page 2 of 62 content · page 4 of 62. chinese president xi jinping is determined to get his...
TRANSCRIPT
Page 2 of 62
Global Tourism Watch -Bimonthly e-Magazine-Issue2, Apr. 2016
Publisher:Information Resource Center,
College of Tourism and
Services Management,
NanKaiUniversity
Producer:SMS-IMedia(Volunteer Team)
Advisory Board(Of stroke sequence):
丁培毅、于 良、王有成、马 勇
白秀成、李 刚、李 想、李天元
刘 鹏、刘 锋、刘德谦、吴必虎
宋海岩、张 楠、张广瑞、周宗清
保继刚、赵金林、徐 京、屈海林
蔡利平、戴 斌、魏小安
Editorial Board(Of stroke sequence):
庄 静、孙继哲、刘 翔、刘 璐
刘芯宇、乔 雪、华成刚、许俊萍
李 晶、李 颖、李倩倩、肖洪根
吴瑞敏、陈 宁、陈 镇、张 晶
张楠、张金元、金 鑫、俞悦
封芹芹、赵 鑫、高天明、袁海旺
耿小雁、彭 星、鲁 勇、韩 旸
蒋曦宁、萧芳芳、谢 丹、葛亚军
尹雪君、Xinran Lehto(游欣然)
Editorial Office:
Chief Editor:高天明
Publisher:庄静
Exe. Editors:陈镇、萧芳芳、彭星
☆ ☆ ☆ ☆ ☆
Public Email: [email protected]
Editor’s Email: [email protected]
CONTENT
The Chinese Tourism Boom is No Short Term
Bubble
The Value of a brand promise
Disney Introduces Daily Ticket Surge Pricing,
Effective Immediately
International Tourist Arrivals up 4% in 2015
Why hoteliers need to stay on top of technology
trends
Will Virtual Reality be a game changer in
travel marketing
Mobile devices: Are they driving direct
bookings and guest engagement
9 hotel booking trends to watch
How to evaluate the ROI of your investment in
staff training
The Hottest Hotel Chain Trends for 2016
Travellers expect robots on their holidays by
2020
Chinese visitors to Britain up almost 40%
China to be largest outbound tourism group by
2030: research
Why hoteliers should consider hiring managers
based on their GPA
Leadership Development: Growing Talent
Strategically
Watch American Democracy in China
Page 3 of 62
The Chinese Tourism Boom is No Short Term Bubble1 Back
With the growth that China has experienced with outbound travel and the future estimates
like the CLSA recently said it maintains its long-standing forecast of “200 million Chinese
overseas trips by 2020.”
We think it’s important to get a clearer picture on the potential of the market, what will work
for the new age Chinese traveller and what won’t?
In this article brought to you in the lead up to the EyeforTravel Asia Summit (June 15-16,
Singapore) we cover a range of topics from OTAs leading the market, to what apps work, and
statistics on potential growth and earnings.
If you find this interesting do download our conference brochure to learn more about our
coverage of the Chinese market and others following the trend >>>
Read the article below.
One belt, one road: a story behind the Chineseabroad
Though growth in Chinese tourist numbers are forecast to fall over the next five years, a
government led initiative indicates that boom in foreign tourism is no short-term bubble.
1 http://1.eyefortravel.com/LP=10293?utm_campaign=2800%2009MAR16%20Content%20Autoresponder%202.htm&utm_medium=email&utm_source=Eloqua&elqTrackId=142ac44ef78c4d7bbbcdbc25de2127da&elq=edc4d6c0c933499aa7735b50700b3aae&elqaid=15299&elqat=1&elqCampaignId=6673
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Chinese president Xi Jinping is determined to get his fellow-country out travelling to explore
the world. It is part of his yi dai yi lu (One Belt One Road) policy aiming at ‘connectivity’.
According to a recent UK think tank Chatham House’s report on ‘One Belt One Road’, Xi
Jinping talks of connectivity in terms of trade, investment, finance, with flows of tourists and
culture exchanges opening the paths. This strategy, Chatham House says, is not widely
understood.
So, in spite of the soaring numbers, the boom in Chinese foreign tourism is no short-term
bubble: it is part of official policy - and thus the corporate sector and its entrepreneurs are under
orders. It is not reliant only on the economy or the banks’ willingness to extend credit (although
they increased lending at the fastest pace on record in January). All good news for investors in the
Chinese travel sector!
Though official policy does also seems to be to keep the economy well fuelled. “Judging
from recent speeches by top leaders and January’s credit growth, this year policymakers seem to
be determined to make the economy grow above their bottom line of 6.5%,” Reuters quoted Larry
Hu, China economist at brokers Macquarie Securities as saying.
The ‘road’ in question for Xi Jinping’s far-reaching plans for Chinese business is principally
the country’s historical trade routes, says the Chatham House report. They extended across Eurasia
and down into the Pacific and round to East Africa. But Chinese travellers and entrepreneurs are
now going further (to the US, for example), Chinese tourists going so far as to include the North
and South Poles among their new favourite destinations.
Have faith
China’s New Year holiday travel numbers show the Chinese need little encouragement to go
out. The China Outbound Tourist Research Institute has just published a report quoting Chinese
travel agencies LY.com and Tuniu as saying that over 60% of all travellers booked with them at
the New Year traditional holiday time were going overseas. Other reports put actual outbound
numbers then at 6 million. This is after a year when outbound travellers rose by 20% to around at
least 120 million, although the US magazine Forbes has said that when all the numbers are in,
border crossings could have been nearer 140 million.
Yet Chinese travel companies feel that the outside world does not appreciate their prospects
nor have faith in China’s tourism growth. Major OTA eLong is one of them: the US’s
NASDAQ-quoted company announced early last month (February) that it was being taken private
Global Tourism Watch -Bimonthly e-Magazine-Issue2, Apr. 2016
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by its major Chinese shareholders. With other Chinese companies this has been the precursor to a
launch on the Chinese stock markets and brokers are expecting the same will happen with eLong.
The investment story still seems a good one. On the back of the New Year and 2015 booming
travel figures, Hong Kong-based broker CLSA recently said that regardless of the slowdown in the
economy it remained bullish on Chinese outbound tourism. And it maintains its long-standing
forecast of “200 million Chinese overseas trips by 2020.” However, it does suggest that Chinese
outbound tourist growth will slow to 9% over the next five years as opposed to 17% the past five
years.
Forbes comment on China’s economic growth is that lessening it might be, but it is still
increasing the wealth of the top 5%, the majority of foreign travellers. “At the same time, the ‘new
middle classes’, even if their growth rate is often overstated, are adding their spending power to
the total amount of renminbi used to visit foreign countries, experience new cultures, do business
and shop in fake-free stores,” it says.
As to destination, CLSA forecasts that Chinese travellers looking for unique cultural
experiences are most likely to head to South Korea, Japan, Thailand or the US in the next three
years. South Korea is attractive for its relatively cheap luxury goods and cosmetics, whereas
Thailand offers beaches and other cultural destinations.
CLSA’s adds that a survey it carried out shows that if money was no object, the most desired
destinations are the US, France, Maldives and Australia, in that order. Research from booking site
LY.com found that Chinese tourists are finding their way into new sectors. There was a 30.64%
rise in cruise ship bookings, with all tours being popular.
App and accommodation action
What is also new, says China Outbound Tourist Research, is that Chinese travellers are
raising their sights on accommodation. The trend towards opting for a cheap hotel in order to have
more money for shopping is, it says, changing - even at home. For the New Year holiday Golden
Week, demand for hotels with high rating far exceeded expectations: over 60% of travellers
booked hotels with 4 or 5 stars.
Nor are Chinese tourists confining themselves to the traditional famous foreign travel
destinations. According to OTA Ctrip, Chinese tourists now book holiday in more than 100
countries and regions worldwide. More and more apps are coming on to the market to help the
Chinese traveller abroad - including Chinese language satnavs! China Internet Watch names last
year’s top app suppliers as Ctrip, Qunar, CY, Didi Travel, Tuniu, Kuaidi Travel, eLong, Airplane
Global Tourism Watch -Bimonthly e-Magazine-Issue2, Apr. 2016
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Butler, High-speed Rail Butler and Lvmam. Most travellers booked by mobile rather than PC – 60%
of the total! And mobile use, it says, was up 400% year-on-year in the third quarter.
Bookings for top destinations are, says China Internet Watch, still dominated by Qunar
(acquired by Baidu last October) and Ctrip. Their market is still mainly top-end business travel
packages. But it also names others as growing fast, including Alitrip, LY.com or Tongcheng,
Tuniu.com, Lvmama.com and Wanzhoumo.com.
An emerging sector
The share registers of leading OTAs show that back in China (as opposed to New York or
London) there is no shortage of appreciation in travel prospects among investors especially from
entrepreneurs in the industry. LY.com, which concentrates on outbound travellers, is backed by
China’s largest real estate group, Dalian Wanda and (confusingly in the cat’s cradle of investment
cross-holdings that make up China’s online travel industry) includes Tencent and Ctrip among its
shareholders.
Lvmama is one of the largest DIY travel and tourism sites in China, selling Asia-based
sightseeing tickets, visa services, resort vacations, and cruises. A major investor is Jinjiang
International, which is among China’s largest tourism conglomerates.
A fast emerging travel sector this year, says China Internet Watch, is that for backpackers and
independent travellers. Sites among those it names are Mafengwo.com, Qyer.com and 17u.com -
all three are, it says, “getting more popular with the younger generation”. Qyer.com received an
investment of $60 million from one of China’s leading international travel companies, Utour, just
last month.
17u.com is a subsidiary of Tongcheng Network Technology, another major OTA and with a
specialisation in scenic attractions, hotels, international air tickets. In the past Tongcheng has
partnered with eLong and has attracted investment from Tencent and Ctrip as well as Dalian
Wanda. It is already following Xi Jinping’s strategy. Last November it set up a JV with Japan’s
long-established tourism agency H.I.S. Co. and a month later struck a similar deal with South
Korea’s Lotte Travel.It is now going for the southern side of the continent by setting up a JV with
hotel group Wenmei Holidays to focus on Thailand. Stock markets may not yet have picked up as
yet on the One Belt One Road story behind China’s growing travel networks, although it has not
been lost on big backers like the Asian Development Bank. But perhaps they will as events unfurl.
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The value of a brand promise2 Back
Beyond the guest experience
It’s clear that hotel loyalty is garnered through a strong, positive, impactful experience—but
what helps differentiate that experience?
Deloitte has explored the characteristics of hotel customer loyalty and found that, underlying
the guest experience, a hotel’s brand promise can have a strong impact on business results.
Knowing what your brand stands for—and delivering on that promise—can serve as a key to
long-term success.
Recent findings show that a clearly defined and credible brand promise can help generate
rebooking, ancillary spending, and brand advocacy.
What is the impact of a differentiated brand promise?
Loyalty and commitment are strongest when a brand offers a differentiated brand promise
and consistently delivers on that promise by providing an outstanding experience. Building and
executing on a brand promise through reputation and prestige can build a hotel guest’s
commitment and earn strong customer loyalty.
Research findings from J.D. Power’s North American Hotel Guest Satisfaction Index Study3
show that, setting experience aside, a 1% increase in a hotel’s brand promise (as defined by the
strength of its reputation) can improve a guest’s intent to recommend the hotel by over 3% and
intent to rebook by over 4.5%.
Yet that same study shows something perhaps even more impressive: A guest appears to be
more forgiving of a less-than-satisfying experience at a hotel with a strong brand promise than one
with a weaker brand promise.
2http://www.hospitalitynet.org/file/152006170.pdf 3 The 2015 North America Hotel Guest Satisfaction Index Study is based on responses gathered between June
2014 and May 2015 from more than 62,000 guests in Canada and the United States who stayed at a hotel in North America between May 2014 and May 2015. The study covers eight hotel segments: luxury, upper upscale, upscale, upper midscale, midscale, economy/budget, upper extended stay and extended stay and ranks over 70 hotel brands. See more at http://www.jdpower.com/press-releases/2015-north-america-hotel-guest-satisfaction-index-study.
