Revitalizing Hospitality

A Mediaplanet Guide to Hospitality in the COVID Era

Revitalizing Hospitality

Chip Conley The hotelier and entrepreneur shares his advice for hospitality professionals facing the many challenges of COVID-19

How technology is putting hotel and restaurant guests in control of their journeys How the right education can boost your hospitality career

SEPTEMBER 2021 | FUTUREOFBUSINESSANDTECH.COM

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aying the last 18 months have been tough for the men and women of the hotel industry would be an understatement.

Since the pandemic hit, lockdowns and other travel and gathering restrictions have led to historically low occupancy, monumental job loss, and an unprecedented number of property closures.

The impact of corporate travel While the uptick in leisure travel this summer was welcome news, the continued lack of business travel and large-scale meetings and events will have long-term, negative consequences for hotel employees and small businesses unless immediate action is taken.

According to a recent Deloitte survey, corporate travel is projected to remain at only 30 percent of 2019 levels through the end of 2021.

This would cost the hotel industry an estimated $59 billion in 2021.

A recent Morning Consult survey found that more than two-thirds of business travelers are likely to take fewer trips this year, and most are likely to take shorter trips given the news of rising cases of the COVID-19 delta variant.

More than half of business travelers say they are likely to cancel existing travel plans with no plans to reschedule.

Nationwide, business travel is down from pre-pandemic levels, and it’s not @MEDIAPLANETUSA

A Crucial Step Toward Pandemic Recovery and Revitalizing Hospitality

ees have displayed extraordinary resilience in the face of unprecedented economic challenges. Yet despite being among the industries hardest hit by the pandemic, hotels are the only segment of the hospitality and leisure sector yet to receive direct COVID-related aid.

HERE, the largest hospitality workers’ union in North America, have joined forces to call on Congress to pass the bipartisan Save Hotel Jobs Act (S. 1519 and H.R. 3093).

The bipartisan bill would be a lifeline for hotel workers, providing payroll grants to help hotels retain or rehire workers and personal protective equipment tax credits to promote worker safety measures.

Hotel employees and small business owners across the nation have been pleading for direct pandemic relief for over a year now, and now is the time for Congress to listen to those calls and pass the Save Hotel Jobs Act. Until that happens, hotels stand ready to safely welcome back travelers. The hotel industry has always prided itself on its longstanding commitment to cleanliness and safety. That’s why at the onset of the pandemic, the industry united around the AHLA’s “Safe Stay” initiative, a comprehensive set of guest and worker safety guidelines for the COVID era that remain in place today.

While pandemic-related challenges remain, hotels’ dedication to quality service remains the same.

It’s time for Congress to recognize the long road to recovery hotel employees and small businesses face and pass the Save Hotel Jobs Act — a crucial step toward revitalizing hospitality. n

The Save Hotel Jobs Act That’s why AHLA and UNITE

Chip Rogers, President and CEO, American Hotel & Lodging Association

Despite being among the hardest hit by the pandemic, hotels are the only segment of the hospitality and leisure industry yet to receive direct COVID-related federal aid. expected to fully return until 2024. All of this poses a major threat to a workforce still reeling from the pandemic’s initial wave of economic hardship.

Hardship and resilience In July, the leisure and hospitality sector remained down 1.74 million jobs compared to February 2020, according to the Bureau of Labor Statis@FUTUREBUSINESSTECH

tics. And the hotel industry is projected to end 2021 down nearly half a million jobs compared to pre-pandemic levels. A recent study from the American Hotel & Lodging Association found hotel room revenue will be down $44 billion this year compared to 2019. Thousands of hotels are facing foreclosure and risk closing permanently.

Hotels and their employ-

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PLEASE RECYCLE

Publisher Adrienne Macaluso Business Developer Abraham Freedberg Managing Director Luciana Olson Lead Designer Tiffany Pryor Designer Tiffany Jackson Lead Editor Mina Fanous Copy Editor Taylor Rice Director of Content and Production Jordan Hernandez Cover Photo Lisa Keating All photos are credited to Getty Images unless otherwise specified. This section was created by Mediaplanet and did not involve USA Today.

