In the Current Crisis, lebua Hotels & Resorts Stays True to Its Core Values

In the Current Crisis, lebua Hotels & Resorts Stays True to Its Core Values

Bangkok, Thailand, June 16, 2020 / travelindex.com / Lebua Hotels & Resorts is a Bangkok-based luxury hotels and resorts company with locations in Thailand, India, and New Zealand. Lebua is the only international brand with a significant presence in India which has not laid off or furloughed any employee, not a single one. In Thailand, the company and brand lebua has retained its entire workforce and human capital during the current covid-19 crisis.

The hospitality space is extremely competitive, so recruiting and more importantly keeping, the right staff for a hotel, in good and bad times, those who’ve proven to possess the potential in specific job roles, is a timeless and distinct advantage.

Lebua entered a strategic partnership with its India properties owner’s because they share the long-term vision of retaining all its employees. Indeed, it is extremely significant that it’s not only the values that lebua stands for but also the like mindedness that it seeks in property owners prior to collaboration; a high EQ along with a deep understanding of human capital.

Every hospitality CEO in the world should consider and ask the simple question; how do you evaluate the risk of letting people go, your most important asset, when a crisis emerge? The only foundation that made lebua so successful is the fact that, as a service business, all is based base on core values and probability. Not on anything else but on probability; how can you let the only foundation of your business slip through your hand. This is the most challenging question to every CEO in hospitality, anywhere in the world.

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Finnair and Sabre Renew Distribution Agreement

Finnair and Sabre Renew Distribution Agreement

Helsinki, Finland, June 16, 2020 / travelindex.com / Finnair, the Finnish flag carrier focused on connecting Europe and Asia, and Sabre Corporation, the leading software and technology company that powers the global travel industry, today announced a new worldwide distribution partnership.

Under the new agreement, Sabre will resume distributing competitive global Finnair content to hundreds of thousands of travel agents and thousands of corporations worldwide through its travel marketplace.

“We are delighted to promote our products and services through Sabre’s extraordinary network of travel agents worldwide as we rebuild our network and operations following the COVID-19 pandemic”, said Ole Orvér, Chief Commercial Officer, Finnair. “Travel agents continue to play a key role in the travel industry value chain and, together with Sabre, we will work to deliver the benefits of NDC technology. Ultimately, travel agents and their customers will enjoy more relevant and comprehensive travel solutions.

“As we ramp up our operations globally, it is imperative that customers have choice and flexibility in booking through their preferred direct or indirect channel. Travel agents contribute significantly to helping people regain the confidence to travel, which is absolutely essential for our industry. We truly value the commitment of our travel agency partners and are happy that we can connect to them through Sabre’s marketplace.”

Sabre plays an important role in facilitating the marketing and sale of airfares, hotel rooms, rental cars, rail tickets and other types of travel to hundreds of thousands of travel agents and thousands of corporations and online travel agencies (OTAs) who use it to shop, book and manage travel. It is one of the world’s largest marketplaces, processing over US $120 billion in estimated travel spend.

“We are fortunate to enter this unprecedented period with new opportunities that will drive incremental revenue for both agencies and airlines”, said Wade Jones, President, Sabre Travel Network. “Consumers want the best offers, agencies want to present the most relevant content to their customers, and airlines want to distribute their fares and products so that travellers can access them wherever they choose to shop. Sabre remains committed to helping all parties achieve their goals. We are confident that our content serves the needs of travel agents in a truly optimal way.”

Finnair, which specialises in connecting Europe and Asia through the short Northern route via its Helsinki hub, has invested heavily in enabling the benefits of New Distribution Capability across the travel industry value chain. As a leading Global Distribution System (GDS) in the Americas and the Asia-Pacific region, Sabre provides the carrier with the opportunity to sell its high-margin long-haul products through the large agency community in these important source markets.

Phuket Hotels Association Launches COVID-READY Certification with Hotel Resilient

Phuket Hotels Association Launches COVID-READY Certification with Hotel Resilient

Phuket, Thailand, June 16, 2020 / TRAVELINDEX / New internationally recognised certification – a first in Thailand – to provide assessment, guidance and support to Phuket hotels as they prepare to reopen after COVID-19. The Phuket Hotels Association has joined forces with Hotel Resilient to launch the COVID-READY Certification scheme, a new initiative to provide guidance, resources and tools to support the safe reopening of hotels and to help restore confidence in the island’s hotel industry following Covid-19.

Hotel Resilient is the world’s only scientific benchmarking and certification body for disaster risk management and climate change adaptation in the hospitality industry. It provides hotels and resorts with risk analytics, digital platforms and pragmatic tools for disaster and climate resilient planning, design and operations.

Even before the Covid-19 pandemic, Hotel Resilient highlighted disease outbreak as one of multiple hazards potentially impacting hotels. In the wake of the pandemic, Dr. Trevor Girard, Director of Standards and Accreditation at Hotel Resilient and his team of risk specialists have evaluated the scientific evidence, international guidelines and industry best practices to set new standards that cover all aspects of a hotel’s COVID-19 prevention and response strategy.

Travelers Demand Safety Above All

The COVID-19 pandemic has spread to almost every country in the world, and its impact on the tourism industry has been tremendous. Due to travel bans and nation-wide shutdowns, hotel bookings have decreased drastically and many hotels have temporarily closed. Even when restrictions ease and travel bans are lifted, it will be some time before it is business as usual.

For months if not years, travellers will be extra cautious with their travel plans, most likely preferring destinations with little to no Covid-19 cases. In terms of accommodation, hotels that can provide an extra level of protection against the virus will be in high demand.

“The new COVID-READY Certification scheme will provide assessment, guidance and support to our Phuket hotels as they prepare to reopen,” commented Anthony Lark, President of the Phuket Hotels Association. “Member hotels can obtain this internationally recognised certification, which will showcase Phuket as a safe destination and provide reassurance that hotels are working together to ensure the protection of their guests, staff and the community. Health and safety has never been more important than now, as we prepare to reopen our doors,” Mr. Lark added.