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Guests who experience a problem at a hotel are less likely to return to that hotel than those
who do not experience a problem. This is both unsurprising and true regardless of the hotel’s
brand promise. However, guests who experienced a problem at a “high prestige” hotel are more
than twice as likely to return as guests who experienced a problem at a “low prestige” hotel (20%
vs. 9%). In fact, “high prestige” hotel guests who experienced a problem are nearly as likely to
return as “low prestige” hotel guests who experienced no problem at all (20% vs. 23%). Therein
lies the real power of a strong brand promise; it makes guests more forgiving of a problem when it
occurs.
With that impact on customer behavior, the financial implications are clear. Similar findings
are also reported by other leading researchers.4
What comprises a differentiated brand promise?
Knowing what your brand stands for and what it means to both your customers and
employees can be a key differentiator between hoteliers that thrive versus those that simply
survive. A brand promise is guided by a vision for the lasting impact it hopes to have on guests. It
is executed through developing property leaders and staff who live and embody brand values and
standards and a brand culture that permeates how employees engage with each other and guests on
a daily basis.
It is through both the property tangibles and guest treatment that the experience is derived,
but that experience—and everything that drives it—should be designed around and informed by
the brand promise.
Leading hoteliers work hard, not only to define their promise, but also to engage their staff on
how to deliver on that promise at each property, and in every element of a guest’s experience.
The best brands are able to deliver an employment experience to employees in the same way
they deliver a brand promise to guests. This connects their employees to their brand promise in a
way that truly resonates and is relevant to them, so that these employees can in turn deliver a
differentiated and emotionally satisfying experience to guests.
So what’s the bottom line?
4Keshav Prasad and Chekitan S. Dev, “Managing Hotel Brand Equity: A Customer-centric Framework for Assessing Performance,” Cornell Hotel and Restaurant Administration Quarterly, 2000, accessed at: http://www.rinascite.it/wordpress/wp-content/uploads/2011/12/Brand-Equity-e-la-Rinascita.pdf. See, also, John W. O’Neill and Anna S. Mattila, “Hotel Brand Strategy”, Cornell Hospitality Quarterly, February 2010, accessed at: http://ishc.com/wp-content/uploads/Hotel-Brand-Strategy-Article2.pdf.
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Hotels with year-over-year increases in guest satisfaction earn corresponding gains in both
loyalty and market share. However, hotels in all segments can improve their financial outcomes by
ensuring the brand promise is strong and central to their brand culture, and in making delivery on
that promise their main focus. The essence of what drives customer experience—people, process,
price, and product—should be shaped by an unshakable fidelity to the brand’s promise.
Disney Introduces Daily Ticket Surge Pricing, Effective
Immediately5
Back
Robert Niles, Theme Park Insider - Feb 28, 2016 9:00 am
While this won’t deter people from coming on the busiest days (and will make more money
off more people), it will provide a benefit to those who come when it is quieter.
— Jason Clampet
Walt Disney World and Disneyland made official this morning that their theme parks will
start charging different prices for admission on different days of the year, starting tomorrow.
The new seasonal pricing plan will create three pricing tiers for one-day theme park tickets:
value, regular, and peak days. Disney will use its crowd calendars to assign days into one of the
three price tiers, and single-day tickets now will be assigned to a specific day of use.
The upside is that the new plan will allow visitors who have the flexibility to visit on less
crowded days to enjoy a lower-than-usual price for a single day’s visit, as well as the smaller
crowds in the park found on such days. The downside is that families with children in school
likely will find it even more expensive to visit a Disney theme park, as many school vacation days
likely will end up in the peak days tier.
Of course, most visitors — especially to the Walt Disney World Resort — visit using
multi-day tickets. Those tickets will not vary by tier but the prices on them will go up across the
board tomorrow, as well.
One day, one-park tickets at Walt Disney World will cost $124 for peak days at the Magic
5http://media.unwto.org/press-release/2016-01-18/international-tourist-arrivals-4-reach-record-12-billion-2015
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Kingdom and $114 at Epcot, Animal Kingdom and Hollywood Studios. Regular days will cost
$110 at the MK and $102 at the other parks. Prices for the value days will remain what they are
now — $105 for the Magic Kingdom and $97 for the other three WDW parks.
One day, one-park tickets to Disneyland and Disney California Adventure will cost $119 for
peak days, $105 for regular days, and $95 for value days. Those tickets currently cost $99 on all
days of the year. There will be 83 value days remaining in 2016 — all weekdays during the school
year. And there will be 83 more peak days — during spring break, summer weekends and the
holiday season in December.
Earlier this month, Universal Studios Hollywood adopted a dynamic discount system for
one-day tickets bought in advance via the park’s website. Universal kept the gate price of daily
tickets the same for every day, but offers varying discounts based on the date you commit to visit.
The point of these variable, seasonal, dynamic pricing systems (whatever you wish to call
them), is to provide another incentive for people to move their visits from busy days to less-busy
ones. That allows the parks to better distribute their capital resources, as they no longer have to
build excess capacity for peak periods that sits unused during less busy times.
In addition, peak pricing allows the parks to be more aggressive about admission increases,
as these systems allow the park to avoid raising the price on less popular days, when people might
not be inclined to visit at the higher prices.
Today’s move leaves Universal Orlando’s theme parks as the only ones among the nine most
popular theme parks in the United States not to have some dynamic pricing system for its theme
park tickets. Earlier this month, Universal Orlando raised prices for its one-day and multi-day
tickets, beating Disney to what’s become the annual late-winter price increases for tickets at major
theme parks.
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International tourist arrivals up 4% reach a record 1.2
billion in 20156 Back
ByWorld Tourism Organization UNWTO-18 Jan 16
International tourist arrivals grew by 4.4% in 2015 to reach a total of 1,184 million in 2015,
according to the latest UNWTO World Tourism Barometer. Some 50 million more tourists
(overnight visitors) travelled to international destinations around the world last year as compared
to 2014.
2015 marks the 6th consecutive year of above-average growth, with international arrivals
increasing by 4% or more every year since the post-crisis year of 2010.
“International tourism reached new heights in 2015. The robust performance of the sector is
contributing to economic growth and job creation in many parts of the world. It is thus critical for
countries to promote policies that foster the continued growth of tourism, including travel
facilitation, human resources development and sustainability” said UNWTO Secretary-General,
Taleb Rifai.
Demand was strong overall, though with mixed results across individual destinations due to
unusually strong exchange rate fluctuations, the drop in oil prices and other commodities which
increased disposable income in importing countries but weakened demand in exporters, as well as
increased safety and security concerns.
“2015 results were influenced by exchange rates, oil prices and natural and manmade crises
in many parts of the world. As the current environment highlights in a particular manner the issues
of safety and security, we should recall that tourism development greatly depends upon our
collective capacity to promote safe, secure and seamless travel. In this respect, UNWTO urges
governments to include tourism administrations in their national security planning, structures and
6http://media.unwto.org/press-release/2016-01-18/international-tourist-arrivals-4-reach-record-12-billion-2015
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procedures, not only to ensure that the sector’s exposure to threats is minimised but also to
maximise the sector’s ability to support security and facilitation, as seamless and safe travel can
and should go hand in hand”, added Mr Rifai.
Growth in advanced economy destinations (+5%) exceeded that of emerging economies
(+4%), boosted by the solid results of Europe (+5%).
By region, Europe, the Americas and Asia and the Pacific all recorded around 5% growth in
2015. Arrivals to the Middle East increased by 3% while in Africa, limited data available, points to
an estimated 3% decrease, mostly due to weak results in North Africa, which accounts for over
one third of arrivals in the region.
Positive prospects for 2016
Results from the UNWTO Confidence Index remain largely positive for 2016, though at a
slightly lower level as compared to the previous two years. Based on the current trend and this
outlook, UNWTO projects international tourist arrivals to grow by 4% worldwide in 2016.
By region, growth is expected to be stronger in Asia and the Pacific (+4% to +5%) and the
Americas (+4% to +5%), followed by Europe (+3.5% to +4.5%). The projections for Africa (+2%
to 5%) and the Middle East (+2% to +5%) are positive, though with a larger degree of uncertainty
and volatility.
2015 Regional Results
Europe (+5%) led growth in absolute and relative terms supported by a weaker euro vis-à-vis
the US dollar and other main currencies. Arrivals reached 609 million, or 29 million more than in
2014. Central and Eastern Europe (+6%) rebounded from last year’s decrease in arrivals. Northern
Europe (+6%), Southern Mediterranean Europe (+5%) and Western Europe (+4%) also recorded
sound results, especially considering the many mature destinations they comprise.
Asia and the Pacific (+5%) recorded 13 million more international tourist arrivals last year to
reach 277 million, with uneven results across destinations. Oceania (+7%) and South-East Asia
(+5%) led growth, while South Asia and in North-East Asia recorded an increase of 4%.
International tourist arrivals in the Americas (+5%) grew 9 million to reach 191 million,
consolidating the strong results of 2014. The appreciation of the US dollar stimulated outbound
travel from the United States, benefiting the Caribbean and Central America, both recording 7%
growth. Results in South America and North America (both at +4%) were close to the average.
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International tourist arrivals in the Middle East grew by an estimated 3% to a total of 54
million, consolidating the recovery initiated in 2014.
Limited available data for Africa points to a 3% decrease in international arrivals, reaching a
total of 53 million. In North Africa arrivals declined by 8% and in Sub-Saharan Africa by 1%,
though the latter returned to positive growth in the second half of the year. (Results for both Africa
and Middle East should be read with caution as it is based on limited available data).
China, the USA and the UK lead outbound travel growth in 2015
A few leading source markets have driven tourism expenditure in 2015 supported by a strong
currency and economy.
Among the world’s top source markets, China, with double-digit growth in expenditure every
year since 2004, continues to lead global outbound travel, benefitting Asian destinations such as
Japan and Thailand, as well as the United States and various European destinations.
By contrast, expenditure from the previously very dynamic source markets of the Russian
Federation and Brazil declined significantly, reflecting the economic constraints in both countries
and the depreciation of the rouble and the real against virtually all other currencies.
As for the traditional advanced economy source markets, expenditure from the United States
(+9%), the world’s second largest source market, and the United Kingdom (+6%) was boosted by
a strong currency and rebounding economy. Spending from Germany, Italy and Australia grew at a
slower rate (all at +2%), while demand from Canada and France was rather weak.
By region, Europe, the Americas and Asia and the Pacific all recorded around 5% growth in
2015. Arrivals to the Middle East increased by 3% while in Africa, limited data available, points to
an estimated 3% decrease, mostly due to weak results in North Africa, which accounts for over
one third of arrivals in the region.
Positive prospects for 2016
Results from the UNWTO Confidence Index remain largely positive for 2016, though at a
slightly lower level as compared to the previous two years. Based on the current trend and this
outlook, UNWTO projects international tourist arrivals to grow by 4% worldwide in 2016.
By region, growth is expected to be stronger in Asia and the Pacific (+4% to +5%) and the
Americas (+4% to +5%), followed by Europe (+3.5% to +4.5%). The projections for Africa (+2%
to 5%) and the Middle East (+2% to +5%) are positive, though with a larger degree of uncertainty
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and volatility.
2015 Regional Results
Europe (+5%) led growth in absolute and relative terms supported by a weaker euro vis-à-vis
the US dollar and other main currencies. Arrivals reached 609 million, or 29 million more than in
2014. Central and Eastern Europe (+6%) rebounded from last year’s decrease in arrivals. Northern
Europe (+6%), Southern Mediterranean Europe (+5%) and Western Europe (+4%) also recorded
sound results, especially considering the many mature destinations they comprise.
