Current Hospitality Industry Challenges and Solutions

Current Hospitality Industry Challenges and Solutions

It has been a little more than two years since the corona epidemic broke into our lives, and already closures and travel restrictions seem like a distant reality. With the return to normal life there is also a significant increase in the demand for domestic and international travel, both business and leisure.

While occupancy levels have recovered faster than expected in the hospitality industry (nearing 2019 levels in most markets), this industry, and the travel industry in general, are facing many difficulties in returning to their pre-pandemic performance.

The leading difficulty, experienced across many industries, is a shortage of qualified manpower.

Due to the nearly complete halt of travel in the first year of the pandemic, many hospitality employees found themselves unemployed for a long period of time, which led many of them to a career change.
Now, many of them are reluctant to return to this industry that feels insecure at times, not as financially rewarding and far too demanding. These concerns are even strongly felt by people from outside of the industry that are in search for a job.
Some hotels had to rebuild their workforce from scratch and are still struggling to do so while occupancy levels are extremely high.

On the customer side, the shortage of manpower leads to long queues, delays, lower levels of customer service, lower availability and an unproportioned rise in rates.
As we have shared back on our June review, the global hospitality analytics company STR has recently conducted a study on hotel ADRs (average daily rates) across US and Europe, comparing April-May 2022 rates to April-May 2019 rates. The results show an average 14% increase in ADR in the US and 6% increase in ADR in Europe.

This manpower shortage will most likely force the hospitality industry to adapt to new ways of working. One of the leading trends we see is the fact that this industry is focusing on implantation of digital and automation technologies, across several departments.

Hospitality human resources departments now utilize digital platforms in the process of hiring and training.
On the one hand those platforms allow job seekers to create profiles that demonstrate their skills, and on the other hand the employer can select the most fitting candidates to specific positions more easily.
This promises a more accurate, efficient and cost-effective hiring process.
Digital platforms also can be used in the process of training employees by centralizing the learning process and getting direct feedback on their training programs.

Operations departments deal with the manpower shortage by increasingly using mobile and SaaS-based technology to simplify operations and enhance costumer experiences.
These uses include automating administrative tasks (room assignment, check in and report scheduling), guest messaging platforms that allow a single employee to manage multiple requests at once, and a mobile property management system (PMS) that automatically delegate tasks among team members like the housekeeping team to maximize efficiency.

Hotels also reduce the workload by using mobile check-in or kiosk-based contactless self-check-in, a digital payment system and keyless entry system that allows guests to get into their rooms in a matter of minutes.

Digital platforms are also supporting from the customer side. Using smart booking platforms helps to facilitate the booking experience and avoid some of the nuisances due to manpower shortage.
Booking with Arbitrip for example will not only help you save at least 15%-25% on you travel expenses, but also give you access to exclusive deals, 24/7 costumer service centralized payment options and access to valuable analysis reports – and all of that free of charge.

One thing is certain – that technology can not completely replace human interaction. There is of course a great importance in the hospitality industry for that personal touch between the costumer and the hotel employees. However, automating some of the tasks and using digital platforms, results in a more personal and exceptional service from the hotel staff.

For more information on the Arbitrip platform and how we can help make your booking process better – please contact us at [email protected].

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Rising Hotel Rates & Pro Tips On How You Can Save

After a couple of challenging years in the travel industry, hotel prices worldwide have already soared beyond pre-Covid rates. This is attributed mainly to the fact that after two years of lockdowns and travel restrictions there’s a newfound lust for travel, both for leisure and business purposes, which is leading to a prompt increase in occupancy levels. This presents an opportunity for the hospitality industry to try to regain some of the lost revenue from the long months of the pandemic.   

The global hospitality analytics company STR has recently conducted a study on hotel ADRs (average daily rates) across US and Europe, comparing April-May 2022 rates to April-May 2019 rates. The results show an average 14% increase in ADR in the US and 6% increase in ADR in Europe.

The leading countries that presented the highest ADR increases in Europe were Italy (23%), Ireland (21%), Portugal (18%), Spain (14%) and the UK (12%).

London, which is a leading business oriented destination, reported its highest monthly occupancy since 2020 in May 2022. These high occupancy levels have a double impact – both on hotels availability and of course on the ADR, which has increased by 46% from last year in this location.

Comparing 2022 hotel rates to 2021, Bloomberg research presents a staggering rise of up to 69% on hotel ADR across US central destinations (with an average of 33% increase).
As expected, New York has shown the highest increase of 69% in hotel ADR, Chicago hotels ADR showed an increase of 41%, Miami hotels ADR showed an increase of 55%, and San Francisco hotels ADR showed an increase of 37%.

When you add to the equation the significant rise of flight ticket cost in the past few months (airline fares presented a 18.6% increase in April 2022 alone) – traveling for leisure or business has become much more expensive than we can recall.

The current indication from the combination of the above trends is that travel cost is now considered the biggest inhibitor to travel.  

