Omicronthe newest variant that has already spooked markets and caused travel bans from some southern Africa countries. Though nascent, there is the reality and worry that the new strain could derail the hotel industrys fledgling recovery, in particular if plans move forward to tighten testing policies, like in the U.S. Indications are that future hotel bookings, meetings and other hotel-related activity will be impacted by the presumed expectation of future travel impediments, whether self-imposed, company-imposed or government-mandated.
Its a milestone moment for the hospitality industry. The impact of the pandemic is undeniable, and with that stress comes mega-trends that ripple throughout the industry, that you need to be looking out for.
A dollar is a dollar; a euro is a euro; a quid is a quid; a yuan is a yuan; and, for the crypto crowd, a bitcoin is a bitcoin – right? Wrong. At least when it comes to how hotels bring in revenue. In that case, all revenue is not created equally.
The cold hard truth is arriving with the chillier weather: global hotel performance has a ways to go before it's back to its former self.
At the time of this writing, Im on a plane ride back from attending four lodging industry conferences in 10 days, which caused me to be staying at four different large, branded hotels in Minneapolis, Dallas and San Antonio, all of which were close to the convention centers. While all of the staff I encountered were polite and efficient, their service style was overall reactive and not proactive. Notably absent were some core essentials of hotel hospitality excellence that used to be part of Hotel 101 orientation.
The collective hotel industry is facing a cold, hard truth: attaining the same level of pre-pandemic operational performance will not be measured in days, but months, even years. That's what August data from HotStats portends and at a crossroads, as summer gives way to fall and a host of new variables come into play that could derail the modest success the past several months have demonstrated.
Unlike trains, ships, cars and planes, however, Zoom and similar services havent just enabled us to travel faster, farther or more affordably – they have given us the ability to choose not to travel at all, such as for business, or to travel anywhere at anytime, such as for remote workers and their families and friends.
For approximately 10 years leading up to the recent pandemic era, budgets were increased each year, divvied up, and turned into individual sales goals that were then tied to bonuses. With the seemingly endless string of years of an up market, sales bonuses became an expected part of the compensation. Were these sales bonuses truly justified based on performance? Or were they achieved mostly due to good fortune?
The return of corporate travel means the return of corporate travelers. How has the experience changed and how hasnt it for our customers?
Global hotel performance is improving month by month. Thats the good news. The more pressing concern is if it will remain that way. The hotel industry remains fragile, dodging each and every new impediment thrown its way. Still, the hotel industry presses forward.