Asia and the Pacific (+5%) recorded 13 million more international tourist arrivals last year to
reach 277 million, with uneven results across destinations. Oceania (+7%) and South-East Asia
(+5%) led growth, while South Asia and in North-East Asia recorded an increase of 4%.
International tourist arrivals in the Americas (+5%) grew 9 million to reach 191 million,
consolidating the strong results of 2014. The appreciation of the US dollar stimulated outbound
travel from the United States, benefiting the Caribbean and Central America, both recording 7%
growth. Results in South America and North America (both at +4%) were close to the average.
International tourist arrivals in the Middle East grew by an estimated 3% to a total of 54
million, consolidating the recovery initiated in 2014.
Limited available data for Africa points to a 3% decrease in international arrivals, reaching a
total of 53 million. In North Africa arrivals declined by 8% and in Sub-Saharan Africa by 1%,
though the latter returned to positive growth in the second half of the year. (Results for both Africa
and Middle East should be read with caution as it is based on limited available data).
China, the USA and the UK lead outbound travel growth in 2015
A few leading source markets have driven tourism expenditure in 2015 supported by a strong
currency and economy.
Among the world’s top source markets, China, with double-digit growth in expenditure every
year since 2004, continues to lead global outbound travel, benefitting Asian destinations such as
Japan and Thailand, as well as the United States and various European destinations.
By contrast, expenditure from the previously very dynamic source markets of the Russian
Federation and Brazil declined significantly, reflecting the economic constraints in both countries
and the depreciation of the rouble and the real against virtually all other currencies.
As for the traditional advanced economy source markets, expenditure from the United States
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(+9%), the world’s second largest source market, and the United Kingdom (+6%) was boosted by
a strong currency and rebounding economy. Spending from Germany, Italy and Australia grew at a
slower rate (all at +2%), while demand from Canada and France was rather weak.
Why hoteliers need to stay on top of technology trends7
Back
Recently we’ve noticed some trends about technology and user experience that are interesting
to note for hotels. Two interesting examples relate to Facebook and Skype,two of the most popular
platforms and both household names around the world.
Here’s how and why this is relevant to hotels, and one way in particular that hotels can learn
about and keep up with similar trends; by watching what OTAs mark as business priorities.
Use Facebook Messenger without a Facebook account
Earlier this year Facebook decided to make access to its Messenger app open to anyone with
a phone number. This means users did not need to create or have an actual Facebook account in
order to use the Messenger app. For the avid Facebook users out there, now we all get why the app
split took place in 2014! To refresh your memory, Facebook users who once used the messaging
function within the Facebook app, were forced to download the new, separate Messenger app in
order to continue messaging.
Use Skype without a Skype account
Skype (Microsoft owned) has also changed its access requirements to simplify and encourage
wider usage of the platform. The competition for messaging and communications apps has
intensified in recent years, and despite being once of the first players in the space –
Skype/Microsoft have set a great example by avoiding complacency.
What does this all mean for the user experience?
As users we get a little uncomfortable when there are changes to the way we use our
favourite platforms, particularly when we don’t understand the reasons for the changes. In general
7http://ehotelier.com/insights/2016/03/11/148501/
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however, technology users as a rule love the ‘path of least resistance’ wherever possible. We love
shortcuts, we love simple interfaces and we love when technology makes our lives easier.
So it seems these communication and technology platform providers are learning that users
face all kinds of barriers to usage, whether they are geographical, technical or simply lifestyle
barriers. The online world is a cluttered place and as users we have little patience for long-winded
or confusing user experiences, particularly when it comes to sign up processes. Use of our social
media channels as sign-up tools have streamlined this, and it’s well known that users are prepared
to give over more and more personal information if it will lead to more streamlined, personalized
services and experiences.
What does this mean for hotels?
Even though OTAs are sometimes seen as the enemy, hotels should take note of what OTAs
prioritize. User experience is a key area of constant investment and innovation for OTAs. They
may have more market power and more buying power, but their priorities here point to technology
trends consistent with those happening outside of the travel industry. This is interesting to note.
Hotels that are making technology a priority to enhance their guest experiences should keep in
mind that user experience is what determines the rate of results, whether the goals are for
engagement or ROI.
[About the author]Kim Adams is the Marketing Coordinator atGuestDriven. She is an
Aussie expat whose favourite places to travel are Quebec City, New York & Australia.
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Will Virtual Reality be a game changer in travel
marketing?8 Back
ByFrederic Gonzalo-March 4th, 2016
Call me old school, but when it comes to VR (or virtual reality), I tend to think back to the
movie “Demolition Man” that came out in 1993. Starring Sylvester Stallone and Sandra Bullock,
the action takes place in 2032, in a futuristic version of Los Angeles where there is no violence
(we can only wish). In one particular scene, the two main actors have “VR-sex”, that is through
the lens of their VR device….
VR sex scene from movie Demolition Man, starring Sandra Bullock and Sylvester Stallone
8http://ehotelier.com/insights/2016/03/04/148156/
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Okay, so forget about the movie anecdote, as one thing is for sure: VR is no longer science
fiction or some far-fetched concept that may or may not happen. Virtual reality and technology
was THE hottest topic this year at the annual CES event in Las Vegas. And it is about to take the
travel industry by storm. Or not.
What is Virtual Reality?
The concept of virtual reality has evolved in the past decade. Second Life, anyone? In its
most recent iteration, it revolves basically around the idea of putting on glasses giving its user
access to a virtual world offering limitless possibilities. This form of immersive multimedia is
meant to reproduce an environment, thus stimulating senses like sight, but also touch, hearing and
smell. In other words, VR seeks to provide as real an experience as possible…without the
necessities of travel. How does that sound to travel industry practitioners?
Oculus Rift VR technology
While it may sound counter-intuitive, the technology actually provides many opportunities
for travel marketers, granted they make the most of its potential and understand how it can add
value in the travel decision-making process.
By the way, if you are wondering whether virtual reality is serious business, it may help to
know that Facebook purchased the leading VR-headset company, Oculus VR, for $2 billion in
2014, the same year that Google announced Cardboard, a stereoscopic viewer for smartphones.
Sony is also busy in this field, with its Project Morpheus, meant to provide a VR solution for its
popular PlayStation game consoles.
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Possible usage in travel
So if someone can experience a trip to the beach or a night out at the museum through virtual
reality, will they bother actually going or will VR eventually replace travel itself? That’s not likely
to happen. And it’s the bet some travel brands are already taking with VR as a tool to get potential
cons、umers to experience their product or service, thus educating them about a destination or
getting them pumped about a particular experience.
Marriott was among the first hospitality brands to bank on VR with its #GetTeleported
hashtag back in 2014, which was launched alongside its popular #travelbrilliantly campaign across
various social media platforms. The goal here was to get newlyweds to think (and book) their
upcoming honeymoon through an immersive experience that left them wanting to act right away.
Marriott’s 4-D Journey, Transported people from London to Maui in 90 seconds
Last year, Qantas Airways introduced virtual reality for a different purpose, seeking to
provide in-flight entertainment for some of its first-class passengers traveling on its A380 flights
between Los Angeles and Sydney. Such initiatives can be effective in getting users to discover
new things to do and places to discover when in Australia (or in California, on the way back), but
conversions remain elusive in this context.
The folks at Thomas Cook took a similar knack at it by inviting potential clients to “try
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before you fly”. Customers were invited to try the VR-headsets in Thomas Cook travel agencies in
the UK, Germany and Belgium, highlighting New York as travel destination. In this case, the
company was able to track effectiveness and conversion rates prior to and after the introduction of
their VR initiative, with a positive effect on bookings and increase of 190% in New York travel
revenues during 2015!
More recently, the folks at Club Med Canada stormed the streets of Montreal during a cold
February day with various pop-up villages, seeking to promote the experience of a Club Med
village to by-standers. Beyond the music and dancing G.O. (Gentils Organisateurs, or Club Med
employees), virtual reality was a key component in the success for this event, giving participants a
more realistic view of what it might be like in the various resorts highlighted by the initiative.
A game-changer?
While I believe VR is a very interesting technology, I don’t think it is poised to become an
earth-shattering tactic for travel brands. In other industries, such as gaming and entertainment, VR
is huge. But for hospitality and travel brands, VR should be certainly part of the mix alongside
360 videos, photos and other visual tools that help with effective storytelling in this era of
user-generated content, selfies and hashtag marketing.
More importantly, this tool has the potential to convert clients that hesitate about various
aspects of a trip. It may be useful to read reviews on Tripadvisor, check out comments and
discussions on social media or look at pictures and videos… but there is nothing more powerful
and convincing than experiencing a destination, a hotel, a restaurant or an attraction through the
lens of VR-device. In that sense, virtual reality may become travel brands’ best friend in no time at
all.
It will be interesting to see what other examples and innovative campaigns are bound to come
up. Have you heard of any original ones? Please do share in the comments section below.
About the author
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Frederic Gonzalo is passionate about marketing and communications, with over 20 years of
experience in the travel and tourism sphere. Early 2012, he launched Gonzo Marketing and works
as a strategic marketing consultant, professional speaker and trainer in the use of new technologies
(web, social media, mobile). Reach him at [email protected].
Mobile devices: Are they driving direct bookings and guest engagement?9
Back
Since Chris Anderson wrote “The web is dead. Long lives the Internet” in 2010, a pivotal
article announcing the demise of traditional web browsing, the topic has been endlessly hyped in
the media. However, there is a need for more factual study that takes an objective approach to
measuring the impact of the usage of mobiles devices on hotel direct bookings.
In their recent Hotel Supplier Website Benchmark report, Cendyn/ONE looked at the
evolution of traffic and bookings by device in a sample that included more than 100 three- to
five-star boutique hotels, resorts and casinos around the world, totaling over 400 million dollars in
room revenues. The study compared visits, transactions, room revenue, Average Length of Stay
(ALOS), and Average Daily Rate (ADR) to uncover how shifts in mobile usage are truly affecting
e-commerce and website direct bookings. The study shows evidence that smartphones are
becoming more than just a Top of the Funnel (TOFU) device.
Smartphone will become the primary trip planning device
Cendyn/ONE’s Benchmark Study about the effects of mobile on direct bookings shows that
over the past two years, 17% of web searches have shifted to smartphones from desktop (16%)
and tablets (1%). As a result, when it comes to hotel direct supplier websites less than 1 out of 5
searches are made on a tablet, while desktop accounts for 1 out of 2 searches and smartphone 1
out of 3. If this trend continues, smartphones will become the primary device for trip planning
within two years.
Desktop still dominates the bottom of the funnel (BOFU) booking activity
On the other hand, when it comes to online conversions desktop continues to dominate the
landscape. Desktop’s conversion rate is twice as high as tablet and five times higher than
9http://ehotelier.com/insights/2016/02/26/mobile-devices-are-they-driving-direct-bookings-and-guest-engagemen
t/
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smartphone. Nonetheless, it is worth noting that smartphones are a growth segment for hotel direct
bookings. After doubling in 2015, smartphone booking volumes have almost caught up with tablet.
Nonetheless, the ADR of rooms booked via smartphone was nearly unchanged when compared to
2014. Not surprisingly, Millennials are a driving force behind smartphone conversions; however
usage has also spread to the 35-44 age groups, who seem to be embracing smartphones with larger
screen sizes. When it comes to people over 55, the trend is to search on the mobile and then book
on desktop or tablet.
Tablets equal longer stay + highest ADR
Between 2013 and 2015, the difference between tablet and desktop ADR grew increasingly in
favor of tablets. Moreover, 2015 marks the first year that the Average Length of Stay (ALOS) was
the highest on tablet. The combined impact of highest ADR with highest ALOS resulted in tablet
booking yield being 26% higher than desktop. Simply put, tablets are what the most affluent and
less price sensitive audiences use to book their vacations.