Teaming up with Hotel Resilient marks the next major step in the association’s efforts to work together in restoring confidence in Phuket, and helping hotels prepare to resume operations with enhanced hygiene practices. Dr. Bijan Khazai and the Hotel Resilient team will work alongside the Phuket Hotels Association, member hotels, and local authorities to develop supporting tools and support hotels obtain international certification.

The Hotel Resilient COVID-READY Certification scheme is aligned with the internationally recognized Hotel Resilient global standards on disaster risk management. It goes beyond hygiene and safety, addressing systemic and procedural changes to minimise risk and address various crisis management aspects, such as response planning, business continuity, and crisis communication with regard to COVID-19.

These new standards are supported by a user-friendly audit and task management software that allows hotels to prioritise areas where action is needed to improve their level of Covid-19 preparedness. In addition, interactive and engaging e-Learning courses are available on the platform, helping to bring hotel staff up-to-speed on the current COVID-19 pandemic threat and describing their roles in the COVID-READY standards, such as preventing transmission or responding to an infection.

“The COVID-READY Certification scheme will make Phuket one of the first tourism destinations in the world to take a proactive approach to safety and hygiene preparedness, based on world-class standards. Once all 70+ Phuket Hotels Association’s member properties are audited and certified, it will provide a safer environment for visitors, hotel staff and the Phuket community,” commented Dr. Bijan Khazai, CEO of Hotel Resilient.

About Phuket Hotels Association
The Phuket Hotels Association is a nonprofit organization comprising 75 hotel members; a broad spectrum of hotels who have joined together to; Promote Phuket island as a destination; raise awareness of Phuket as a safe and quality leisure and MICE (meetings, incentives, conventions and exhibitions) destination; educate local Phuket residents though the association’s scholarship fund, and also assist and educate with the environmental best practices to reduce any harmful impact that tourism has on the island.

Paradigm Shift in Core Competencies for Post-Covid-19 Recovery

Paradigm Shift in Core Competencies for Post-Covid-19 Recovery

Consequences in hiring and leadership in tourism, travel, hospitality and related industries – by Richard Adam, Chief Executive OPTIMIST, NED Board Member, Strategist, Intl. Developer (Destination, Resort, Real Estate). First published at Linkedin.

“Not again. Not another depressing Covid-19 business analysis!”. In case you reacted to the title in this way, this article is written for you. As a business veteran in the tourism, travel and hospitality experience industry including the development of destinations, leisure venues and commercial properties, I have always tried to capture the industry intellectually, consistently taking the customer experience perspective, long before I was confronted with the harsh realities of the pandemic. Even more so, I am trying to look under the surface of the obvious at the beginning of this new era after the comfort zone of decades of growth and prosperity. For many industries, in terms of future market shares in supply and demand, cards are being re-shuffled.

As the summer travel season is starting in some parts of the world, the managers of destinations and service providers are trying to surpass each other´s marketing efforts with the same narrative: “We are open for business again”. This is an attempt to nurture the illusion that nothing has changed, and that the virus is gone, except with the ramped-up emphasis on safety, hygiene and sanitation. Even then, reopening attempts are a minor step. Recovery is a longer journey in unchartered waters where previous navigation routines might be misleading.

Now, much has been said and written about the consequences in this context and I am not going to say the same things again. However, I would like to emphasize the consequences in required core competencies that could potentially lead to different approaches in the human resource and management sector, most particularly in the selection and hiring of new team members or managers and in the leadership qualities required to gain competitive advantages.

If you have been observing the current communication within the business community, no matter what industry, the narrative is mostly about re-opening and restoration. My radar certainly does not detect everything published on the subject, but if a company would step up and state that “this is what we have learned and this is what we are going to do differently now” (beyond health prevention and hygiene measures), I would find that most refreshing.

Haven´t we all heard a hundred times that people make the difference? The travel, tourism, hospitality and related industries certainly are a people business, as they provide experiences for travellers, visitors or guests, using the skills of many trained service providers. Although digitalization plays an increasingly dominating role in those sectors, the actual experience people pay for is not happening in cyber space. It is real, involving human encounter and traveller or hospitality concepts that actual people have created and are executing.

However, after decades of growth, Covid-19 certainly was more than the blow of a temporary lock-down. It most probably will be a substantial rib in the fabric of the industry and a game changer.

Hospitality

In October 2019, I published an article on the developments in the global hospitality industry, as seen from the perspectives of hotel guests, but in particular from the perspectives of real estate owners and investors. That article obviously hit a nerve (see here).

Now, with the focus on changes in needed core competencies and leadership, this article is the next chapter in a Post-Covid-19 global tourism or hospitality story.

Over decades, the increase of hotel concepts and labels from global hotel system providers based on asset-light strategies, the business with income generated primarily from management and royalty fees, grew as the preferred business model. It worked so well that the franchise salespeople of large hotel groups (which I prefer to name hotel system providers – HSP) were called “developers”. However, many of these “developers” had never actually sweated through the journey and pitfalls of taking a greenfield concept to a viable traveller, guest or visitor experience, with all the steps needed along the way. These HSP-companies no longer served the needs of hotel guests, as their revenue was coming from hotel owners and operators. Therefore, starting out in hospitality management and ending in labelling or franchise sales, they might have lost sight of customer needs. Over more than 20 years, the hotel giants like Marriott, Accor, Hilton, IHG and some of their followers have consistently created a generation of executives of which a vast majority has never been exposed to any other strategy or business model then selling services and labels to real estate owners and operators. Some are sharper, some are more aggressive, but when these managers move on to a competitor, the business approach leading to an asset light strategy is the same. That is why these corporations struggle when it comes to real substantial innovation, strategic shifts or disruption. Rolling out a new campaign or another segment label is the foreseeable reaction.

I suggest you do a little test here: Find a recent promotional add or clip of one of these corporations and, in your imagination, simply replace the logo with a competitor´s logo. Does it generate the same level of credibility or does it even make a difference?

