Mid-priced hotels being squeezed out, Sri Lanka tourism forum told
ECONOMYNEXT – Mid-priced hotels are being squeezed out with tourists either going for luxury properties or budget travel, an official from the market research firm EuroMonitor told a tourism forum in Sri Lanka.
Market research showed that in 2014 the concept of luxury and budget accommodation witnessed the strongest growth, said EuroMonitor’s Shabori Das.
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.
“The luxury and budget hotels are going to squeeze out mid price hotels in the next five years,” Das told the ‘Future of Tourism’ summit organised by the Cinnamon group of hotels.
“Travellers are spending a lot of money for luxury and quality or going for no frills and budget travel,” she added.
“Any companies looking at mid price hotels should re-evaluate their business model to target the growing luxury and budget travellers market,” she said.
Das said 75 percent of people are still travelling for leisure and relaxation with the sun, beaches and water the most sought after attractions.
“Sri Lanka has a good position and offers more than beaches,” she said. “If the country markets itself in the correct way it can attract a large number of travellers.”
The fastest growing region for tourism would be the Asia-Pacific 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. Colombo/September 28 2015)