How Submit-Pandemic Business Groups Can Bridge Silos
The 2020 pandemic has affected the world in a couple of means, particularly by way of communication inside a enterprise setting. The world noticed a whole halt in efficient collaborations, and other people had been extra disconnected than ever. Groups that typically labored comparatively harmoniously in individual had been left on the mercy of zoom and emails.
Actually, between 2019 and 2020, Professor Tiona W. Zuzul on the Harvard Enterprise College, together with 11 different researchers, studied over 360 billion emails throughout 1.3 billion accounts of 4361 organizations. They found a big enhance in enterprise silos within the 12 months 2020.
Ultimately, individuals discovered their means out of the rut to some extent. Nonetheless, bottlenecks persist as increasingly more corporations shut down their bodily places of work and go absolutely distant. In any case, as technologically dependent as we’re, some issues are greatest achieved in individual.
Nonetheless, there are methods to bridge the hole – particularly within the resort business. Let’s dive in to know how silos can have an effect on us and the way we will overcome the challenges connected to them.
Understanding silos prior to now
Discussing the previous is lower than efficient in an period that’s rightly termed the digital revolution. In any case, the sooner resort chains not often utilized any know-how. Nonetheless, it’s essential to watch the variations, particularly the significance of the totally different stakeholders and the way it has advanced. Actually, Silos existed prior to now, too, even with out a world pandemic to set off their offshoot.
Most notably, the income supervisor function has seen a slightly meek existence prior to now. The earliest resort chain techniques had no idea of a income supervisor. Historically, information assortment and processing took lengthy hours and precipitated many points for the crew.
Later, even when the income supervisor function was launched, the everlasting concept was {that a} income supervisor is an individual who sits within the basement, away from the remainder of the crew members. That they had little to do with day-to-day operations. Furthermore, they solely reported to higher-ups, such because the gross sales director.
These concepts don’t exist anymore. Income managers are on the heart of quite a lot of the business features of the enterprise. Learn alongside to know extra in regards to the evolution of the income supervisor’s function.
Function of the income supervisor
As mentioned above, silos have existed for a very long time, albeit in smaller numbers and at a extra manageable degree. With the pandemic coming into impact, these silos have elevated in quantity, and issues corresponding to information transparency have taken a backseat.
At this juncture, income managers can step in and take over the discussions surrounding the commerciality of a corporation.
Right now, each stakeholder is on a extra equal footing. Therefore income managers do not simply report back to the higher-ups anymore. Furthermore, they’ve grow to be the driving pressure behind any group – whether or not they function from a income administration heart or the resort website.
Income managers are liable for figuring out alternatives that help the resorts in receiving the best enterprise. In addition they have interaction with the gross sales and advertising and marketing groups to undertake holistic approaches by way of the business side of the corporate.
Business methods to bridge silos
Regardless of the existence of silos beforehand, the pandemic has pressured organizations to actually consider the place their organizational framework stands as we speak. House owners and majority stakeholders have requested the implementation of issues corresponding to:
- Consolidation
- Value-cutting throughout departments
- A shift from specializing in income to commercialism
1. Utilizing communication instruments that encourage collaboration
Right now, newer collaboration software program molded particularly for companies is discovering its means into the mainstream faster than ever. Thus, corporations can take into account investing in one in every of these communication instruments.
Utilizing messaging platforms like Slack or Groups can even supply an area for workers to speak with these not of their fast neighborhood. Inner social media networks like Yammer, Office, or Google Workspace may also help foster a sense of group.
Some software program is very helpful for facilitating cross-functional collaboration by permitting employees to entry information from outdoors their division. Subsequently, whether or not personnel from varied departments may work collectively on a brand new venture is value contemplating. This offers for a level of openness that has the potential to tear down partitions and bridge silos.
Furthermore, utilizing a device particularly normal to serve the resort business, corresponding to RateGain, will be particularly useful in fixing the issue of monitoring KPIs that time in direction of:
- Buyer acquisition and retention
- Income maximization
- Integration
2. Encouraging collaboration coaching
There are quite a few enterprise coaching choices, together with those who encourage workers to study new communication strategies. This promotes higher crew collaboration.
Coaching specialists are usually thinking about deciphering why teams talk with each other within the method that they do. They query workers’ assumptions about others in addition to their views in regards to the firm’s tradition.
Some organizations will try to “reprogram” workers’ interpersonal talents. They may help them in being extra tolerant of their colleagues.
This encourages people with a silo mindset to consider the emotions of others who are usually not of their silo. Whereas pricey, if the siloing is extreme, it could be the most suitable choice for growing total empathy and eradicating divides.
3. Connecting individuals through a typical aim
One of many points with communication silos is the existence of competing pursuits. Staff are break up into totally different teams once they wouldn’t in any other case be. And there’s no subject with it. Nonetheless, striving for an overarching goal that promotes the corporate’s better pursuits is essential.
One of the best technique to advertise cohesiveness amongst workers is to attach them to an organization aim. Staff needs to be inspired to speak on one thing that characterizes the corporate as a complete.
Another choice is for the advertising and marketing division to draft an inner manifesto. This fosters a shared understanding of what the group represents and what it aspires to realize. It could possibly assist preserve employees engaged and assist them visualize their contributions to the group.
The highway forward
The inevitability of enterprise evolution is obvious in the way in which enterprise silos have remodeled from the times earlier than a income supervisor. Siloing was among the many foreseeable modifications that the resort business would witness. With the daybreak of the pandemic, the method has solely accelerated.
However as we speak, we personal the assets to fill this divide and create a stronger office. The income supervisor is the brand new business supervisor who leads the discussions on how resorts can maximize earnings. And never simply by way of rooms and F&B, but in addition by way of price of acquisition.
