“Long tail” of independent hotels is getting shorter
Several trends are clear in the hotel industry in the Asia Pacific region. A massive influx of hotel supply there and rapid changes in consumer behaviour are dramatically transforming the hotel landscape. The region’s maturing hotel market is growing rapidly and online bookings are soaring, despite concerns about an economic slowdown. And the “long tail” of independent hotels is getting shorter as a strong pipeline among global, regional and local chains greatly expands branded and upscale hotel options in the region.
These are some of the conclusions of a new report out this week by the research firm PhoCusWright, called Asia Pacific Online Travel Overview Fifth Edition: Hotels. Other findings include the fact that distribution dynamics are also shifting by using improving technology and infrastructure, as consumers use new ways to find and book hotels. PhoCusWright projects continued growth for the Asia Pacific’s overall hotel market as well as strong double-digit gains for the online leisure/unmanaged business travel market in 2013, when online hotel penetration will reach 22%.
[pictured: Sheraton’s new ITC Grand, Chennai, India]