As the omicron variant of COVID-19 appears to be loosening its hold, hoteliers in the United Kingdom believe now is the time to plan for increased demand, which hopefully will include corporate guests and events.
During a recent Global Hotel Summit 2022 webinar, speakers inside the industry said they are starting to field inquiries for events and meetings, incentives, conventions and expositions business.
James McComas, general manager of Champneys Eastwell Manor Hotel & Health Spa — a 23-room, mostly leisure-oriented luxury hotel in Boughton Lees, Kent — said in the past two weeks his phone has started to ring with queries about corporate events.
“No one is quite booking yet,” he said.
Matthijs Welle, CEO of property-management tech company Mews, said hoteliers must make sure that when the events demand hits — probably all at the same time — their employees are ready and up to speed. He added hoteliers should expect this surge when the weather starts getting milder.
Sunnier Skies
Panelists said they are optimistic about 2022.
Jason Adams, managing director of another luxury hotel, the 61-room Rockliffe Hall in Hurworth-on-Tees, England — nearby Middlesbrough in Northeast England — said both guests and hoteliers have evolved, learned and changed during the pandemic.
“We will keep from this period what has been positive,” he said.
Staying positive about whatever comes next for the industry is key, McComas said.
“So much has happened in the last two years," he said. "We’re in a great position whatever is thrown our way. We have the resilience, and holding onto that mindset is a great start."
Rob Paterson, former CEO of Best Western Great Britain, said the new start following the pandemic is the perfect time to simplify things and offerings.
“Keep it simple and do it really well. Breakfast is a great example. We can do better than a sandwich and an old banana,” he said, referring to what he said might be offered at an Airbnb property.
“We get compared a lot with Airbnb, but [it and hotels] are two different markets. We’re better off running our own race,” he added.
The staycations trend is expected to continue this year throughout the U.K., Adams said.
“People are still a little nervous about traveling abroad, and [Rockliffe has] golf. We can put on archery, have champagne picnics. People are staying on-site for two or three days. I am in a good place,” he said.
“I would normally go abroad once or twice a year, but I have been to Cornwall and Scotland [during the pandemic], and I will continue that as I had no idea that there was so much there,” he added.
Emphasis on the Details
McComas said hoteliers must really understand guests' reasons for traveling and visiting a hotel.
“And make that clear across all of your distribution channels. If there is any gray there, you will not stand out against the competition,” he said.
Paterson said hoteliers must be ready to lift their pricing in the face of rising costs due to inflation and increased costs in areas such as utilities.
He said rate increases must be aligned with guests’ appreciation of the increased value at any one hotel.
One source of value is staff, panelists said, but in the U.K. staffing remains a headache.
“Demand and need for team members are a massive challenge and will continue. There definitely will be some bumpy roads,” McComas said.
Adams agreed staffing, retention, and utility costs and the rising cost of inflation remain challenges.
"Utilities might go up 10% or 20% in the next 18 months, and that of course will hit the bottom line,” he said.
Hoteliers are fighting back with initiatives, including testing apps for restaurants and newspapers.
“We have three restaurants. We trialed a digital menu in one, and it was successful," Adams said. "We added photos on social media, and there was a 96% pickup in that restaurant. There are apps for digital newspapers, and no one has asked for a physical newspaper in more than six months."
Adams said his hotel spent 25,000 pounds sterling ($34,000) per year on physical newspapers, while now it spends 16,000 pounds sterling ($21,684) on digital ones.
“That also frees up staff,” he added.
McComas said hoteliers should focus on increasing guest engagement.
“Look at problem areas in the business and make sure you have a solid Wi-Fi system before you embark on anything,” he said.
Paterson said some hoteliers feel they need to install complicated solutions, but there are many simple payment solutions on the market.
“Look for those solutions that add to the journey,” he said.