Report

Looking inside out: finding resilience in society

With the ongoing pandemic, where inter-regional and international travel is restricted, hotels are forced to rethink the way they do business.

A hotel is not just a siloed concrete structure on a said street, but a building within a community. A hotel is a part of a larger local ecosystem, which is integrated within society.

With traditional travel coming to an all-time low, hotels have little choice but to converge with their local/domestic society, creating several interdependencies. These interdependencies can be classified into four main categories – Economic, Environmental, Social, and Health.

This latest industry report, by Ambika Gandhi, highlights mechanisms and ideas through which the hospitality industry can engage with society, under these four dimensions.

Impact of the Pandemic on Hotel Occupancy
The pandemic has drastically reduced hotel occupancy levels across various geographies. For instance, the US saw occupancy levels drop from 73% in June 2019 to 40-42% between June and November 2020. Canada experienced similar declines, with occupancy levels between 25% and 28% during the same period, down from 74% and 61% in June and November 2019, respectively. In contrast, China has rebounded closer to pre-pandemic levels, with occupancy at 62% in November 2020, compared to 68% in November 2019. 

Rethinking Hotel Operations
Hotels must rethink their operations to align more closely with local communities and ecosystems. Traditionally, hotels have thrived on global interconnectedness, but the pandemic has highlighted the need for a more localized approach. Hotels should consider their societal context and not just operate as isolated entities. 

Building Environmental Resilience 

Master Planning: Large-scale developments should incorporate dynamic master plans that connect communities and provide spaces for work, play, cultural, and recreational activities. An exemplary model is Marina Bay in Singapore, which transformed reclaimed land into a vibrant community and tourist destination. 

Sustainable Development: Hotels should adopt broader sustainable development practices beyond green initiatives. This includes engaging with communities, protecting natural habitats, and using sustainable construction materials. The development and operation of hotels should consider societal, environmental, and economic impacts. 

Community Integration in Feasibility Studies: Hotel feasibility studies should evaluate how developments will contribute to or hinder their communities. The revised Royal mount development in Montreal exemplifies this approach, integrating community feedback to create a sustainable, community-centred project. 

Designing with Local Culture: Hotel designs should reflect local culture and engage the community. For instance, the Hoxton Hotel in Portland incorporates local design elements and partners with local vendors, creating a more meaningful guest experience. 

Revamping Dead Spaces: Hotels can repurpose unused spaces for community benefit. For example, the Fairmont and Swissotel Stamford in Singapore transformed a rooftop into an aquaponics garden, producing vegetables and fish for the hotel’s use. 

 

Creating Societal Resilience 

Local Sourcing: Sourcing locally supports the economy, reduces carbon footprints, and can enhance customer satisfaction. A significant portion of millennials and baby boomers are willing to pay more for sustainable products, which can offset cost concerns. 

Community Engagement: Hotels should aim to be local favourites, creating spaces that attract both guests and locals. Initiatives like farmers markets and artisanal fairs can draw in the local community and enhance the hotel’s reputation. 

Ethical Operations: Engaging in ethical and sustainable practices can increase employee satisfaction and guest loyalty. Accor’s Planet 21 Program is a notable example, promoting sustainability and community engagement across its hotels. 

Economic Benefits: Engaging with the local community can provide a steady revenue stream and reduce financial risks associated with seasonality. Positive guest interactions can lead to repeat visits and increased loyalty. 

Health and Safety: Prioritizing the health and safety of employees and guests is crucial. Providing healthcare coverage for employees and maintaining high safety standards can improve productivity and guest satisfaction. 

The hotel industry must embrace a multi-level resilient system to withstand future shocks. This involves stronger ties with local communities, sustainable development practices, and a focus on health and safety. By doing so, hotels can become more resilient and better prepared for future challenges. 


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For detailed charts, graphs, and further analysis, download the full report here



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Looking inside out: finding resilience in society
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