This is exciting to hear, and there are a lot of other predictions out there, some estimating that the U.S. travel and tourism industry is expected to generate $2 trillion this year, a 6% increase over 2019! We'll see what happens.
Meanwhile, it's fair to say that hotel companies, owners and teams would like nothing better than to open everything up and get back to the vibrance of 2019 business levels, with their properties operating at full steam. Unfortunately, the COVID-19 pandemic is still resisting arrest two years after everything shut down, and today's hotel and resort guests have grown weary of the measures in place to ensure their safety and that of the hotel associates.
Clearly, guests desire a much greater sense of 'normal,' and most of us share that sentiment. Many standard amenities had to be trimmed back or closed for everyone's protection, from breakfast and buffets to full-service restaurants, grab 'n' go, fitness centers and spas, champagne on arrival, open coffee service and more, not to mention empty minibars and reductions in housekeeping services. So, what is the path forward?
I asked John S. Fareed, Global Chairman of Horwath HTL, for his observations:
"In my opinion, we have most certainly begun the post-pandemic period, at least as far as traveling consumers are concerned. By all accounts, leisure travel bookings and inquiries are surging-with the young and wealthy leading the way-as consumers look to make up for lost time, and start spending the monies they've been hoarding on get-a-ways, reunions with family and friends, and new experiences. However, their expectations regarding travel are returning too, and are relatively high. They are proving less and less patient with minimal services and offerings-think limited housekeeping, restaurant and bar hours for example-as was previously acceptable during the height of the pandemic. This is sure to create a problem as hoteliers begin a transition back to so-called "normal."
Heather McCrory, CEO – North & Central America for Accor, adds:
"We believe the window of guest acceptance and patience with COVID concessions - no minibar or coffee machine in the room, limited gym or spa hours, etc. - has expired. As leisure consumers embrace travel again, expectations continue to evolve accordingly. At Accor, we have a very customer-centric approach, staying close with our guests, and engaging with them on a personal level, allowing us to provide a service experience based on what they truly deem valuable and essential. This is how we earn and maintain their loyalty."
Sloan F. Dean III, CEO & President of Remington Hotels, sees the current and near-term landscape as follows:
"While COVID may be heading into the rearview mirror, the labor and supply chain challenges remain present and have the potential to continue to impact the guest experience. Most guests are aware of these challenges, so it just remains important to be open and honest about them. But ultimately, customer expectations will be higher than ever over the coming years. We are not going back to 2019, rather, we are moving into a new level of demand where leisure demand dwarfs business travel."
I submit that navigating to the restoration of guest service and experiences, to whatever our 'new normal' looks like, is totally a function of Leadership. Critical decisions must regularly be made on often very difficult or hotly-debated topics that are all related to restoration of guest service. First and foremost, amongst those topics, is the safety and well-being of guests and hotel team members. As we all know, hospitality is about giving service, not taking it away, but service must always be given in a safe environment, lest it become disservice.
Leaders at the corporate and property levels, whether branded or independent, have the substantial responsibility for determining whether or not a given property is safe, and, even so, if it is operating within federal, state or local COVID mandates. If they disagree with said mandates, they must unite and make their voices heard, but first they need to be certain their argument is on solid ground. To be even the least bit reckless in a decision to open up can potentially cause harm to the very guests and team members they are seeking to protect, not to mention exposing themselves, their properties and their ownership to significant liability and an untold volume of legal actions.
So, the first step in returning to some form of normal requires Leadership through Decisiveness. Hotel industry leaders must make fact-based decisions as to the degree to which their properties will open up, and when. This is not for the faint of heart. Leaders must concentrate on moving the business forward while effectively dealing with the reality of today.
Remembering that hospitality is about giving service and providing guest experiences and amenities, restoring all of this also requires leadership, Leadership through Communication. We have all likely felt annoyed at some point when, having been seated at a restaurant, no one has yet paid you any attention. After too many minutes, your super nice waiter shows up and says, "I'm very sorry you've been waiting so long – we have four people out with COVID and the few of us here are scrambling!" All of a sudden, your annoyance converts to understanding and you're comforting the harried waiter. Similarly, hotel guests are fatigued from COVID protocols and service cutbacks.
As in the waiter example, leadership – directly and through others – must empathize with the guests and share their frustration, but clearly communicate the importance of maintaining proper safety protocols just the same. Leaders must ensure that guest expectations are acknowledged – and managed - through crystal clear, proactive communication or risk their properties falling into chaos.
Sloan F. Dean III also emphasizes the importance of communication. When asked about renewed guest expectations, he said:
"It depends on the guest. There are guests that have been travelling during the last two years who have adjusted to limited amenities and housekeeping; however, there are also guests-both leisure travelers who have not travelled much the past two years and business transient guests getting back on the road recently-who are expecting their experience to be similar to what it was prior to the pandemic. Communication remains paramount-whether it be on the website or through pre-arrival emails-in order to ensure that guests expectations are in line with what is being offered at our hotels".
References to a "new normal" abound, but do we evolve to it or design it? Once again, it's up to leadership to set the tone here, Leadership through Innovation. Let's not get confused about innovation, because it isn't necessarily a new app or technology. The Merriam-Webster dictionary says that innovation "is introducing or using new ideas or methods." We were forced to adapt in dealing with COVID and we clearly have the opportunity to do so now in planning and executing a return to service by applying new ideas and methods.
Agnelo Fernandes, EVP & Chief Strategy Officer for Terranea Resort in Southern California, offers this perspective:
"The pandemic changed the outlook of travelers and guests, from their preferences to how they make purchasing decisions, and expectations on the type of experiences. For those reasons, I believe that we will move to a new level of 'normal'.
