Sustainability, Tech, Labor Challenges Drive Innovation in Hotel Industry | By Bob Rauch

Exciting things are happening in the hotel industry, including advancements in sustainability, labor and technology.

Let’s consider each of these subjects in greater detail.

Hotels can play a critical role in reducing carbon emissions. “Now, it is possible to reduce utility costs by up to 40% while increasing the lifespan of portions of the asset,” according to Zach Demuth of Americas Hotels Research at JLL. Most surveys that we have reviewed show that guests have a strong preference for a hotel that practices sustainability. There seems to be a “green premium” with respect to water, energy and waste use. In the right climates, solar panels and hotel room temperature controls make economic sense.

Eliminating hazardous substances, supporting the health of employees using products that come from sources that impact employee health positively and ensuring that supply chains are eco-friendly are all good starting points. Utilizing products that reduce carbon emissions, recycling and reusing products and building toward a zero-waste goal goes a long way to satisfying the customer appetite to do it right. With the growth in sales of electric cars, the addition of charging stations makes financial sense during this time.

Employment and Robotics

Smart companies are attracting talent from multiple sources as every survey identifies talent as the number one challenge of 2022. When talking about digital transformation, there is a shortage of talent in this field. Doing more with less has been the way things have been going this year. Back in the 1980s, when labor became a challenge for some, it was not a lack of talent, rather it was a lack of talented trainers. Now, both are an issue.

Is diversity and inclusion the answer? Perhaps it is one of many solutions. Product innovation, leveraging of technology and new platforms will also play roles. As an example, service robots have been deployed for delivery of housekeeping supplies, food and beverage; and vacuuming robots can augment the work of housekeepers while saving back injuries. Automation is not out of the question today; it makes no sense to have employees do routine tasks when they can spend more time with guests and be more productive.

Is outsourcing the way to go in some areas? Human resource departments have been augmented with professional employer organizations. Companies that lease employees have been deployed to add value during peak periods and even sales companies can provide leads or represent your sales department. Artificial intelligence or machine learning can help with revenue management, and data analysis can be accomplished using third-party companies.

All Things Digital

We must make it easier for guests to select a destination, pick a room, check-in easily and have a contactless experience. Yes, much of this was born out of guests during the pandemic having no desire to touch pens, people, menus or anything that requires them to constantly sanitize. Further, when we market to today’s customer, do we really have a strategy as to who we are marketing to?

Managing channels has become rather complex and there has been a complete blurring of the lines between business and leisure travel. Look at the job market today; companies are hiring remote workers who then travel for long weekends and stay in our hotels mid-week as well as weekends. This offers us an opportunity to fill rooms seven nights per week, but most of this business is booked just a few days or a week out from the occupancy date. Finding the right rate to quote takes a strong combination of AI as well as human management.

Today, we must build a streamlined organization that is agile, works well together and cares about our guests. There is way more science today than art, but we need to never lose the ability to connect with our guests every single day. We do that with technology before guest arrival, at breakfast, in person when they are in-house and with technology post departure.

The severe inflation is causing us to be vulnerable to another recession. Gas prices could potentially increase even more when contracts that have already been sold take effect in August. May we land softly and enjoy the summer!