Add a guest engagement app to your mobile strategy
With well over 85% of leisure travelers using smartphones during their vacations, mobile has
become the preferred way to keep in touch with the guest throughout the guest cycle.
Cendyn/ONE noticed that statistically, a guest who books an activity with a hotel before his or her
stay is 25% less likely to cancel their reservation. Furthermore, guests who used Cendyn/ONE’s
concierge Guest Engagement Application for pre-stay, on-property and post-stay activities
generated between $70 and $120 in ancillary revenue while on location. While the Average Order
Value (AOV) varies widely based on the range of services the hotel offers, it is important to
consider ancillary spend generated on-property when comparing the return on investment of a
Mobile versus Desktop guest.
Improve your mobile experience with responsive design
As a growing number of visitors are becoming accustomed to seamless mobile interactions
on leading ecommerce websites, it is important to ensure that your website as well as you’re
booking engine are fully-responsive across all devices. Selectors, date pickers, submit buttons and
other critical input fields such as areas for credit cards and addresses must be properly sized and
spaced for all size screens – so visitors can easily enter their data. Poor design and lack of
usability plays a significant role in booking funnel abandonment. Furthermore, in April 2015,
Google updated its search ranking algorithm to include new mobile webmaster guidelines.
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Bringing your website into comply with Google’s new rules means that you will receive a higher
share of mobile organic searches.
Cendyn/ONE provides a cloud-based software and services platform that delivers an
integrated view of guest history, value, behavior, desire, intent and engagement, which is
leveraged to drive higher marketing ROI while increasing overall guest satisfaction and loyalty.
9 hotel booking trends to watch10
Back As the world of hotel online bookings moves forward at a furious pace, it has become
harder to track changes and innovations. Equally importantly, it is hard to know which of these ideas will be here to stay and which one should we put our energies towards.
Is there a way to figure this out? A recent trend briefing from Trendwatching.com provided a
useful perspective – “Why watching businesses, not customers, is the counter-intuitive secret to
anticipating what people will want next!”
I found this really relevant for our industry grappling with change. But the most important
takeaway for me was looking for clusters.
“You can see new consumer trends emerging when you look at clusters of innovations that
are leveraging change to address a basic human need in a new way.”
So applying this to the online hotel booking industry, there are some clusters which caught
my eye. Here they are in no particular order.
1. Auction websites There is something about setting your own price for a product or service that is exciting. And
more companies are joining the fray.
Tansler is an online vacation rentals marketplace. Renters can name their own price for
multiple properties to start a reverse auction which ends when the first host accepts the offer or
after 24 hours, whichever comes first.
At RoomAuction.com you see standard rates for hotels. Bookers place an offer (bid) stating
how much they are prepared to pay for their stay. That offer is sent to the hotel where a member of
reservations team decides whether to accept or decline your offer.
10http://ehotelier.com/insights/2016/02/17/9-hotel-booking-trends-watch/
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With Onlybidding.com, you have three chances to bid on the hotel for the selected dates
within a 24 hour period.
Instead of charging high commissions to hotels, Bidroom asks them to give discounts on their
room prices to guests and give the assurance that bookers will always save at least 5% on their
bookings.
Sky Auction is a fast growing travel auction marketplace. Anyone can bid after registration.
BackBid turns hotel shopping on its head. As a potential guest, you become the pursued
rather than the pursuer.
2. Hotel rebooking websites As a booker, one is usually left with a little nagging thought before confirming hotels and
flights – ie “have I really get the best price?”. Metasearch websites help with this, but you still
have no way of knowing if the price drops. So what if you could overcome that little niggle?
Dreamcheaper asks you to book your hotel anywhere in the world, on any platform. Make
sure that your reservation can be cancelled for free — the price is less important. Forward your
confirmation to them and they’ll then continuously compare prices, rebook and cancel your old
reservation to get you the best price.
Corporate travel companies identified this need earlier and some companies like Yapta claim
to have identified over $550 million in savings for travellers.
Tripbam is a hotel rate shopping service for travel managers whose pitch is “Get the best
hotel rate possible, increase traveler compliance and corral open bookings”.
Hotels cannot be too pleased with this particular trend neither can the online travel
intermediaries – but this seems to be what bookers want!
3. Group booking platforms While the need for group bookings online has been widely discussed, there has traditionally
been little progress. Established companies like cvent and Mpoint still work on the multihotel
Request for Proposal (RFP) model. This is completely understandable, given the complexity of
groups, and their booking behaviour and needs.
There are some changes on the group booking front, however, you wouldn’t call them drastic.
Roomblocker aims to make it easy to book and manage room blocks for a group.
Triporama provides a free web site that makes it fun and easy to plan a group trip with
friends and family.
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With the pure meeting industry, the evolution is slightly more visible. Again understandable,
as there are fewer variables to deal with.
With Okanda, you can book your meeting room instantly without requests for proposal.
Book2meet allows users to discover and book from over 32 000 meeting rooms and
conference venues with no extra costs and a flexible cancellation policy.
At Meetingrooms, planners can search and compare the rates and availability of thousands of
available meeting rooms from numerous brands across the globe.
4. Growth of metasearch in vacation rentals With the staggering growth of the vacation rental industry, it is no suprise that there are now a
host of metasearch websites that pull this information together.
Tripping helps search top vacation rental sites with 5 million vacation homes and short-term
rentals.
HomeToGo claims to be the largest search engine for vacation rentals worldwide
and Alltherooms lets users search from a list of over 5 million rooms from over 400 sites.
5. Bleisure websites This rather horrible sounding word seems set to stay. It is clear that there is an increasing
overlap between Business and Leisure and vice-versa.
Tripchamp offers a personalised, intelligent travel platform that claims to understand the
user and their business.
Tripbam offers a hotel rate shopping service for travel managers as well as a custom platform
for individual bookings.
6. Online itinerary building and booking websites Another item on the wishlist of many travel bookers – “If only I could book everything I
needed for this trip on one website.”
Hello Gbye is a new online and mobile travel booking tool allowing an end-to-end solution
for even complex travel itineraries within minutes, but it’s still in beta testing.
Inspirock offers a trip planner that will build a day-by-day schedule.
Tripcreator‘s founder was inspired after he sat in front of a computer where he had 36
browser tabs open and entered the details of is upcoming trip into an Excel sheet.
7. Increased deployment of machine learning technologies to influence bookings
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Increasingly, technology is being applied by companies to influence travel booking behaviour.
Previously exclusively driven by the giants of Online Travel, these technologies are becoming
more accessible and user friendly. Some of the products from the following companies will give
you an idea.
Holistic learns who will buy, what they buy from you and when, and automatically picks
personalised content and ads, creates hot leads lists and more.
Evergage helps target travelers based on current or past session behavior, purchase history,
CRM data, loyalty points, location, or even stage of a trip. Automatically promote articles, travel
tips, restaurants and attractions based on the traveler’s preferred destinations, mode of travel, or
price sensitivity.
Qalendra’s algorithms ingest data from many sources, compare all destinations at once and
identify where the best conditions for each type of vacations are, anywhere in the world, up to 4
months in advance.
8. Meta search results on hotel brand websites Hotels are fighting harder to get their share of direct bookings aided by companies that
provide a little widget to ensure prospects do not leave the hotel website to compare rates on
OTAs. In fact this seems to have caused a lot of aggravation to OTAs with Booking.com sending
notices to hotels working with the Triptease widget to have it removed or else….
Triptease offers smart tools to improve transparency and conversion.
Clicktripz offers conversion solutions for travel using data-driven technology.
9. Local destination concierge & in hotel merchandising This strictly does not come under the online bookings section, but with the blurring of lines
across every aspect of our industry, it is only fair that this got included.
It is the rise of the destination or in-house concierge that not only helps enhance the traveller
stay, but also helps sell more.
For example, Lucy at Virgin Hotels lets guests ask for anything – extra pillows, spa
reservations, laundry pick-ups, turndown service, valet – she’ll make it happen without
them having to talk to anyone.
What are the clusters of change that you see? And how do you think that is driving
innovation and change? And how can the industry use these trends to make an impact for their
business?
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As a specialist in hotel sales, Vineeth Purushothaman helps hotels boost
sales efficiency and productivity by combining hotel expertise with business
process redesign and the use of appropriate technology. He loves the constantly
evolving world of hotels and travel and has worn several hats in the course of
his professional journey, in a range of diverse roles in hotel operations and
sales.
How to evaluate the ROI of your investment in staff training11
Back
February 15, 2016
As I explained in my previous article, staff training has many benefits, but evaluating the
Return on Investment (ROI) from conducting training is not the easiest job.
Because of the difficulty involved, most small businesses fail to evaluate training thoroughly
and rarely consider their ROI in monetary terms. Instead, the emphasis is more subjective, placing
value on employee satisfaction levels. However, there are relatively simple ways to calculate the
ROI of your training programmes, including the eight-step approach initially introduced by 1
HRFocus (2005).
Eight steps for calculating your ROI:
1. Identify a programme for analysis – remember, not all programmes need to have ROI i.e.
some are just necessary costs.
2. Determine the programme’s primary goals, e.g. increasing revenue, reducing errors,
improving customer service, etc.
3.Define the metrics – it has to be something that can be measured, so that the goal becomes
clear.
4.Convert metrics to monetary values – in the hospitality business, it could be measured by
the average spend per customer or the amount of compensation/refunds given as a result of
complaints.
11http://ehotelier.com/insights/2016/02/15/evaluate-roi-investment-staff-training/
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5.Project return or savings – this can be done though analysis of existing reports or historical
evidence. For example you could ask ‘how much will the average spend increase if all service
staff are trained to up-sell?’, ‘how much will our supplier bills decrease by reducing food waste if
all staff are adequately trained?’ or ‘how much of our complaint-related expense can we reduce if
all staff are adequately trained?’
6.Determine training costs, including the costs to develop and run training programmes (incl.
materials, facilities, salaries, etc.), pre- and post-training work, salaries of everyone involved in
the training programme, cost for lost opportunity, etc.
7.Calculate project ROI (use the monetary value from step 4).
8.Identify intangible benefits – these might be enhancing the business’ reputation for good
customer service, improved staff morale (which often results in better retention), manager’s time
saved from firefighting with errors and problems.
Example:
A restaurant has 50 seats which turn around 1.5 times for lunch service. It opens 6 days a
week and closes on Christmas Day and New Year’s Day (310 days a year). The manager’s salary
is £25,000 a year (which roughly accounts for £13.00/hour) and staff are paid £7.20 an hour.
The manager decided to increase the average customer spend by £0.50 through training staff
with up-selling skills. As he wants to make sure the training session is delivered efficiently, the
manager took about 5 hours to prepare for it each time.
The manager delivered to staff a 30-minute training session five times a month before lunch
service. He also provided verbal feedback to staff, both individually and in a group during the
briefing, which roughly takes another 2 hours of his time each month. Each month 30 staff in total
received the training.
The cost of labour for delivering training is:
Manager’s time: (5 hours for preparation + 2.5 hours a week for delivery + 2 hours for
evaluation and feedback) x £13.50 = £123.50
Staff time: 30 staff to attend the session x 0.5 hours x £7.2 = £108
Therefore, annual cost of training is:
(£123.50 + £108.00) x 12 months = £2778.00
Increase of annual revenue as a result of this training programme is:
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£0.50 increase in average spend x 50 seats x 1.5 turnaround x 310 days a year = £11,625
ROI can be calculated as:d
ROI = Change in Cost of Activity / Total Cost of Training x 100%
= £11,625 / £2,778 x 100%
= 418.5%
Although this calculation only takes into account the labour costs of in-house training, an
ROI of over 400% may sound too good to be true. However, one example of a bank sending
employees on an Investment of Business Banking Training course shows that the return on
investment (mainly achieved by the number of new customers acquired) turned out that it would
bring a 471% ROI. This example also shows that just a small increase in average spend would
have a positive impact on annual revenue.
