YOUNG HÔTELIÈRES INSIGHTS | A HoteliersGuild/EHL/Institute Paul Bocuse & IUAS Initiative

EHL’s Women in Leadership, IUAS University of Applied Sciences, and Institut Paul Bocuse share a commitment to promote our top female students in the hospitality industry. Together with HoteliersGuild’s LeadingHôtelierès Chapter, we created YoungHôtelièresInsights (YHI), a space dedicated for aspiring female hospitality leaders where they can contribute to our industry with their reflections, ideas, trends and hot topics as viewed by their generation. A compilation of these inputs will be featured in the HoteliersGuild ForumOfDialogue magazines and LookBooks with the aim to develop the professional visibility of our young female talent in a network of established hoteliers and hôteliéres .

EHL’s Prof. Dr. Sowon Kim and Founder of Women In Leadership says: “We focus on female students and from time to time male students - here is a thought, we could for example limit to 10-20% of male contribution, and content could be in lines of male championing women (in line with one of our pillars) like for example how they see the contribution of their female peers; this might be eye opening for the established hoteliers reading such a piece and realising why there might be a need for them to change too. From my perspective making the “YoungHotelièresInsights” primary female is not being exclusive but rather in line with the mission of HoteliersGuild’s LeadingHôtelierès chapter. In addition there is a need to be inclusive when a group is a minority which in this case is women in leadership positions. While everyone needs to be promoted is these hard times, the system is heavily biased against women which is the exact reason why less than 5 percent of the top leadership functions across business and politics worldwide are occupied by women, and hence the raison être for HoteliersGuild’s LeadingHôtelierès chapter”

MAKING - A - C H A N G E

YoungHôtelièresInsights aims to develop the professional visibility of our young female talent in a network of established hoteliers and hôteliéres.

For Future Generations, Human Interaction Will Be the New Luxury Mary Barnett, EHL After a recent class discussion about what the word “luxury” truly means, I realized that for many of us commonly referred to as “Gen Z”, that is, born since the mid-‘90s, the Oxford Dictionary definition -- “a state of great comfort or elegance, especially when involving great expense” – is insufficient. Unlike previous generations, tech-savvy Gen Z consumers have visual access through social media to almost every “luxury” product and experience that is out there in the world: “Look! Kylie Jenner has the newest Vuitton bag!”; “Hey! Cool pic of the Beckhams on their yacht in Sardinia!”

Social media is so saturated with postings like this, Gen Z has become almost immune to impressions that a hotel or a jacket or a car is anything particularly special: once a Rolex or a Relais & Chateaux has been posted, it’s almost immediately old news and no longer worthy of aspiration.

Anyone from a Kardashian to a kid in Shanghai or Chicago can hop on the internet and order up any product or experience if they have cash to throw at, but what they cannot snap their fingers and achieve in this soulless, isolating digital age are human connection and authentic, meaningful interaction with the culture around them. For Gen Z, these are the ultimate luxury goods. The hospitality industry has certainly taken note of this: high-end cruises offer shore excursions where vacationers can help villagers with a community project; fancy travel agencies promote “cooking with Nonna” opportunities in remote Italian hamlets. But to Gen Z, opportunities like this seem purely performative, not legitimate efforts to promote mutually enriching interaction.

The restaurant industry faces challenges in engaging on a lasting level with Gen Z, because myriad technological changes mean a consumer never has to interact with a human being from ordering through consumption: automated food delivery services, ghost kitchens, robots that can chop, sauté, and plate, ordering from tablets and QR codes— even the possibility of “dining” in the metaverse. Hotels have taken similar steps that reduce, not encourage, human interaction, for example by replacing services like check-ins and check-outs with contactless alternatives. Some of these actions may appear to make sense from a business perspective: given the industry’s current labor shortage, they are providing ways for companies to hire fewer staff and reduce labor costs. But do they build long-term loyalty and profit? Consider this: do persuasive Yelp or Trip Advisor reviews focus on the lavishness of a resort pool, or a restaurant’s pricey cutlery, or the softness of a spa’s towels in describing why they would or would not return, or do they write about the fun and helpful service from the pool attendant, the

wonderful recommendation they got after an engaging chat with the sommelier, or the relaxing empathy they received from their masseuse? And when they complain in a compelling manner, is it usually about something not living up to their expectations of “luxury,” or is it more often something related to flawed human interaction— or a complete lack thereof?

Promoting human interaction alone, however, is not enough to attract younger luxury consumers; Gen Z can ‘cancel’ an establishment for perceived inauthenticity in the blink of an eye. What feeds that perception? Here’s an example: I recently visited one of the “best” restaurants in the world, according to food critics. While some of the over-the-top courses deserved the high praise, it is not the innovative food that I remember, but the sterile, almost inhuman nature of the overall experience. Upon arriving, we were greeted by a bored-looking hostess, sporting a Bluetooth device in her ear. Barely raising her eyes, she motioned us into an empty waiting area where we sat for a few minutes, confused. Suddenly one of the walls lifted and the dining room was revealed, presided over by quasi-military looking individuals dressed in black suits.

