Demand for best quality TVs will spur global hotel sales to 9.7 million sets by 2012, with growth in Asia a major stimulus
Hotels upgrading old CRT-TVs in guest rooms to flat-panel HDTV sets will cause global hotel TV sales to reach 9.7 million by 2012, according to research.
A report by analysts iSuppli says that worldwide macroeconomic fundamentals suggest that the hotel market will continue growing for the next few years despite the economic woes affecting many western nations.
It said that a greater appetite for luxury accommodation was leading to rising occupancy and increased travel rates among both business people and consumers.
Hoteliers are noting that their guests desire more than just the standard hospitality elements that satisfied them in the past, like CRT-TVs.
Instead they are switching to Flat Panel Display (FPD) TVs, paralleling the shift that is occurring among consumers.
Sanju Khatri, principal analyst for projection and large-screen displays at iSuppli, said this was mostly due to increasing disposable income in the Europe/Middle East/Africa (EMEA) region,
She said the Asian market also is becoming a hotbed of hospitality growth because of an unprecedented upsurge in business travel to the region.
“This is mostly due to strong demand from hotels in metropolitan areas such as Shanghai, Beijing, Macau, Bangalore and Mumbai,” she said.
Khatri said that most luxury and mid-scale hotels now are offering guests a variety of in-room entertainment options, such as high definition television (HDTV), Video on Demand (VOD) and video games.
By offering these types of quality in-room entertainment services they are hoping to capture more in-room entertainment revenue, differentiate their brands and ensure greater guest satisfaction.
Business guests increasingly are bringing their partners or families along with them as they travel, creating mini-vacations by extending their business stays by a few days.
Because of this, hoteliers are adjusting their approach to suit entertainment and leisure interests rather than simply catering to a business mindset.
“Which has prompted hoteliers to turn to larger-sized displays with higher resolutions to provide a theatre-like experience inside their hotel rooms,” said Khatri.
iSuppli’s forecast of global hotel TV shipments will grow to 9.7 million units by 2012, managing a Compound Annual Growth Rate (CAGR) of 61.5 per cent from 894,527 units in 2007.
The revenue growth also is expected to reach US$2.3 billion by 2012, up from US$1.1 billion in 2007.
The Asia/Pacific region will generate the highest percentage growth for hotel TV shipments over the next few years.
Shipments are expected to rise to 1.3 million units in 2012, increasing at a CAGR of 90 per cent from 52,031 units in 2007.
In the EMEA region, a much larger hotel TV market than the Asia Pacific, shipments will rise to 3.0 million units in 2012, increasing at a CAGR of 72 per cent from 199,470 units in 2007.
By 2012, EMEA will surpass North America as the world’s largest region for hotel TV shipments.
When the US switches to a digital TV service February 2009, iSuppli expects to see more hoteliers-including lower-end lodging-to adopt HD service and flat-panel displays.