Luxury hotel executives share exclusive insights into the positives and negatives of the Covid-19 pandemic – Part 1 (EXCLUSIVE)

Bvlgari Hotels & Resorts,  Silvio Ursini, Bvlgari Group Executive Vice President

Which are the biggest opportunities which will arise from the lessons learned due to the pandemic?

The necessity to diversify geographically your  portfolio, and the imperative to have a state of the art digital platform.

What are the challenges that will be facing the luxury hotel industry as probably the return to normalcy or the ‘new normal’ will be gradual, country by country and it will take time?

The challenges will be many, and the recovery will take a long time. However, the desire to escape and to experience extraordinary natural and cultural wonders will be stronger than ever. Perhaps in the short term they will be those closer to home, but anyhow the appreciation of masterful service will be there.

How will the luxury hotel industry be able to stay relevant and how will the perception of luxury be changed, if in any way?

It is very difficult to predict if and how the perception of luxury will change, as the yearning for the extraordinary has been there for thousands of years, and has endured far worse disasters than this. Possibly, the request for customized experiences, and truly crafted products will be stronger than before. Those who pursue such values will be rewarded.

As several countries are already lifting up restrictions including the lock-down, are you working already on ‘scenarios’? (short-term or mid-turn)

Yes indeed, the reopening strategies will be tailored to the different situations.  One of the key assets will be having maintained an energized and motivated team, and an engaged client base.

AMAN, Roland Fasel, Chief Operating Officer

Which are the biggest opportunities which will arise from the lessons learned due to the pandemic?

Firstly, I would say that we as a brand feel closer and more connected to our guests than ever, the same goes with our teams who have worked so hard and supported each other through this unprecedented time. This serves as a reminder of what hospitality is about – true human connection.

We expect that the pandemic will continue to reverberate through the industry for some time, but in the meantime, we are focussed on our short, mid and long term plans. We see the first opportunities arising from a domestic travel perspective, which will be the first to rebound, following by mid-term for international travel, so are focussing our plans within that framework.

At Aman we have always worked closely with our communities and this connection has been evident during the current crisis, however, our desire, now more than ever, is to source more from local suppliers and in turn create help create more business for the community. Guests will desire fresh locally produced food, hotels own organic kitchen gardens, the chance to dine alfresco and the upsurge of private dining  – and of course the chance to get fit and back to optimal health. We will be optimising our operations to fit all of this.

 What are the challenges that will be facing the luxury hotel industry as probably the return to normalcy or the ‘new normal’ will be gradual, country by country and it will take time?

One of the challenges is that although lockdowns will be lifted, travel restrictions such as flying, or even border restrictions may still be in place. This will very much differ country to country, but will add in a layer of complication – and of course continue to hamper the confidence in travelling. I do not believe it will be a big bang back to normality, but a gradual roll out.

I believe that the new normal will be guests looking for hotels that they are already familiar with, that they will want to travel with brands that they can trust, and also those which are low density in terms of room count.

How will the luxury hotel industry be able to stay relevant and how will the perception of luxury be changed, if in any way?

From the conversations we have had with Amanjunkies during this time, there is still a demand for luxury hotels, however, people want to get away from the crowds and find a peaceful sanctuary more than ever. We are fortunate that our hotels have plenty of outside space and a focus on wellbeing, from spa to nutrition, making them the ideal hideaway after a period of lockdown.

So many of our properties have put together special spa programmes and experiences in nature as we know of our guests have been longing for during this restricted time. There will also be a yearning to make up for lost time with loved ones and families – many of whom will be seeking self-contained villas, especially at this time as we all take tentative steps back to travelling.

Which are the key elements drawn from the pandemic for which the luxury hotels should stay on alert?