The room was dark with spotlights hanging above each table; it was as silent as a church. Throughout the meal, the unsmiling men in black constantly circled our table, closely watching us eat and making occasional remarks into their headsets. My companions and I could not help but laugh at certain points in the meal; whatever all that nonsense was supposed to be, it was not “luxury” – it was just uncomfortable.

The world is only going to get more and more connected (and isolated) by the internet. Our attention spans for luxury brands and products will continue to shorten.

Jobs will keep being replaced by tech, especially in hospitality, where labor costs present a huge challenge. For all of these reasons, genuine, human interaction will be the most highly sought-after luxury. One can walk into a McDonalds, order, and pay through a touch screen with zero human contact. These types of experiences are only going to become more common. Companies, particularly those in the hospitality industry, who understand this and try to create genuine, emotional human experiences for their customers, will win over a generation that is the first to call out inauthenticity and pretentiousness.

Of American nationality, Mary Barnett is a fourth-year student at EHL who will be graduating in July 2022.

With experiences at Cordis Hong Kong (Langham Hotels) and The LINE Austin (Sydell Group), Mary has a keen interest in Food & Beverage management and concept creation. She is passionate about cooking, travel, and design. Mary can be reached at mary.barnett@ehl.ch. Mary Barnett has written this article under the supervision of Prof. Dr. Sowon Kim who co-chairs the LeadingHôtelières Chapter of HoteliersGuild.

Luxury brands have entered the Metaverse Sara Moukhtarzadeh, EHL News of Dolce & Gabbana selling a nine-piece digital collection of NFTs, non-fungible tokens, for nearly 6 million dollars made headlines last year (CoinDesk). The collection can be worn in the Metaverse showing the world that luxury brands are tapping into this megatrend. Since then, many more luxury brands have been discovering and putting down roots in the virtual worlds. But what exactly is the Metaverse and how do luxury brands fit in?

What is the Metaverse?

Simply put, the Metaverse builds on the physical world and allows individuals to immerse themselves in virtual worlds through avatars. Matthew Ball, one of the leading Metaverse experts, defines it as follows: “The future of the internet: A massively-scaled, persistent, interactive, and interoperable real-time platform comprised of interconnected virtual worlds where people can socialize, work, transact, play, and create.” These avatars can do everything we do in real life – from working and shopping to socializing with others – and beyond. Deloitte points out that “in a post-pandemic world, it’s a new and immersive way to bring people together.” But it also transforms the way brands engage, interact, and sell goods. The Metaverse takes digital commerce to the next level by providing a virtual in-store experience. Individuals can experience the same services (and more) provided in a real store in the Metaverse without having to be there physically. This allows more people to interact with brands as they become more accessible.

How do luxury brands fit into the Metaverse?

The pandemic showcased the importance of digital commerce and at the same time revealed the obstacles for the luxury industry. The luxury industry not only sells products, they also create experiences. Current digital commerce practices through the 2D experience with the internet do not allow luxury brands to differentiate themselves from normal brands, but the Metaverse changes this.

“At the moment the maximum interaction you can have with a luxury brand is to like, comment or buy something. I think we can take it to the next level” - Cédric Charbit, CEO of Balenciaga Clients can now go through the whole customer journey without having to be in the boutique physically. All the touchpoints can be experienced virtually, allowing brands to provide the same in-store experience to virtual customers and experiences that are not possible in the real world.

Creating new business opportunities The Metaverse not only transforms and expands the online shopping experience for brands, it also provides a new source of revenue – products for the avatars. These avatars in the virtual world are an extension of yourself. Mark Zuckerberg, CEO of Meta, said that “Avatars will be as common as profile pictures today, but instead of a static image, they're going to be living 3D representations of you, your expressions, your gestures that are going to make interactions much richer than anything that's possible online today. You'll probably have a photo realistic avatar for work, a stylized one for hanging out, and maybe even a fantasy one for gaming. You're going to have a wardrobe of virtual clothes for different occasions designed by different creators and from different apps and experiences.”

Balenciaga has been one of the pioneers by selling digital merchandise to Fortnite players, allowing them to style their avatars with Balenciaga pieces. These digital pieces are based on NFTs, which are unique crypto assets that use blockchain technology and represent the ownership of a wearable in, for example, the Metaverse. NFTs are a boon to luxury brands for several reasons, besides providing them with the key advantages of product authentication and ownership verification (BOF McKinsey & Company).

Four main benefits: 1) Profitability: NFT products - compared to normal goods - are more profitable as they need minimal labor, no physical materials, and collections have a shorter release time. Moreover, through NFTs royalties can automatically be realized and provide original designers with a continuous revenue stream for secondary sales. It also eliminates resource limits and the supply chain issues that are currently bogging down brands in the real world.