They’ve gone from segments to specializing in section channels to drive and maximize the alternatives deciphered due to income managers. The opposite groups use these insights to develop objectives that may assist one central aim – driving earnings for the group.
Not solely that, enterprise communication instruments, collaboration coaching employees, and even making a manifesto may also help take away firmer silos. This may encourage an atmosphere of camaraderie and togetherness. Nonetheless, the one foolproof solution to discover the fitting footing in such a state of affairs is by adopting a device corresponding to RateGain – a software program specialised for bridging gaps within the resort business.
How the Hospitality Business Can Battle “The Nice Resignation”
Written by: Sheheryar Javaid
This text is not going to contact on the influence “The Nice Resignation” has had on the hospitality {industry}, as we’re properly conscious — the main target will as a substitute be on what actions we will take to battle it. Cash shouldn’t be the reply. Many lodge homeowners and operators do not need a lot cash left after the pandemic, anyway. Fortunately, there are a lot of elements that workers are searching for in addition to elevated pay (though it could be good!).
The aim of this text is to focus on a few of these elements and supply a roadmap on how options could be carried out to draw and retain workers. However earlier than we dive into them, there may be one essential factor that resorts want to begin doing extra: really discuss to the workers and hear to know how they really feel and what they want. Employers ought to repeatedly search worker suggestions on what makes their life tough and what options they’ve to enhance it. A constructive suggestions loop will make sure that the setting is simply bettering sooner or later.
Some workers will really feel extra comfy to share anonymously by way of surveys. However most significantly, administration must create an open communication coverage to enhance belief. Many workers don’t really feel comfy sharing what’s on their thoughts with their managers, however this wall must be damaged, through the use of a number of the concepts talked about under.
Get Possession Purchase-in
Accommodations have turn out to be profit-generating investments for all types of possession teams, whether or not it’s a person or a financial institution. So it’s on administration to convey the true monetary influence of re-training new workers and the price of having a burned-out crew. This could generate potential added worth, akin to higher visitor critiques resulting in an elevated ADR.
The administration crew should develop a persuasive proposal with a direct ask and concisely state the issues and options, with their related prices and advantages.
Subsequent, listed here are some examples of what resorts can do to turn out to be a greater place to work.
Make investments Time and Vitality into Tradition
- Consider the Organizational Construction: “Do we now have managers that care about our workers?” This is likely one of the most important the explanation why workers go away their jobs, so it should be evaluated. For instance, acquire suggestions by way of an nameless worker satisfaction survey the place the outcomes are clear to greater degree administration and possession.
- Profession Improvement and Recognition Packages: Anybody can Google a listing of concepts right here, however the perfect factor can be to ask workers what they want and sincerely give particular recognition.
- Making a Enjoyable and Collaborative Tradition: Encourage creativity by way of month-to-month crew constructing occasions like paint nights with wine. Incorporate wellness by way of common yoga/meditation courses. Reward sharing, contests, a birthday wheel — these are additionally good methods to combine and encourage completely different generations. How a lot would these actually price?
- Connectivity: We will be taught from the startup world, who’re consciously making an attempt to create nice work environments. It may be easy issues akin to connecting their workers by way of platforms like Slack. Many resorts have their in-house communication programs, however this may be an choice for particular person departments or unbiased resorts.
- Better Functions: Introduce initiatives to handle sustainability, akin to calculating the carbon footprint from procurement and setting benchmarks, or discover methods to assist the area people.
Conclusion
Despite the fact that the hospitality {industry} has been hit the toughest, we have to pave the way in which for the restoration. This may be seen as a chance to scale back conditions the place individuals are pressured to work till they burn out, and as a substitute, create alternatives for the precise folks to thrive in roles which might be suited to them. McKinsey calls this “The Nice Attraction”. Take a step again. Pay attention. Study. Perceive. Make the modifications that workers need. And measurement the chance. This could result in an industry-wide innovation of worker tradition.
There isn’t a purpose in charge the pandemic or the overworked workers for leaving. If resorts see the chance to make their property an important place to work, they may have the ability to entice the many individuals that also love the {industry}. Some have jumped to monetary companies and retail, however there’s something particular a couple of hospitality setting that you just can’t discover anyplace else. Creating this tradition is what we must always concentrate on.
Everybody has a task to play within the restoration. House owners have to speculate and perceive the state of affairs. Administration wants to higher hearken to their workers and assist them. And workers have to voice their considerations and use their concepts to co-create the precise tradition. We’d like this now greater than ever.
This weblog put up obtained Third Place within the Spring 2022 HFTP/MS International Hospitality Enterprise Graduate Pupil Weblog Competitors introduced by the HFTP Basis. Individuals are college students taking part within the Grasp of Science in International Hospitality Enterprise, a partnership between the Conrad N. Hilton Faculty of International Hospitality Management on the College of Houston, the College of Resort and Tourism Administration at Hong Kong Polytechnic College and EHL. The weblog posts that obtained the highest scores will probably be printed on HFTP Join by way of August 2022. Study extra at HFTP Information.
Sheheryar Javaid is a accomplice on the Hyatt Place Toronto/Mississauga Heart in Ontario, Canada and up to date graduate of the Grasp of Science in International Hospitality Enterprise program, which is in partnership of three faculties: EHL, the Hong Kong Polytechnic College, and College of Houston.