At Aman the health and safety of our guests and staff is always our highest priority and an open line of communication is essential to ensuring that. We want all those on property to feel comfortable in reporting any changes in their own health or their families which might affect others. We also make sure there is a similar dialogue with the wider community. In addition, we have always stressed the importance of adhering to the advice of local government and health officials to ensure that our practices are in line with their guidelines and this should continue – this could range from temperature checks, amenity kits with hand sanitiser and masks, spreading out dining tables to adhere to socially distancing guests, skipping a key in terms of room inventory etc.

As several countries are already lifting up restrictions including the lock-down, are you working already on ‘scenarios’? (short-term or mid-turn)

We are putting everything we’ve learned during this pandemic into practice, especially since our four hotels in China have recently reopened. We have detailed SOP’s in place pertaining to the health and safety of our guests and staff, as well as for deep cleaning rooms and public areas for example. We have a robust crisis communications plan in place in case we are faced with any challenges – this covers a variety of scenarios and situations, both short and long term.

All in all travel will be so much more appreciated, and I strongly believe quality will prevail.

Langham Hospitality Group, Stefan Leser, CEO

Which are the biggest opportunities which will arise from the lessons learned due to the pandemic?

The pandemic has re-set and forced the industry to re-invent ourselves and re-connected people, bringing them together (even in social distancing) to show compassion and care for each other and the community we all operate in.

Re-set: The pandemic has also thought the industry to never be complacent. These are unprecedented times we are in, and the magnitude of this pandemic affects all countries, industries, and livelihoods. For the sake of our colleagues, guests, and the communities in which we operate, we cannot and must never let our guard down. We cannot comprise on safety precautions, and we must never take matters regarding our colleagues’ and guests’ well-being lightly or for granted.

Re-Invent: We see the F&B industry (including those in hotels), creating new menus and providing and food package and more take-away options, restaurants in countries which are allowed to still be opened are set  further apart and cutleries only placed (and not left out in the open) when guests are seated.

People will still want to travel but travel will never be the same again. The design of hotels will change as we need to strategically accommodate sanitizers and disinfectants, air purifiers, temperature sensors and more space needs to be planned and incorporated in designs so there is never crowding in public spaces at the hotels. As the safety and well-being of our guests and colleagues are our top priority, we need to re-think the way we operate and set milestones in place. Things and procedures will change, things like how we check-in guests and amenities like disinfectants, masks, sanitizers are now expected in the rooms like how water is provided in rooms.

Re-connect: In a crisis especially during this current one, it is important to actively seek opportunities to care for our guests and members of the public who are self-isolating. Our  talented chefs at The Langham, Chicago quickly shared cooking recipes and techniques via social media and the award winning bar Artesian at The Langham, London produced fun videos detailing easy step-by-step cocktail making videos to ease anxiety, and uplift spirits. For some self-care tips, we have also provided step-by-step do it yourself facials by our Chuan Spa therapists, easy to follow massage tips to help ease anxiety and created fitness and wellness videos.

We also have our leaders doing fun, entertaining home videos too re-connecting and adding some cheer to our followers on social media, eg. The Langham, Sydney’s GM shared some light-hearted moments where he showed off his bottle-juggling skills.

Our hotels in China rapidly mobilized care packages of handwritten encouraging notes, freshly made pastries and beverages to the medical staff at local hospitals.  Our hotels in LA and New York provided care packages to colleagues and donated masks to the local medical centres. We are united in adversity and through compassion and thoughtfulness, we will rise together in strength.

Our teams at corporate and our hotels have come together and created #InThePink content sharing content with the message wishing everyone to be in the pink of health and pink being The Langham’s colour resonates very well with our guests and followers on social media.

What are the challenges that will be facing the luxury hotel industry as probably the return to normalcy or the ‘new normal’ will be gradual, country by country and it will take time?

The pandemic has changed the way we travel globally and it is understandable that people are worried about travelling until the crisis is over.

The most important thing is for the hotel industry to come together work travel industry and government and support and help the community we operate in and re-build life to normalcy.

Travel especially long-haul will not be immediate and will take time but  I have no doubt, travel will return and the demand will be strong again.

How will the luxury hotel industry be able to stay relevant and how will the perception of luxury be changed, if in any way?

