Industries & Business Sectors

Hospitality, Travel & Leisure

Challenges

Travel, Hospitality and Leisure sector has been through major transformation recently. Global hotel investment continues to steadily increase, showing that the industry continues to gain momentum even in the face of accelerating geopolitical instability, health and other concerns. M&A come to accomplish this landscape; M&A activity overall and in the sector is driven by a desire for incremental growth, the strategic merit of transactions and the availability of debt and equity on favorable terms; the presence of these elements has fueled M&A in recent years. A number of “push” and “pull” factors drove the year-over-year increase in cross-border activity; major investments are of Asia origin.

M&A’s in the sector is a major factor leading to consolidation of third-party management companies, seeking to ensure operational excellence. Third-party management companies provide daily property and operational management services as well as year-round financial and accounting support for company owners, while marketing the brand through a franchise agreement. Improving fundamentals and increased access to capital have led investors to seek out this operational expertise to maximize investment on both newly acquired and existing assets.

The millennial generation has also increasingly impacted the lodging industry, calling into question products and offerings that have for decades been industry mainstays. Today’s emerging traveler, millennials and millennial-minded travelers, is more cost-conscious and experience-focused than ever before, whether traveling for business or leisure. To meet these changing demand preferences, hoteliers are seeking innovative alternatives to traditional lodging products.

Regarding new hotels, technology is by their side; in this competitive environment for new hotel brands may be better than ever thanks to technology integration within the industry, which has leveled the playing field. New entrants now coexist with long-established global players in an online world of transparent pricing, social media marketing and digital reputations.

But new advances in technology have also impact on the relationship between hospitality companies and clients. User-friendly, powerful smartphones and tablets are changing travelers’ online preferences and habits, redefining how they research, plan and book a trip. Empowered with more knowledge and social media, today’s traveler is pushing hotels and hospitality companies for improved products and services in their travel experience. From an ownership standpoint, advances in data analytics are transforming the hospitality industry with the potential to enhance corporate financial performance and offer detailed insight into customer preferences. As the use of mobile devices, social media and advanced analytics continues to proliferate and as online distribution channels become more accessible, technology has created new opportunities for companies to drive operating efficiencies and engage with travelers.

The way that hospitality companies recognize revenue is affected by the new financial principles, such as US GAAP, IFRS etc. As a result, hospitality companies around the globe will need to re-evaluate their policies and practices for recognizing revenue for arrangements associated with owned, managed and franchised properties.

Last but not least, certain tax issues must be carefully evaluated as an integral part of a company’s overall investment strategy.

PfB Knowledge and Expertise

We support hospitality companies to attract, develop and retain fit-in talent. As global trends impact businesses, it’s required to have those people who drive top line growth and innovation across markets, channels, products, and customers, while managing tight bottom line fundamentals. We understand the importance of making sure your business has a steady pipeline of the right people to move your company forward and to lead now and in the future.

Sectors

Our team is specialized into the following business sectors, being:

Hotel operators, owners and franchises
Restaurants and Coffee Chains
Car rental
Cruise lines
Tour operators
On line tour operators
Visitor attractions and leisure parks
Commercial airlines
Contract catering