By Charu Dua
The hospitality sector in the US looks to be stable, at least for the time being. In fact, hospitality has a massive financial effect on the USA economy. However, over the last few years, despite modernization and cutting-edge technology, the USA market still went through some concerns, especially in the hospitality sector.
It estimates that approximately 83 million international travellers will visit the US by 2020. Hence it’s surely a silver lining for the hospitality sector, which mainly belongs to the travel and tourism industry.
Let’s explore 2020 US hospitality market behaviour and observe what the future holds for the sector. The hospitality industry is big and diverse. In 2019, the share in global long‐haul travel of the United States’ was down from 13.7percent as compared to 2015 and remained 11.7percent. Approximately, 1.2 million US jobs and US$33.4 billion in wages are supported directly by the international travel spending.
It has been estimated that travellers, especially from overseas who visit the US and stay on average 18 nights, spend approximately US$4,200.
In the USA, the accommodation segment is the largest and accounts for 19percent of the entire hospitality industry. It is followed by the food services accounting for 16percent of the travel and tourism market.
According to the US Travel Association, in 2016, over 75 million international travellers visited the US. Now, brace yourselves. By 2020, the expectations are to hit over 83 million.
US is recognized as number one destination that runs long-distance flights in the world. The US economy continues to hold steady as expected, showing excellent resiliency. Since the US hotel industry is also enjoying the benefits from overall consumer spending, that too, driving gains in demand for hotels.
While the market conditions are generally expected to remain stable in 2020, yet, there are significant challenges capable of throwing the US travel industry off its growth trajectory loom on the horizon.
The leading challenges include:
- Sustainability
- Higher customer expectation
- Streamlining processes with mobile technology
- Marketing and reputation management
- Guest experience personalization
In 2019, the US market also went through an economic recession. But now, with the coming of 2020, a turning point is fuelling the hospitality sector across the travel industry.
Hence, the major countries and companies are delivering their contribution to USA hospitality sectors that are as follows;
Some of the major companies’ roles:
– American Cruise Line is inviting job seekers with a great package since it is also a leading river cruise company
– Artisans of Leisure is a travel company operating in the luxury hospitality sector located in New York. More than 60 countries from worldwide connect with the company that is also contributing a significant benefit to the US hospitality sector.
– To attract new employees, the companies in the hospitality industry are also forced to increase the wages. Consequently, wages now account for 25 to 30percent of the total revenue.
– Most importantly, 10percent of the total global workforce is employed by the tourism industry. This is also deriving great job opportunities, which is a leading benefit to the 2020 hospitality sector.
The top tourist-generating countries outside North America are the United Kingdom (5.3percent), China (2.9percent), Japan (4.8percent), and Brazil (3.0 percent). However, for the international visitors, United States and China have the maximum contribution.
Business strategies by Las Vegas Sands in past few years
With revenue of over US$15 billion and more than 40,000 employees, Las Vegas Sands is one of the best companies working in the hospitality sector of the USA. It is an American Casino and resort company that is working mainly in the USA. However, it also has properties in Singapore and China.
With iconic architecture and a robust name in the hospitality industry, the company has an exotic range of huge hotel and casino properties.
The company is attracting travellers through its most elegant casinos that pay outstandingly. In contrast, the profits and training are also bursting international exposure that makes Las Vegas Sands Corporation, one of the best Hospitality companies in the USA.