As these practises came to a state of saturation already before the pandemic, we will most probably see a shift in the type of investments made in the foreseeable future. Investors will be less focused on property (hospitality, leisure, retail, etc.) and may start taking a closer look at other opportunities, e.g. in medical, health, pharmacy, MedTech, FinTech etc… Alternatively, opportunistic investors will get involved in distressed properties and take advantage of the situation by negotiating new terms and conditions against operators, also protecting themselves from a similar crisis in the future. I sincerely hope that this will be temporary, and I strongly believe that tourism and related investments will reach interesting returns again, but we must all agree that this will not be tomorrow and probably not in 2021 either. Just as most businesspeople, including myself, could never have imagined before a global lock-down of the world´s travel and tourism sector, there is an increasing number of people today who can imagine this happening again.

The interesting observation in the current Covid-19 reopening phase is that most of the global hotel system providers were demonstrating their usual reactions of rolling out new promotion campaigns, focusing on hygiene, safety and sanitation on an international scale. We can certainly agree that these aspects will be more and more at the forefront of concerns when going places (along the entire visitor journey, not just in hotels alone). However, unless you have to travel, these efforts are not the driving motivator for travelling. It seems that the global hotel system giants are now replacing the concept of hospitality with “hospitalization”. The practical issues, however, e.g. what will be offered instead of the buffet breakfast or the kind of entertainment in lively bars and how these can still be enjoyable experiences, are left unanswered and subject to the individual hoteliers. What we know is that all operational processes, from luggage handling to F&B to cleaning rooms, gyms and pool areas etc. need highly cost-effective scrutiny while initial demand is slowly building up primarily from domestic travellers, making hotels which depend on international source markets suffer severely. Because it is foreseeable that business will be primarily local (although distributed globally mainly by OTAs) in the times ahead, the competitor is the property down the road or the real fact-based value proposition and not another “brand” (should that ever have been the case anyway). The old saying “all business is local” has suddenly regained importance in this new light.

Consequently, taking safety and hygiene as given elements, individual hospitality talent will make the difference in creating rewarding guest experiences and not the evangelists of corporate procedure manuals. Technocratic guidelines on how to provide memorable hospitality experiences were weak already before the pandemic. Now, hoteliers not only need to reinvent many of their offerings, they also need to develop new approaches designed to regain and retain guests (other than the known loyalty programs) and this requires a new breed of talent, especially if the hoteliers were used to following and implementing technocratic brand standards until now. Although not all destinations and hotels were doing well at their respective categories over the last 20 years of growth and prosperity, recovery, disruption and turn-around competencies or relevant experience were in demand only as exceptions. Now, they are the rule of the day.

Destinations

A well-managed hotel, similar to well-organized travel and other service providers, normally flourishes with the success of a popular destination. Only very few hotels and resorts on the planet have the reputation and strength to attract travellers purely based on the guest experience they can provide.

The concept of delivering the best possible visitor experience remains essential. Hotel managers want their guests to have a memorable experience from the moment they arrive. Nobody wants to step into a nightmare immediately outside hotels or to have unexpected difficulties getting there.

I recently published an article on consequences for travel destinations and their governance, management and development strategies in Pre- and Post-Covid-19 times. I invite you to read the article and consider the following reflections on needed core competencies in the Post-Covid-19 period as a continuing guide for destination management or even re-development strategies.

In a nutshell, decades of growth due mostly to external factors, which were taken for granted, have spoiled many travel destinations and made tourism officials focus mainly on promotion – as well as on self-praise efforts to a certain extent – while neglecting a continuous improvement of the visitor experience. These days, tourism and travel destinations worldwide are in a serious state of crisis, one that that nobody has ever experienced before. Especially after decades of growth and “gold rush” times, there is little to no human capital with much experience or accomplishments in recovery, turn-around and restructuring. It all starts with the people in charge, those who have access to the resources and give directions. The “pure promoter” profile of management has become obsolete, almost within weeks.

Consequences for Recruiting, Selection and Leadership

Thinking positively, I am convinced that a hiring wave will follow the disastrous consequences of lock- downs and redundancies which probably hit the travel, hospitality and tourism industry harder than any other sector. This extreme situation is the result of the fact that you cannot store service, travel or accommodation capacities and that supply, as well as demand, will still be limited for quite some time. The question seems to be, whether the period ahead needs the same type of people and competencies we have seen in decades of continuous growth – occasionally paired with management negligence in anticipated comfort zones.

As a seasoned “fire fighter” through my work in the relevant industries with executive experience and insights collected through assignments on 4 continents, I have developed my own strategy in selecting and hiring key talent at both line and management levels. In 25 years of having influence in the selection and hiring processes for several hundreds of people, I can count on the fingers of one hand the candidates who did not work out. Then again, my practise is quite different to the mainstream methods and relatively time consuming, although for my assignments, it always paid off. In reviewing CVs,  I look at whether they tell a story (not necessarily whether the candidates have done exactly the same job or task as the position calls for), I talk with as many candidates as possible, especially when it comes to those who would have direct reporting positions, preferring long lists instead of short lists, as documents seldom tell you enough about entrepreneurship, strategic or social intelligence, analytical skills, the candidate´s ability to formulate complex scenarios in clear sentences, the balance between task- and result- orientation, problem solving skills, potential, loyalty, spirit, honesty, integrity, reliability, ego control, structured approach to managing situations, drive, ambition … and having a sense of humour. Documents tell you about previous technical experience, which becomes less relevant after a few months of orientation anyway. Personality and attitude remain relevant assets through the whole employment history.

When the sun is out and the sea is calm, most people look good in keeping a steady course. Stormy weather and navigating in unchartered waters bring up true talents and resilient attitudes – or uncover fatal gaps. Top executives not only need to fill boxes with people for jobs to be done, they are also the curators of the company spirit and values – in one way or another, make or break. Along with discipline, a lasting cohesive positive spirit will be key in the critical times on the horizon.

Having said that, from my perspective, I have realized what decades of comfort zones and natural growth in this industry have done to recruitment and selection practises. When new recruiting waves should emphasise the spotting and onboarding of currently required competencies, it might be reasonable to rethink common habits in recruiting, selection and leadership.

