Oct 02, 2015 (LBO) – Budget and luxury hotels dominate the hotel prices in the world market while mid prized hotels are being squeezed out, an analyst said.
“In 2014 we observed the geographies of UK, US, China, India, and Germany, the concept of luxury accommodation and budget accommodation witness the strongest growth.” Shabori Das, senior analyst of EuroMonitor, a research firm told a tourism forum held in Sri Lanka, Colombo.
“If we see in terms of pure growth, it is expected that luxury and budget in the next five years are going to squeezed out mid-priced hotels,”
United Kingdom, United States, China, India, and Germany are tourist source markets for Sri Lanka.
Das says this is due to the new trend of consumers rather travelers either going to spend immense money on luxury and quality service or else they are going for no frills and budget accommodation.
“Mid prized hotels are neither falling in either of the categories hence any of the companies in travel industry accommodation who is looking at the mid prized should be revamping their business models in order to target this growing luxury and budget accommodation.” Das said.
She added that mid-priced hotels are still popular in the United States, Germany and the United Kingdom but not so much in India and China where budget hotels had more demand.
Asia-Pacific would be the fastest growing region for tourism in the next five years, followed by the Middle East and Africa.
“This shows tourists are looking for exotic locations which allow them to have budget travel,” Das said.
“About 75 percent of people are still travelling for purely leisure purposes and within that relaxation with the sun, beaches and water the most sought after attractions,”
“Now Sri Lanka stands at a good position here because the country already offers more apart from beaches,”
“If the country markets itself in the correct way it can attract a large number of travelers.”