And yet, regardless of your destination, there are a few things that can be done in order to reduce travel expenses.

Our travel specialists have gathered the top tips that can help you save money when you plan your next trip:

  • Book in advance.
    Since we can see a steady increase in travel prices on a weekly basis, we recommend booking in advance in order to guarantee a lower price. If you want to feel more reassured, choose hotels that offer a free-cancellation policy or a flexible rate that allows you to change the dates without penalty, so you can always update your booking if there’s any need.
  • Book new hotels.
    Try to scout for hotels that have just recently opened, as sometimes their opening rates might be lower for a limited period of time – and you’ll get a chance to enjoy their new facilities at a very special rate.
  • Go outside of the city center.
    If you are staying in a location where there is reliable and convenient public transportation, we recommend you to stay in hotels just outside of the city center. This usually helps you decrease expenses dramatically and can give you higher value for your money. Also, take into account that many business centers in big cities are actually located just outside city centers, so when you travel for business this can be a big plus.

  • Match the hotel type to your dates.                                                                                                      As mentioned above – hotels determine their rates according to availability, and you can use this to your advantage. Business oriented hotels for example will usually offer better deals on weekends, and Leisure focused hotels will offer better rates on weekdays.
  • Book with Arbitrip!
    Booking with Arbitrip smart platform helps you save at least 15-25% on your travel expenses. Through our user-friendly platform you can access exclusive deals, plus you get to enjoy 24/7 customer service, centralized payment options and access to valuable analysis reports – and all of that free of charge!
    For more information please contact us at [email protected] .

 

Follow our blog to be updated on the latest hospitality industry news and trends.

 

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The top 7 Tech conferences in the coming year

As the world is finally coming out of a long period of travel limitations and social distancing, it seems like it’s the perfect time to get back on that in-person networking & career development horse, and what better way to do so than attending some of the top conferences worldwide?

For that exact purpose, we at Arbitrip have put together an “A list” of our client’s most popular tech conferences that are due later in 2022 and early 2023:

  1. CES

The annual CES (Consumer Electronics Show) event, owned & produced by the Consumer Technology Association (CTA), is considered one of the world’s largest and most significant technology events.
To cut a long story short – this is where tech magic happens!

CES is considered to be the place where the most innovative, futuristic and breakthrough technologies, in almost every tech sector (including healthcare, automotive, VR, sports, robotics, machine intelligence and more), are being revealed.

CES 2023, January 5-8, Las Vegas NV & Digital Find out more

 

  1. RSA Conference

If you are a cybersecurity professional, RSAC 2002 is the right place to be seen this year. This 4-day conference will be held in San Francisco and will offer a high-level learning experience along with the opportunity of gaining valuable knowledge & new insights regarding the latest cyber threats, newest solutions, and most popular trends.

This conference will present a rich lineup of high-level speakers from leading organizations such as ISSA, IBM, SAP, BDO, GOOGLE, APPLE, LINKEDIN, and more.

RSA Conference San Francisco, Moscone Center & Digital, June 6-9, 2022 Visit website

* Note that a digital pass is also available for those of you who cannot attend in person this year.

 

  1. MWC Barcelona

Over 61,000 attendees from almost 200 countries visited the MWC (Mobile World Congress) 2022 held in Barcelona.

This annual 4- day conference is considered to be the largest mobile event in the world and the most influential in the connectivity industry.

Each year, this event features speakers & exhibitors from world-leading companies such as Amazon, HP, Amdocs, AT&T, Huawei, Nokia, Vodafone, and many more.

MWC Barcelona, February 27 – March 2, 2023 – Read more

 

  1. Black Hat

With a record of 25 years of events, the Black Hat Technical Security Conference series is highly recognized and well respected by the global security community.

The Black Hat events aim to bring forward the most relevant information, technical research, and new developments, together with an exclusive technical training experience.

This year, the next Black Hat events will be held both in Singapore and Las Vegas, and in both you can expect a 4-day hybrid event where the participants will be able to choose whether to attend the live, in-person, conference or to connect remotely.

Black Hat USA 2022, August 6-11, Mandalay Bay / Las Vegas + Virtual – go to event page

 

  1. Affiliate World

One cannot address the subject of affiliate and e-commerce conferences without mentioning “Affiliate World”. This is a top-notch event that will be held in both Europe and Asia, connecting the world’s top affiliate marketers and e-commerce entrepreneurs of the industry.

Attending this conference will provide you the opportunity to engage with the industry’s top experts and be exposed to new visions, different approaches and advanced ideas on affiliate & e-commerce marketing. Read more about Affiliate world

Affiliate World Europe, Fira de Barcelona, Spain 6-7 July 2022. Event website

Affiliate World Asia, Bangkok, 30 nov-1 Dec 2022. Further details will be published soon.