To that point, here are a few myths and widely common practises that might need to be questioned:

  1. I only have time to spend 6 seconds on average for initial CV screening

Of course, I do understand the situation of HR people and recruiters with hundreds of CVs flowing in day by day, but I don´t accept that as an excuse. Understanding this, you can spot, whether the candidate has technical experience for doing a certain job. However, you cannot see beyond that experience, especially in terms of the candidate´s values, which I would emphasise the most. Recruitment has become a box-ticking exercise based on buzz words, the initial screening often delegated to young graduates or, even worse, to ATC computerized processes. I fully agree that for certain roles, this is good enough, but for many roles and positions, based on that practise, you throw away talent into the bin. Even more so, it is a lost opportunity, especially if the buzz words were the wrong ones as you can never foresee what kind of potential and talent might be knocking on your door. Whoever completely disagrees with me here, should certainly not mention the phrase “We are in the war for talent” anymore. In particular this applies to hiring managers who are too busy to dig into all the relevant candidates at hand and only want to see two or three profiles. They should rather skip a lunch and take the time to look for the best: not only the candidates who can do the job or fill a gap, not the ones who come closest to the defined buzz words and stereotypes, but the ones who can generate the best possible value for the company, the ones who can make a difference. I am often surprised and disappointed to see executives spend time in endless or useless meetings, luncheons or conferences, rather than dedicate significant time to the selection and careful handling of the primary assets of a company.

  1. Only candidates meeting the criteria will be notified

There are two reasons why this practise can backfire and, in many cases, does.

First, an employer represents a brand and a successful brand represents a set of spirit and values, not just design standards and narrative guidelines. HR or contracted recruiters also represent this brand. If respect and mindfulness are part of these brand values, a company should respond to all applicants with an initial confirmation and a notification that the process is completed. In the digital age of automatization, there is no excuse why this cannot be done, even for a large number of applicants. Again, in a “war for talent”, it could be considered poor practice not to do so. Even worse so when the candidate eventually gets bombarded with newsletters or spam from this particular company.

Secondly: you always meet people twice in your professional world. Unsuccessful candidates can move on to competitors, can become customers or gain influence in other areas relevant to the company. In today´s ever-changing world of shifts in ownership structures or alliances, mergers and acquisitions, yesterday´s bad impression can make a lasting impact. Instead, if a company treats candidates with respect and delivers updates in the selection process, you can even gain an unsuccessful candidate as an advocate, especially when he or she is able to understand why they did not cross the finishing line ahead of the others. Professionals can live with a “No, thank you!” but professionals also want to understand the reason for the “No”, for their own analysis and improvement. There is a risk that, when HR people and recruiters coming across arrogantly and do not handle the process well, they could damage the company´s reputation, as the recruiting process is an important experience that the company shares with the outside world through its applicants.

  1. He/she worked for (…big name…) so he/she must be good

People – including myself – occasionally fall for illusions. A high-profile company name on a CV or business card often stimulates the idea that people from this company might be better than candidates from lesser-known companies. If you were a marketing manager involved in campaigning for a top-selling product, your ego might tell you that you are better than the person who has a slightly tougher job selling a more challenging product. Glossy names can be fatally dazzling, as they do not say anything about the real impact and role that this particular candidate personally had in a success story. I prefer candidates who can demonstrate real personal impact, analytical and lateral thinking problem solver, who assume responsibility and surpass other candidates who were only fortunate to ride on a wave of lucky circumstances or coincidence.

In times when recovery is first on the agenda, failures are often a good learning experience. Getting your teeth kicked in when involved in a failed attempt may teach you more than somehow participating in successful cases. Although I agree that storytelling has an influence in the hiring game, I also believe that there is no great personality with an easy past. Again, in Post-Covid-19 times, we need less “dazzlers” and more people with proven accomplishments dealing with critical tasks and great attitude when the going gets tough. During the decades of growth, many people have never experienced a crisis, so very few can cope with and manage the needs of recovery, re-structuring and turn-around.

  1. We had a very good mutual understanding of what needs to be done

Sure, this is a sticky issue. You cannot afford to work with people constantly arguing and debating with you or between themselves. In most operational roles, there should be a minimum of constructive debating among team members and managers. But then again, forget about your ego for a while. Hopefully, you do not want to hire a CV profile, you want people with brains and a professional opinion too. You are expecting resilience? Then, you better be resilient as well. I have seen interns come up with amazing proposals and solutions that nobody within the ranks of the more experienced thought about. Did I overrule the opinion because it came from “the intern”? No, I did not. I encourage everyone to create ownership of a common mission and forward thinking certainly is an essential part of creating that ownership. Therefore, I like to challenge candidates in interviews, and they score points if they challenge me in return, in a constructive way. Remember: “Leaders who don’t listen will eventually be surrounded by people who have nothing to say” (unknown).

There is a human tendency to sympathise with people with whom you have something in common. For hiring managers, this can be a similar career or background, same school, country of origin, “buddy network”, belief, experiences or common previous employer and often leads into hiring stereotypes. People feel comfortable with conformity. Sometimes, it is just pure vanity. In psychology this is called “the Groupthink Phenomenon”. But then again, if two people constantly share the same views, one of them becomes useless. Diversity is not reduced to gender or ethnical categories or age. The real value of diversity is in different views and contributions. Also, experience can have two different manifestations. On the one hand, when it comes to narrow-minded people their experience can be a burden to the company (and for themselves). However, if an organization can unlock the broad experience from open-minded seasoned professionals still retaining the ability of constant learning and de-learning, it can save tremendous time and money, eventually becoming a business life saver.

As in post-Covid19 times, re-engineering and re-design of processes and services will be crucial, you don´t need people who are lost without the corporate procedures manual or who are just waiting for others to provide solutions. You will need people who would be able to reinvent the wheel if necessary or to fix the plane while it is flying.