More than ever, I believe people will want to re-connect, with families, friends and visit the destinations they have always wanted to visit or re-visit the places they love. They will start travelling less at first but they will want to travel better than before. The highest standards of hygiene, uncompromised sanitation will be of utmost importance in the luxury hospitality industry. It will be an expectation.

Luxury hotels or the hospitality industry need to re-look at the experiences they offer guests. They will be looking for health-enhancing experiences, immersive and restorative holidays with more interaction with nature and a safe and pristine environment when they go out.

Which are the key elements drawn from the pandemic for which the luxury hotels should stay on alert?

To me, there’s no such thing as being over-prepared.  In such a high-touch, people-oriented industry, one never knows what will happen from day to day, minute to minute. I am a firm believer in expecting and working toward the best outcomes, but to really succeed, I would always advise to plan for the worst scenarios: To be able to overcome adversity is what signifies strength, resilience, thoughtfulness and stability.  To that end, not just luxury hotels but the hospitality and travel industry must have a comprehensive crisis management plan and I will emphasize that we as an industry should spare no expense in training our colleagues regularly to make sure they understand the protocols to help them be better prepared in all extraordinary circumstances.

As several countries are already lifting up restrictions including the lock-down, are you working already on ‘scenarios’? (short-term or mid-term)

We are starting now to see some glimmer of relief in the form of decreasing cases of confirmed infections, and our China and Hong Kong hotels are now working towards a robust recovery plan for the rest of the year.  In China, we have created staycation packages, promoting domestic tourism in China. People cannot travel far at the moment but they are keen to get out of the house and it is a good opportunity to support the local tourism industry as well.

In the short-run, I also see people doing more short haul travelling, self-drive, domestic holidays(both China and rest of the world)

In New Zealand, the government has also taken swift action when the pandemic hit and we expect the country to lift the lock-down and expect a demand in domestic tourism to return.

Kempinski Hotels & Resorts, Martin R. Smura, CEO and Chairman of the Management Board

Which are the biggest opportunities which will arise from the lessons learned due to the pandemic?

The Coronavirus outbreak turned the hospitality industry upside down and no one on earth could have predicted that the global economy will be put on hold overnight. But like with every challenge lie opportunities.

One of these opportunities I see lies on the development front. Investors are generally focused on a long-term view. Therefore, the development teams are less affected by this crisis and are quite active in negotiating new deals. At Kempinski, while hotel openings will be delayed, we can foresee a large number of new hotel deals signed for 2020.

One other interesting point is that the current situation forces companies to demonstrate how agile, swift and flexible they are. Small and medium businesses can potentially manage this curve more successfully than larger organisations, as they can come with creative solutions pretty quickly to mitigate the impact of the crisis.

Finally, the Coronavirus is a test to see how strong the relationships with our partners and stakeholders are. It represents a chance to demonstrate our purpose and to truly live by our values. More than ever, we stand alongside our owners, guests, employees and local communities alike and support them, showing that it is in the most difficult moments that Kempinski values of empathy, respect, and exceptional care make a real difference.

What are the challenges that will be facing the luxury hotel industry as probably the return to normalcy or the ‘new normal’ will be gradual, country by country and it will take time?

We shall prepare ourselves for a very bumpy and long road to the recovery with potential setbacks on the way. This will depend on three factors:

Local governmental restrictions; we see right now some countries where we operate slowly relaxing their restrictions including the lock-down and we are observing this very closely. As soon as it is possible, our hotels will reopen in total accordance with local regulations and guidance. China, for instance, gives us a very good indication on what to expect and how to adjust to the new normal. We have a large footprint in this country and we can extend the new standards and practices that we are currently implementing there to the rest of our portfolio when times allows.

More and more countries are now able to flatten the curve and keep the number of new virus cases under a manageable level. However, we shouldn’t underestimate the probability of the virus to rebound. In this case, we may come back to square one with governments increasing the restrictions again including closing the borders. This gloomy scenario will delay the rebound phase even further.

