Hilton CEO Chris Nassetta said the following during a recent investor call: Surely you’re thinking “well once things get better, proper hotel service will resume, right?” It would appear not. As you can see, we’ve seen the margins improve most at full-service hotels, since they have the most amenities and staffing to cut. Hotels have lowered operating costs by getting rid of amenities and reducing staffing. In other words, hotels don’t need to fill as many rooms to breakeven, which shouldn’t come as much of a surprise. Limited service hotels have lowered their financial breakeven point from 43% occupancy in 2019 to 36% occupancy in 2020.Full-service hotels have lowered their financial breakeven point from 47% occupancy in 2019 to 30% occupancy in 2020.
While the hotel industry has no doubt struggled a lot in the past year, Skift has some interesting facts on how the financials of some hotels have improved. The new normal of hotel room service Hiltons will become “higher-margin businesses” Just look at the concept of airline fuel surcharges, or the fact that we still can’t take most liquids through security nearly two decades after 9/11. The problem becomes that when changes are made, they’re often not reversed. In the short term there’s nothing wrong with that, and all of this is reasonable enough.
Close bars, restaurants, and other outlets.Eliminate some in-room amenities, ranging from minibars to coffee machines.Either cut in-room dining altogether, or serve it in to-go bags.Hotels have adjusted service during the pandemicĪs you’d expect, hotels have adjusted their service protocols during the coronavirus pandemic, both as a cost saving measure, and also to limit interaction between employees and staff. Will the competitive landscape allow this?.Hiltons will become “higher-margin businesses”.Hotels have adjusted service during the pandemic.
0 kommentar(er)