  1. We have our strategy in place. Not your concern

It´s always amazing when company representatives tell you that they had one of the “big name” consultancies involved in developing “their” company- or business strategy. Having worked in a relevant top-tier strategy consultancy myself, I know there can be great value in bringing in new thinking from the outside. However, that is only half the truth. In the world of tourism, travel, hospitality and probably in other industries as well, there is no shortage of strategy documents and “power point charts” outlining what should be done next. There is simply a lack of execution. This lack of execution starts with lack of ownership. Especially in the corporate world, strategies are hardly well-communicated and transformed into actions, as they are mostly discussed in executives´inner circles. In many cases, they are empty phrases for the majority of the team members and company employees. One essential requirement for the success of a strategy is implementation, which only works when each team member knows her or his specific role within that strategy, along with a few of the KPIs that they need to deliver. To achieve this, ownership is key, and, as a consequence, so are participation and feed-back. In post-Covid-19 times, it may not be necessary to throw everything overboard in what was once a sound long-term strategy. However, a few fundamental things will certainly need to be adapted in such a way that everybody knows what to do differently. You get very different results, depending on your approach: either giving orders to subordinates or sharing ownership of the strategy and winning them over to really engage them to go the extra mile.

Pre- and Post-Covid Paradigm for Core Competencies

Here I can safely assume that the pandemic is forcing and accelerating existing trends rather than creating them. This applies to digitalization, working remotely and increased health concerns. Additionally, the situation creates a massive blow for the travel, hospitality and tourism industry falling from decades of growth and prosperity into a state of shock. Within a couple of weeks, there are financial disasters due to lock-down, a potential recession threat and a difficult to foresee perspective for recovery. While in times of growth certain competencies or practises are in demand and some weaknesses are not that obvious, recovery requires a different approach; strategically, financially and operationally. Consequently, this includes the need for different competencies and considerations that may have been neglected in times of flying high. In the chart below, I have set certain values or aspects of “gold rush” times against the needs and competencies of recovery times. This is certainly not a complete listing. The basic purpose is to visualize the way that times have changed and so have general conditions, which need to be addressed by a different approach, a different mindset and different priorities.

An experience from my professional archives and resulting conclusions

In the last ten years, among other adventurous missions, I had various development and trouble-shooting assignments in South East Asia. In terms of leadership, being at the helm of a post-merger integration of two different companies, each providing luxury services in three different countries (river cruises, hotel ships, excursions, etc…), was one of the most exciting and challenging missions I have had. Demand was high and forecasts were excellent, the challenge was not in providing a strategic shift or turnaround, but, operationally, the two companies had very different approaches to business, no real structured management system and no reliable controlling systems. The most challenging aspect was that each of the two companies was dominated was dominated by different groups of different ethnical origin. There were conflicts in their countries´ long and strife rich histories, which were not completely forgotten. Now, from a professional viewpoint, what I had to do seemed logical and easy – on paper: streamline operations, establish common standards and procedures and a controlling system which provided the company with reliable data. But to see this through with this structure at hand was the real challenge. Post-merger situations normally are times of disorientation for the workforce and hanging on their usual habits and practises was a natural reaction. Change management starts with building confidence. Establishing a firm leadership and, at the same time, creating ownership were the make-or-break determining factors in this situation. Here, the effort of identifying the people with the right potential, developing them and making them engaged in multiplying a cohesive spirit of ownership was the most rewarding result, finally, helped to achieve the break-through.

According to Confucius, there are three methods we may learn wisdom: ‘First, by reflection, which is noblest; Second, by imitation, which is easiest; and third by experience, which is the bitterest’. It seems experience has taught me the most and without reflection it would not be worth anything.

In South East Asia (and often elsewhere, too), to be effective in your project, you need to crack the most relevant codes of communication with respect to cultural heritage and mentality and create a vision, making everyone part of it (employees generally  appreciate coaching with regards to their role within a strategic vision) and furthermore, if you firmly maintain certain principles and discipline, you will have the most loyal, dedicated and engaging associates you can think of. However, if you manage using corporate hierarchy, memos and emails while sitting at your desk, you might not be clearly understood (certainly not in terms of generating ownership!) and, most probably, nothing will happen. People involved will not likely let you know either, for fear of losing face, which is a core issue in Asian societies. More often than not, nothing is really as it seems.

About two years ago, another episode started, which was less successful, at least for one of the parties involved. At that time I was invited to the European head office of a global upscale provider of travel and hospitality related services, mainly hotels plus some rare and appealing other offerings, discussing a potential assignment to look after the assets and developments in their Asia Pacific division. From my previous working experience in Asia, I very much enjoy working in that part of the world.

In the case of this assignment, which we were discussing at that time, my initial research had showed me a few obvious indicators of why the company´s assets in that area did not live up to expectations, although they were outstanding products. Supposedly, the company was not looking for the typical hotelier career background and was interested in a more out-of-the box strategy minded entrepreneur profile, we seemed to be on the same page. At that time, the common business model of international hotel chains based on income derived mostly from management and royalty fees, was wearing out already and the company seemed to emphasise economy of scope rather than economy of scale. So, I was highly motivated, confident and interested. Unfortunately, shortly after the initial discussion, the company including all global assets was suddenly for sale and the discussion became obsolete.

I did not follow up anymore for two years and I did not get any further transparent status updates either. I read about the new owners in the trade press six months later. Coincidentally, just at the time of global Covid19 lock-down, they hired a stereotype  “expat profile” with a track record in operating, scaling and replicating the way that the hospitality industry got used to working over a long period of time. This seemingly was a “conformity hiring” decision, at a company where traditional business considerations, mindsets and competencies are most abundant already, at a time, when the world of hospitality is in lock-down and needs innovative disruptive approaches to regain momentum and competitive advantages. In a period when scaling hotel labels had its peak and, due to Covid-19, when investors are expected to look for other areas than new hotel properties, it occurred to me that the company still believed in restoring obsolete practises. They were not performing too well globally already prior to the pandemic and their pipeline of new hotels had been empty for years, even before the lock-down.