Generally, when measuring ROI in training it is easier to see a quick return on “hard”
skills-sales and software training for example – than “softer” skills, such as leadership training,
where any noticeable change can take months or years to see. In order to make sure the return is
achieved, it is advisable that a measure is taken in quantitative manners.
Quarterly job reviews, focus groups and 360 degree feedback can help measure the impact of
soft skills training.
Reference: HRFocus (2005), “How one trainer developed an eight-step program for ROI”
HR Focus, March 2005, p.10.
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The Hottest Hotel Chain Trends for 201612
Back
By Lyn Mettler, Jan. 26, 2016, at 10:56 a.m.
Expect innovative designs, tech-savvy amenities and healthy dining options from major
brands this year.
From high-tech services to inventive kids programs, there are some notable changes coming
to brand-backed hotels in 2016.
12http://travel.usnews.com/features/the-hottest-hotel-chain-trends-for-2016/
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When making your 2016 travel plans, look for hotels with high-tech amenities, innovative
designs and other upgrades to improve the quality of your stay. This year, savvy smartphone apps
will allow you to remotely check in on your mobile device and a robot might even greet you in the
lobby. From cutting-edge tech- and wellness-focused amenities to innovative family programs and
charging stations for electric cars, here are the latest hospitality trends coming to a hotel near you.
Forward-Thinking Amenities
Hotels have inventive, tech-savvy amenities in the works to give consumers more control and
customization over their stay. Starwood Hotels & Resorts, for example, is testing a variety of
inventive amenities, including smart floor tiles that light a path from the bed to the bathroom or
from the elevator to guestrooms. Plus, Starwood is rolling out smart mirrors where guests can read
headlines, check weather or monitor scores while getting ready for the day and giving guests the
ability to program their in-room lighting, music and coffee maker all from a smartphone.
At the Crowne Plaza San Jose-Silicon Valley, a knock at your door could be from Dash, the
hotel's delivery robot. This three-foot-tall robot delivers snacks, toothbrushes and other amenities
and can independently navigate between floors, even calling the hotel elevator using Wi-Fi. The
Hilton McLean Tysons Corner also has their own robot, Ava. Hotel staff can dial into the robot
remotely to interact with guests in real time.
Many hotels are also adding new tech-forward services, like a mobile check-in and room
remote app that can be synced with guest smartphones. Hilton HHonors members, for instance,
can check-in and select their room online, requiring only a brief stop at the front desk upon arrival.
"Our HHonors app is the 'remote control' to their travel experience, putting guests in control to
personalize their experience," says Jim Holthouser, executive vice president for global brands for
Hilton Worldwide. Both Hilton Hotels & Resorts and Starwood are also rolling out keyless-entry
mobile apps. And their smartphone apps grant access to fitness centers and pool areas.
Meanwhile, The Peninsula Chicago and The Peninsula Beverly Hills will place touch-screen
tablets operating in 11 different languages in each room of its room. The tablets let guests control
the room temperature and television, and enable guests to order room service and even car service.
Progressive Designs
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Several hotel brands are taking a fresh look at their designs, targeting millennial travelers and
families with new perks and amenities. Holiday Inn, for example, is debuting an entirely new
guestroom design in 2016 to offer guests increased flexibility and a more comfortable, homey
environment. There will be a nook area for hanging items and charging devices as well as a
trundle-type bed that serves as a sofa during the day and turns into two twin beds at night.
Similarly, Le Méridien Indianapolis, which opened in late 2014, debuted rooms with two king-size
beds, which have been a big hit with guests.
Noise reduction is another hot topic to assist guests in maximizing comfort and getting a
better night's sleep. Holiday Inn Express recently introduced an updated room design to reduce
noise, including a headboard made from materials to decrease noise transfer between rooms,
mounted media towers to reduce vibration to adjacent rooms and an acoustic door, which creates
two separate areas in the room. Hilton currently offers three noise-cancelling rooms equipped with
speakers emitting a controllable level of white noise at the Hilton McLean Tysons Corner and is
determining if they should expand the program.
Hotel groups are also turning lobbies into more communal areas where guests can be together
but work separately if desired, a growing demand among millennial visitors. The new Conrad
Chicago, which will debut in 2016, features nooks where people can interact in its lobby area to
encourage a welcoming setting for guests to mix and mingle. And many brands, including
Sheraton Hotels, are placing an emphasis on the lobby bar scene to make their lobbies a more
desirable spot to gather and socialize with small bites paired with the hotel's list of fine wines and
local craft beers.
Health-Conscious Options
The InterContinental Hotels Group's newest brand, EVEN Hotels, which debuted in 2014 and
will open three new properties in 2016, is focused entirely on wellness-minded travelers. A foam
roller, yoga mat, yoga block and core exercise ball are included in every room along with access to
on-demand fitness videos. EVEN's flexible room also features mobile-friendly amenities and
standing desks.
Meanwhile, at the Hilton McLean Tysons Corner, you can check into rooms focused around a
specific exercise. In the spin room, for example, you'll have access to a spin bike, balance ball,
elastic bands and weights, and in the cardio room, guests will find a cardio machine along with the
ball, bands and weights.
Perks for Social-Savvy Travelers
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Several hotel chains are targeting social media users by loaning guests selfie sticks. At
Kimpton Hotels, for instance, guests can now borrow a selfie stick to capture pictures of
themselves at their destination. Also jumping on the selfie trend is InterContinental Toronto Centre,
which is offering the sticks on loan to guests.
New Charging Stations
To cater to the growing number of guests driving electric vehicles, Hilton Worldwide is
adding charging stations to 100 of its hotels by the end of 2016. "To enable these drivers to enjoy
their time on property and not worry about where and when to go to charge their vehicle, we
announced a major electric vehicle (EV) charging station expansion," Holthouser says.
And Marriott features more than 170 charging stations in place around the world, and several
Hyatt properties as well as independent hotels, such as Hotel del Coronado outside San Diego and
the Carmel Mission Inn in Carmel, California, also offer charging stations for guests.
Heightened Luxury
Starwood Hotels & Resorts is putting an increased focus on luxury by rewarding and
distinguishing some of its top Sheraton hotels with a Sheraton Grand designation. These hotels
stand apart for their enticing destinations, distinguished designs and service excellence. While
several properties have already been named, including the Sheraton Grand Chicago, a hundred
hotels will be added to the list by 2017. The effort is part of Sheraton's 10-point plan for 2020 to
become a global brand of choice.
Family-Friendly Outposts
Westin Hotels & Resorts and Le Méridien are putting a new twist on traditional kids clubs in
2016 with programs that promote education, cultural immersion, outdoor play and curiosity. In
addition to revamped kids programming, they've added some fun new amenities. Westin will
provide kids with a travel journal, while Le Méridien will give younger visitors a LEGO toy.
"The Le Méridien Family programme is an extension of what our adult guests experience at
our hotels around the world, brought to life through the eyes of our smaller creative and
curious-minded travelers who will find a space designed to give them the chance to express their
creativity in unexpected ways while also learning about the local destination," says Brian Povinelli,
senior vice president and global brand leader for both Le Méridien and Westin. The new
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kid-focused programs are in place at several properties and will be rolling out to 300 hotels and
resorts this year.
Travellers expect robots on their holidays by 202013 Back
ByeHotelier editor I March 9th, 2016
A survey of more than 6,000 travellers in Asia, Europe, North America and South
America reveals nearly 80% of respondents expect robots to play a big part in their lives by
2020, with three quarters believing they will make their lives significantly better. Almost
two-thirds of respondents would be comfortable with robots being used in the travel
industry.
Travelzoo, a global media commerce company, conducted the research as part of its Future of
Travel project exploring consumer acceptance of robots in the travel and tourism industry. Richard
Singer, Travelzoo’s European President, will make a keynote speech on the findings at this year’s
ITB Berlin – Europe’s largest travel trade show. On March 11, Mr. Singer will share the stage with
Toshiba’s Chihira Kanae – one of the world’s most human-looking robots, who will make her
European debut at the event.
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According to the survey, international travellers are largely comfortable with robots playing a
role in their holiday, though some nations appear more cautious than others. German and French
respondents were the most averse, while Chinese and Brazilians were the most positive about how
robotics and artificial intelligence could enhance a holiday or travel in general – 92% of Chinese
were comfortable with the idea.
The main advantages respondents see in robots are related to general efficiency, data
retention and recall. More than three-quarters of respondents think that robots would be better than
humans at handling data (81%) and dealing with different languages (79%), while 76% believe
robots have better memories. 81% of respondents selected their untiring energy as an advantage.
Commenting on the survey’s findings, Mr. Singer said, “Right now is a very exciting moment
in the history of the travel industry – groundbreaking technology is revolutionising what is
possible from the perspective of customer service, entertainment and personalisation. Robots and
artificial intelligence are making their debut on the tourism stage, and our research into global
acceptance of robots working in the travel industry is largely positive. Most nations are starting to
open up to the idea of robots in travel and see the tangible benefits heading our way in the very
near future.”
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Singer continued, “While the advent of technology such as robot butlers and bartenders is
hugely exciting, it’s also very clear from our research that consumers see the combination of
robots and humans working in tandem in customer-facing roles as the ideal solution.”
“Consumers still want humans in the picture, as otherwise there is a genuine fear that cultural
nuances, humour and irony will be missed and the holiday experience could become too
impersonal. If we don’t respect the desire for the human touch, we risk ‘robophobia’ setting in,
when in fact technology can significantly improve the holiday experience when used
appropriately.”
Professor Stephen Page of Bournemouth University, which is one of the leading global
authorities on travel and tourism, said, “Robots represent a major innovation in the tourism sector
and their potential impact and use offers many new avenues to enhance and develop the visitor
experience of travel and hospitality. Understanding how consumers will embrace and interact with
this new technology will be critical to their adoption and dissemination in an industry that is one
of the market leaders in the use of technology.”
Toshiba is pioneering ‘human-looking’ robot technology and has created three
‘communication androids,’ two of which are already being used in Tokyo in a hotel reception and
a shopping mall. Hitoshi Tokuda, Chief Specialist at Toshiba’s Research and Development
Division said, “Chihira Kanae is a taste of things to come – we look forward to working with the
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travel industry to refine her, so that she can enable better holiday experiences for consumers.”
About the study
The survey for Travelzoo’s Future of Travel project was conducted via an online
questionnaire by third-party research agency Norstat. The questionnaire was completed by 6,211
travellers in Brazil, Canada, China, France, Germany, Japan, Spain, the United Kingdom and the
United States.
Chinese visitors to Britain up almost 40%14
Back
Latest figures from VisitBritain show that visits from China were up 37% in the first
nine months of 2015, smashing previous records.
There were 214,000 visits from China from January to September, beating the number of
visits for all of 2014, with figures for the last quarter of 2015 still to come. Spend was up 4% over
the same period, to £435 million.
Britain could expect another boost from China as Chinese New Year approaches on 8
February, one of the prime times of travel for the Chinese. Britain is gearing up to host some of
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the largest celebrations outside Asia from lantern parades in Manchester and London’s Chinatown
to festivals and events in Glasgow, Birmingham, Newcastle and Bristol, among others.
The new visitor visa pilot scheme for Chinese nationals introduced earlier this month by the
UK Government looks set to further position Britain as the destination of choice for this
rapidly-growing market.
Chinese visitors are already some of the UK’s highest spenders, spending on average £2,688
a head. VisitBritain has ambitions to double spend from Chinese visitors to £1 billion by 2020.
VisitBritain Director Patricia Yates said: “China is the world’s largest outbound market and a huge
tourism opportunity for Britain. Chinese New Year is traditionally one of the busiest travel times
for Chinese travellers and we want Britain to be at the top of their list as a must-go now
destination.”
VisitBritain’s latest figures from the International Passenger Survey also showed strong
growth from the USA in 2015, the UK’s most valuable market, with visits up 7% during the first
nine months of the year to 2.6m, the best figures since 2007.
