The future of hotels, through the eyes of top CEOs

CEOs and top executives at Malmaison & Hotel du Vin, CitizenM Hotels, Best Western Hotels and InterContinental Hotels Group share their views on what’s in store for the industry, and where hoteliers should be focusing.​

Below are some of the highlights from a CEO panel discussion on the future of the industry, held yesterday at the British Association of Hospitality Accountants (BAHA) annual conference.

Participants were:
• David Clarke​, CEO – Interchange & Consort Hotels (operators of Best Western and Beacon brands)
• Robert Cook​, CEO – Malmaison & Hotel du Vin
• Michael Levie​, COO – CitizenM Hotels
• Brian Hicks​, director, Revenue Management EMEA, InterContinental Hotels Group

Personalisation​

ML:​ We need to recognise in our industry that lifestyle will be a new trend, and it will change the way we do business.  People want to be recognised for who they are and what they do. We need to look at what type of traveller our guest is.

BH:​ Personalisation is a big trend in hotels, and it’s an area that will change dramatically over the next 20 years, as the individual will need to become more of a focus.  We’ll struggle as an industry to find ways to appeal to this, and it’s something we have to think about.

Technology​

ML:​ Technology will be a necessary enabler in our business. It’ll take a larger place and will speed up all our processes. We need to learn more about it and educate our people about it. If we don’t, we’ve missed the boat.

BH:​ Profitable investment in technology will be a big challenge.  Technology changes so fast and there is so much to learn in terms of what the future of technology holds.  We need to be sure about where we invest so that we meet the needs of our guests but also get the return on investment.  And we have to be careful not to invest in technology that will soon be replaced by something better.

DC:​ One of the biggest needs for technology is in e-procurement. This brings a disciplined buying approach and it doesn’t preclude local purchasing.

RC:​ I’m a traditionalist, I like the relationship between a chef or a sommelier and their suppliers. That’s what brings value; we mustn’t take the brush out of the artist’s hand.  But where I can go for e-procurement, I do.

Social Media​

DC:​ Social media is so important, and as hoteliers we need to be aware of that.  Every experience will be informed to people within seconds of having that experience. In future we’re not going to be talking to people to convince them to buy. You’ll have others talking with people they don’t know, and guests will come to us in that way.

BH:​ It’ll help us as an industry to pay more attention to things we should have been paying attention to all along.

RC:​ It’s a massive opportunity.

Listening to guests​

ML:​ We’re very good at knowing what our customers want, we’re just not very good at delivering it, and we need to change that.  For example, we know that guests want free Wi-Fi and reasonably-priced telephones in their rooms, but we’re too focused on the extra revenue stream to provide that.  But if you can provide the functionalities well, you’ll get the ‘wow’ factor and you’ll get people coming back.

BH:​ Free Wi-Fi is absolutely in the future.  People want it and we’re going to have to go that way.

RC:​ We’re providing a night’s sleep. People want a good bed and top linen.  Bathrooms are also becoming more and more important.

Staffing and training

RC:​ We mustn’t forget that our industry is about people. Hospitality is in your heart, it’s a fire in your belly.  We believe in investment in people to sustain the growth and expansion of the business. It’s essential.

ML:​ We have ambassadors that work for us, and their most important quality is to be able to smile.  But then, it’s also important to hire specialists who can deal with the specifics of the business – experts that are knowledgeable in their particular fraction.

DC:​ There’s a different approach to staff selection, which I find quite interesting. During an interview, there’s no talking for the first 30 seconds.  If the person can smile in that time, then it’s a good start, because they have the right personality for this job.

BH:​ Personality is huge.  We want to attract individuals and within that we want to give them the flexibility to be themselves.  Training and retaining is key.