The hospitality industry has faced its fair share of challenges over the past few years. With COVID-19 restrictions disrupting businesses, BREXIT has added complexities to supply chains and labour, and the rising living costs have made it tougher for both businesses and customers. However, the hospitality industry is resilient.
Businesses like my client, a 5-star Spa hotel in Edinburgh, are adapting to the new reality and finding opportunities in times of difficulty.
A year after providing a bespoke leadership programme (based on the results from the previous year’s Employee Engagement survey results,) the client is celebrating wins like;
- Increase in Employee Engagement Results
- Increase of Productivity
- Improved Quality of Service Provided to Customers
- An increase in the Leaders’ self-awareness to trust and empower staff has led to an overall increase in employees’ skills development.
I am delighted to share that my client has reached out for further work and it is exciting to be involved in the journey!
If interested to read further about industry Leaders’ views on the current trends in the hospitality industry, Deloitte Touche recently conducted a survey on this topic – here is the link to the survey Deloitte Touche survey.
Some key points from the survey indicate;
- Hospitality organisations saw some recovery from the effects of COVID-19 but are facing further disruption due to continued economic volatility and rising costs
- 83% of respondents cited rising costs and labour shortage as key risks to growth this year (2023)
- As demand for labour rises while supply is scarce, hoteliers will have to compete against other sectors to attract new talent
- As debt becomes more expensive, the additional interest payments will reduce net income and cash flow, which will in turn reduce investors’ internal rate of returns. This will force the hospitality industry to rethink and restructure their operational and financial models
- Businesses will need to rethink their priorities to be better equipped to navigate the changing marketplace.
Key considerations include:
- Invest in initiatives to improve operational margin and financial stability
- Evaluate and review current operating models and performance of assets
- Promote agility to be able to rapidly adapt to changing consumer priorities and behaviour
- Leverage technology to improve consumer experience and reduce reliance on people
