NASHVILLE, Tenn. — To reach full recovery, the U.S. hotel industry must minimize obstacles such as the Delta variant and find ways to attract talent from outside the hospitality industry, hoteliers said during the first day of the 2021 Hotel Data Conference.

Conference attendees are embracing this need to minimize the impact of the Delta variant by wearing masks, using the provided hand-sanitizer stations and taking other precautions.

While mask requirements and other restrictions are rolling out again at some events and hotels in some markets, hoteliers attending the conference were upbeat and and said they believe the industry is on the right track to recovery from the pandemic.

The labor shortage is another obstacle to overcome. During the “Wine Down With the Bosses” session, panelists said the industry needs to market what it has to offer to talent outside of the industry instead of competing for employees within the industry.

“It’s been phenomenal to watch the revenue management happening.”
— STR President Amanda Hite, explaining STR’s revised forecast, which calls for U.S. average daily rate to hit $115.50 for 2021, a year-over-year growth of 12%.

“Brands may tell you to triple-sheet, but you can’t triple-sheet if you don’t have the sheets! It’s been hard to do it but for the most part, brands have been willing to understand.”
— Mark Ricketts, president and chief operating officer, McNeill Hotel Company, on the “Operational changes: What Stays and What Goes?” panel.

“Our team knew the demand recovery was coming; I don’t think anyone saw when it was going to come or the intensity of the demand return in certain markets. We weren’t aggressive enough and lost some [average daily rate] footing, some share in some markets. We’re learning, when you see an opportunity, don’t wait for confirmation. Jump on it.”
— Erin Cerrato, regional revenue manager, McKibbon Hospitality, on the “Lessons Learned: Exploring Success Stories (and Failures) From the Pandemic” panel.

According to STR’s latest forecast figures, leisure demand at the end of this 2021 will be 17% higher than it was in 2019.

So much depends on minimizing obstacles to full recovery — right now that means minimizing obstacles such as the Delta variant of COVID-19. The underpinning elements supporting strong hotel industry performance around the globe — economic growth momentum, consumer spending and a desire to travel — are all there for the taking. And the corresponding industry-specific elements — strong rates that operators have managed to hold and in many cases even grow to surpass 2019 levels — mean that once recovery really hits, the industry will be back on a path to prosperity.

General sessions set the stage for the conversation, but in panels this morning we really learned what’s happening in the trenches, particularly when it comes to operations. Operators and third-party managers are retaining their optimism — bless them — but it sounds like the road to recovery is tougher now, particularly as they deal with this summer’s onslaught of leisure travelers who can collectively wreak havoc on rooms, when it’s tougher to get in and clean regularly or even to replace amenities, such as towels, as much as operators would like.

Overall, the mood is good and positive, tempered by the who-knows? Delta variant factor.

— Stephanie Ricca, editorial director
@HNN_Steph

The most interesting thing I heard during the first day of the Hotel Data Conference came from Peter Hopgood, president of Paulson Puerto Rico Hotels, during the “Is the Current Demand for Resorts Sustainable?” session.

It boiled down to the idea that hoteliers in the Caribbean, particularly revenue managers, have long been conditioned to understand that the good times are finite, so when the stars align to drive rate and seize as much revenue as possible, hoteliers can’t hesitate to do just that. In a region that is often hit with major downturns, sometimes driven by major hurricanes, this has just been the way of life.

With the hotel industry enjoying a historic rebound of leisure demand in the U.S. — while simultaneously an explosion in COVID-19 cases is fueled by the Delta variant — this is a mentality that more revenue managers need to make the most of. We all learned last year that things can get really bad, really fast, so strike the iron while it’s hot.

— Sean McCracken, news editor
@HNN_Sean

While we’re back to wearing masks and there are some concerns over the Delta variant and its impact on the industry’s recovery, HDC attendees seem to be in good spirits.

While sales and marketing and revenue-management experts had to have flexibility in group contracts and turned to more leisure groups over the past year, panelists on the “Group Contracting During COVID-19: Lessons Learned (And Long-Term Implications)” panel said meeting planners’ wants have shifted, but their clients are willing to pay the price.

More hybrid meetings are happening in this digital-driven world and meeting planners are asking for it. They are also asking for different types of meeting space, such as ones that might include more outdoor space. Hoteliers are listening to these special requests and accommodating them, and they’ve been able to hold rate. Panelists said they haven’t had to do much discounting with these shifting group needs.

— Danielle Hess, senior reporter
@HNN_Danielle

Speakers on the first day of the Hotel Data Conference didn’t shy away from helping each other by sharing the successes and failures they’ve endured throughout the pandemic. The lessons learned across the board followed a common theme of needing to act quickly and aggressively as demand returns.

While data is essential to decision-making, hoteliers said at times it is best to move in real time, such as when tracking guest satisfaction. Instead of waiting on data to paint that picture, McKibbon Hospitality’s Erin Cerrato said a quicker way to track that is by regularly talking with a front-desk agent — the one who is talking with guests at check-in about their needs, expectations and even complaints.

Cerrato said it’s also OK to take risks; when an opportunity comes by, don’t wait for someone to tell you it’s OK to take it. Hotel teams saw how quickly demand was recovering in some markets in the U.S., but not all teams were aggressive enough to capture that demand, thus losing out on some market share.

— Dana Miller, reporter
@HNN_Dana