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FutureProofing Hotel In-Room Entertainment

PHOTO: DISH

SPONSORED

Today’s hotel guests want to bring their own content and preferences, streamed to their own devices.

Here’s how hotels can prepare for a future defined by personalization and powered by connectivity. he share of Americans who subscribe to a traditional cable package has dropped to just 56 percent. Those cord-cutters are streaming their entertainment, and they want that ability wherever they go in the world, and especially in their hotel rooms. A recent study found that 72 percent of hotel guests are more likely to return if the room offers them the technology they want.

“Typically, someone’s home experience represents their ideal experience,” says Amir Ahmed, senior vice president of sales at DISH. “In the hotel room, too often guests have to choose between watching the hotel-provided channels on the TV or their favorite over-

the-top (OTT) services on their phone or tablet.”

Personalization is crucial The key to this changing paradigm isn’t the entertainment that guests want to watch, but rather the level of personal control new technologies offer. “The reliable, ‘fast enough’ internet that guests have come to take for granted in most hotels will be dramatically upgraded in the near future,” notes Ahmed. “This will improve guest internet access but more importantly empower personalization of their overall experience.”

To achieve that personalization in their entertainment experiences while simultaneously planning for the connected experience of the future, properties are turning

to companies like DISH Business. Products like SMARTBOX 2, OnStream, and EVOLVE maximize entertainment freedom by allowing guests to enjoy whatever content they wish on the large in-room TV, watch live TV or streamed content on their personal devices, and bring it all anywhere in the hotel — the room, the pool, the gym, or the hotel bar. “Letting guests make their stay a little more comfortable based on their personal tastes is a key driver of guest satisfaction and loyalty,” notes Ahmed.

“The premise is simple and easily appreciated as a way to increase guest engagement — but requires the deployment of adaptive technologies (software, hardware, and cloud resources) that work together to make the process intuitive

and accessible,” notes Ahmed.

“As people are increasingly using connected technologies in almost every aspect of their lives it will be companies like DISH Business that help create those experiences in hotels.”

The future is loyalty The global pandemic inspired a focus on guest safety and contactless engagements in the hotel industry, but guest needs are always changing.

That makes having the right partner who can adapt with guests and properties to serve both today’s and tomorrow’s needs a crucial consideration.

“Hoteliers need to start with an understanding of their guests; what experiences will be most important to them, to build loyalty and drive repeat stays,” explains

Ahmed. “A recent study by Lodging Technology revealed that 94 percent of Operators saw improving guest loyalty as a key driver of technology investments. Developing a technology-dependent guest experience roadmap can be an overwhelming task for some hoteliers who may not even have a good understanding of what is possible — but that is the value of strong partners who can help collaboratively create a plan that meets guest needs and optimizes revenue.”

The ongoing rollout of 5G networks will only speed up the role that Internet-ofThings (IoT) connected devices play in the hotel space. This will be the case both inside and outside the room — and will impact the connectivity for hotel staff as well. This connected mobile reality also offers opportunities to reduce operational expenses and gain access to rich data that will provide valuable insights into guest behavior.

For Ahmed, the future is an exciting place to be. “Today DISH is focused on powering the best in-room entertainment experiences in the industry,” he says. “But we’re also building the nation’s first virtualized, O-RAN 5G broadband network with endless possibilities to deliver the connected hotel experience of the future throughout the property and across a guest’s endto-end travel experience.” n Jeff Somers

To learn how you can be a part of the future of the hotel experience, visit dish.com/hotels.

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PHOTO: LISA KEATING

The Impacts of COVID-19 & Evolving Technology on the Modern Hotelier

Hotelier and entrepreneur Chip Conley shares his advice for hospitality professionals facing the many challenges of COVID-19.

What are the top challenges facing hoteliers and hospitality professionals today?

