On-Demand Logistics Are Changing The Trucking Industry

Keeping up with the changing trends of working in the trucking industry, including flatbed transportation, the technological aspect of the services continues to change accordingly. This could be seen in the changes happening in the structure and management of freight broker businesses with the introduction of technological advances. And the continuous shifts in the industry make it necessary to rethink our models of business.

On-demand trucking continues to be a trailblazer among heavy equipment shippers and others in the trucking industry due to the possibility of logging onto a website and select a shipper themselves. In spite of this technology still in its nascent stage, the industry considers that companies that use on-demand trucking websites would find the technology as an efficient way to find a shipper instantly along with pricing estimate for providing the services and the ability of online tracking of their shipment in real-time.

What Will Be The Position Of Freight Brokers

Although some freight brokers are worried about this new technology of on-demand trucking services that are available online, there is no need for brokers to be concerned about this new technology if they continue to provide high quality and efficient services at reasonable prices.

Some section of people has the view that the increase in use of on-demand trucking sites is due to companies becoming frustrated with an inordinate delay in finding freight brokers for secure shipments. A report suggests that the reason for businesses shifting to on-demand trucking tools is due to the fast processing that is found using the technology which is an important consideration for any business. This factor of speed was not met effectively by freight brokers who used the traditional method of services.

Yet another reason for businesses in moving to on-demand trucking is the possibility of inflated prices that are charged by freight brokers. Although global supply chain experts with many years of experience might be in a better position to charge a fair price for shipment, there are many small businesses that do not have a thorough understanding of trucking business. Even when the freight cost charged is in line with the common practice, these small businesses become skeptical about the cost they are paying to brokers.

So how is the average freight broker going to be affected by on-demand trucking services? The best solution for these brokers would be to quote a fair price for the services and ensure fast delivery of the shipment. However, it is imperative for the brokers to keep up with the changing technologies in the industry as well as the business models. To remain a successful entrepreneur, one needs to embrace the newer technology in spite of new tools and developments bringing changes in the industry.

The Booming Catering Industry: Facts and Statistics

Factual and Statistical Info

The revenue from the catering market worldwide is expected to reach $265 billion US dollars 4 years from now with an estimated compound annual growth rate of 5 percent according to Research and Markets. Significantly, the market encompasses the major sectors in various communities including schools, elderly facilities, sports centers, and even hospitals. These institutions outsource their food service needs so they can lessen their spending and focus their labor force on more important matters.

Recent Technomic study shows that the catering industry in the U.S. made about $537 billion dollars in total sales last 2017 with a continuous growth rate due to easy and fast online ordering system. There are more than 10,000 caterers in America, employing about 110,000 people altogether. Most of these businesses are small and locally controlled that don’t account for a large portion of the market share. The demand for their services is higher in densely populated areas.

The Asia’s largest catering market and the second in the world, China reached an estimated revenue of $616 billion US dollars as reported by the China Cuisine Association. At the moment, it has around 5 million active companies in the catering industry. This has been attributed to the implementation of online to offline marketing strategy where customers are encouraged to order food by going to the caterer’s physical shop rather than online.

Just imagine how many people are choosing the convenient and practical way of catering food to their guests to celebrate life milestones. Statistics show that caterers are in demand for the following occasions: weddings, engagements, birthdays, corporate events, graduations, holiday parties, and even funerals. There’s also an increasing need for food services in trade shows and conferences worldwide.

Reports show that the money spent on food service mainly depends on how much corporate clients or individual consumers can spend for certain occasions. That is why catering companies often offer various packages, and sometimes even create meals suiting the most limited budget on the line.

To be able to serve large groups opens a series of catering opportunities for them so it is rare for them to turn down any offer, deal or invite. However, although the demand still exists, customers are less likely to order for catering services during uncertain economic times.

Based on Koncept Analytics’ market research, the 3 major factors fueling the increasing demand for contract and self-operated caterers are the people’s need for customized food orders, the rise of the middle class, and the continuing use of digital technology.

