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President's Office > Community Breakfasts > Hospitality Revised 6/1/05

Hospitality Trends

September 23, 2004 Community Breakfast Comments
Hospitality Sector

What trends will affect the way you do business in 5 years?

Economy

  • Rising costs/lower margins.
  • Insurance costs/taxes.
  • Development & growth of area.
  • Expendable income-guests' willingness to travel and be involved with Traverse.
  • More competition, including competition from companies not located in the Grand Traverse Region.
  • Over-saturated supply of hotel rooms.
  • Labor shortage when economy recovers.
  • TC area becoming more based upon tourist industry.
  • Desire for week-to-week rentals without full B&B costs.
  • Slower booking pace; last minute bookings.
  • Chains vs. independent restaurants; chains dominate; how can the small business survive?
  • High-level health needs & growing regional medical center.
  • Loss of blue collar jobs.
  • Strength of tourism & agriculture.
  • Seasonal employment: Most business in hospitality must add summer employees-how do they do it? Where do they find them?
  • Do employees ever work in two seasonal places-Florida in the winter, here in the summer. How would that work?
  • Support of agribusiness will also help land preservation.

Government

  • Government has greater involvement in day to day operations.
  • Stronger health issues; regulations.

Technology

  • Computerization
  • Internet
  • Greater use of internet for attracting business.
  • Continuing growth in reservations on internet; now more than 50%.
  • If people use technology to buy, how can you get "up close and personal" with your guest?
  • If internet handles sales/reservations, front desk staff can spend more time on customer service.
  • Appreciation for wireless access by guests.
  • Increased tourism thru Internet.

Demographics

  • Retirement community-increase in our area particularly.
  • A need for quality seasonal employees.
  • Increase seasonal nature of population; not just tourism.
  • Increased population will increase demand for products and services.
  • TC is becoming multi-cultural, multi-lingual environment.
  • TC is getting bigger/tourists desire quiet surroundings; desire old fashion "comfort food."
  • This region is becoming a center for retirees who are economically stable with much free time.
  • Population services: active retirement, medical, cultural.
  • Shift in people's tastes/menus.
  • Free time and income for leisure, travel and recreation.

General

  • Ecological/environmental center for Great Lakes.
  • Trend toward "homogenization;" we must keep TC unique.
  • NMC should be involved in land use planning.

Education

  • Interlochen Center for the Arts; how is NMC connected to Interlochen?

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