References
Workers Scarcity Insights from a HITEC Orlando Visitor Blogger
Written by: Jennifer Jones
It is no secret that the bubble has burst and vacationers are again out on the street. With busy summer time months nonetheless forward, our motels are experiencing demand that’s actually welcome after the pandemic decimated occupancies. Nonetheless, the lingering black cloud of the labor scarcity means motels are going to wrestle to satisfy visitor expectations from a service perspective with fewer entrance desk brokers, housekeepers, restaurant workers, and so forth. Service shall be slower and restricted at instances, and it is going to be difficult to make nice impressions. We’re all well-aware of how the airways are combating workers shortages, inflicting a ripple impact of delays and cancellations — irritating many people who had been attempting to get to HITEC!
At HITEC Orlando, a lot of you current shopped the aids of expertise to search out new instruments to implement at our motels to bridge the labor hole. Nobody ever needs to say that we would like expertise to interchange individuals. However right now, we want expertise, since we do not have the individuals. After all, expertise might help ease labor points and make companies extra environment friendly — however that takes away from the entire objective of hospitality and repair. It is a dialog many people trip on.
In my earlier weblog put up, I mentioned how applied sciences like on-line contactless check-in made an enormous entrance into the market due to Covid-19. These applied sciences will proceed to remain so long as we do not have the workers to run the lodge correctly.
Self-service kiosks additionally grew to become extraordinarily fashionable through the pandemic to lower the quantity of face-to-face interplay. Once more, these genius little gems are nonetheless popping up in lobbies in all places, as we can not seem to present sufficient methods for friends to get checked-in seamlessly and not using a wait. On Sunday of the week main into HITEC, I witnessed an outstanding check-in line at 7:00 pm at a distinguished lodge model that wrapped across the foyer. It was painful to observe, as a minimum of 150 individuals stood in line at a entrance desk that was clearly understaffed with three stressed-out brokers. As room charges proceed to rise, expectations of vacationers will as properly, inflicting a dynamic that could possibly be disastrous for traveler evaluations.
However this labor scarcity is not simply affecting our workers in motels; it is also affecting the workers at a lot of our expertise distributors. Generally, it takes weeks and even months as soon as a contract is signed to get expertise implementations scheduled. One of many principal causes motels try to implement new expertise is to assist make operations extra environment friendly and take care of their very own lack of workers. An amazing instance isn’t having the ability to get integrations applied for months — integrations that should assist alleviate workers from manually re-entering knowledge into one other system (workers that does not exist, or workers that may’t tackle any further obligations ). So, it is a double-edged sword for many, and now the properties are annoyed from the shortage of service from distributors, identical to their vacationers are annoyed with them! As I said earlier, demand is excessive in all places. A number of hoteliers try to get these expertise initiatives going as quickly as potential to cease the bleeding proper now. I do know our distributors are conscious, nevertheless it’s undoubtedly a log jam that I am afraid both won’t ever clear up or the aim of those expertise initiatives will lose their instant return on funding. What a disaster!
Jennifer Jones is president of J2 Hospitality Options and an official occasion visitor blogger for HITEC Orlando 2022, which occurred June 27-30 on the Orange County Conference Middle in Orlando, Florida USA. Learn all her occasion experiences on HFTP Join.
RateGain Empowers Virgin Voyages with Rate Intelligence
New Delhi, June 27, 2023: RateGain Travel Technologies Limited (RateGain), the leading SaaS (Software as a Service) provider for travel and hospitality, announced today that it has been selected by the North American-headquartered, Virgin Voyages to provide comprehensive Cruise Rate Intelligence data. Virgin Voyages, an innovative cruise line co-owned by the Virgin Group and Bain Capital, is redefining sea travel for the modern traveler set to enhance its competitive edge with the deployment of RateGain’s advanced data analytics and connectivity solutions.
With the global cruise industry on the road to recovery and an expected influx of passengers in the coming seasons, Virgin Voyages will be implementing RateGain’s award-winning rate intelligence solutions. The primary focus will be to capture and analyze competitive cruise data, enabling Virgin Voyages to remain on top of market shifts and seize growth opportunities effectively.
The continuous volatility in travel demand, coupled with an ever-evolving landscape of digital channels, necessitates robust tools to identify new trends and business opportunities in real-time. Virgin Voyages has responded to this need by choosing RateGain’s innovative technology, which is trusted by over 2800+ leading brands. This will furnish them with real-time competitive pricing intelligence and enhanced connectivity to a global network of demand partners.
Leveraging RateGain’s unrivaled expertise and cutting-edge product tailored for the Cruise Data sector, Virgin Voyages will gain access to real-time price intelligence solutions, enabling them to align their pricing strategy with the latest market trends and competitor rates. Concurrently, RateGain’s data analytics platform will empower Virgin Voyages to track rates across multiple channels, bolstering their global visibility and facilitating the delivery of unique booking experiences to their customers.
Expressing her views on the partnership, Jessica Fleisher, Vice President of Revenue for Virgin Voyages, said, “As we navigate the strong return of cruise travel, it is vital that we stay ahead of the curve by optimizing our pricing and enhancing our visibility across global demand partners. Partnering with RateGain gives us access to a single platform for real-time intelligence and connectivity, making our operations more seamless and efficient.”
Commenting on the partnership, Vinay Varma, Senior Vice President and General Manager at AirGain, said, “We are thrilled to provide our robust data analytics solution to Virgin Voyages. Our combined capabilities of delivering actionable data and improved visibility will help Virgin Voyages unlock new revenue streams. It’s a privilege to support Virgin Voyages’ revolutionary portfolio through the current recovery and beyond.”
