BUSINESS
TRENDS
THE CHANGING ROLE OF HOTELS
Although we are on the path to recovery, the hospitality industry barely resembles its preCovid-19 state. Kostas Nikolaidis, Middle East and Africa executive for STR, examines today’s hotel sector and emphasizes the need for change.
According to Guinness World Records, the oldest operating hotel turned 1,317 this year! Hotels have always played an important role throughout the centuries, and what was once a simple concept of providing guests with a place to stay has evolved into the modern-day hotels and resorts that characterize our industry.
Leisure versus business
“Change is easy,” said no one, ever! There’s plenty of doubt, trial and error involved. But with the world reopening to a new post-pandemic reality, change seems inevitable. A number of key players have already started pivoting their businesses. I’m also convinced that someone, somewhere is furiously developing the next big disruptor for the hotel industry, following on from the OTAs at the turn of the millennium and Airbnb in 2006. However, less disruptive trends seem to be taking place around us currently.
In contrast, rural, regional and more outdoor oriented/leisure travel has thrived. Leisure destinations across the Mediterranean, like Bodrum in Turkey or the Greek islands, have seen exceptional recovery so far. Elsewhere, Dubai has also had a bumper year. In fact, it managed to sell 31.2 million hotel rooms in 2021 — roughly the same as London, Paris and Oslo put together! After a successful first few months in 2021, when Dubai remained open to travel with the rest of the world closed down due to the Delta variant fears, the
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HOSPITALITY NEWS ME | APR-MAY 2022
STR data throughout the pandemic has clearly demonstrated the adverse effect of Covid-19 on business travel demand. While travel is still essential for work that cannot be done online, it remains a long way from fully recovering to preCovid-19 levels.
glamorous metropolis picked up again in spectacular fashion during Q4. The T20 Cricket World Cup, Expo 2020 and other events, as well as staycations and international arrivals, created a lively atmosphere. With resorts leading recovery, the hospitality industry has been quick to capitalize on this trend, with more leisure amenities and packages. For example, hospitality big shots IHG pivoted their brand name from Intercontinental Hotel Group to Intercontinental Hotels & Resorts, signaling a renewed focus toward more leisurely offerings. Furthermore, Marriott International signed a record number of 22 allinclusive properties worldwide — a small portion of its total portfolio of 8,000 hotels but nonetheless an increasingly important and fast growing one.