1. Companies travel restrictions; same as the governments, companies have implemented travel bans for their employees. With the governments slowly lifting the restrictions, companies will hopefully soon relax their travel policies as well and allow their employees to travel again. In this case, domestic travel may pick up relatively quickly. But as far international business travel is concerned, the recovery will be significantly delayed as it will be very much dependent on how and when airline companies will rebound, which leads to the third paradigm to consider.
2. Airlines companies; most of the international airline companies are at the moment grounded, and the risk of insolvency for some of them is very high. Without a massive financial investment, some of the airline companies will simply not survive, which will lead to a decrease in the airline capacities and a rise in the prices.

There is one thing we shall focus on right now is to make sure that our guests regain confidence in travelling again. Recovery would be only possible if our customers are feeling safe and confident again to take planes and stay in our hotels.

How will the luxury hotel industry be able to stay relevant and how will the perception of luxury be changed, if in any way?

I believe that the luxury hotel industry should run the show in redefining the standards of the hospitality sector in a post-coronavirus world. Customers will still be eager to discover what the world has to offer and they will still look for havens, i.e. hotels where to explore the world from, but focusing on safety more than before.

Some of the habits adopted during the lock-down like physical distancing, washing the hands, etc. will remain and guests will be particularly attentive to health, cleanliness and hygiene standards, more than ever. This is where the luxury hotel industry has a role to play in elevating these standards to the next level.

Luxury hotel operators will have to embrace the new paradox of having fewer touchpoints with the guests due to physical distancing while still ensuring a meaningful and personalised bespoke experience. In this respect, we are currently reviewing our service philosophy, amenities, standards and procedures to adapt them to new guests’ expectations. We want to assure that they will feel safe and well taken care of while enjoying the luxury service they expect from Kempinski.

Which are the key elements drawn from the pandemic for which the luxury hotels should stay on alert?

Getting prepared for a crisis of this nature is difficult. However, one of the learning curves of this crisis is that we shall never stand still, always think ahead and be prepared for the worst. Once the crisis strikes, it is all about finding a balance between managing the crisis along the way and being reactive and staying focused on the long-term recovery strategy.

As several countries are already lifting restrictions including the lock-down, are you working already on ‘scenarios’? (short-term or mid-turn)

Yes, we do. We are operating in a couple of countries that have recently decided to relax their restrictions such as China and Austria or Germany. There, despite challenging conditions, we kept our Berlin and Munich flagship hotels open. We put Kempinski values of empathy, respect, and exceptional care into action and brought our support to the local communities, the people in need and the amazing health professionals fighting against COVID-19.

Overall, our goal is to reopen our hotels whenever possible, always in total respect with the local governmental guidance. As the unlocking scenarios vary from a country to another, we remain flexible and adjust our strategy to the local regulations.

Each of our hotels is working on a recovery plan per market segment, source market and outlet. We are focusing on the domestic market first to generate revenue again, offering staycation packages, highlighting the various F&B, meeting and recreational facilities that our hotels have to offer to locals.

For hotels depending on international sources, looking at the domestic markets won’t be sufficient. So shifting the strategy and looking for new revenue streams is becoming critical. Some of the hotels offering food home deliveries or pick-up during the lock-down may continue this activity as an extra revenue opportunity. Considering the unprecedented nature of the crisis, it is critical to think out of the box and become innovative with the offers made to our customers.

On the operational front, we are adapting our standard operating procedures to the new guests’ expectations when it comes to health, hygiene and cleanliness and we are training our employees in this respect. We are also looking at opportunities to reduce operational costs.

As far as our pricing strategy is concerned, we are closely monitoring our rates for our different segments and working on an up-selling strategy plan. Rather than dropping the rates, we believe that upselling is an interesting revenue-driving tactic, especially during low occupancy times. 

Nikki Beach Hotels Global, Alexander Schneider, President

Which are the biggest opportunities which will arise from the lessons learned due to the pandemic?