About Virgin Voyages
Set Sail the Virgin Way with Virgin Voyages, the irresistible travel brand founded by Sir Richard Branson. Delivering epic vacations at sea, Virgin Voyages launched at the end of 2021. The brand’s four Lady Ships – inspired by 50+ years of Virgin history — including Scarlet Lady, Valiant Lady, Resilient Lady and Brilliant Lady. Designed for discerning travelers, Virgin Voyages offers relaxing, exclusively adult (18+) sailings. Working with a Creative Collective of the world’s most sought-after designers, performance artists and architects, Virgin Voyages delivers an enchanting boutique hotel at sea with fresh, elevated spaces that strike the perfect balance of nautical chic and glamor. Currently departing from the sun-soaked cities of Miami, Barcelona and Athens – and soon to include San Juan and Melbourne – the fleet offers itineraries to more than 100 awe-inspiring destinations across four continents. Virgin Sailors are spoiled for choice with 20 eateries offering Michelin-star culinary experiences all included, a festival-like line-up of entertainment, stylish and comfortable cabins, Rockstar Quarters, authentic and locally inspired shore excursions, and a dose of Vitamin Sea with well-being naturally intertwined throughout the experience. Promising to Create an Epic Sea Change for All, Virgin Voyages also puts sustainability front and center.
About RateGain
RateGain Travel Technologies Limited is a global provider of SaaS solutions for travel and hospitality that works with 2800+ customers and 700+ partners in 100+ countries helping them accelerate revenue generation through acquisition, retention, and wallet share expansion.
RateGain today is one of the world’s largest processors of electronic transactions, price points, and travel intent data helping revenue management, distribution and marketing teams across hotels, airlines, meta-search companies, package providers, car rentals, travel management companies, cruises, and ferries drive better outcomes for their business.
Founded in 2004 and headquartered in India, today RateGain works with Top 23 of 30 Hotel Chains, Top 25 of 30 Online Travel Agents, and all the top car rentals including 8 Global Fortune 500 companies in unlocking new revenue every day. For more information, please visit www.rategain.com.
Forward-looking Statements
Certain statements in this release are forward-looking statements, which involve some risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from those in such forward-looking statements. All statements, other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to the statements containing the words ‘planned,’ ‘expects,’ ‘believes’, ‘strategy,’ ‘opportunity,’ ‘anticipates,’ ‘hope’, or other similar words. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding the impact of pending regulatory proceedings, fluctuations in earnings, our ability to manage growth, intense competition in IT services, data services, and consulting services including those factors which may affect our cost advantage, wage increases in India, customer acceptance of our services, products and fee structures, our ability to attract and retain highly skilled professionals, our ability to integrate acquired assets in a cost-effective and timely manner, time and cost overruns on fixed-price, fixed-timeframe contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, the success of our brand development efforts, liability for damages.
Contact Media
Ankit Chaturvedi
[email protected]
Global Head-Marketing
Data & Analytics Help In Distributing Hotel Inventory
The Internet had an impact on almost every industry out there and how could the hotel industry be an exception to this revolution. Traditional booking mechanisms like phones and agents have been replaced by OTAs, brand websites, and other channels. Some channels are more profitable or we can say less costly than others are. Hotels have to continuously make sure that they are using the most profitable channel to sell their inventory to maximize revenues. Yielding and Pricing strategy has the prime role to play in determining which channel shall be used to maximize revenues. However, some hotel revenue managers fail to determine which channels have been major contributors to the revenue against the costs incurred on them.
Studies reveal that the cost of distribution has grown manifold as compared to revenues. This scenario can be detrimental to the health of the hotel industry in the long run and calls for hoteliers to adopt measures to control distribution costs. Some channels even charge up to one-third of the room price as commissions.
With so much to leave on the table, it becomes imperative for hotels to continually audit the performance and contribution of different channels to the revenue. Optimum hotel distribution not only affects financial health but also has a considerable impact on marketing strategies and technology required to maintain the sales data.
The hospitality industry becomes fiercely competitive when it comes to urban properties like resorts and penthouses. They are generally booked by high spenders and hence award opportunities for hoteliers to earn handsome returns on such big size bookings. This also calls for hotels to determine the channels that not only fetch the best room rates but also clinch high-spending guests. Evaluating these drill-down parameters can only reveal the right distribution channel that is most profitable in the true sense.
Various distribution channels ranging from call/walk-ins, Global Distribution Systems (GDSs) to diverse online channels like OTAs, metasearch sites, and social media have made the profitable hotel distribution task more complicated and complex than ever before. Successful hotel operation demands all three parties responsible for distribution, marketing and revenue to work together in close coordination to optimize pricing strategy, revenue generation and net profits.
Key Problems in Distribution
Let us discuss the key problems that hoteliers face in distribution and how they can use real-time search monitoring to address these challenges?
Inventory allocations
Figuring how many rooms to be sold through which channel and when
In times of high demand, revenue managers have enough room to experiment with different channels and manage to get away with decent revenues. However, in times of low demand and excess capacity, choosing the wrong or costly channel mix can bleed already lean revenues. Hotels may end up giving high commissions to OTAs even with slashed prices making it difficult to recover operational costs.
Opportunities: Real-time monitoring of search traffic through major distribution channels
Revenue management and distribution management are complementary to each other. They are committed to selling the right room, to the right customer and equally important, at the right time. This helps hotels earn maximum revenue from each channel. Hotels should monitor the performance of their distribution channels in real time so that they have a clear idea of hotel inventory availability enabling them to set the right prices on the right channel.
Real-time data for keeping track of demand
Demand estimation and changing prices in real time
The hotel industry clearly thrives on dynamic pricing. Higher the demand, higher the prices and vice versa. Hotels need to have a clear idea of their demand patterns so that they can change the prices proactively and not leave a single buck of revenue on the table. Moreover, hotels need to be equally vigilant so that their prices are reasonable and do not induce demand resistance among the target audience.
