Hoteliers Urged To Ramp Up Services in Tandem with Rate Increases
Executives Say Guests No Longer Accepting Pandemic-Era Reductions
NEW YORK - Travelers during peak pandemic months were mostly accepting of necessary changes in hotels, such as reductions to food-and-beverage offerings, housekeeping services and other amenities. But now hoteliers must deal with guests who expect a return to normal, even if it’s not yet economically viable.
NEW YORK - Travelers during peak pandemic months were mostly accepting of necessary changes in hotels, such as reductions to food-and-beverage offerings, housekeeping services and other amenities. But now hoteliers must deal with guests who expect a return to normal, even if it’s not yet economically viable.
With average daily rates approaching or surpassing 2019 levels in many U.S. markets, guests have renewed expectations that hotel services and amenities are back in full, said speakers at the NYU International Hospitality Industry Investment Conference.
“It’s a really complex minefield for us to walk,” said Tony Capuano, CEO of Marriott International. “Guests are willing to pay [high rates], but their expectations are for the services and amenities they had prior to the pandemic. But our owners and franchisees have lost a lot in enterprise and asset values. We have to navigate this disconnect between customer expectations and the economic realities our owners are still facing.”
Demand and rate may have come back faster than operations can handle in some cases, speakers said.