The shelter-in-place orders associated with the pandemic have meant that hotels, restaurants, event venues, and similar businesses have had to “roll with the punches” in ways we’ve never seen in the modern era. When you have a recession brewing, you can see a slow reduction in your revenues over time, but COVID-19 was a sudden jolt to the system with no preparation time. So, the key has been to be resilient and adaptable. Resilience buys you time to recover and adaptability buys you a future as your business may need to evolve.

What advice would you provide to these businesses?

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Sometimes, we have to get back to the essence of why we’re in business. A question every hospitality leader should ask themselves is this, “What business are we in?”

I’ve used this exercise both in my boutique hotel company, Joie de Vivre, as well as at Airbnb. As for the latter, the obvious answer was “we’re in the home-sharing business,” but if you ask that question multiple times — not being allowed to answer the same way twice — you may discover the essence of what makes you different. In Airbnb’s case, we are in the “belong anywhere” business and, once we did the archeological dig to discover that, it influenced our strategic thinking, how we trained our hosts, and how we marketed the company. Find the differ-

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entiator for your business and you’ve discovered gold.

Which technologies have you seen make the biggest impact on hospitality recovery efforts during the ongoing pandemic?

I hate to say it, but social media has probably been our No. 1 tech tool during the pandemic as it’s allowed us to stay in touch with our customers and understand their evolving needs.

How are these technologies helping to meet the evolving consumer demands and trends?

Let me use our Modern Elder Academy (MEA) as the model here. Prior to the pandemic, we had a singular beachfront

campus in Mexico and were full with mid-lifers from all over the world coming to take our week-long programs. Then, we immediately had to close in March 2020 and had no idea when we might reopen.

It was through Facebook groups, LinkedIn, Instagram, and Twitter that we were able to test ideas on our alums and broader community and listen to their suggestions. By the fall of 2020, we were able to turn our campus into a minimum two-week experience called Sabbatical Sessions; introduce an MEA Online product; acquire a 2,600-acre ranch near Santa Fe, New Mexico, for our first U.S. MEA Regenerative Community; and create a monthly subscription program for our most loyal alums, all helped by our social media connection with our community.

What qualities do successful hospitality professionals have in common?

Grace and grit. Friendliness and ferocity. Empathy and empowerment. It’s the juxtaposition of being a good human with being a savvy entrepreneur. The first quality is obvious, and it’s part of the reason why so many of us were drawn to the profession: “I become a better human by being a hotelier.” However, it’s the second quality that has become more prominent in the more competitive 21st century. Having a strong merchant sense and creating hospitality products that are differentiated enough that they gain attention is part of the mix that makes for a successful professional, especially if you’re in a small to midsize hospitality business. n

How the Right Education Can Boost Your Hospitality Career Hospitality is still a people-first industry. However, the tools that hospitality professionals are using to maintain and develop the best possible service have changed significantly.

In order to secure the growth and development of this transversal, dynamic, and international industry, an educated and highly skilled workforce is a necessity. Long gone are the days when you could start as a bellboy and work your way up to general manager. The global hospitality industry has evolved by only relying on professionals’ practical experience, making it a knowledge-based industry

when it comes to innovation and development.

Skills are required Today, hospitality industry recruiters are looking for future employees with transversal skills such as problem-solving, tolerance, confidence, and curiosity. When educating future professionals, universities, schools, and other hospitality educational institutions are delivering programs and training courses that prepare students to face the future challenges of the industry.

Hospitality educational innovation and development today is focused mainly on the following areas:

Technology Innovative technology plays a vital role in the development of the international hospitality industry. Universities with hospitality technology programs will focus on artificial intelligence, facial recognition, and how you can use these technologies to improve guest services.

Programs will also focus on how these technologies can create opportunities to develop new value propositions and business models within the hospitality industry.

why universities and colleges have developed programs and courses that meet the demand for specialized labor.

For example, some programs will focus exclusively on luxury hospitality. With a higher demand for luxury products and services worldwide, you will learn more about how to balance heritage with innovation, bridging online and offline luxury experiences while maintaining personalized human interaction to build client loyalty.