The asset light strategy for hospitality companies was wearing out on the demand side already prior to the pandemic and will now be weakened by reduced supply of opportunities in the years ahead. When economy of scale is less promising, economy of scope might be the alternative route to go. But then, service redesign and reinvention or extending the value chain is more relevant than replication.

In all fairness, the executive whom the company hired may still significantly contribute to recovery. However, it reminded me that a few companies might still think that the Covid-19 “rip” was a temporary problem without further long-lasting consequences. Disregarding the detailed facts and assessments behind this observation, which I do not know, the case is suitable to generally illustrate that companies might react slow or not at all to fundamentally new situations, requirements and priorities or do not see the change in requirements in executive profiles. They probably held on to the idea that the international scaling, labelling, replicating and franchising in hospitality (often referred to as management contracts), along corporate guidelines, would go on the same way after the shock, as if nothing substantial had happened and therefore, the type of competence profiles and practises that had worked in decades of growth would continue to remain unquestioned.

Hypothetically, you may ask whether many corporate hotel careers and backgrounds are very similar, therefore conformity thinking is highly pronounced, exposure to drastic strategic shifts over the past decades was relatively low and consequently following old paradigms in tackling recovery is the most likely approach to be expected. To a certain extent, that would be fine with me. I just do not believe that it makes sense to re-build yesterday´s system and thinking over again when this overstressed practise was facing saturation already prior to the pandemic.

This conclusion is not only based on the effects of climate change or the new theories about de-globalization, recession or horizontal growth limitations, it is also based on how we will work and how we will travel, live, eat or sleep and how we will spend our money in the future: differently.

If you agree that the Covid-19 pandemic was more than a temporary disruption, you might also believe in a few lasting changes and consequences for recovery and re-building businesses. Although prejudices and stereotype categories are dangerous and often unfair or not applicable in many cases, it seems to be logical that there is a higher demand for new core competencies on the horizon, which are hardly developed or considered by “corporate soldiers”. In the corporate world, immediately below the top level (sometimes including that level), you quickly learn about the responsibilities of OTHERS and act accordingly as a survival principal (often referred to as “CYA” policies or the blame game). Here, resilience is more often seen in the light of personal career enhancement rather than regarding the welfare of the business or the company. In less structured, often more challenging, entrepreneurial environments, you are constantly forced to re-think what else YOU can do to improve the situation and to create additional values. Your own responsibility in making a positive impact is unlimited. It is the degree of ownership which makes the difference – among a few other valuable assets. These different approaches in tackling the challenges at hand will become obvious in the very near future. Different times demand different rules. Disruptive times generate disruptive answers and in periods of disorientation, the committed “early birds might catch the worms”.

For enquiries and issues in recovery or re-structuring in destination development or related hospitality, travel and leisure services and products, from strategic aspects, offerings to organizational changes and distressed development projects, feel invited to reach out to the author via LinkedIn for an initial discussion. A proven extensive 360- degree experience and a series of accomplishments (incl. “firefighting”) in all aspects of destination or hospitality development, lifecycle, structuring, governance, funding, strategy and execution on 4 continents can bring tremendous value to your project or existing assets.

About Richard Adam
Seasoned international C-level executive and board member in asset management and investment, destination-, resort-, leisure venue-, commercial real estate development and place-making from a 360-degree perspective, from greenfield strategy to delivering viable visitor experience and retention, with working experience on 4 continents and a series of accomplishments in distressed and challenging restructuring or recovery missions, 20 years reporting at board level. Digital advocate, media trained, well-proven public speaker, endlessly curious.

© Richard Adam, Munich, June 2020 – all rights reserved

 

WTTC Welcomes Beginning of Travel Recovery Across Europe

WTTC Welcomes Beginning of Travel Recovery Across Europe

London, Great Britain, June 15, 2020 / TRAVELINDEX / WTTC welcomes the beginning of the recovery of travel across Europe. Gloria Guevara, WTTC President and CEO, said:

WTTC welcomes the reopening of borders and the easing of travel restrictions across Europe, and applauds the European Commission (EC) recommendation to Schengen Member States to lift all internal border controls by June 15 and international travellers from July 1, as well as the recently announced website Re-open EU to help travellers plan their European holidays.

“This important move will help encourage holidaymakers to begin travelling again, provide a vital boost to the Travel & Tourism sector, and kick-start the much-needed global economic recovery. We strongly urge EU Member States to follow the EC’s recommendation and coordinate efforts to restore a functioning Schengen zone as soon as possible.

“We are encouraged to see Spain and Germany working together on a new tourist pilot plan, which today saw the Balearic Island of Majorca welcoming its first visitors in three months. The new initiative saw all passengers and holidaymakers arriving from Germany receiving temperature tests upon arrival.

“This landmark move by the two European heavyweights is a significant step towards recovery, and it is important other countries implement similar measures which will kick-start the Travel & Tourism sector and save the millions of livelihoods that depend on it.

“We urge those countries with quarantine measures to reconsider and set out a clear timeline for their removal, to provide greater certainty for Travel & Tourism and the wider economy.”

During 2019, Travel & Tourism was responsible for 22.6 million jobs, or 11.2% of the EU’s total workforce. It also generated €1,319 billion GDP, or 9.5% to the EU economy, growing by 2.3% from the previous year.

UAE is Ready to Open its Borders to the World

UAE is Ready to Open its Borders to the World

Dubai, United Arab Emirates, June 15, 2020 / TRAVELINDEX / According to UAE Authorities the country is preparing for a full reopening after months of shutdown, Dubai Tourism has made an announcement that the country will be reopening again, though the date has not been set.

“Authorities are preparing for a full reopening of UAE’s borders, subject to the removal of travel restrictions by implementing a series of strategic measures in conjunction with their federal counterparts designed to ensure the virus does not enter the emirate through its sea and land ports,” the Dubai Tourism Trade Toolkit said.

Emirates airline has already resumed scheduled flights to nine destinations from May 21. Flights to Bahrain, Manchester, Zurich, Vienna, Amsterdam, Copenhagen, Dublin, New York JFK, Seoul, Kuala Lumpur, Singapore, Jakarta, Taipei, Hong Kong, Perth and Brisbane, will be available from June 15 on the carrier’s 777-300ER aircraft.

