Specialist
Former VP at InterContinental Hotels Group plc
Agenda
- Trends and developments in the European luxury hotel market, highlighting evolving traveller preference
- Occupancy trends and leisure demand vs business and group travel, including impact of changes to international vs domestic traveller mix
- Recovery scenarios, highlighting luxury and upmarket's strengths vs other segments
- Medium-to-long-term outlook and impact of pandemic-driven industry shifts, highlighting labour challenges
Questions
1.
What 2-3 key trends have played out across the European hotel industry over the last six months, since our previous Interview [see Luxury Hotel Industry – European Recovery & Long-term Outlook – 30 April 2021]?
2.
Could you elaborate on the change in travellers’ preferences as a result of the confusion in the market? Is it still very much about staycations?
3.
Could you estimate industry occupancy rates now vs pre-coronavirus?
4.
How is the luxury segment performing? You mentioned mid-scale and budget segments are holding up this market.
5.
What percentage of international travellers does the luxury segment rely on? How important was the international travel segment for luxury hotels pre-coronavirus?
6.
Do you think the mix change of international vs domestic traveller in the luxury segment is long term and perhaps fundamental? Is there any financial consequence of this, or benefit?
7.
How do you expect ADR [average daily rate] to hold up over the next 3-6 months?
8.
What are your expectations for occupancy over the next 3-6 months? Are there seasonality dynamics, or do you think there will be a slow recovery back to normal?
9.
Have all hotels reopened now? Much of the sector was still closed when we last spoke.
10.
Is there any difference in the reopening and recovery of key cities such as London vs Paris, which are the two stand outs in the luxury segment?
11.
What’s happening with conferencing and exhibition? Has there been any rebound in that in business travel?
12.
Has anything changed around the F&B [food and beverage] mix or aspects of that business which may not have returned or recovered in the luxury segment?
13.
We discussed variability and hotels’ inability to plan and forecast. Could you elaborate on that challenge and what it might mean for a luxury hotelier?
14.
ow do you think labour challenges will play out in the industry? Could this remain an issue for the foreseeable future? Could there be significant wage increases to try and attract more labour?
15.
Are you expecting the same level of commercial expenditure activity as pre-pandemic, or could there be quite a different dynamic, especially given the budgeting challenges you outlined?
16.
You mentioned what brands are doing around targeting clients and pushing subscription or loyalty models. Has this changed the dynamic and revenue mix between brands and independents? Is there any financial consequence of this strategy?
17.
Is there anything operators and hoteliers should be thinking around CAPEX over the next 6-12 months? Do you expect a heavy surge?
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