Monitoring real-time search traffic for early warnings of high, low or abnormal demand flows
As discussed earlier, hotels should be aware of market demand under all circumstances. Usually, the rise in demand at various times in the year aligns with the historical demand patterns. However, sometimes, hotel demand rises uncertainly due to an upcoming big conference or any event in the city. Hotels should monitor search data to keep a tap on any impending rise in demand. This provides hoteliers to proactively change their pricing to earn the maximum revenues out of every opportunity.
Negotiation strategies with OTAs
Identify OTAs that fetch the best guests, for the least commissions
Until now, OTAs contribute a maximum number of bookings for any hotel. There are “n” number of OTAs in the market for hotels to choose from. Selecting the right OTAs for hotel distribution can do wonders. An OTA that can get maximum bookings for least commission are the ones to be chosen. Evaluating search traffic can bring out surface stats as to which OTAs attract the maximum number of visitors. This can help hotels to shortlist OTAs to choose from.
These reasonable stats can help hotels negotiate the much painful commissions and establish grounds for demands by the OTAs. Not all OTAs work out well for any hotel and any hotel cannot rely on one OTA for all the bookings. Hotels need to tie up with different OTAs to assess which perform better and discard the ones that are less profitable.
Customer segmentation
Identifying guest categories
Guest is no less than Gods to hotels. They are the king and shall be dealt with appropriately. However, like fingers, not all guests are the same. They can be categorized according to different parameters, such as age, booking motives, such as leisure or business
The hotel’s success depends much on their ability to deliver 1-to-1 personalized offers and services to each guest. However, there are many things the Revenue Manager can do to better understand the guests searching for a room, the context of the travel and the distribution channels being used. Insights about the purpose of the travel, such as leisure or business, families, singles or groups can be derived to offer more targeted offers.
Use real-time search context to identify customer segments and improve offers
With changing business models, up front it is not easy to figure out which bookings are business bookings and which ones are purely leisure, in fact, these days it is a mix of both (Bleisure). However, considering mid-week bookings as business and weekend bookings as leisure bookings can help in some way. This lets hoteliers come up with suitable packages at the right time for the right customer group, which fits in their budget thus increasing the number of bookings.
Hotel distribution is an intricate and painful staking process exposed to a myriad of market forces. We can decode some of the governing forces and develop strategies around them to utilize them for our benefit.
By the discussion above, our readers can clearly establish how search-based analytics can help hotels optimize the hotel inventory distribution game.
Thank You Booking.com For Showing Us The Future
For the last five years, travel has been all about sustainability, recovery, and – for the last few weeks – generative AI. And while all of these are highly relevant topics, there’s only one thing that ties them together – Diversity, and knowing that each person is different and is looking for unique and personalized experiences that cater to their individual needs and preferences.
This is where, at the recently concluded Click. 2023 event, Booking.com showed us the future of travel and hospitality.
The Changing Traveler and the Future of Travel
The 2023 Travel Predictions by Booking.com showcased at the event highlighting the importance of customization. And here’s how the hoteliers can leverage these trends to stay on top.
1. 55% of travelers are planning to spend their vacations off the grid.
As most travelers are looking for off-grid style vacations to escape reality in 2023, a rise in eco-friendly stays that embrace natural surroundings and sustainability is expected.
For those hotels who have already been investing in sustainability, it is pivotal to make the guests aware of the same. They can do so by indicating the sustainability practices implemented on the extranet, which can then be displayed on their property page on booking.com as part of its Travel Sustainable Programme.
Read Also: How Green is your Hotel? Do Good and Show it to the World – on Google
2. 42% of travelers will focus on mental health and mindfulness.
While highlighting the wellness facilities that the hotel currently offers – such as spas, gyms, etc. – is pivotal to drive growth for businesses, it is also important to partner with local businesses outside that provide additional wellness experiences. These additional experiences can then be offered to the guests.
Hotels can also share information about local groups or attractions that might be relevant to certain niche groups – either pre-trip (window between the booking and the actual trip), or during the stay with the help of guest engagement solutions.
3. 43% of travelers will use virtual reality to find travel inspiration.
Metaverse, and virtual or augmented reality offer people a new way to experience travel. While 43% of global travelers claim that technology will inspire their 2023 travel choices, 60% of travelers still believe that such experiences are unlikely to be replaced by in-person travel any time soon.
Investing in high-quality images and extended reality content such as virtual property tours can make the hotel property stand out, and help potential guests imagine themselves in these properties. Thereby inspiring them to experience the stay in the physical world as well.
4. The future of travel and hospitality lies in the understanding that each person is different.
The bold & impressive stance around DE&I was truly the highlight of the event. At the event, Booking.com showed us that it is this diversity that makes travel so exciting and enriching.
The tagline at the photo – “We filter places, not people.” – encapsulates the idea that diversity, equity, and inclusion are at the core of travel. It is through experiences that we get to know different people and cultures, and it is essential that we provide customized experiences that cater to the needs of different individuals and groups.
