An unimaginable global lockdown and the impositions of restrictions forever impacted guest expectations from hotels and service providers as well. More aware of the additional risks in the business, hotel owners have changed their approach to investing in the sector. They place greater demands on their operating partners on sharing the downside risk. Even hotel management companies had to re-evaluate the way they do business and adapt to stay relevant.
The pandemic has merely accelerate trends that were already emerging in the hospitality space. Be it safety and hygiene, automation and robotics, customisation and personalisation, mobile and contactless or social media and chatbots to drive engagement– each of these were around for a few years. The pandemic merely forced adoption by the mainstream.
AMRUDA NAIR, DIRECTOR, ARAIYA HOTELS
One key trend that is here to stay is the awareness of the impact on the environment and the need for consumers and businesses to make more responsible choices. While discussions on sustainability and green messaging have been ongoing, environmental, social and coverage governance factors will be key drivers for socially responsible investors as well as consumers.
Management companies will need to incorporate contactless and self-service technologies into their service offering to provide a more customer-centric experience. Many will need to assess and fill the gaps in their current digital offerings to meet what is now a core component of the guest journey.
LEARNING FROM AMAZON
Hotel management companies can learn a lot from tactics adopted by online retail companies who quickly transcended the gap between physical and digital world. They did a phenomenal job in using data to personalise the buying experience.
Hotels, too, can use data regarding past purchases to send offers and recommendations based on a guest’s preferences. Imagine the option of having a mini-bar stocked with only one’s preferred beverages and accompaniments?
Similarly, hotels can extend their offerings at the time of booking to go beyond rooms, breakfast and
airport transfers. These can include other services that can enhance a guest’s stay, including spa treatments, special dining experiences, golf bookings as well as off-property excursions to local sites or familyoriented activities.
Taking a cue from retail companies, hotel brands have already adopted QR codes and other contactless technologies. This gives them a great opportunity to communicate effectively and share information about everything from safety measures in the room to cocktail options at the pool.
Social media has turned into a key resource for most management companies to enhance customer awareness. There has been a significant shift in marketing investment from traditional platforms like print and electronic media to social media and developing an online presence.
INVESTING IN THE SERVICE TEAMS
Legacy operations and age-old processes are often hard to accept. Management companies need to foresee hurdles and communicate effectively with all stakeholders, including owners and employees, to prevent resistance to change.
The retrenching of teams, heightened customer expectations and forced adoption of new technologies is putting a burden on service teams. Hotel companies need to invest in training to not only help team members adapt to the altered environment but also make it easier for them to provide guests with a seamless experience.
This needs clear communication, well-defined timelines, impact assessments protocols and resource allocations to provide adequate support. Biohacking to enhance employee performance is now being introduced at the workplace albeit in a phased manner.
SCALING BACK DEPENDENCIES
The need for reliable, real-time information made guests reach out directly to hotels while researching dining and stay options online. Hotels in India saw upto 50% rise in direct bookings. Now, hotel management companies have an opportunity to unify, leverage and control this guest data and access to drive guests directly to their own brand websites away from online travel platforms.
The relationship between a hotel management company and hotel owners has always been contentious one. This is particularly when the business evolved and larger hotel management companies went public, driven by quarterly results to build scale through acquisitions and consolidate while investing in brand assets and IP.
A long-standing grouse with owners has been conforming to mandated brand standards that may not be relevant to the particular property as well as the lack of transparency in fee structures. In a zero-revenue scenario where the larger share of the burden fell on hotel owners, there was much debate on the fairness of management fees that in some cases were not linked to the business health of the asset.
TRUST: THE NEW CURRENCY
Hotel management companies that were nimble in reacting to the everchanging scenarios were able to
step in and provide relevant as well as practical solutions to owners and help them weather the storm. If the past 18 months has thought us anything it is that we need to be responsible in our conduct, make conscious decisions and be clear and transparent in our communication.
Building trust with our stakeholders – our teams, hotel owners, our guests and the community around
us – is the only way we as an industry can rise again. Hotel management companies may have a tough job ahead but by accepting change perhaps they can strengthen their relationships and emerge stronger together.
