AETHOS Predictions: Politics to Steer Hospitality Landscape in 2020
AETHOS Consulting Group's UK and US Managing Directors have gathered their collective thought leadership and now share predictions, concerns and issues for the hospitality industry in 2020. For this monumental year, the issues, unsurprisingly, relate to finding labor, particularly in light of politics across the globe, and technology.
Some of AETHOS's observations include:
1. Development Programs Should Deliver More Predictable Talent Pipelines and Consistent Organizational Bench-Strength.
"To be sure, many organizations are becoming far more structured, disciplined, and strategic about systematically grooming their high potential talent as both a retention tool and solution to talent pipeline challenges. Some of the professional development programs put into place now include investment in courses or secondary degrees for high performing associates, internal programs to incubate new mid-managers, and detailed succession planning for filling senior leadership and C-Suite roles."
2. Sustainability as a Company Practice Can Also Heighten Employee Retention.
"AETHOS predicts that HR executives will more frequently be asked by their leaders to lead a cultural mind shift so that sustainability, environmental friendliness, and localization become front of mind across all levels of the organization," shares AETHOS London Managing Director Thomas Mielke.
With sustainability becoming 'mainstream', we have also seen a greater call for collaboration between the different industry stakeholders - amongst the investors, developers, brands and operators. Here, it is suggested that a "more open dialogue could help drive innovation (assisted by technology), ultimately geared to not only improve operational efficiencies but also the sustainable footprint of the hotels themselves," says Mielke. In other words, "the sustainable aspect of the physical real estate has become a topic that all industry stakeholders have shown a lot more interest in - partly because travelers are demanding it, but also because operators and investors alike have recognized that smart building technologies can add significant value to the financial bottom line. We therefore expect a lot more demand from key industry players adding to, or setting up, more innovative technical asset management and/or facility management teams."
3. Hospitality Will Increasingly Turn to Turbo-Boosted Use of Digital Technologies to Reach New Guests.
"Hotel companies will continue to enhance the digital experience for their customers to drive loyalty by appeasing savvy customers and to continue to amplify their online offerings to differentiate themselves from the competition," according to AETHOS Philadelphia Managing Director, Andrew Hazelton. "This also holds true for cruise and restaurant brands as they too continue to push and compete on the digital battlefield."
Adds AETHOS Los Angeles Managing Director Matt Peterson, "Technology will continue to be at the forefront - for enhancing both the employee and guest experiences. 'Smart' hotel features such as mobile keys, mobile payment and TV streaming will be more prevalent. Companies will continue to collect and sort even more guest data, resulting in a necessity for seamless programming and analytics." Peterson continues, "Hospitality brands will no doubt also focus more on social media and loyalty programs - with the focus and goal to engage the customer and increase percentage of direct bookings and ancillary revenues."
4. The Impact of Politics and the Economy on Various Aspects of Hospitality and Tourism Development are Certainly Upon Us.
"With impeachment and the U.S. election looming, 2020 is going to be an interesting year, including in the area of hospitality development," says AETHOS CEO and Managing Director of its New York office, Keith Kefgen. "Hotel owners will continue to sell for premiums only. I don't see a fire sale."
"I think President Trump will want to settle the trade wars he started to bolster his election," continues Kefgen. "That means better market news and economic outlook. There is likely not going to be considerable new construction, but acquisition and trading of flags (brands) will be fast and furious. Brand proliferation will continue as more choices within one company will give leverage to continued brand building. Additionally, more extensions of space - shared living space, shared work space, shared recreational spaces - will be a focus of developers."
"And this will be the year of strategy," adds Kefgen. "The companies that get their strategy right will dominate he competition. Getting it wrong, might lead to obsolescence."