Here are four tips for hoteliers who might not be already doing this:
a. Show all your facilities that meet the accessibility requirements
Hoteliers should highlight the accessibility features of their facilities and services, such as wheelchair ramps, bathroom grab bars, and designated parking spaces for those who may have mobility needs. They should also showcase their staff’s training to provide assistance to guests who require support and offer information on nearby accessible attractions and transportation options. This information can be prominently displayed on their website and in promotional materials to ensure that all guests feel welcomed and valued.
b. Make your content more gender-neutral and diverse
It is crucial for hoteliers to create content that is inclusive and welcoming to all guests, regardless of gender identity or expression. They can use gender-neutral language in their descriptions of amenities and services to make sure they don’t alienate guests with different gender identities. Hoteliers should also consider creating separate rooms or spaces for guests who don’t feel comfortable staying in traditional male or female accommodations.
c. Show diversity through images
Hoteliers should showcase diversity in their promotional materials, including images of guests from different backgrounds, ethnicities and cultures. These images can be displayed on their website, social media accounts, and marketing materials to show potential guests that they are welcome and included in the hotel’s community. They can also highlight local cultural events and activities to encourage guests to explore and learn about the diversity of the surrounding area.
d. Share information around local groups or attractions that might be relevant to certain niche groups
For hotels that attract guests from different countries, it is important to provide information in multiple languages. This includes translating their website, brochures, and other marketing materials into the languages that their potential guests speak. Hoteliers should also consider hiring multilingual staff to assist guests who don’t speak the local language. By providing these services, hoteliers can ensure that all guests feel comfortable and included during their stay.
The Click. 2023 event by Booking.com was indeed an incredible experience that showed us the future of travel and hospitality. The onus is upon us to embrace diversity, equity, and inclusion in the travel industry, and deliver the perfect experience for every guest.
About the Author
Mark Haywood
SVP & General Manager – Europe and Africa
RateGain
The Best Hotels In Barcelona For Food Lovers
When it comes to eating well, few cities in the world can compete with Barcelona. On your next vacation here, why not start by booking a hotel with some top-notch gourmet credentials?
The Roof at The Barcelona EDITION.
To help you make the right accommodation choice, here are the best hotels in the Catalan capital with restaurants worth traveling for—from the Michelin-approved temples of fine dining, to bustling tapas bars, an upscale sushi spot, and not one, but two , rather excellent steakhouses.
Pigeon from Las Landas in its juice, fruit marmalade and vegetable nuances at Lasarte.
With no fewer than four Michelin stars under its roof, it’s hard to rival Barcelona’s Monument Hotel for culinary excellence. One-star Oria has a more casual approach to fine dining, while three-star Lasarte goes the whole hog, with dishes like squid tartare with liquid egg yolk, onion and kaffir consommé, or Wagyu ravioli and glazed eel, iodized cream, horseradish and caviar, which is bound to bring a tear to your eye. Meanwhile, the top-floor Verbena restaurant serves breakfast, lunch, and Sunday brunch—with rooftop views included. All three are led by Spain’s most Michelin-starred chef, Martín Berasategui.
Moments Restaurants at Mandarin Oriental, Barcelona.
There are many reasons why Mandarin Oriental, Barcelona consistently gets named as one of the best hotels in Spain: from its unrivaled comfort and ultra-discreet staff, to the exceptional food and beverage offerings. The highlight is the two-star Michelin Moments, by Carme Ruscalleda—the first woman to be awarded seven Michelin stars—and her son Raül Balam, whose current tasting menu is a delicious work of art inspired by Salvador Dalí’s recipe book ‘Les Dîners de Gala ‘. There’s also Blanc, a light-filled atrium serving locally-inspired Mediterranean cuisine, Banker’s Bar, one of the city’s best cocktail bars, and, in summer, the rooftop Terrat, by Peruvian chef Gastón Acurio.
Nobu Restaurant with views of the Sagrada Famlia.
Despite its somewhat unfashionable location opposite Sants train station, it’s safe to say Nobu Barcelona is one of the city’s hottest openings in recent years. Rooms deliver signature Nobu minimalism with dimmed lighting and sexy wooden bathtubs, and there’s even a dreamy subterranean Natura Bissé spa. But the real piece de resistance is the achingly hip top-floor Nobu Restaurant, with views spanning all the way from Tibidabo mountain, past the Sagrada Família, down to the beach—not to mention some of the best sushi in town, of course.
Caelis is known for its popular tasting menus.
Take a stylish address in central Barcelona, add the youngest French chef ever to win a Michelin star, and what have you got? Why, Caelis restaurant at Ohla Barcelona, of course! This one-star Michelin fine-dining temple is by Chef Romain Fornell who was first recognized by the people at Michelin at the age of 24. Since then, he has built a mini restaurant empire in Barcelona, of which Caelis is the crowning glory. The popular 13-course seasonal tasting menu includes dishes like frozen vichyssoise with trout eggs, and a mind-blowing combination of smoked eel with artichoke and foie gras.
Michelin-starred Catalan chef Marc Gascons is behind the restaurant at Serras Hotel.
Serras Hotel Barcelona is very much everything a boutique hotel should be. Hiding in plain sight in the midst of the Gothic Quarter, it is peaceful and discreet, with exceptional personalized service and some of the comfiest rooms in town. Its rooftop and ground-floor Informal restaurant, by Michelin-starred Catalan chef Marc Gascons is an under-the-radar favorite among local foodies. Gascons’ take on spicy patatas bravas is up there with the best, while his organic chicken cannelloni with mushroom béchamel will take you right back to your grandma’s kitchen.
Tapas at Bodega Bonay at Casa Bonay.
While it’s no secret that Casa Bonay is one of Barcelona’s trendiest boutique hotels, what you may not know is that it is also home to some of the city’s hottest eating and drinking spots. The ground-floor Libertine bar mixes a mean Three Gin Martini, while Bodega Bonay is a low-key foodie hotspot serving creative tapas like the moreish artichoke tatin (a savory take on tarte tatin with—you guessed it—artichoke instead of apple). On summer nights, the rooftop Chiringuito is the place to feast on barbecued lamb chops and succulent Criollo-style Iberian pork blade.
Amar Barcelona: the fine-dining restaurant El Palace deserves.