Niche services With new technologies in play, new business areas and markets have emerged within the hospitality industry. This is

Internationalization Educational institutions are strongly focused on internationalization through study trips, internships, and

exchange programs abroad.

Many institutions today will work with “Internationalization at Home,” which creates an international environment on campus.

Many universities have made international online classrooms that link you with fellow students across the globe.

By developing an international curriculum, these institutions can help you develop global mindsets and skills.

Education is a necessity to continue growing and developing the international hospitality industry. n Anders Justenlund, Director of Marketing, International Council on Hotel, Restaurant, and Institutional Education (ICHRIE)

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Understanding the Building Blocks of Hospitality

Anthony Melchiorri Offers Expert Advice for Young Professionals Entering the Hospitality Industry Anthony Melchiorri’s journey through the hospitality industry and hotel management began more than 20 years ago.

Today, he is the host of the very successful Travel Channel program “Hotel Impossible;” head of his own consulting firm, Argeo Hospitality; and a sought-after public speaker. Through his unique blend of personal stories, philosophies, and business insights, he has inspired and transformed a wide variety of corporations and individual lives.

Building a personal brand​​​​​​​ Melchiorri believes that each of us has unlimited potential when we take responsibility for our own professional journey and set about building our personal brand. But what exactly is a personal brand? Melchiorri is quick to respond, “Your personal brand is your authentic you.”

The idea is a simple one — have a very clear idea of who you are, what you have to offer, and what you stand for. “How do you show up in the world? What do you want to present?” Melchiorri asks.

Hiring potential Melchiorri is also a big believer in promoting potential. He doesn’t hire people based on the companies they’ve worked for, their job titles, or the salaries they’ve earned in the past. In his consultations, Melchiorri likes to offer corporations and smaller enterprises one of his favorite pieces of advice, “Stop hiring experience and start hiring potential.”

Finding the right avenue So, how can a young person just starting out find the path that’s right for them? Melchiorri says it all comes down to passion. He knows that working for a living can be a drag, but he also believes a good living is a happy living. “I know a lot of people that make a good living doing something they hate, but I’ve never met someone who followed their passion and didn’t make a good living doing it.”

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The hospitality industry is facing rapid changes as technology advances and the modern consumer demands more. MSU’s Karthik Namasivayam offers advice.

What is one piece of advice you would give to young professionals starting a career in hospitality?

Every graduate must understand the two basic building blocks of hospitality: lodging and food & beverage operations. Connecting the operational knowledge with a particular interest area — such as finance, marketing, technology, or sales — will help build a strong career. Spend time gaining a thorough understanding of how a hotel and/or a food and beverage establishment makes a profit. Understanding the business of hospitality will help your career growth.

Can you debunk one myth about a career in hospitality?

Managing a hospitality business is not simple. There are multiple different activities that must be seamlessly and flawlessly coordinated to ensure your hotel check-in or your menu offerings are of the quality you desire. Jan Carlzon, ex-CEO of SAS Airlines, described each occasion when a guest interacts with the hotel or restaurant as “moments of truth.” Each is a point at which the organization can fail and

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What is one of the most significant technology developments in hospitality since the start of the pandemic?

Karthik Namasivayam Director, The School of Hospitality Business, Eli Broad College of Management, Michigan State University cause irreparable damage to its reputation. These interactions occur with different people with different personalities, and the service person must ensure that each guest is happy. Managing such complex and dynamic service organizations is challenging but a lot of fun!

In your opinion, what is the main challenge the hospitality industry faces in the coming years?

Hospitality organizations must be nimble and agile to respond to multiple changes the industry faces. Change is the only constant in business. Only now, change is happening in multiple organizational domains simultaneously. Technology, climate, sensitivity to health concerns, customer preferences, and employee attitudes all contribute to a dynamic environment for hospitality businesses.

However, the changes in the business environment present opportunities for organizations and individuals that are quick to anticipate future changes and prepare for them.

Touchless service is a significant advancement in the hospitality industry. QR menu cards, keyless entry into hotel rooms, biometric and face recognition systems at hotel check-ins, and significant other technologies have influenced how hospitality organizations operate and organize service.

