Strong long-term trends
Pandox is active in a dynamic industry with several strong trends and drivers, such as increased pros-perity, a growing middle class and a blurred work-life boundary, combined with the possibilities offered by digitalisation. Covid-19 has negatively impacted demand in the hotel market due to the strong link between restrictions and travel. When the restrictions are eased travel will increase again.
Growing middle class
The global population is growing and so is the middle class – a factor that normally leads to increased travel. People are also living longer, which means they are looking for new experiences later in life as well. Domestic leisure travel has proved to be a strong driver in the hotel market, even during the Covid-19 pandemic.
Experiences more important
New generation consumers are often more interested in gathering experiences than material possessions. Typically, they are on the hunt for the best destination, the best accommodation and the best food menu. The hotel is no longer just a place to sleep, but part of a life-style. Covid-19 has without a doubt create a significant pent-up demand for experiences and travel.
Digitalisation is making things easier
Digitalisation is a trend that was further reinforced during the pandemic. Digitalisation has made the world smaller and blurred the lines between work and leisure. It has also accelerated the pace of change and made it easier to book both travel and accommodation. One consequence of Covid-19 is that demand for digitalisation in the physical hotel environment is increasing.
Most guests will arrive at their hotel by car, bus or train – a trend that strengthened due to Covid-19. Low cost flights – both short and long haul – are also a strong underlying driver for the hotel industry over the long term as they drive demand from more high-paying segments in the hotel market.
Sustainability and values
Demand for sustainable products and services is increasing as knowledge levels among consumers and in society increase. For consumers it is increasingly important for the services they purchase to match their own values. Covid-19 has been a catalyst for sustainability among companies and individuals.