Dubai Tourism said it is working with hotels and stakeholders to prepare “to welcome the world” to Dubai in “the coming months” in the city’s final phase of recovery, and for “exceptional customer experiences to be delivered”.​

“Travellers will be welcomed to Dubai in a safe and secure environment ensuring seamless use of contactless technologies and advanced equipment for screening incoming and outgoing passengers to safeguard the city from any spread of infection. World-class cleaning and disinfection processes across all facilities, attractions and assets to ensure a risk-free experience for tourists in the city are being implemented,” it added.

Thailand’s Highest Rooftop and Observation Deck is Back

Thailand’s Highest Rooftop and Observation Deck is Back

Bangkok, Thailand, June 12, 2020 / TRAVELINDEX / Mahanakhon SkyWalk, Thailand’s highest rooftop and observation deck at King Power Mahanakhon’s 78th floor has reopened its doors to the public.
Located within the iconic pixelated building in the heart of Sathorn, the attraction is ready to welcome visitors back to its panoramic indoor and outdoor viewing decks. With new social distancing measures under KING POWER CARE POWER, guests can expect a touchless and hygienic experience in all aspects of their visit—with a focus on four main pillars including the creation of a “Safety Place” for all visitors, a detailed “Screen & Scan” process, a consistent practice of “Social Distancing”, and the availability of “Safety Service and Payment” through cashless payment options. Open daily from 10.00hrs-20.00hrs, highlights of the attraction include one of the most photogenic spots in Bangkok–the thrilling glass floor which overlooks the entire city.

New visit protocols at King Power Mahanakhon include a visitor registration at the building entrance, a real-time dashboard to monitor the number of visitors, a temperature scan to ensure that visitors do not exceed a body temperature of 37.5 degrees Celsius, and a UV-scanned security screening process. Each elevator journey ensures social distancing between guests, while a limited number of people will be able to access the glass floor per time.

To accompany the scenic view, food and drinks are also available at the rooftop including a newly launched “Picnic in the Sky”. Available from 16.00hrs onwards, the beautiful set is served in a picnic basket and includes a House Smoked Chicken with Bacon Sandwich, an Herbed Mixed Green Salad with Lemon Ginger Vinaigrette, Roasted Red Pepper Hummus, a tangerine, and a delicious Brown Butter Sea Salt Chocolate Chip Cookie. Other food options include an all-day Bar Bites menu with a choice of Chicken Wings, Red Pepper Hummus, Mahanakhon Dips—a colourful vegetable platter, and Salmon Rillettes. As limited seats are available at the rooftop, Mahanakhon SkyWalk guests are highly encouraged to book their rooftop seating in advance by calling 02-677-8722.

Entry to Mahanakhon SkyWalk starts at THB 880 per one adult entry while admission for junior (for children ages 3-12) and seniors (over the age of 60) start at THB 250 per person. Guests are highly encouraged to purchase their tickets in advance online. To celebrate the reopening, a special promotion of “Come 4, Pay 3”* is also available at the ticketing counter, located at the lobby of King Power Mahanakhon.

Guests who are seeking a shopping experience can also now enjoy King Power Duty Free and Retail Shops located on Levels 2-4 of the building. Open from 10.00hrs-19.00hrs, the shops offer an array of Thai and international brand name items, Thai handicrafts, souvenirs, and a variety of curated food items.

IATA Interactive Map Gives Travelers Latest COVID-19 Restrictions

IATA Interactive Map Gives Travelers Latest COVID-19 Restrictions

Amsterdam, Netherlands, June 11, 2020 / TRAVELINDEX / The International Air Transport Association (IATA) introduced a free online interactive world map to provide travelers with the latest COVID-19 entry regulations by country. The map relies on IATA’s Timatic database which contains comprehensive information on documentation required for international travel. To keep pace with the dynamic situation with respect to COVID-19, Timatic is updated more than 200 times per day to provide accurate travel restrictions specific to the current pandemic, based on one’s citizenship and country of residence.

‘’As the aviation industry prepares to safely restart, travelers will need to know which countries’ borders are open and what health restrictions exist. Travelers can rely on Timatic for comprehensive and accurate information on travel during the pandemic,’’ said Anish Chand, IATA’s Assistant Director, Timatic.

In a recent survey commissioned by IATA regarding concerns people had about air travel post-crisis, more than 80% of travelers said they are as concerned about potential quarantine restrictions as they are about actually catching the virus during travel. With the uncertainties and quickly changing health restrictions from one country to the next during the pandemic, this new resource for travel planning is timely and important.

‘’We support the International Civil Aviation Organization (ICAO) guidelines to harmonize the measures to keep people safe while traveling and provide the confidence to open borders without quarantine measures. And this Timatic offering will be a vital tool for travelers who need easy access to accurate information on entry requirements,” said Chand.

IATA’s COVID-19 interactive world map, also available for mobile, can be viewed here. The Timatic COVID-19 Alerts service was also launched this week to offer subscribers real-time notifications for all travel updates related to the pandemic.

WTTC: 197mio Travel & Tourism Jobs Lost due to Prolonged Travel Restrictions

WTTC: 197mio Travel & Tourism Jobs Lost due to Prolonged Travel Restrictions

London, United Kingdom, June 11, 2020 / TRAVELINDEX / More than 197 million jobs could be lost in the global Travel & Tourism sector if barriers to global travel, such as blanket anti-travel advisories and quarantine measures remain in place, according to new research from the World Travel & Tourism Council (WTTC).

•    WTTC says Governments must act now to save the sector
•    Prolonged travel restrictions and lack of urgency will result in the loss of $5.5 trillion in T&T GDP
•    Worst-case scenario can be avoided if governments around the world follow four-point plan for recovery and start easing restrictions now, ahead of the summer

The devastating figure comes from WTTC economic modelling, which looks at the impact faced by the Travel & Tourism sector amid local and global travel restrictions as a result of COVID-19.

