What is the future of hospitality?

COVID-19 has a radically altered day-to-day life for everyone—especially in the world of hospitality. No sector of the hospitality industry has been spared.

Employees across the hospitality industry comprised 40% of all jobs lost in the US.

26,160 restaurants have closed, and 15,770 of them have decided to make that closure permanent. Restaurants operate on thin margins. Many have struggled to shift to the delivery-only model required by most states.

Hotels have been hit as well.

In March, RevPar, or the revenue per available room, dropped 69.5%. A recent report suggests more than 66% of hotels will fail in the next six months if revenues don’t change. 50% said they are in danger of foreclosure.

What does this mean for the near and long-term future of the hospitality industry?

How has hospitality changed after COVID-19?

Hospitality isn’t dead; it’s evolving. To survive in a post-COVID era, many hospitality operator’s first instincts may be to cut costs. While that may initially help the bottom line, it will undercut the company’s long-term health.Successful hospitality operators are using other methods to attract and retain guests.

Focus on cleanliness

Guests care most about conspicuous cleanliness. For small businesses, this new focus on hygiene means sanitation stations, visible and frequent cleaning of the facilities, and employees in protective gear.

For larger businesses, this may mean partnerships with cleaning brands, expert cleaners, and collaboratively setting cleanliness protocols with health care experts.

Hilton, for example, has partnered with RB, the maker of Lysol, and consults with the Mayo Clinic on its CleanStay hygiene program.

Communication and transparency around cleaning procedures will be just as important. Guests will be actively looking for information on how your business is handling cleaning and disease transmission mitigation efforts.

Be detailed. Be clear. The more guests know, the more comfortable they will be coming to your business.

Cleanliness standards will only become more important with time. It may not be too far-fetched to see a standard cleaning rating available on review sites like Yelp and Tripadvisor in the near future.

Health-conscious and trained staff

Guests feel more at ease knowing there’s staff on hand with training on how to reduce or prevent the transmission of disease—not just limited to COVID-19.

Checking both guests’ and employees’ health with a temperature scan and exposure-risk quiz can help keep everyone healthier. For hotel operators, on-call doctors may become as important as spa facilities and wellness programs.

More outdoor dining | safer indoor dining

With the loosening of stay-at-home orders, restaurants are starting to get creative with the way they’re utilizing outdoor space.

Dutch restaurant Mediamatic quickly became famous for its tables enclosed by a glass greenhouse. Italian-based design firm Nuova Neon Group 2 has even proposed plexiglass boxes to socially distance beach-goers at resorts.

As the weather cools, hospitality operators will look to find ways to utilize outdoor spaces as long as possible, adding heat lamps, fire pits, and more.

Whether operators have indoor or outdoor seating, they’re looking to encourage proper social distancing. Most have redesigned their spaces to remove bottlenecks and encourage social distancing with branded indicators on where to stand or sit.

Some are getting creative about it.

The Inn at Little Washington seats well-dressed mannequins, Maison Saigon has stuffed pandas, Open Hearth uses inflatable dolls, Five Dock Dining uses cardboard cutouts, and Fish Tales skipped the placeholder and added bumper tables to help guests easily social distance.

Smaller menus

To help streamline operations and cut costs, restaurants are shortening their menus.

Large chains like IHOP, McDonald’s, and Dennys have instituted abbreviated menus.

Even Denmark’s Michelin-starred restaurant Noma slimmed their menu down even more—just a cheeseburger or a veggie burger.

Rethinking spaces and their uses

Some hospitality operators are capitalizing on the ‘bleisure’ trend.

Pre-pandemic, guests traveling for work looked to extend their stay to sightsee and relax. Post-pandemic, hotels are offering packages for people tired of working from home. Instead, they can do a work-from-home staycation at a luxury hotel, with or without the kids.

Others are beginning to use delivery either for the first time or in new ways. Hotels have transformed their proven restaurants into ghost kitchens, bars are delivering cocktails, and restaurants have started selling raw materials and meal kits.

Keeping it close to home

Guests are still acclimating to a new normal, but aren’t entirely comfortable yet. The publics’ hesitation means reducing risk where possible—specifically around travel.

The World Travel & Tourism Council says travel is likely to return to the local, domestic markets first since guests will have more control over private transportation.

As they acclimate, guests will likely become more comfortable with long-distance public travel, like on planes.

Near term, hospitality operators should attract locals over tourists since they are the most likely to return first.

How Does the Future of the Hospitality Industry Look?

As the pandemic unfolds, experts have debated when or if the hospitality industry will recover.

A McKinsey study found a correlation between the unemployment rate and RevPAR. This connection means as the job market stabilizes, so will the hospitality industry.

Economy hotels and casual dining are expected to return sooner due to lower prices and cost of operation.

While the path to economic recovery is unsure, the future of hospitality will continue to respond to the impacts of COVID-19.