When El Palace opened in 1919 as the Ritz of Barcelona it was the city’s first five-star luxury hotel. These days, the competition may be fiercer than ever, but El Palace has retained its reputation as one of the most glamorous spots in the city and—as of last year—it also has the fine-dining restaurant it deserves. Amar, which specializes in fishy delicacies like oysters, red Mediterranean shrimp and caviar, completes a superb food and beverage offering that also includes the ultra-romantic jasmine-blossom-filled Rooftop El Palace and the buzzy Bluesman Cocktail Bar.
A hotel as achingly trendy as Sir Victor deserves a restaurant to match and Mr. Porter doesn’t … [+]
Set within spitting distance of Gaudí’s La Pedrera, Sir Victor knows what modern travelers want: a bustling city center location, comfy, on-point design, and a hip rooftop where the beautiful people congregate on summer nights. It goes without saying that somewhere as achingly trendy as this needs a restaurant to match and Sir Victor’s resident Mr. Porter doesn’t disappoint. Don’t be fooled by the “steakhouse” billing; Mr. Porter is also a dab hand at everything from zucchini carpaccio to roasted sea bass and the unmissable jumbo shrimp salad with corn, avocado and chili.
Bar Veraz at The Barcelona EDITION.
The unbeatably located Barcelona outpost of Marriott’s ultra-chic Edition brand is the hotel that has it all. Spend the day enjoying the show-stopping views and fresh takes on Asian street food on the Roof, before heading to the ground-floor Bar Veraz for dinner. Here, flavor-packed yet unpretentious Mediterranean dishes are prepared using top-notch seasonal ingredients from the neighboring Santa Caterina market, known for its undulating mosaic roof. Once the sun sets, sip a signature cocktail in the Punch Room before dancing the night away in the Cabaret nightclub.
The leafy open-air patio at Solomillo.
Part of Hilton’s Curio Collection, the Alexandra Barcelona Hotel may not look like much on the surface but ignore it on your peril. Not only do the top-floor suites with their spacious terraces and open-air bathtubs offer some of the best-value stays in town, the onsite Solomillo restaurant also serves some of the city’s finest steaks. Choose your meat according to your preferred breed, cut, and weight—before adding sides and sauces—for a feast worthy of the most die-hard carnivores. On balmy summer nights, enjoy it on the hotel’s leafy open-air patio.
Lobster, tomato and coral salad at Michelin-starred Enoteca.
A landmark of luxury hospitality since it opened in 1994, this beachfront Ritz-Carlton property has everything you’d expect from a hotel of its caliber. The 483 rooms include 28 serviced penthouses, set on the upper floors of the hotel with a private reception and concierge, while the aptly named 43rd-floor 43 The Spa offers exclusive treatments and panoramic views. Hotel Arts has a poolside restaurant and a cocktail bar, but the real standout is the two-star Michelin Enoteca Paco Pérez, named after its superstar chef whose love of seasonal Catalan produce from the land and sea and shines through in his elegant tasting menus.
The Lag in Food and Beverage Recovery
Written by: Robert Mandelbaum and Andrew Hartley
According to CBRE’s September 2022 Hotel Horizons® forecast for the overall US lodging industry, rooms revenue per-available-room (RevPAR) will exceed 2019 annual levels in 2022. This is driven by the accelerated recovery of average daily rate (ADR) which first occurred during the third quarter of 2021.
For owners and operators of full-service, convention, and resort hotels, unfortunately, food and beverage (F&B) revenue is lagging in recovery and yet to return to pre-COVID levels. This can be attributed to a combination of the following factors:
- Health regulations
- The lag in group demands recovery
- Staffing shortages
- Relaxed brand standards
- Cost control measures
To gain a better understanding of recent trends in hotel food and beverage within US hotels, CBRE analyzed the F&B department revenues, expenses, and profits of 1,228 properties that reported F&B revenue to our annual Trends® in the Hotel Industry survey each year from 2015 through 2021. Estimates for 2022 F&B revenues, expenses, and profits were made based on the performance of a sample of 1,000 hotels through August of 2022.
In 2021, these 1,228 hotels averaged 329 rooms in size, and achieved an occupancy of 47.6 percent along with a $190.13 ADR. Before COVID, the occupancy level for these same hotels was 75.3%, with an ADR of $205.24.
The sample consists of three property types:
- Full-Service Hotels – Properties that offer some degree of F&B service through restaurants, lounges, and in-room dining, plus a limited amount of meeting and banquet space.
- Convention Hotels – Properties that offer frequently offering multiple F&B venues, in-room dining, plus extensive meeting and banquet space.
- Resort Hotels – Hotels that offer extensive recreational facilities. F&B facilities and services may be limited, or extensive.
Excluded from this analysis were limited-service and extended-stay hotels that only offer complimentary food and beverages.
Revenues
In 2020, total F&B department revenues measured on a dollar per-available-room (PAR) basis declined by 72.5 percent. This is greater than the fall off in total hotel revenue of 67.5 percent. Despite growth in 2021 and 2022, CBRE estimates that the 2022 annual F&B revenue levels for the hotels in our sample will be just 88.3 percent of 2019 levels at year end.
The relative F&B revenue recovery by property type follows the overall demand patterns for the various categories. For 2022, full-service F&B revenues are estimated to be 18.6 percent behind 2019 levels. These hotels are frequently dependent on individual business travelers, the demand segment that has struggled the most to return. Group demand has shown some degree of revival, supporting the ability of convention hotels to return to 92.5 percent of their 2019 F&B revenue levels. Given the strong resurgence in leisure travel, CBRE estimates that resort property F&B revenue will surpass 2019 volume in 2022 by 15.7 percent.