Having said that, the basic elements of superior guest service have not changed. Our team is committed to listening to the voice of our audience(s) and their feedback, understanding how the guest journey has evolved, what are the critical elements of service delivery, reigniting the signature service touch points, and delivering personalized service with heartfelt passion. This is where we will find innovative ways to connect with our guests. In 2022, we find that spacious accommodations well-being and sustainability programming are important experience factors as guests make their travel decisions.
Celebration and personalization, are our themes and a key facet of Terranea's guest experience. I expect our leaders to spend a great deal of time refining our value proposition, envisioning the delivery of Terranea signature immersive experiences, while balancing the sensory experience with an element of surprise and delight."
Here's how Heather McCrory describes the approach she's following to understand and adapt to what's changed, and the key guidelines she has in place for moving forward:
"We stay very close to our guests and have found the fundamentals are not notably different than prior to the pandemic, but now there is different weighting to what is important to the guest. So, we use five lenses to ensure we deliver on our service promise - an exceptional customer experience every time:
1. Our Planet - it is critical that we continue to operate responsibly, respectful of our important ESG commitments, taking care of our people, our communities and the world around us.
2. Personalization - there are renewed expectations to seamlessly utilize both IT and our people to personalize and curate the entire guest journey with anticipatory service - from digital offerings and Accor keyless entry to Les Clefs D'ors concierges and special recognition and benefits for our loyalty members.
3. Unique Experiences - from the simplest touches to the moments that make a stay truly memorable, luxury guests in particular are seeking more authentic and more meaningful experiences than ever before.
4. Service Delivery - our service training puts the guest experience at the heart of what we do, empowering our people to express their individual personalities, to take initiative to connect with each guest, and ensure that they are delighted by their experiences.
5. Owner Return - the last two years have been a very difficult time for all; it has been especially challenging to operate and drive consistent performance through a global pandemic - our owners are our partners, and a key consideration in the focus on what the guest journey looks like moving forward."
Before moving into the final area of this focus on leadership, here is some context: In the latter part of 2021 when it first appeared that we might finally be moving beyond the pandemic, an unexpected issue showed up as an obstacle to reopening America – those on unemployment didn't seem interested in coming back to work. It seemed to many that this was because such individuals were earning more on unemployment (which included special COVID-related government payments) than they would earn returning to work, and that might well have been part of it. In addition, many frontline hospitality associates had reflected on their lives and decided that the hotel business was no longer for them, hence, the talent pipeline took a hit as numerous experienced workers exited the industry.
All that said, much of the challenge for opening up – hospitality and otherwise – emanates from an additional issue that has received little or no media attention, but is a fact nonetheless; a scenario that has been predicted since the early 2000's: the long-awaited labor shortage has arrived. The shortage is based solely on math – birth rate gaps, Federal employee retirements and Baby Boomer retirements – but we're safe to assume that it's been exacerbated from the additional retirements by people who decided during COVID to retire earlier than planned.
To thrive moving forward, owners, industry executives and property leaders must project a positive employment brand, and must set an example that is authentic. The pandemic caused a tremendous amount of emotional damage and it's also a buyer's market, so if you aren't sending a message that clearly demonstrates cultural, compensation and other refinements have been made to improve the workplace experience, get to it now or good luck. This requires Leadership through Emotional Intelligence. Here's a good way to think about this – when you're lucky enough in this tight market to have a quality candidate considering your opportunity, bear in mind that they already see the opportunity; what they are going to focus on is what it's like to work for your company.
John S. Fareed provides his thoughts on this challenge:
"During the pandemic, legacy staff was significantly reduced, and the workforce shortages of today are making it near impossible to rehire. As the industry attempts to fill the gaps with new hires, training is proving to be expensive and a slow slog. I see hotel companies focusing on two areas in an effort to win. First, they are rebuilding the trust in their corporate culture, and second, outsourcing as much of the operation as is possible such as housekeeping, food and beverage and spa operations."
John is absolutely right, and those organizations to whom we may outsource also need people in order to provide these services!
Heather McCrory recognizes that:
"External factors continue to impact our business – evolving local and state regulations and the difficulties achieving full staffing levels create limitations on our offerings in some markets. However, we have embraced these realities as our next normal."
To summarize, as our industry experiences guest frustration and the pressure to restore all services and amenities, moving forward to the "new normal" in a sustainable manner requires Leadership. Not management – leadership.
Leadership through:
Decisiveness – step up, have courage, be clear, and make the tough calls that optimize short- and long-term success for your business and people's well-being. Guests and associates may not be like every decision, but they'll be thrilled that your company or your property successfully transitioned beyond the pandemic when others did not.
Communication – Be proactive, be clear, be present. In navigating COVID and trying to balance guest and associate desires, you just can't communicate enough.
Innovation – Have a solutions mindset. Expand your thinking, challenge your peers and leverage your people. Take advantage of the combined knowledge and expertise they represent so you can better anticipate how new ideas or methods can make that "new normal" better than ever.
Emotional Intelligence – Things have changed. Not only did the pandemic cause serious emotional damage, it's a seller's market today and the thin labor force is a serious challenge. Many have left hospitality, hopefully only temporarily. You must project an authentic interest in people, in their well-being and in the quality of the environment your company or hotel is providing for them.
You must send a message that you 'get' that they have reflected on their personal and work lives and are looking for something different, better than – in many cases – what they had before. Be that sort of company and you'll have the best odds for attracting and retaining the people you need.
By Ken Greger Partner, August Leadership
