We made it, we survived the pandemic — where I am, at least.
Recovery is in full swing here in Costa Rica and Panama. Since May, our hotels and lodges have been outperforming our 2019 numbers in terms of occupancy and average daily rate. It feels good to be back.
2020 was tough. We are extremely thankful to all of our stakeholders: hotel owners, employees, suppliers, local community members and of course our guests who came back to our hotels much sooner than we thought. By working together as a “dream team” we were able to hold on and be strong during this crisis and be extraordinary today.
A Few Things Have Changed
We have become leaner. We realized that we can do more with less. We are able to provide the same or even better service to our guests with fewer resources. The key to achieving this was to continue to invest in our employees since day one of the pandemic last year.
We also got rid of unnecessary reports, controls, meetings and other things that take up time and do not add value. We invested in technology and new systems and learned how to use existing tools better, which led to an increase in efficiency.
The guests who are staying with us right now are mostly from the United States. As of today, travelers from Europe and Canada still face challenges traveling to Costa Rica and Panama. Practically all of our guests are vaccinated and with a strong desire to make up for a year of lost travel. They are eager to get out and be active in nature, and yes, to socialize with each other. We face almost zero price sensitivity and our highest category rooms sell first. Guests stay longer in one destination than before. Our average stay increased by 1.5 nights per hotel.
The booking window is on average 30 to 45 days out, but we receive last-minute bookings for substantial stays just days or hours ahead of check-in. The only significant outward booking is for the festive season 2021-2022, when it is already getting hard to secure space. We find our guests are very appreciative of great service and authentic attention.
Expectations remain high though. There is very little tolerance for “excuses” based on the pandemic. We are OK with this. We have been ready for this recovery for months.
And a Few New Challenges Are Coming Up
We are hearing stories from different parts of the world that hospitality companies have trouble hiring back staff to deal with the recovery. We have maintained the majority of our staff on payroll during the pandemic and hired back close to 50% of our staff that we had to let go. The investment in our staff during the pandemic has paid off and we continue to be the employer of choice in the communities where we operate. However, we are also anticipating that by late 2021 there will be a shortage in qualified staff.
An anticipated increase in demand for travel in 2022 and inflationary pressures have led us to contemplate rate increases for the next year. But we decided to keep our rates for 2022 the same as in 2020 and 2021. Just like we did not lower our rates in 2021, we feel this is not the moment to take advantage of this increase in demand and continue to provide excellent value to our guests. We have also decided to continue to be flexible and fair with our Zero Risk Zero Hassle reservations policies. Our guests helped us in 2021; now it is our turn to help them.
We are seeing signs that a strong tourism recovery can also bring back pre-pandemic problems of overtourism. While a few years of “roaring 20s” might be a good thing economically, it provides challenges in terms of sustainability. Here are some ideas for what we could do differently.
Seasonality: If you can avoid it, don’t travel in the peak season. By doing so, you’re contributing to a year-round economy and employment and take the pressure off sensitive ecosystems.
Beyond-the-Instagram Tourism: Avoid overcrowded tourist destinations and try off-the-beaten-path alternatives. Try to experience, learn and connect.
Take Your Time: Don’t rush and just check off sights on your list. Staying longer in one destination allows you to cut down your carbon footprint — especially if you fly — along with creating a deeper connection with the local culture and people.
Spread the Tourism Dollar in the Community: Avoid “all-inclusive” offers. Dine at restaurants outside your hotel, hire nature or culture guides to learn about local culture, flora and fauna, take public transportation, and purchase souvenirs in locally owned shops.
Single-Use Plastics: Plastics had a strong comeback during the pandemic due to health concerns. Let’s make sure they are not staying around in the new vacation experience.
Expect more changes later this year in 2022. New opportunities and challenges are coming up every day. Be ready.
Hans Pfister is co-founder and president of the Cayuga Collection of sustainable luxury hotels and lodges.
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