Daniels faculty weigh in on possibilities for new year
Each year we like to hear what the faculty at the Daniels College of Business thinks about the year ahead. They are experts in their specific fields and understand upcoming trends.
Hotel and Restaurant Trends
H.G. Parsa, professor of hospitality management, has the following predictions for the hotel and restaurant industry:
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H.G. Parsa
It should be another record year for Denver tourism. Thus, modest hotel occupancy and room rate hikes are expected in 2020.
- Plant-based menu items is now a reality and no longer an emerging trend.
- The expected minimum wage increases in Denver and Chicago will not be as disastrous as some restaurateurs fear.
- Upscale and luxury restaurants will be forced to deal with home delivery services such as Grubhub, DoorDash, etc.
- Upward pressure on restaurant rents is anticipated. Denver continues to be an attractive place for new hospitality ventures.
Economic and Political Trends
Michael Nalick
Michael Nalick, associate professor of management, studies the intersection of politics and business. He predicts:
- The economy will be teetering on recession at the height of the presidential election, the country will become even more politically divided than it is currently, and business spending and hiring will retreat as global economic uncertainty increases.
John Holcomb, professor of business ethics and legal studies, predicts:
- The growing political scrutiny and legal challenges to big tech companies will continue in 2020. It may or may not lead to actual breakups of companies like Facebook and Google. Bipartisan pressure will emanate from Congress, as well as from the executive branch and state attorneys general, and even more pressure will be forthcoming from Europe. The recent book, “The Great Reversal,” by economist Thomas Philippon of New York University, which analyzes the decline of free markets in the U.S. in the face of rising market concentration in several industries, will spark growing attention and debate over the power of big business.
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John Holcomb
There will be a growing focus on the responsibility of business and other institutions to address economic inequality in the U.S., with some corporations initiating novel ideas and proposing private and public sector initiatives.
- The debate sparked by the Business Roundtable’s statement on the corporate purpose will divide the business community. While some from the tech sector and from other quarters will support the cause of serving multiple stakeholders and the public good, other executives and basic industries will support a more traditional financial model that is more wedded to short-term or medium-term results.
- The likely upcoming Senate trial of President Trump will continue the overdue debate on standards for impeachment and definitions of such terms as “bribery,” as well as on the proper role of the courts in checking the more political branches of government. Joe and Hunter Biden will also be featured more in the Senate trial than in the House impeachment proceedings, with a likely impact on the selection of the next presidential nominee of the Democratic party.