In light of the Covid Pandemic that has engulfed the world at large, the Hotel industry especially in developing countries, will be seeing visibly pronounced changes that is bound to last for a prolonged period of time. These changes may be quite far-reaching and can range from the way hotel properties are designed to the way it is managed.
The pandemic has forced us to think of novel ways of managing resources and innovative ways of ushering business. These changes are likely to stay and may well be the harbinger of what can be called as the age of the Post-Covid Management principles and processes. We are witnessing a transition which is inclined towards more of outsourcing and asset light options.
Outsourcing and Asset Light options
Outsourcing and asset light are probably the key words or mantras that the future leaders of the Hotel Industry will be trained to look out for. Key operations such as housekeeping has never been considered as an outsourceable option, especially in this part of the world. However, as part of the asset light scheme, there is a high likelihood of witnessing operators negotiating for full packages, whereby, rates will be fixed for a complete service (including manpower, linen, laundry, pest control and gardening). Per room cleaned costs will be agreed upon whereby the hotel doesn’t lose out even at low occupancy. Kitchen, another department which we were shy to outsource will in all likelihood see truly drastic change where every perishable item is delivered and only requires to be put on the plates by the kitchen staff. From the morning bakery to the confit of meat, you will see that every item comes in tins or frozen. Cooking methods will change, as a consequence of which, wastage will reduce and staffing be done differently.
Niche Markets
Another shift may be that hotels will stop being all-rounders and will focus on building their niche markets. A business hotel will be content being just that and not try and be a hotel that ALSO serves Michelin grade food, hosts big fat weddings and has an Ayurveda doctor in the premises! Speciality restaurant within hotels might make way for a multi-gym which is open for public and the break out rooms will probably become office spaces with shared work desks. More emphasis will be given on the square foot used versus the revenue generated model.
Centralisation
Brands which have multiple properties in a certain kilometre radius will have central units which cater to all their hotels. This can be witnessed in engineering, IT, laundry, food production, human resources, sales and marketing and finance. Gone are the days where you have the luxury of having multiple IT resources guiding guests on how to access wi fi or changing printer cartridges.
Engineering departments will become more efficient whereby you will witness a single person managing the show with the support of the central team.
Redefining luxury
Three decades ago, luxury was defined in the quality of wood used and the thread count of your linen, the expensive art forms, flooring and fabric that adorned your surroundings. However, we now see a shift in design where minimalistic has become the new definition of luxury. Going forward, we can expect to see this trend to extend to all departments. The Investors will give more emphasis on building sustainable and energy efficient properties with plenty of technological features, which in turn will increase efficiency. Google home and Alexa will become the most basic feature of any new built property. Self-cleaning tanks, drip irrigation and other cost-effective means will become the standard.
Staff Changes
The concept of hourly wages and reliance on part time staff will increase. The sales and marketing department will shrink with more focus on technology to deliver messages. Digital marketing will largely replace the daily sales calls. Individual monitoring and checklists will replace supervision.
Travel desks and concierge service will be available only at a select few hotels. Dispensers and vending machines will become fashionable be it for bathroom amenities or late-night munching.
Gone will be the days where you find rooms, multiple restaurants, spa, health club, night club, beer garden, whiskey lounge, cigar room, convention centre in one complex. Hotels will identify their USP and focus primarily on that segment.
The Shift
The Pandemic has taught the investors to run their properties in a more sustainable manner without compromising on the profitability. Covid 19 has been an eye opener for brands who have realigned their strategies to become more in sync with the investor’s interests. While guests and vendors have become more wiser (negotiating further and further), the hotel staff has realised that the only way forward is to be multi-skilled and multi-flexible.
The Only constant
As we are often reminded, change is the only constant and as we have proven again and again, we all have it in us to take all the changes in our stride and adapt and evolve as is necessary.
And so, let us hear it for a better tomorrow!
