THE SECTOR'S BIG CHALLENGES
The hotel and restaurant market has been undergoing radical changes for years in an environment that has become increasingly complex. Yet, despite the economic difficulties, the sector is still generating global growth that conceals wide disparities. In the restaurant sector, traditional chains, which kept customers coming in with aggressive pricing policies, have hit hard times, unlike smaller restaurants that have focused on innovation and differentiation to appeal to customers. In the hotel sector, competition from disruptive new entrants, pressure on prices from OTAs and new classification standards have clearly changed the landscape, where concentration and internationalization is the current trend. The brands that have come out top have focused on increasing quality, with customers willing to pay for higher quality services. Today success can be found at brands that have focused on service-based differentation, where creating value is based on the customer experience.