Arguably, with our clients and friends now showing record ADR’s, it could be said that the industry is undertaking a strong recovery in 2021 and, has actually undergone a meaningful evolution. Notably, whilst covid has forced change on all of us, the hospitality industry once again proves its creative brilliance by not only quickly adapting but running ahead of itself; embracing new technology, flexing their offer from co-working spaces to creative F&B and, continuing to deliver experiences that are so much more than ‘just a hotel room’.
RLA Global's 2021 insights
- In a complete role reversal, the investor’s ugly duckling - the leisure segment - has spearheaded the hotel recovery turning the heads of investors and achieving significant (and undiscounted) M&A deals that reaffirmed the interest in the leisure segment is here to stay.
- The luxury travel sector has boomed, as those with the means to commission private jets are travelling to far-flung eco retreats and secluded places to continue to fulfil their travel desires.
- A consequence of this private travel bucket list is that investors are turning their consideration to unknown destinations and we are seeing larger developments coming through the pipeline.
- Domestic travel has proved that it can be a big and profitable business. Marketing and advertising budgets are seeing dividends by continuing to target and cultivate relationships with these local markets.
- Extended long-haul holidays are being replaced with more frequent but shorter trips. The focus has shifted to quality time away with the extended family, over the big vacation.
- Finally, the recruitment crisis has forced a watershed moment in our treatment of human capital and it seems that the industry has finally woken up to the need for change. Could we soon be seeing flexible working, longer contracts, higher pay and better benefits? We predict that the company that leads this charge could soon stand out above its competition, creating an attractive positioning that talks to a generation of purpose-driven consumers.
Looking ahead, we remain cautiously optimistic for 2022. Of course, the new variant of coronavirus is a concern but not only has the industry amazed us time and time again with its resilience and willingness to adapt to these new challenges but what is reassuringly evident is that the appetite for travel remains high and we now know is something that will outlast any crisis.
Read more industry leader insights in the 2021 Review: Hospitality Q&A's with RLA Global CEO, Roger Allen also giving his view on the year.