Restaurants open with a focus on health consciousness

The biggest concern of US travelers is health and safety measures. Which means the future of hospitality is looking squeaky clean. Instead of being done hastily and behind-the-scenes, cleaning will have a new place in guest-facing areas.  Guests will assume if they don’t see the cleaning, the cleaning is happening.

The sanitation stations seen at the entry of restaurants, hotels, and bars are here to stay. They may evolve based on technology and medical advice. It may be hand sanitizers, UV wands or cases, handwashing, or a future technology solution.

Social distancing and frequent handwashing aren’t the only ways for guests to stay healthy. For hotel operators, traditional gyms and spas may be too dangerous to reopen in the same traditional manner. That doesn’t mean the wellness trend in hospitality is over.

Some are using custom mobile apps to help guests book slots at their gyms and spas, with plenty of time between, designated for cleaning. Others have brought the experience directly to the guest room, ordering cardio, weights, and access to virtual training like room service.

Maintain physical distance between guests and employees

Hospitality desks will likely evolve to include plexiglass barriers to keep a physical distance between employees and guests. Some brands may look to separate further, including video chat for guests to help maintain the person-to-person interaction with zero physical presence.

Employee uniforms may shift, as well. Branded face masks will likely become a ubiquitous part of a uniform, with additional PPE added to employees’ uniforms with more direct, high-risk interactions with guests.

While they may have been elegant in a former life, COVID-19 may mean the death of buffets.

While grab-and-go may have been the ‘dining lite’ version of the past, premade boxed meal options may be hospitality’s future. They give hospitality operators an easy serving option while offering guests protective packaging around their food, warding off any stray viral droplets.

Implementation of new technology

While COVID-19 is primarily contracted through respiratory droplets, the virus can survive on surfaces for hours. Touchless technology can be easily implemented by hotels to help reduce a guest’s exposure.

Restaurants may shift to a completely virtual menu, leaving just a QR code on the table for guests to scan, review the menu, and order.

Advanced HVAC systems may also be installed that limit the amount of shared air in a space. Newer constructions tend to be more sealed off to natural ventilation, but the appeal of fresh air may change this. Architects may even reference passive cooling techniques developed thousands of years ago to better circulate and cool air.

New technology solutions aren’t just limited to the virtual world. Pre-pandemic hospitality pitted in-person experiences against virtual. Some may switch to virtual events, ranging from weekly trivia nights at a local bar to online conferences or music festivals with thousands of attendees.

New technology solutions aren’t just limited to the virtual world. Pre-pandemic hospitality pitted in-person experiences against virtual. The future of hospitality might mean marrying the two.

The true power of hospitality isn’t a physical presence; it’s knowing how to create incredible experiences.

The move towards virtual events, which can range from weekly trivia nights at a local bar to online conferences or music festivals with thousands of attendees, will only increase over time.

Seamless mobile app solutions

Mobile apps may be the best solution for guests who will have more prolonged or more frequent interactions with a hospitality brand.

Since the guest owns the device and it is only touched by them, it reduces transmission and keeps the experience on a familiar device. These apps can include ordering services, making reservations, and check-in/check-out capabilities depending on the establishment.

Mobile apps can also utilize new payment methods, allowing guests to purchase using in-device solutions like Apple Wallet, without ever needing to pull out a physical card.

A new aesthetic

The design of hospitality spaces may change, as well.

With cleanliness as a new top priority, minimalism will come to dominate the hospitality aesthetic.

More frequent and thorough cleaning will mean prioritizing easy-to-clean, non-porous surfaces, antimicrobial fabrics, reducing the decor, and keeping extras like condiments and additional napkins hidden until requested.

AI in hospitality services

While guest interaction will still largely rely on face-to-face interactions, robots may begin taking up some more direct interactions, possibly taking on tasks as advanced as preparing and serving food.

Hilton released its robot concierge, Connie, in 2016, and YOTEL released its robotic butler service, YO2D2, in 2018.

How can Jitjatjo help?

While things are in flux, hiring temporary workers who are trained in how to reduce or prevent the transmission of COVID-19 can help you address needs as they come up. Jitjatjo offers front and back of house hospitality workers, as well as cleaning staff.

Temporary workers help you thoughtfully reintroduce furloughed employees back to the workforce. Include plenty of notice before requiring employees to return and offer training, so employees are ready and capable of protecting the health of their coworkers and your guests.

Once you fully staff your business, keeping temporary staff at your fingertips will be a distinct advantage in the “new” normal. If your employee gets sick, you’ll want the flexibility to offer them time off without scrambling to cover for them.

Looking Ahead

While the fate of the hospitality industry may feel unsure, there’s good news.

An April 2020 survey by Preferred Hotels and Resorts found that more than half of people worldwide were ready to book a trip as soon as travel restrictions were lifted.

With the right plan and great employees—both full time and temporary, the future of hospitality is looking bright.

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