In the worst-case scenario, where restrictions were lifted after the summer, the impact would be more significant, putting a total of 197.5m million jobs at risk. This represents an alarming 96 per cent rise from the most recent 100.8 million jobs WTTC had previously estimated to be under threat from the coronavirus pandemic.

The research shows that if these travel restrictions were removed sooner, it could save a staggering 99.3m jobs.

The impact of prolonged travel restrictions could also wipe out $5,543 billion in the sector’s contribution to global GDP, equating to a 62% percent drop compared with 2019.

Meanwhile, in the worst-case scenario, global international arrivals will suffer a sharp decline of 73% and 64% for domestic arrivals.

Gloria Guevara, WTTC President & CEO, said: “We are deeply saddened by the loss of so many lives and the devastating impact on families around the world because of the COVID-19 pandemic.

“This terrible virus has also had a crushing global socio-economic impact, which is threatening the jobs of millions of people who very livelihoods depend upon a thriving Travel & Tourism sector for their survival.

“Unfortunately, our new modelling reveals the depth of the long-term impact facing the global Travel & Tourism industry if travel restrictions continue for an extended period of time.

“Under our worst-case scenario, prolonged travel restrictions could put more than 197 million jobs under threat and cause a loss of more than $5.5 trillion to global Travel & Tourism GDP.

“The sector’s recovery will be delayed by heavy-handed restrictions just as it emerges from one of the most punishing periods in its history – in addition to the airlines, the entire travel ecosystem will suffer including millions of SME’s.

“Hotels, destinations, travel agents and others will all be devastated by the economic domino effect of prolonged restrictions on movement, plunging millions of travel businesses and their employees into financial ruin.”

WTTC, which represents the global Travel & Tourism private sector, carried out the extensive research this week and its expert analysis came up with three possible outcomes for the sector:

1. Worst-case scenario: Current restrictions starting to ease from September for short-haul and regional travel, from October for mid-haul and from November for long-haul.

In this scenario, 197.5 million jobs could be lost in the global Travel & Tourism sector, with a loss of $5,543 billion in global GPD. Meanwhile, global visitor numbers would drop by 73% for international arrivals.

2. Baseline scenario: Current restrictions starting to ease from June for regional travel, July for short-haul or regional travel; from August for mid-haul, and from September for long-haul.

In this scenario, a total of 121.1 million jobs could be lost in the global Travel & Tourism sector, with a loss of $3,435 billion in global GDP. Meanwhile, global visitor numbers would drop by 53% for international arrivals and by 34% for domestic arrivals.

3. Best-case scenario: Current measures starting to ease from June for short-haul and regional travel; from July for mid-haul and from August for long-haul.

In this scenario, a total of 98.2 million jobs could be lost in the Travel & Tourism sector, half the number in the worst-case scenario, with a loss of $2,686 billion in global GDP. Meanwhile, global visitor numbers would drop by 41% for international arrivals and by 26% for domestic arrivals.

While the best-case scenario would undoubtedly still result in a devastating blow for Travel & Tourism, this outcome avoids unnecessary additional harm to the sector as a result of prolonged travel restrictions and protects almost 100 million jobs around the world that could otherwise be lost.

This best-case scenario can still be achieved for the global Travel & Tourism sector if Governments around the globe follow WTTC’s recommended four-point plan.

Firstly, the immediate removal and replacement of any quarantine measures, with ‘air corridors’ to countries with similar circumstances to stimulate the Travel & Tourism sector and the global economy, as well as the removal of  travel advisories and bans on non- essential international travel, which prevent insurance protection cover for travellers.

Secondly, the adoption of global health and safety protocols, such as the ‘Safe Travels’ initiative recently launched by WTTC, to provide assurance to travellers that enhanced health and hygiene measures are in place and that it is safe to travel again.

Thirdly, the implementation of a rapid test and trace strategy to help contain the spread of the virus, while still allowing people to travel responsibly at home and abroad.

And finally, greater, and sustained collaboration between the public and private sectors to ensure a coordinated global approach to the crisis.

Guevara added: “The health and safety of both travellers and those working within the sector are paramount. That’s why we have recommend the opening of ‘travel corridors’ between countries which have controlled the spread of the virus and provided immediate support for the entire Travel & Tourism ecosystem. This will be vital to kick-start the economic recovery and rebuild the livelihoods of millions of people.”

According to WTTC’s 2020 Economic Impact Report, during 2019, Travel & Tourism supported one in 10 jobs (330 million total), making a 10.3% contribution to global GDP and generating one in four of all new jobs.

Tourism, a Platform for Overcoming the Pandemic, UN Secretary-General Antonio Guterres

Tourism, a Platform for Overcoming the Pandemic, UN Secretary-General Antonio Guterres

New York City, New York, United States, June 10, 2020 / TRAVELINDEX / As UNWTO leads the restart of tourism, the Secretary-General of the United Nations has sent a landmark message to the world, highlighting the sector’s unique role in advancing the 2030 Agenda for Sustainable Development and in protecting the most vulnerable members of our societies.

“Tourism can be a platform for overcoming the pandemic. By bringing people together, tourism can promote solidarity and trust”: UN Secretary-General Antonio Guterres

As the world faces the devastating consequences of the COVID-19 pandemic, the tourism sector is among those being affected most severely. Travel is down, fear is up, and the future is uncertain.

Tourism is an essential pillar of the 2030 Agenda for Sustainable Development. The livelihoods of many depend on it, especially women and particularly in the world’s most vulnerable countries, including Small Island Developing States and Least Developed Countries. Moreover, in many parts of the world, the protection of biodiversity relies heavily on the tourist sector, from conservation to the revenue generated by those efforts.

Tourism can be a platform for overcoming the pandemic. By bringing people together, tourism can promote solidarity and trust – crucial ingredients in advancing the global cooperation that is so urgently needed at this time.

The United Nations World Tourism Organization is strongly committed to this work. I encourage all those involved in the tourism sector to explore how we can recover better, including through climate action and other steps that advance sustainability and build resilience. On our journey toward a better future, we must uphold our pledge to leave no one behind.

Thank you.