Organizations must prepare to adopt and implement such technologies to stay competitive.

What is the best way that businesses in the industry can keep up with advancements in technology?

In the hospitality industry, organizations such as the Hospitality Finance and Technology Professionals (HFTP) help to introduce and disseminate technology best practices. It is important that industry and academic work closely to determine how and what technologies will work best to support different processes. At MSU, for example, we have world class engineering, design, technology, and hospitality schools, so we can bring different pieces of knowledge together to provide the best solutions. Such collaboration will benefit hospitality students and the industry since the industry’s future employees will understand and be prepared to work with the latest technologies. n

example, a whopping 98 percent of hotel operators now offer or plan to offer free Wi-Fi. And a significant majority of hotel operators either offer or plan to offer mobile reservations, touchless payments, interactive guestroom TVs that can stream content from smartphones, two-way messaging, digital signage, and a “mobile room key” (an encrypted code that lives on a guest’s smartphone and can lock and unlock a hotel room).

We expect hotel operators to continue reimagining the guest experience in response to growing demand.

Technology Drives Hospitality’s Recovery by Enhancing the Human Touch From contactless transactions to the seamless integration of artificial intelligence, technology is putting hotel and restaurant guests in control of their journeys, delivering a new level of hyper-personalization.

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he pandemic accelerated tech innovation for restaurants. As dining rooms closed, demand for restaurant meals — especially quick-service fare — remained high. As restaurants pivoted to off-premises (or “off-prem”) solutions such as curbside pickup, drivethru, and delivery, technologies like mobile ordering, digital payments, and QR codes helped fuel a growth in transactional dining, satisfying guests’ desire for a hot, fresh meal at a good price.

The emergence of off-prem solutions has opened up two major avenues of revenue for restaurants. First, of course,

is the opportunity to streamline processes like drive-thru via innovative tech that keeps lines moving and makes digital payments a breeze. The second is the opportunity to offer personalization on an unprecedented level. Thanks to all those contactless digital transactions over the past year, the local QSR most likely knows guests’ names and ordering preferences.

Through AI-driven predictive data analytics, restaurants can offer favorite items, deals, and upsells in the digital environment.

Research from Hospitality Technology’s 2021 Customer Engagement Technology Study suggests that guests remain

bullish on off-prem solutions — but their ultimate desire is not for bells and whistles, but for technology to help provide quality food delivered efficiently and at a good value.

Thinking beyond four walls As challenging as the pandemic was for restaurants, hotels faced a different kind of existential crisis: off-prem solutions don’t exist for hotels. But technology does allow hotels to better conduct and compile health screenings, offer touchless check-in and other transactions, and accelerate the evolution of in-room entertainment and communications.

Now, as guests return to

properties, hotels are poised to leverage emerging technologies such as voice activation, interactive smart TVs, and robotics to streamline operations and allow guests to drive their own experiences at their own pace. These solutions also allow hotels to think beyond their four walls by interacting with guests to provide food, retail, and entertainment opportunities, from ordering dinner or theater tickets from a voice assistant to browsing for new clothes on a smart TV. Research from Hospitality Technology’s 2021 Lodging Technology Study demonstrates that hotel operators are responding to customers’ demand for technology. For

Reinforcing hospitality’s core values In all our recent research — surveying hotel and restaurant operators about their investment priorities and guests about their technology preferences — we note a desire to use technology to reinforce hospitality’s founding principles. We are, after all, a “people” business. Guests return to a restaurant for food they love and an experience that makes them feel welcome. Guests return to a hotel because it delivers comfort and value (which is now defined not only as “worth the money” but also as safe, convenient, and consistent with travelers’ intentions). A hospitality brand’s embrace of, say, touchless transactions or robotic room service is not intended to remove the human touch but rather to provide guests and staff with the time and space to focus on what our industry is all about: friends and family enjoying an exceptional shared experience. n Robert Firpo-Cappiello, Editor-in-Chief, Hospitality Technology

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