Growth was also seen in visits from Germany, up 1% to 2.6m from January to September last
year, while the number of visits from France, the UK’s largest market by volume, was on par with
2014’s record result so far at 3.2m. Spending by visitors from France was up 9% to £1.2bn, seeing
it overtake Germany as the UK’s second largest market by value to date.
In a drive to bring more tourists from these markets, VisitBritain this month launched its
largest international marketing campaign for 2016 – the ‘GREAT Britain Home of Amazing
Moments’ campaign. It aims to show people the diversity of experiences, culture and countryside
available in Britain and inspire them to want to be part of it by booking a trip to come and
discover their own ‘amazing moments’. As well as France, Germany and the US the campaign is
also running in Brazil.
Strong growth was also seen from the Gulf countries including from the United Arab
Emirates with visits up 32% in the first nine months of 2015 to 273,000 and spend up 3% to
£378m. Although visits from Saudi Arabia were down 3% to 116,000, spending rose 44% to
£466m.
Other markets showing growth in the first nine months of 2015 included Canada with visits
up 13% (to 569,000) and spend up14% (to £403m).
Visits from India were up 13% setting a new record.
Latest figures also show that last summer set a record for the number of nights that visitors
spent in the UK with 97m nights, up 6% on July to September 2014 and the highest since 2006 for
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any quarter three. This equates to an average length of stay per visitor of 9.2 nights in the UK,
compared to 9.1 in 2014.
VisitBritain has forecast that growth in inbound tourism looks set to continue in 2016 for
numbers and spend.
In spite of the strength of Sterling, spending by overseas visitors is predicted to reach almost
£23 billion in 2016, a 4.2% increase on last year.
The number of overseas visitors to the UK is expected to rise to 36.7million visits, up 3.8%
on 2015.
The forecast puts VisitBritain on track to realise its ambition for growing international visits
to Britain by more than 20% over the next five years to 42 million visits by 2020, which could see
an additional £4.5 billion in visitor spend
China to be largest outbound tourism group by 203015
Back
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Market Research Company Euromonitor International has released a new white paper
providing a strategic approach on marketing to Chinese consumers travelling outside their home
market.
China is the world’s second largest consumer market, having overtaken Japan in 2011. With
the strong economic growth of China over the past few decades, the middle class has been
growing, allocating more time and budget on travel, especially outbound tourism. This has
resulted in astronomical growth in the number of trips and expenditure taken by the Chinese.
Shopping is the top priority for Chinese tourists abroad, resulting in a positive impact across
a diverse range of international retailers and manufacturers. Several of these destinations have
targeted the Chinese traveller as a strategic priority for shopping tourism. Europe plays on its
heritage and home to a various number of fashion designer brands. In Japan, Chinese visitors
purchase a variety of everyday goods and products across fast moving consumer goods (FMCG)
such as cosmetics, appliances and consumer health, helping offset weak domestic demand.
Retailers keen to tap into the Chinese demand should adopt a number of measures to target
Chinese visitors. Adding Mandarin-speaking staff and approving the use of China UnionPay credit
cards are essential. Targeting marketing campaigns around national holidays such as Chinese New
Year, developing specific product ranges for the Chinese market and visibility on Chinese online
shopping portals are also effective ways of boosting sales.
Euromonitor International expects 90 million outbound trips made by Chinese residents in
2020, representing an impressive average growth rate of 13 percent per annum over the past two
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decades. By 2030, this number is expected to reach almost 126 million, making China the largest
outbound market overtaking the US, Germany, and the UK.
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Why hoteliers should consider hiring managers based on their
GPA16
Back
Since the employee turnover rate in the hospitality industry is much higher than in other industries and the rate of management failure is sometimes as high as 50 percent, hoteliers need to use all the data in their possession in order to select the most qualified managers.
A study published in 2011 by Linchi Kwok and colleagues has shown that 12 out of 14
hoteliers do not look at GPA when evaluating applications for a managerial position. Is this a good
strategy? Maybe not. Obviously, hoteliers usually justify their approach by claiming that they
either prefer to have someone with high social skills and that academic performance is poorly
connected to job performance.
The real meaning of GPA Dozens of studies have shown that students who score well on general aptitude tests (you can
also call them intelligence tests or reasoning tests) tend to succeed both at school and work. What
does that mean concretely? It means that students who have the highest grades are the ones who
learn very quickly. As quick learners tend to be more efficient on the job and tend to be perceived
as better managers, GPA can be used as a valid indicator of future managerial performance.
Many studies have also shown that the personality trait of conscientiousness (being organized,
hard-working and reliable) is an indicator of academic performance and job performance. Again,
the same characteristic predicts both outcomes. Usually, the most hardworking students are the
ones who get the best grades. Their efforts translate into good attendance, punctuality, and meeting
deadlines, which pays off in the end.
But are these aspects also important at work? Is it important that employees work as hard as
they can? That they do not wait until the last minute before starting a project and that they keep
their promises? If you answered yes to any of these questions, it means that you recognize that
GPA can be an indicator of these important personality traits.
The limits of alternative approaches
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Now, you might think that you agree that the ability to learn quickly and being conscientious
are important elements to consider when hiring, but that there are better approaches to measure
these qualities than relying on grades. You might think that psychometric tests or interviews would
constitute better measures of these important constructs.
It is true that psychometric tests assess them with more accuracy than GPA. There are,
however, two major drawbacks to the use of psychometric tests. First, they are clearly more
expensive compared with a hotelier who can quickly glance at a GPA score. Second, applicants
can fake their psychometric test much more easily than they can forge their transcript. What I
would recommend is that hoteliers consider GPA scores at a very early stage in the application
process. In a second stage, they can use a psychometric test to confirm the potential of the
applicant.
And what about interviews? They are by far the most popular selection tool, used by more
than 95% of all hospitality firms in some countries. The main problem is that, first, many hoteliers
are poorly trained in the use of selection interviews. Second, there is so far no evidence that
hoteliers are able to accurately evaluate the candidate’s intelligence level or degree of
conscientiousness during a selection interview.
However, they are able to gain an understanding of how comfortable the candidate is in a
social setting. Indeed, extraversion is a trait that can be ascertained by the hotelier in a few
milliseconds. It is good because hoteliers do not have to subject candidates to a battery of tests,
including structured interview-psychometric testing-assessment center, in order to know if they
are extraverted or not. However, the downside of being able to determine extraversion so quickly
is the fact that hoteliers may be tempted to think that a candidate is smart and reliable only
because he/she is comfortable during the interview process and expresses his/her purported
intelligence in a confident manner. Here, the evidence is unequivocal: There is no (or little)
relationship between the fact that a person is extraverted and the likelihood he is actually smart or
hardworking.
However, humans tend to stubbornly cling to the notion that people who have positive
attributes tend to have other positive attributes, or that people who display negative characteristics
possess other negative characteristics. If we see that a candidate does not smile a lot, hesitates
before answering our questions or speaks in a less-than-convincing manner, we tend to think that
he is not motivated, not dependable and not smart. In other words, we suffer from the halo effect.
In reality, if we have such a candidate in front of us, the only thing that we know for sure is
that he is reserved, but we know nothing about his/her intelligence level and we know nothing
about how dedicated he will be later on the job. Does it mean that we have to discard this
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information? No, because it is important for a manager to be confident and at ease with others.
However, hoteliers should not place too much importance on this single piece of information and
should weigh it alongside other factors.
The problem with selection interviews is that if they are not properly conducted and the
hotelier does not know exactly the type of answers to expect, he will be bombarded with
thousands of pieces of information coming from the candidate. As people cannot process more
than a few pieces of information at a time, there is a great risk that they miss important ones and
that they pay attention to information that is not of great value for making a sound hiring decision.
It is why some hoteliers make sometimes hiring decisions after a selection interview that they
regret even if at first they were convinced that they had made a good decision. It means that they
have received much more information than GPA can provide. However, they have failed to
recognize that GPA provides information that is relevant whereas in the selection interview lots of
the pieces of information are not relevant at all.
What should be done in practice? I strongly recommend that hoteliers consider using GPA in the selection process. They should
require candidates to provide their college transcript. Then, they should decide who they are going
to short-list based on several indicators: presence of certain extracurricular activities and work
experience, languages but also GPA. Regarding GPA, I would advise hoteliers to consider all
candidates with a high or a medium GPA – and none with poor marks. If only candidates who
have a high or medium GPA are short-listed, hoteliers will have a better chance of picking a good
manager than if they select a low-GPA candidate.
Hoteliers should never forget that all selection procedures involve a probabilistic decision. In
other words, even if hoteliers follow the aforementioned advice there is no guarantee they will
always choose the “right candidate”. It is still probable that they will let good candidates go and it
could happen that they retain a poor candidate. What is sure however is that in the long-term they
have a better chance of retaining a good candidate if they use GPA in their hiring procedure.
About the author
Dr. Sébastien Fernandez (PhD in Differential Psychology) is currently
an Assistant Professor of Human Behavior and Performance at the École
hôtelière de Lausanne. He is also teaching executive education programs in
talent assessment. He performs research about selection practices and
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human factors in the hospitality sector that predict effectiveness in the workplace. He spent several
years conducting selection interviews and psychometric testing in the Swiss army.
SHRM-SIOP Science of HR White Paper Series17
Leadership Development:
Growing Talent Strategically
Back
Beverly A. Dugan
Human Resources Research Organization (HumRRO)
Patrick Gavan O’Shea
Human Resources Research Organization (HumRRO)
Copyright February 2014
17https://www.shrm.org/Research/Documents/SHRM-SIOP%20Leader%20Development.pdf
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Society for Human Resource Management and Society for Industrial and Organizational Psychology
Beverly Dugan, Ph.D., has more than 25 years of experience in leadership, management, and
organizational research and consulting. She recently retired from the Human Resources Research
Organization (HumRRO), where she was a vice president and division director. In this position,
she managed talent management projects and was also responsible for developing and maintaining
the corporate capability to perform leading-edge talent management research and development
services for federal agencies, associations and the private sector. She is currently an independent
consultant and leadership coach. She received her Ph.D. in experimental psychology from the
University of Tennessee at Knoxville and is a member of the Society for Industrial and
Organizational Psychology (SIOP), the Society of Consulting Psychology (SCP), the American
Psychological Association and the International Coach Federation.
Gavan O’Shea is the Director of Federal Talent Management at HumRRO. Gavan’s specific
areas of expertise include leadership assessment and development, 360-degree feedback, job
analysis and competency modeling, and employee selection and promotion. He is an Adjunct
Professor within Villanova University’s Department of Human Resource Development, and his
work has appeared in outlets including Leadership, Military Psychology, Group Dynamics, the
Beverly A. Dugan
Human Resources Research Organization
Patrick Gavan O’Shea
Human Resources Research Organization
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Journal of Business and Psychology, the Journal of Management and the Encyclopedia of
Leadership. Gavan received his Ph.D. in industrial-organizational psychology from Virginia Tech.
Abstract A key challenge facing organizations today involves developing their current and aspiring
leaders. In this paper, we highlight a number of strategies to address this challenge and increase
the likelihood that leader development efforts will yield successful outcomes. We begin by
discussing the importance of linking leader development efforts to the organization’s mission and
strategy, noting how these links can clarify leadership performance objectives, competencies and
gaps. We also highlight critical program design considerations, including how to maximize
learning through experience, and present issues to consider when selecting leader development
program participants. Finally, we discuss several emerging leader development trends and describe
a model for how to conduct comprehensive, informative evaluations of leader development
programs.
