NEW YORK— A series of panelists diagnosed the health of the industry Sunday morning at the 87th International Hotel/Motel & Restaurant Show here. On hand to give their opinions on lodging were Peter Yesawich, managing partner of Yesawich, Pepperdine, Brown & Russell; Savvy Traveler Editor Rudy Maxa; Caribbean Hotel Association Director General/CEO John Bell; Doug Carroll, assignment editor for USA Today, and National Restaurant Association SVP – Research & Information Services Hudson Riehle. As Yesawich noted, the travel and hospitality industry today is suffering through a trio of specific ailments: the events of 9/11 and their lingering impact, the state of the economy, and the changing circumstances and nature of the consumer. As such, he likened the current situation facing the hospitality arena to that of Wall Street’s ominous “triple witching hour.” Reporting on economic matters, Yesawich suggested the concept of “downward nobility” is back… with a vengeance. Qualifiers he based this observation on include: an unemployment rate of 5.7%; a meager savings rate of just 4%; liberal use of credit, with some 15% of household income today earmarked specifically to service such debt; an overall decline in personal net worth; and a level of consumer confidence that now sits at a nine-year low. Shedding light on the attitudes and habits of the “changing” consumer, Yesawich contended that change is inexorably linked to the concept of heightened autonomy. As he pointed out statistically: 85% (of consumers polled) responded they want to have greater control of their life; increased consumer pushback was evidenced by the finding 51% don’t believe they have to compromise their principles; 72% reported they have become more inclined to rely on their own instincts (when it comes to travel decisions); and— impossibly enough— 64% believe their IQ is higher than those who would advise them. Moreover, Yesawich claimed 82% of those consumers polled said they always attempt to negotiate the best possible hotel rates… ostensibly ranking the lodging arena second only to used-car dealerships in this commercial regard. And, along these lines, 55% think the Internet has helped give them more control (in their day-to-day consumer decisions). The bottom line, according to Yesawich, is that the new consumer mandate is one emphasizing “price loyalty.” To this end, he suggested: “As pricing becomes more transparent, brands become more critical.”
Peter Yesawich