The 2018 Analysis of the World’s Contract Catering Market by Orbis Research

By Segment

  • Business & Industry (B&I)
  • Education
  • Healthcare
  • Elderly Facilities
  • Government Agencies
  • Sports & Entertainment

By Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Africa
  • ROR (Rest of the Regions)

By Country

  • United States
  • Canada
  • United Kingdom
  • France
  • Germany
  • Others (Spain, India, China, Japan, Australia & Brazil

So what type of food catering service would you prefer to establish in your own local community?

  • Contract Catering

Hospitality Industry – Hotels Business Current and Future Trends

Hospitality has long been synonymous with the hotel industry. Any changes in trends of hotel business have wide scale implications on an otherwise diverse industry. What might be an opportunity for a traveler can be a matter of survival for hotels? It will not be an oversimplification to suggest that the emerging concepts in hotel industry reveal an atmosphere of stiff competition. Here is a look at a few major issues:

Is Green better?

Amid growing concern over environment friendly services, a majority of travelers now prefer Green and Eco lodgings. Recent surveys by trade associations such as Partnership Travel Industry Association and online retailers like Yahoo revealed that nearly seventy percent of the tourists are willing to pay extra when it comes to environmental friendly lodgings. These surveys further revealed that these guests will pay anywhere from nine to ten percent premium on the already advertised prices.

What can be stated as a welcome relief for the educated traveler might pose real challenges for the hotel business. To better understand the scenario, it should be noted that hotels are presently facing severe shortages in occupancy rates which are at their lowest since 1971. Such a crisis and lack of funds can definitely hamper any efforts to install appliances that comply with the LEEDS standards (Leadership in Energy & Environmental Design). Some experts agree that a trade off may lead hotels into removing free amenities that include little bottles of shampoos, jams and free basket of fruits; all of which are the hallmark of these eco lodgings.

Where are the Workers gone?

The hotel industry gives employment at a very large proportion of part time workers, who after gaining substantial experience, leave for other lucrative jobs at restaurants and outdoors. Low wages in the hotel industry is one of the primary reasons for low retention rates.

Hotel industry Gurus are already thinking of ways to attract and retain qualified workers by increasing the pay scales and by reducing the long working hours. The top management is now devising constructive methods that will retain the existing workers by sponsoring education and creating attractive career paths.

Mega Hotels

The rising cost of construction and a struggling real estate has prompted hoteliers to deploy the pre-fabricated and cost effective solution in the construction of new hotels. In fact they are fighting back by producing highly efficient designs that utilize a greater proportion of space for revenue generating purpose. Future trends in the hotel construction will seek to maximize the use of building areas by constructing a multi purpose facility that will include Casinos, shopping outlets and Theatres. The stand alone hotel concept is likely to vanish as the new properties will be constructed as a mixed use development to provide guests with facilities such as Church, Hospitals and Theme Parks. Such a variety will ensure that guests remain at one spot which will help generate revenue for the entire hotel complex.

The evolution of savvy traveller

The evolution of internet has given rise to a phenomenon where travelers are becoming ever more demanding. Industry professionals suggest that an increase in a trend, to review properties online, will make travelers less forgiving as they are able to post their travel experiences. Such an overemphasis on web may even lead to stiff competition and price reduction strategies where only large players may be able to survive.

To ward of such threats, the small business owner is now turning towards opening a boutique establishment as an alternate to 70,s style motels. Such niche properties are popping up everywhere by advertising a more personalized “home away from home” kind of experience. The introduction of such boutique properties has also given rise to the popular and widely accepted theme of modern hostels. These hostels are keen to provide a clean and safe environment for budget conscious travelers. Their goal is to wipe out the myths associated with cheap motels and dingy guesthouses.

Whatever may be the case, one thing is for sure that constant remodeling of the hotel industry has made it more functional and practical not only for the guests but also for the hotel owners.