 

  1. Affiliate Summit East

At the iconic venue in the heart of Times Square, New York, ASE22 will be the place where 3,000 of the best e-commerce entrepreneurs, affiliate marketers, media buyers (and more) will join together for learning, networking, and exploring the latest and most cutting-edge technologies and innovations of the industry.

This will be a 2-day conference packed with over 60 sessions – workshops, meetups, and lectures – combined with fun perks such as a rooftop party and a VIP lounge.

Affiliate Summit East 2022, May 24 -25, New York – at the New York Marriott Marquis Times Square. Learn more

* Won’t be able to attend this year? No worries! You can already mark your calendar for next year – Affiliate Summit West 2023 will take place on January 23-25, 2023 in Las Vegas.

 

  1. AWS Summit

AWS Global Summits are free of charge events held in 30 major cities all around the world.

These events are designed to expose new customers from all industries to the AWS platform, but also to provide existing customers with a deeper learning experience by hearing from AWS leaders, experts, and partners, as well as attending technical sessions, demos, workshops and team challenges.

The next AWS Summits:

  • May 18, 2022 | Tel Aviv, Israel
  • May 18-19, 2022 | Atlanta, USA
  • May 23-25, 2022 | Washington DC, USA
  • Jun 21-22, 2022 | Milan, Italy
  • Aug 02 – Aug 03, 2022 | Seattle, Washington, USA
  • Aug 31, 2022 | Canberra, Australia

Find an AWS Summit near you

 

There is no doubt the world has gone through so many changes in the past two years, but it finally feels like it’s “getting back on its feet”. Business travel is back with a bang and so is attending those in-person events and world-leading business conferences.

The list of international tech conferences and events is long, and we hope that the hand-picked A-list we have compiled above can help you find the ones that are best suited to your business needs.

From our experience, the demand for accommodation during these top tech conferences is high and room supply is limited, so we recommend planning ahead and booking in advance.
The best way to prepare is building an annual event calendar and pre-book all the hotels in order to enjoy the best rates and availability.

Our team is here 24/7 to answer your questions and assist you with any reservation needed – contact us on [email protected].

Want to recommend another event not on the list above?
Send us a note! We’d love to hear from you.

 

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New Business Travel Trends in 2022

As worldwide vaccination levels increase, and Covid restrictions are gradually being lifted, our clients return to their business travel routine with a surge of individual and group travel bookings.

While booking numbers increase, and Q1 2022 figures already exceed 2019, we at Arbitrip identified a few interesting trends among our business travelers that we wanted to share with you.

 

Equipped for work

More organizations have shifted to hybrid work models, allowing employees to do work practically from any place on earth. Salesforce for example, launched Success from Anywhere, which offers their employees the flexibility to work from any location and at any convenient time for them.

This change allows more travelers to work while traveling around the world, and we can see the rise in demand for hotels that offer work-friendly rooms that are quiet, equipped with a more convenient work station, and stream fast and reliable Wi-Fi.

These travelers will also usually prefer hotels that have shared working spaces for the use of the hotel business guests. The Hoxton Chicago for example has a “Work-Stay-Play” package, which allows guests access to the facility’s in-house co-working space.

 

Tech and Modern

With the progress of technology accelerating rapidly, and rising number of corporate travelers from high-tech organizations, another characteristic of the new business traveler is to search for modern, futuristic, high-tech hotels.

Those travelers expect to have the most up-to-date technology in their hotel rooms. Extra USB sockets and docking stations are a thing of the past, when the new hotels now offer a variety of features from smart rooms, underwater speakers and mood-themed LED lights to signature-scented meeting rooms.

The room design in these increasingly popular hotels will usually be modern, clean and artsy. For example, you can have a look at a typical room design of the Copenhagen CitizenM, the trendy Netherlands-based boutique hotel chain, which has properties in cities like London, New York, San Francisco and Los Angeles.

“Bleisure”

After 2 years of scarcely traveling the desire to enhance the experience during the business trip became ever more important. And so, it does not come as surprise that another trend is one that we have already started seeing pre-Covid, but is now picking up.

We are of course talking about the traveler’s desire to combine their business trip with a vacation – and create the perfect blend of business and leisure. There’s even a name for this trend – they call it “Bleisure”.
A standard “Bleisure” travel is usually comprised from a 3-4 day work trip, to which the traveler add a few vacation days at the beginning or the end.

For this type of trips, the travelers seek to stay in an extraordinary unique hotel, whether this is exhibited in the hotel design, its’ offered culinary experiences or its’ shared spaces and culture events concept.

Also, while booking these trips our travelers usually gave a much higher importance to the hotel location and its distance from the city center or popular attractions.

 

As we progress into Q2 2022 it seems that business travel is finally back to stay.
Live worldwide conferences are being scheduled, companies re-build new travel policies for 2022 and re-recruit for travel positions.
As stated by GBTA in Q4 2021, YOY increase of 38% is expected in 2022, with a further increase in 2023.

We will of course keep our eyes open for spotting new trends and share the latest news with you, so keep following for more.

 

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