While F&B revenue on a PAR basis has yet to recover to 2019 levels, F&B revenue on a per-occupied-room (POR) basis has. As of August 2022, F&B revenue on a POR basis is on pace to be 13.8 percent above 2019 sales. Analyzing the revenue sources within the F&B department that have increased at the greatest pace since 2019 provides some insights into the POR growth. Strong gains in venue revenue indicate increases in menu prices since cover counts are believed to be reduced. In-room dining gains reflect the desire of people to stay in their guest room and away from the density of a restaurant dining room. Finally, we have seen strong gains in public room rental revenue, concurrent with relatively tepid growth in banquet revenue. This is indicative of an increase in local business meetings, and local catering events that supply their own food and beverages. Increases in local F&B revenue contributes significantly to a rise in revenue on a POR basis.
Trends Influencing F&B Revenue
Towards the end of 2021 and going into 2022, social group functions, such as weddings, galas, reunions, etc. ramped up aggressively. Full-service and convention hotels in corporate or downtown locations, which historically served midweek events, have been filling up on the weekends. This is reflective of the pent-up social group demand generated by the cancellations in 2020 and early 2021. Social groups are varied and could lead to inconsistent pricing of F&B services.
Properties with aggressive food and beverage planning such as rooftop venues, active lobby bars, or signature restaurants, are leaning up faster than other competitors as the F&B amenity is potentially a major leisure and small group/events draw for local diners and travelers alike. Furthermore, pre-pandemic, the industry was pushing towards over-sized, trendier, bar-centric F&B outlets to differentiate among traditional competitors. Many of the new designs did away with the isolated prototypical restaurant space and treated the entire lobby as an F&B outlet. This creates a sense of place and an active environment at check-in and in-turn drives greater F&B revenues with greater efficiency, and an increase in overall ADR. This trend looks to be continuing despite the disruptions from COVID. Moreover, these less traditional food and beverage models are flexible and can operate as counter-service grab and go, or full-service, depending on brand standards, time of day, location, and guest profile.
In general, operators have had to re-configure their F&B standards and service to accommodate local health and brand restrictions. Some of these efficiencies are sticking and have contributed to a more dynamic F&B service style.
Expenses and Profits
While lagging revenues are troublesome, the rise in F&B operating expenses is becoming a greater concern. CBRE estimates that by year-end 2022, the F&B department profit margin for the hotels in our sample will be 27.7 percent. This is less than the 30.5 percent profit margin achieved in 2019.
Labor and costs of goods are the primary contributing factor to the reduction in profit margins. The country is at near full-employment and low wage driven hotels/restaurants are susceptible to this dynamic. According to various interviews, individual position wages have grown 20 percent to 40 percent over 2019 levels as F&B outlets are struggling to re-staff and maintain. Food prices have increased over 10 percent relative to 2021 and inflationary concerns are continuing.
Fortunately, these costs have been somewhat mitigated with streamlined staffing, and greater menu pricing. As mentioned earlier, the shift in restaurant service styles lends itself to potentially eliminating various redundant positions. Additionally, these new F&B outlets offer smaller and focused menu planning with better quality, but less quantity and selection.
In 2021, the cost of food and beverages sold increases at the greatest pace (67.6 percent) among all department expenses. This was followed by salaries and wages (42.9 percent) and then other operating expenses (35.7 percent). Only a reduction in payroll-related expenses (-20.9 percent) helped to moderate total F&B department expense growth. The reduction was the result of fewer severance payments made in 2021 compared to 2020.
Unfortunately, we believe these expense trends from 2021 have continued into 2022, without the benefit of the payroll-related reductions. During the early stages of 2022 we observed some operating efficiencies and growing margins, but those have been on a downward trend since April as inflation has risen.
Given these relative changes in revenues and expenses, CBRE estimates that F&B department profits PAR will be just 80.2 percent of the profits earned in 2019. Like department revenues, full-service F&B profits will lag the most in 2022, while resort hotels will enjoy a 19.8 percent premium in F&B profits over 2019.
The Future
Leading up to COVID, the F&B space within the hotels has long been a ‘necessary evil’. This less profitable department posed greater day to day risks. The industry started introducing flexible, lifestyle F&B offerings that follow current dining trends and potentially mitigate fixed expenses. Concurrently the modern traveler and diner have drifted away from hands on service styles in favor of higher quality food and streamlined service.
Within the free-standing restaurant space, fast-food and table service dining are merging, and the high quality $25 dollar burger wrapped in paper served at the counter is here to stay. F&B hotels, and hotels in general, are following a similar trajectory. Limited service is merging with full-service. Smaller limited-service dining rooms combined with craft cocktails and artisanal appetizers are redefining what the modern guest values in their hotel stays.
Looking forward, the industry will continue to balance standards, service, efficiency and quality to maximize profit and reduce risk. From a group/conference perspective, event space is becoming more varied with unique alternatives to supplement the traditional ballrooms, junior ballrooms and breakout spaces. Depending upon location, new outliers in the space include screening rooms, sound studios, art galleries, tech focused eSport/game rooms, and/or rooftop venues. The pandemic was detrimental to the F&B space but potentially accelerated the various trends the industry was initially sluggish to adopt.
This article was originally published by CBRE Hotels and has been shared on HFTP Connect for the benefit of HFTP hotel finance members.
Robert Mandelbaum is director of research information services for CBRE Hotels Research. Andrew Hartley is vice president of CBRE’s Northeast Advisory practice. To benchmark the food and beverage revenues and expenses of your hotel(s), visit pip.cbrehotels.com/benchmarker. This article was published in the November/December 2022 edition of Lodging.