operational planning, asset ownership and development, promotion and emerging technology. For more information about Deloitte's THL group, please visit www.deloitte.com/view/en_US/us/Industries/travel-hospitality-leisure/index.htm.

About Deloitte
As used in this document, "Deloitte" means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about  for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.  Certain services may not be available to attest clients under the rules and regulations of public accounting.

SOURCE Deloitte

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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