Our operating philosophy at Nikki Beach was always very boutique and focused on providing open spaces, privacy and opportunities to enjoy the abundant nature in all of our destinations. This philosophy will obviously rise in demand post-crisis. One of the biggest shifts in trend will be the change of perception. Whereas clients became more and more adventurous over the past decade with a craving for authentic local experiences, we will definitely see a gravitation towards the “known” and safe options. I personally foresee a great focus of travelers towards housekeeping, hygiene and sanitation. This will be a very interesting trend also in the food and beverage division where buffets, sharing concepts and live cooking were the key to success in the past years.

What are the challenges that will be facing the luxury hotel industry as probably the return to normalcy or the ‘new normal’ will be gradual, country by country and it will take time?

I expect that a strong de-globalization is coming towards us. This will mean that international travel will slowly recover, whereas domestic leisure travel might see new heights. The entire long-haul holiday making industry will depend on the quality and timing of reactions by airlines and local policy makers as they will determine the rebound for the hospitality sector in many places on this planet.

How will the luxury hotel industry be able to stay relevant and how will the perception of luxury be changed, if in any way?

To me, there is no question of relevance. However, there has been an ongoing macro trend in how luxury is perceived and consumed, and I expect this shift to further accelerate. We will move more and more away from a status-symbol-driven consumption pattern in this market and open to a more selective and responsible approach. Again, this will impact the choice of destinations and products. For Nikki Beach, we will embrace this momentum in a positive fashion by focusing on the origins of our brand and its connection to nature, inclusive mindsets and the celebration of life.

 Which are the key elements drawn from the pandemic for which the luxury hotels should stay on alert?

I believe we all woke up to our very own vulnerability and how this world is so connected by seeing how regional challenges can become global show-stoppers within a couple of days or weeks. The consequences will have a very sobering effect on society, and we need to work extremely hard to emerge from this crisis stronger and more united than ever and fight any embrace of a xenophobic and fear-driven perspective.

As several countries are already lifting up restrictions including the lockdown, are you working already on ‘scenarios’? (short-term or mid-turn)

As a company that understands its mission to constantly innovate and change, we started internal think-thank sessions in the very first stage of the pandemic. This has enabled us to keep our team’s mindsets focused on the future and not get paralyzed in the present. We have established roadmaps for every single destination in collaboration with local authorities, healthcare experts and our suppliers in order to be ready for a hospitality 2.0 approach. Having said this, it is now critical that a stronger and more inclusive dialogue gets created between policy makers, operators, airlines and healthcare experts in order to create a real and wholesome exit strategy. Leaving this to individual decision-making processes could bring more harm than gain.

Mandarin Oriental Hotel Group, Jill Kluge, Chief Marketing Officer

All of our hotels are currently working on contingency planning, each one guided by when the lifting of restrictions are likely to occur and to what degree.

Undoubtedly the initial focus will be on domestic markets and encouraging a return to a safe and secure environment – for F&B and banqueting, as well as rooms.

We believe our wellness centres will be in demand from people who have been in isolation for some time – they will be craving human touch in safe and secure environments.

Our food and beverage specialists are looking at opportunities to ensure social distancing measures can be put in place without spoiling the atmosphere in bars and restaurants – and we are also looking at opportunities to open up guestrooms for private dining opportunities for families who have been deprived of each other’s company.

We will soon be introducing global packages that will be adding special value to our customers and providing the reassurance that our colleagues are thinking about our guest’s comfort, health and safety above all else. More to come on that.

One of our more popular gestures is for our most accomplished wellness gurus in some of our hotels to post one on one classes in yoga, fitness and pilates – which have been very well received by regular customers and new ones.

Finally, all of our hotels remain focused on their communities and continue to raise funds or join activities that will make a difference to people’s lives in their neighbourhood.

Most importantly, we are focused on rebuilding our business to ensure that we provide a sustainable and long term career for our most valuable assets – our colleagues

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