LOS ANGELES — With the pandemic woes now firmly behind them, hospitality
industry leaders are focusing on what the next five to 10 years might look
like. Not surprisingly, the next generation of travelers was on everyone’s
minds at ALIS this week in Los Angeles, with their different travel habits,
different desires and most importantly, different technology.
Joining Nazarian on the panel was Greg Juceam, president and
CEO of Extended Stay America; Laura Lee Blake, CEO of the Asian American Hotel
Owners Association; and Russell Urban, CEO and principal of Electra America
Hospitality Group. The discussion was moderated by Adam McGaughy, senior
managing director of JLL Hotels.
Nazarian said another thing leaders to keep an eye on is
artificial intelligence. “How can we use AI as the ability to become more
connected and smarter, but also not lose the human factor of hospitality,” he
asked.
Moving forward, it’s really incumbent upon leaders of the industry to create a fun environment. We have to reinvigorate the wonder of hospitality and the travel business.
Russ Urban
Blake said AI was also top of mind for hoteliers at a
European conference last fall, particularly with concern for smaller companies
and hotels who don’t have the capabilities to manage that much data but can
still participate in the “AI revolution.”
In dealing with such a wildly different generation of
travelers and rapidly growing technology, panelists agreed that adaptability
for both the business and for its leaders will be key. Juceam said when it
comes to the younger generation, his company understands customers want
flexibility. “The new generation wants to move around freely,” he said, adding
that the extended-stay segment is well-positioned for them to do this, enabling
them to work remotely from different cities for a short while. He also said
that extended-stay is an attractive segment for these travelers when it comes
to spending money as this generation would rather put their money towards
experiences than hotel rooms.
In the immediate future, the need for leaders and companies
to be adaptable also extends to managing the hotel workforce. Urban said
workforce issues that worsened during COVID are still lingering. “Moving
forward, it’s really incumbent upon leaders of the industry to create a fun
environment,” he said. “We have to reinvigorate the wonder of hospitality and
the travel business.”
As a leader, if you have empathy you understand what a diverse workforce is going through.
Sam Nazarian
With a polarizing presidential election coming up and
lingering concerns over the direction of the economy, politics will no doubt be
on hoteliers' minds this year. Urban brought up two issues that leaders
need to pay attention to—immigration and transportation infrastructure. With
immigration, “no one likes what is happening. And I think it’s really important
for our business from a workforce perspective to get an answer there.” As for
infrastructure, Urban said, “whether you’re driving or flying, or taking a
train or taking a boat, we have issues related to crumbling infrastructure that
we have to deal with.”
Yet Blake said despite the challenges facing this country,
the disasters that have gone on in the world, and whatever political tensions
that surface, AAHOA remains bullish. "I fully anticipate that in the five
to 10 years coming up, there will be a lot of changes. But I am very optimistic
that this industry will come together and really will be stronger than ever.”
Panelists also spoke on the future of two popular-turned-controversial
corporate initiatives—DEI and ESG—with McGaughy reading from a recent article
that called ESG, “the latest dirty word in corporate America.”
Juceam said the terms have been politicized but that the
hotel industry is “ending up exactly where it should be with the commonsense
ideas that corporations do need to earn for their investors and need to do the
right things because that’s what the shareholders would want.”
When it comes to DEI, Nazarian spoke to leaders’ needs for
empathy and mission to keep employees motivated. “As a leader, if you have
empathy you understand what a diverse workforce is going through.” With regards
to having a mission, Nazarian said it must be “so profound that everybody wants
to jump on board and follow that path. And it’s not easy to do both.”
So, what else is keeping these hotel executives awake at
night?
Urban said that the United States needs to regain its
position as a popular international travel destination. “We’ve fallen in that
regard and that’s a huge concern.”
For Nazarian it’s the robots who might make the human
workforce obsolete. “What will happen to the tens of millions of people who
will suddenly become completely irrelevant as far as their former jobs?”
Juceam is worried about the government. “Whether you’re on
one side of the aisle or the other, our industry is being attacked every day –
it’s not just OTAs anymore. It's not just Airbnb anymore. It's the government.
And we must stand together and protect ourselves.”
Blake is concerned about how hotels can best handle the
homelessness crisis. “I see the homelessness crisis in this country continuing
to grow. And that’s going to have an impact on our hotels.”