The Importance of Leadership
The world is changing in countless ways, and the effects are rippling throughout our society
and our organizations. While constant, dramatic change has become the status quo, 10,000 Baby
Boomers will turn 65 each day between now and 2030 (Cohn & Taylor, 2010). The challenges
presented by ongoing change and the loss of wisdom and experience associated with the aging of
the workforce drive the need for strong leaders. Recognizing this need, organizations spend a lot
of money on leader development. A study conducted by Bersin Associates (2009) found that
companies spent an average of nearly $500,000 on leader development in 2008, with small
companies spending about $170,000 and large companies spending about $1.3 million. By
fostering strategic leader development, organizations equip themselves to deal with challenge and
change. Theories and approaches about leader development abound. An Internet search on the
term “leadership development” yielded 438,000,000 results. Here, we attempt to provide an
overview of best practices based on relevant research and practice in the area. Before we proceed,
we make note of the distinction between leader development and leadership development. Leader
development refers to enhancing the individual’s capability to lead effectively, whereas leadership
development refers to building the organization’s capability to perform the leadership tasks
required to accomplish a shared mission (Van Velsor & McCauley, 2004). Because our focus
here is primarily on exploring training and developmental experiences offered to individuals, we
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use the term leader development. However, since leader and leadership development blend
together when organizations develop talent management and succession planning solutions, we
chose not to emphasize this distinction throughout the paper.
Planning for Leader Development One of the first tasks when planning for leader development activities is to outline the
business case for leader development, and ensure the program is aligned with corporate strategy,
policies and programs. Successful leader development programs directly and clearly affect
business outcomes. Defining the objectives of leader development is an ongoing process that
relates objectives to corporate strategic imperatives, defines leadership competencies and links
those competencies with important business outcomes. Before finalizing program objectives, it is
important to determine what leadership competency gaps exist in the workforce and ensure that
the objectives address critical competency shortages. Figure 1 depicts key linkages that can serve
as a framework for the business case and input to program design.
Figure 1. Framework for a Leader Development Program Business Case
Another important consideration has to do with how and where to devote resources. What
leadership levels will be included? One option is to start at the top of the organization to prepare
mid-level managers and junior executives for more senior- level positions. Many organizations
choose to invest in high-potential employees only, at least for the most in-depth leader
development offerings. The central question in identifying potential is, “Potential for what?”
Organizations experienced in leader development maintain several different high-potential talent
pools (Henson, 2009; Silzer & Church, 2009). Multiple potential pools recognize with some
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precision the types of talent needed for organizational success. Such pools might include
individuals with potential to achieve:
General manager/senior leadership.
Functional leadership (e.g., finance, marketing).
Technical expertise.
Understanding the links among desired leadership attributes and business objectives will help
address questions about resource allocation for development. For example, a technology-based
organization that has fallen behind its competitors in bringing new products to market might focus
on building technical leadership to meet the strategic imperative of developing competitive,
leading-edge technology products. This strategic imperative requires a pool of strong technical
leaders who will (a), ensure the technical staff have the skills and expertise needed to develop
cutting-edge products, (b), create an environment that supports innovation and creativity, and (c),
bring a breadth and depth of understanding of emerging technologies and the competitive market.
Finally, what is required to prepare the organization for a new (or renewed) focus on leader
development? Obtaining stakeholder commitment and support may be a particularly tricky issue in
an organization in which leader development has received limited attention. In order for leader
development to be successful, senior leaders must assume visible roles, perhaps as mentors,
seminar leaders, feedback providers and so on. Senior leaders are key to creating a climate of
support (e.g., releasing employees for developmental assignments), tolerance of mistakes (as
developing leaders try out new approaches) and providing challenging developmental assignments
(Avolio & Hannah, 2008; McCauley, Ruderman, Ohlott, & Morrow, 1994). At the systems level, a
review of HR policies and practices will reveal what accountability systems are in place or might
be needed. For example, are senior leaders held accountable for identifying and developing the
talent in their workforces? These considerations will help define what work the senior
management team needs to do in terms of communication, modeling desired behaviors, and
exhibiting commitment and accountability.
Choosing Leader Development Program Participants Organizations rarely have the resources to develop everyone and thus have to choose leader
development participants. Current job performance is a convenient metric for identifying future
leaders, but by itself it does not necessarily predict effectiveness at higher levels, nor the readiness
to develop for such positions. The challenge is developing and using data in addition to current job
performance to determine who is ready for development. It is a good idea to obtain diverse
perspectives on an individual’s performance over multiple years. Many organizations use teams of
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executives who are trained to evaluate the relevant characteristics to review candidate data over
several years (Henson, 2009; Mone, Acritani, & Eisinger, 2009). What might the relevant
characteristics be?
Practitioners recommend that three types of individual attributes be considered in identifying
individuals for development (Silzer & Church, 2009):
1. Foundational dimensions are consistent over time and hard to change.
2. Growth dimensions facilitate or inhibit an individual’s growth and development and may
be strengthened in a supportive environment or when an individual has strong interest in
the area of study.
3. Career dimensions are career-specific indicators of probable success in future positions.
Foundational dimensions include cognitive abilities, exemplified by the ability to grasp
complicated issues and solve complex problems, and basic interpersonal skills, such as
responsiveness to the concerns of others and the ability to work well with others. Growth
dimensions have received increasing attention of late, though reliable and valid measures
associated with them are often not available. However, empirical evidence indicates that certain
individuals may get more out of development programs than others, and the growth dimensions
are key differentiators. For example, developmental opportunities often involve challenges that
push people out of their “comfort zone” and expose areas for growth, which can be a threatening
and anxiety-provoking process. Individuals who view errors and mistakes as feedback, define
success and failure in learning- rather than performance-based terms, and persist in the face of
obstacles have a learning goal orientation. Several studies have reported positive links among
learning goal orientation and leader development and training outcomes (e.g., Brett & VandeWalle,
1999; Day & Sin, 2011). Studies indicate that motives more directly related to leadership are also
relevant. For example, the motivation to lead—which typically involves a preference for leading
over following and a personal identification with the leader role—predicts observer ratings of
leadership potential (Chan & Drasgow, 2001). It is likely that individuals with the motivation to
lead have sought opportunities to demonstrate their leadership capability. Learning goal
orientation and the motivation to lead are components of a broader concept that has received
considerable attention in recent years, developmental readiness. Bruce Avolio (2010) highlights
these concepts when he notes that in order to be developmentally ready, one must “have some
motivation to lead and to learn” (p. 19).
Career dimensions refer to aspects in the candidate’s background that suggest preparation for
higher levels of responsibility. Career dimensions are exhibited through attributes such as the
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demonstrated ability to get things done through others and a history of taking on assignments that
increase one’s technical capabilities and/or exposure to different aspects of the business.
These interrelated dimensions suggest questions, such as those in Table 1, should be
answered in reviewing candidates for development. Of course, the background review will be
scaled to fit the level of development candidates for development as first-level supervisor will
have had different experiences and opportunities from candidates for executive development.
Table 1. Sample Candidate Evaluation Questions
Design Considerations
Well-designed leader development programs often begin with an assessment component.
Such assessments could include 360-degree feedback surveys, self-reports of personality traits,
interests and motives, or online simulations that involve role-plays or solving a variety of
supervisory challenges (e.g., prioritizing issues that appear in a virtual in-box). Ideally,
participants receive a detailed feedback report that includes developmental opportunities linked to
each competency or work dimension tapped by the assessment. Furthermore, a trained feedback
facilitator or coach can work with the participant to digest the feedback and use it to inform an
individual development plan (IDP). The IDP then serves as a roadmap that articulates what
competencies and skills the participant will focus on enhancing during the leader development
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program, the types of learning activities and timeframe associated with each developmental goal,
and the desired outcomes.
Developmentally challenging experiences tend to involve several of the following activities:
handling unfamiliar/novel responsibilities, creating and facilitating change, working across
boundaries (often without direct authority), managing diversity, and assuming high levels of
responsibilities (McCauley, Ruderman, Ohlott, & Morrow, 1994; Ohlott, 2004). However,
development is not guaranteed through simple exposure to such tasks; indeed, as Day (2010) notes,
“learning from experience is not easy, especially in achievement-oriented settings in the wild
where high performance is expected” (p. 43). To facilitate learning from developmental
experiences, individuals who are experiencing such challenges need regular feedback and
opportunities for reflection and support. Research indicates that personal characteristics interact
with such practices to enhance the development process. For example, managers who have a base
of prior developmental experiences to draw upon and who are conscientious, open to new
experiences, and emotionally stable are particularly likely to benefit from after-event reviews
(AERs; DeRue, Nahrgang, Hollenbeck, & Workman, 2012). While leadership scholars have long
recognized the critical role reflection plays in the leadership development process (Bennis, 1989),
recent work has provided suggestions for how the process might optimally occur. For example,
Shamir and Eilam (2005) describe a guided question technique that helps executives frame
experiences and “trigger events” that they encounter during the development process.
Recognizing that the lessons people draw from experiences play a central role in their
development, challenging job assignments are a critical part of many leader development
programs. As McCall (2010) argues, those responsible for leader development within
organizations must recognize the developmental opportunities created by the challenges inherent
in today’s turbulent business climate, and begin “influencing how those challenges are attacked,
keeping developmental needs in mind when selecting who will be involved, and providing an
opportunity for reflection during and after the event” (p. 13). These types of experiences are likely
to stimulate development (Ohlott, 2004). For example, aspiring leaders frequently complete
cross-functional assignments, which involve working for a specific period of time in another
organization or discipline. Such programs are often cohort-based, where participants come
together at regular intervals to discuss their experiences, hear topical presentations and share
information with other participants. Finally, participants may also work with a coach, who can
provide support, accountability, challenge and encouragement as they complete the assignment.
Emerging Trends
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The importance of experience to leader development is clear, and recently the definition of
what constitutes experience has broadened to include a way of experiencing the world called
mindfulness. Mindfulness is a state of heightened awareness that entails a focus on the present,
awareness of internal (i.e., somatic, emotional and cognitive) and external events, and a
nonjudgmental attentiveness to all that is in one’s environment (Brown, Ryan & Creswell, 2007;
Lee, 2012). Mindfulness training has been used by the military to prepare soldiers for deployment
to war zones (Jha, Stanley, Kiyuonaga, Wong & Gelfand, 2010) and by major corporations such as
Aetna, General Mills and Google (Gelles, 2012). Mindfulness training has the potential to foster
enhanced emotional intelligence and learning under stress, and to reduce derailment risk. Many
major corporations are implementing yoga, meditation and other mindfulness practices to promote
employee well-being and improved business skills (Lee, 2012; Gelles, 2012; Gardiner, 2012). It is
thought that mindfulness could enhance learning orientation because it produces a nonjudgmental
perspective.
The beneficial outcomes of enhanced mindfulness (such as increased awareness, clarity and
focus, enhanced learning in challenging or stressful circumstances, and improved emotional
regulation) are well-documented, but there are few guidelines on how to implement mindfulness
training for leader development. Lee (2012) suggests the following considerations:
Content: In reviewing mindfulness training for leader development, make sure it
focuses on more than stress reduction. Content should include the development and
application of mindfulness in the workplace, including how to exercise mindfulness in
the face of significant leadership challenges.
Format: does the format of the training accommodate busy executive schedules,
permitting, for example, virtual or asynchronous participation for part or all of the
training?
Outcomes: Lee recommends patience, because developing mindfulness frequently
requires persistence to develop a new approach to perceiving internal and external
events. The development of a deep level of mindfulness takes time.
Evaluation Conducting a thorough evaluation of its leader development efforts can help an organization
clarify the program’s impact and determine where there is room for improvement. For example,
evaluators could work with stakeholders to address questions such as those listed below in Table
2.
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Table 2. Potential Evaluation Questions
Addressing these and other relevant questions will help an organization articulate its “theory
of the leader development program” (Patterson, 2013), thus clarifying the expected program
outcomes at various organizational levels, as well as the processes expected to drive those
outcomes (e.g., “We expect the collective leadership workshop to increase the extent to which
managers share decision-making responsibilities with employees, which will, in turn, lead to
increased employee engagement scores in the annual climate survey”).
