Roadmap to hotel room growth in the Middle East and South East Asia & Africa regions

Travel Tourism and Hospitality

27 May 2020

Context

Client Description: A leading global hospitality chain
Opportunity: The client wanted to add 500k hotel rooms to its portfolio by expanding its footprint in SE Asia, Africa, and the Middle East. For this, it wanted to prioritize the countries for foray and understand the characteristics of their hospitality markets

Our Approach

71 countries were evaluated through a multi-step process by understanding performance on political, economic, social, demographic, infrastructure and hospitality-related parameters
11 countries shortlisted for a detailed understanding of the hotels market and information on the travel and tourism industry was compiled through secondary research
In-depth conversations were held with key industry stakeholders to understand the seasonality of demand, Avg Daily Rate (ADR), and Avg. Length of Stay (ALOS), customer profile, govt. initiatives for the hospitality sector, the share of booking channels, etc.

Demand for hotel rooms was estimated based on a top down approach for all shortlisted markets

Typical ADR, ALOS, seasonality and occupancy trends were understood to assess attractiveness of individual markets

Key locations where client should add rooms were identified based on international and domestic tourist inflow

Key archetypes of travelers were identified to develop suitable value proposition

Praxis Value Delivered

The client market share in each of the markets estimated to prepare a roadmap to achieve the target
The client also got a detailed understanding of key potential competitors any roadblocks it may face from government / local industry

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