When designing an evaluation strategy, frameworks from the training arena (Kirkpatrick,
1998; Phillips, 2012) may provide helpful insights because they encourage evaluators to consider
how they expect a leader development program to drive not only participant reactions and learning,
but also how the participant’s changed behavior could create a cascading impact on his or her
work units, divisions and the organization in general. For example, a development program that
focuses on enhancing leaders’ ability to channel and articulate a compelling vision for their team
or division could lead to increased engagement among team members, which could trigger
unit-wide performance improvements. Indeed, articulating the expected “ripple effects” (Stawarski
& O’Shea, 2013) of a leader development program is a critical step toward ensuring a
comprehensive and informative evaluation process. The ROLE ModelTM (Stawarski & O’Shea,
2013) depicted in Figure 2 includes a broad array of possible outcomes of leader development
programs, incorporating both personal and organizational effects. If used early in the planning
process, this model can elaborate the business case (by specifying linkages between individual
development and organizational outcomes) and inform the design and development process as
well as the evaluation. Once these expected processes and outcomes have been clarified,
evaluators can work with organizational stakeholders to determine what type of data can be
collected or obtained to measure such phenomena.
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Figure 2. The Return on Learning Experience (ROLE) ModelTM
Conclusion The key challenge for organizations involves structuring learning and development
experiences in such a way as to harness the developmental opportunities available in their unique
environment. The research and practice literature reviewed above indicates a few key points to
consider as an organization plans for how to best design a top-notch leader development program:
Links between the organization’s strategic business imperatives and leadership
requirements.
Culture and systems characteristics that promote or inhibit leader development:
- Senior leader support, commitment and involvement.
- Alignment with other HR practices.
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- Accountability systems to support leader development.
Where to focus organizational resources:
- Leadership development objectives and desired outcomes.
- Critical positions for development (e.g., functional leaders; senior organizational
leaders).
- Identifying employees for development based on foundational, growth and career
dimensions.
Key elements of an experience-based development process:
- Challenging, novel experiences.
- Opportunities for feedback and reflection through assessment, coaching and
mentoring.
- Tolerance of mistakes and failure as participants try out new approaches.
Evaluation process to inform mid-course corrections and indicate effectiveness of leader
development efforts.
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Society for Human Resource Management (SHRM) and Society for Industrial and Organizational Psychology (SIOP) Science of HR White Paper Series.
© 2014 Society for Human Resource Management and Society for Industrial and Organizational Psychology.
Watching American Democracy in China18
Back
In this Year of the Monkey, China has been riveted by the U.S. presidential election, and
more specifically by Republican contender Donald Trump. Those who pontificate on the nature
of democracy and about what kind of U.S. president would be better for China are at a loss to
explain the Trump phenomenon to the Chinese public.
Two parallel but irreconcilable narratives about U.S. politics have guided Chinese
understanding of the United States for decades. The conservatives tell the public that American
democracy is a sham in which money and special interests manipulate public opinions and rig the
system for their own benefit–the House of Cards version of democracy. The liberals promote it as
a system in which the people determine their own fate by electing their leaders, in contrast to
one-party rule at home, and as something China must aspire to – the Goddess of Democracy
version.
The Chinese perspective on democracy in general and the country's own future are very
much influenced by the divide over the United States, the standard bearer of democracy of our
time. But the American real estate mogul is forcing the Chinese public to reassess its
understanding of the U.S. political system. More consequentially, depending on the eventual
outcome of the election and its long-term impact, the Trump phenomenon may change how the
Chinese think about democracy.
18http://m.guancha.cn/LiShiMo/2016_04_20_357676.shtml?from=groupmessage&isappinstalled=0
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In the sphere of geopolitics, the experts are even more conflicted. Trump has made China,
along with Japan and Mexico, a target of his bellicose language against foreign rivals, which
would seem certain to upset Chinese hawks. Yet, his expressed admiration for China’s
accomplishments and his advocacy for restraint in foreign interference complicate the picture.
For those who disparage American democracy, Trump’s rise gives the impression that, at
least on the Republican side, ordinary Americans are close to checkmating the well-financed elites.
Trump is himself a rich man. But that is beside the point. He’s running as a protest candidate from
outside the system. His policy positions speak to the interests of working class Americans, and he
has so far spent only a fraction of what the other candidates have laid out on campaigning. To a
lesser extent, Bernie Sanders’s unexpected strength demonstrates a similar phenomenon on the
Democratic side.
This is at odds with what China’s conservatives preach: it appears from China that the
American “people” may thus be able to determine their country’s fate after all.
One leading conservative paper has had difficulties grappling with the challenge. The Global
Times has called Trump “big-mouthed” and “abusive” and editorialized with undisguised
schadenfreude that the Trump phenomenon is highlighting the decline of the American political
system. Yet, in two other editorials, it explained that labeling the large number of Trump
supporters as populists reflected the “loss of rationality” by America’s elites and called Trump a
smart and adaptive businessman and wished him well.
The official Xinhua News Agency, which reliably paints American democracy as a game for
the rich, reported that this time things look different. Trump’s wealth, Xinhua said, allows him to
buck the system that has been controlled by Wall Street and corporate masters. The conservatives
may regain their footing if the Republican Party establishment manages to deny Trump the
nomination despite the votes. But at the moment they seem conflicted.
China’s liberals are in a bind too. Anger and despair reign. They despise Trump. But they
can’t quite bring themselves to say that the moneyed elites are right and the people are wrong.
Such an admission would not help them make their case for Western-styled democracy in China.
After all, if the people can be so wrong, how can you give them the vote?
One popular liberal commentator described Trump supporters as forgotten Americans without
college degrees and compared them to China’s own Maoists. Pundits on Phoenix Television, an
outlet on which many liberal pundits appear, either belittle him–calling him te da pao, “Trump
the big mouth”-or repeating common charges against him, such as that he is an ill-informed liar.
Another liberal commentator called Trump a “naked resemblance of fascism”.
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The liberals are repulsed by Trump’s illiberal outlook. Yet, his big electoral wins make them
rather tongue-tied, as they have been promoting elections as the only basis for political legitimacy.
Indeed, the Trump phenomenon is forcing China to look beyond its two stereotypes of American
democracy long served up by the experts. A more complex and realistic picture is emerging.
Confusion and despair aside, most Chinese instinctively understand one central theme of the
Trump phenomenon: class struggle. Just about every analysis in China points out the fact that
Trump is getting most of his support from the working class. Some pundits are adopting American
language to call Trump’s rise the revenge of the 99 percent. The official newspaper China Youth
Daily ran statistics showing the shrinkage of the American middle class to explain the Trump
phenomenon.
This is not surprising given China’s Marxist heritage. Since the West won the Cold War, the
Chinese have largely bought the idea that Western nations have successfully resolved class
struggles through their democratic politics. As the Chinese suffered tremendously from extreme
class struggles in their recent history, Western democracy seemed to have reached an enviable
position by erasing class lines. But the Trump campaign is showing the world that this may be an
illusion. America’s working class is angry.
The Chinese public might be surprised to know that many leading American thinkers have
been making exactly this assessment. As David Frum wrote in The Atlantic, just before Trump
started bringing delegates at the ballot box, the current electoral mess is the culmination of
decades of elite neglect, and even betrayal, of the interests of middle and working-class Americans.
Globalization, mostly championed by the elites, has benefited the wealthy as ordinary Americans
have seen their income stagnate and decline. Multiculturalism, also promoted by the elites, has
helped the rich and corporations; immigration has brought lower labor costs and greater
abundance of talent while working Americans lost job opportunities and saw their community
cohesion threatened by outsiders. One might add that similar sentiments seem to resonate among
the Sanders supporters.
As Michael Lind, cofounder of The New America Foundation, wrote in a 2014 essay, “The
Coming Realignment”, the two political parties in America have long consisted of incoherent
coalitions. On the Republican side, capitalist elites coopted working-class Americans by preaching
about social values and identity. The Democrats, on the other hand, also had their own economic
elites, who maintained an alliance with ordinary Americans who held liberal social views. In other
words, both parties were dominated by the same Wall Street and corporate elites who promoted
similar substantive policies that disregarded the economic interests of their own grassroots
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constituents. In short, the two political parties have absorbed, or repressed, class conflicts within
the party structures as a way to remain viable dominant forces at the national level.
Lind predicted that the structure was not sustainable. As social values receded as a main
political fault line in American politics, working Americans would unite and fight for their
economic interests. This realignment would cut across party lines. Lind was unsure which one of
the two parties would become the political base for the newly self-aware working class. In this
election, they are being represented by Trump and Sanders both. It now seems that, even if Trump
eventually loses the election, the trend he as set in motion is transforming the Republican Party
into the political base of working Americans and is partially dismembering the Democratic Party
at the same time. Populism may realign American politics for generations to come.
In this scenario, the Republican Party would become the vanguard of working Americans
who want to protect and expand Social Security and Medicare, limit immigration and trade to
preserve jobs, and constrain foreign adventures that seem to primarily benefit the globalizing elites.
The Democratic Party, then, would be the home for urban elites who support, and benefit from,
free market economics, free trade, immigration, and interventionist foreign policies.
If this election paves the way for the United States to become a society polarized by class
struggle, it would be a teachable moment for the Chinese about the nature of democracy.
The Chinese public would learn that democracy is not a panacea for resolving class struggle.
They would also discover that, although moneyed interests have a significant advantage in a
Western democracy, once in a while the people are able to take control against the wishes of the
elites and influence their country’s direction. And, lastly, democracy, practiced in even the most
developed country in the world, is just as capable of producing populist and illiberal outcomes as
liberal ones.
Trump’s impact on Chinese perspectives of U.S. politics goes beyond democracy. The
Chinese views of, and preferences for, hawks and doves in American foreign policy may be
changed qualitatively. Traditionally, Chinese opinion leaders have preferred moderate
internationalists from both parties, such as the George H.W. Bush and Bill Clinton, who seemed
willing to accommodate a rising China into the existing world order. They have viewed with
trepidation Republican neocons and Democratic liberal interventionists, such as some in the
George W. Bush administration and Hilary Clinton, who want to aggressively contain China,
interfere in its domestic affairs, or both. Even Obama fall into the category. Although the rest of
the world may see him as highly restrained in using U.S. power abroad, he is viewed by many
Chinese as hostile, due to his pivot to Asia and the resulting tension between the two countries.
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Trump is causing a realignment in China. He blames the country for the United States' woes
and, as president, would curtail trade that is a major source of China’s economic growth. His
aggressive rhetoric against China on the campaign trail has been well publicized here. Dai Xu, a
People's Liberation Army officer and nationalistic firebrand on defense issues, called Trump an
American Hitler and condemned his victory remarks after the New Hampshire primary as “an
imperialist’s war-mongering speech”.
However, a President Trump would most likely refrain from aggressively challenging China
in both geopolitics and domestic issues such as human rights. On several occasions, Trump has
actually professed admiration for China’s achievements. Both the Trans-Pacific Partnership (TPP)
and Obama’s pivot, which brought China so much angst, would probably be finished. He has even
made statements to the effect that, under him, the United States would curtail its defense
commitments to Japan and South Korea unless the latter paid up.
The Chinese have always thought it would be better for both countries if the United States
turned to fixing its own seemingly intractable domestic problems. Jin Canrong, an academic and
another leading hawk in the Chinese foreign policy establishment, called Trump a pragmatist and
said that the Chinese always “preferred to deal with pragmatists”. No one doubts that there would
be fierce rivalry between China and the United States with Trump at the helm. But China probably
does not fear an American competitor. Competition is a good thing. What China has always
resisted and resented is an America that seeks to remake the rest of the world in its own image.
And that is not something Trump seems ready to do.
In this spring of American discontent, the Chinese narratives on democracy and perspectives
on geopolitics are all being shattered. Win or lose, on the other side of the Pacific, the Donald is
leaving confusion, conflict, and new discovery in his wake.
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