2) Sustainability: The virtual luxury good market does not create production waste, and current issues such as overstock and overproduction do not exist.

3) Product development: By creating the products virtually, it unlocks the creative potential of designers, as there are nearly no limits.

4) Positioning: Being present in the Metaverse is especially important for brands that have a younger customer base, as it positions them as ‘progressive’.

As fruitful as the Metaverse sounds, it does not come without hurdles. Indeed, the technology is very complex and not very scalable and devices such as VR glasses, which are required to really tap into the Metaverse, remain expensive.

Conclusion Luxury brands have landed in the Metaverse, but their full potential has not yet been reached. Morgan Stanley believes that the virtual luxury goods market could increase to 50 billion euros by 2030. Luxury brands will have a range of opportunities to explore thanks to the development of technology, the Metaverse and NFTs. Even though there are many challenges, these developments will likely take over the internet we know today. Luxury brands need to continue to explore the Metaverse and expand their offerings to stay competitive.

Of Swiss-Iranian nationality, Sara Mouhktharzadeh is a last year student at EHL who will be graduating in July 2022. With experiences at the Baur au Lac Hotel Zurich and LVMH Acqua di Parma and Parfums Christian Dior, Sara has a keen interest in the hospitality technology industry. Sara is fluent in English, German and Farsi. She is passionate about culinary arts, travels, and sports. Sara can be reached at sara.moukhtarzadeh@ehl.ch. Sara Moukhtarzadeh has written this article under the supervision of Prof. Dr. Sowon Kim who co-chairs the LeadingHôtelières hapter of HoteliersGuild.

Hospitality: Will there be a realignment after the big resignation?

Sofia Strahl, EHL Hospitality: Will there be a realignment after the big resignation?

Sofia Strahl, EHL Only recently, I discussed with a friend the future of the hospitality industry and its appeal to both future guests and employees. In my friend's opinion, the hotel industry will disappear in a few years and be replaced by more innovative business models that better address the needs of modern travelers and employees. I disagreed with him, being a passionate hospitality student. Yet, there seems to be some truth in what he said, especially considering the current labor shortage with many employees being unsatisfied with how businesses are run today. This example shows how nonhospitality students and potential guests may perceive our industry. Hoteliers realize the evolving needs too. But more often than not, it is challenging for hotels—as an industry rooted in traditions and known for its standards—to adapt to today's fastpaced world. Who better to understand the modern traveler's needs than the younger generation itself, or in other words: your future employees?

Many hospitality leaders have already recognized the importance of the next generation in the workplace. In fact, often during speeches from today's leaders, the young women in the audience are addressed as the future leaders of tomorrow. It is said that women will affect the change needed in our industry. Usually, my first reaction is a rush of adrenaline, excitement about the endless opportunities, but soon followed by a feeling of insecurity and pressure: "How should I do all this?"; "What if I want to have kids, can I do that too?"; or simply "Can there be a better work-life balance?"

There is this frustration that comes with thinking about the hierarchical and rigid structures of many hotel businesses. And this is equally applicable to young men too.

Many of my fellow students and I are ambitious and motivated to enter the hospitality industry, but creativeness and change is only possible in an open-minded environment.

Against a backdrop of the current labor shortage crisis where fewer and fewer of my fellow students are seeking careers, it is about time to start understanding your future employees.

How can you reconnect with your current and future employees and meet their needs?

The modern employee’s needs probably do not differ much from your customers' needs. Flexibility, a sense of purpose, and work-life balance are key factors. According to the Castell Project "Women in Hospitality" (AHLA Foundation) that assessed leadership

traits, women tend to score slightly lower on confidence and higher on humility. In the workplace, this is expressed through empathy, valuing other’s contributions and listening carefully to all team members. These behaviors are sought for as they demonstrate appreciation and recognition of the employee; however, actions must follow these words. This research shows well the importance of great leadership. Too often, fellow students have told me stories about their internships where promises were not kept, time wasted, and coordination absent. Many of them were demotivated by those experiences and decided not to return to hospitality. Another factor found to enable change was diversity in teams. More diverse teams were found to innovate more radically and anticipate better changes in consumers' needs. Again, something much needed in the hospitality industry.

Some hotel companies are already making changes to refocus on their employees’ needs. Below are a few examples that have recently inspired me.

• Inverting the hierarchy pyramid putting line staff at the top. They are guest-facing and thus know firsthand the evolving needs of guests (Michael Levie, founder of CitizenM).

• Enhancing work-life balance by implementing the 4-day work week (25hours Hotels).

• IDEA (Identify, Diversity, Equity, Action) program includes discussion groups, a festival on diversity, and lectures in colleges on hospitality topics (Red Carnation Hotels).

• Working hours for mothers that are adapted to school schedules and offer more flexibility (Staycity Group).

A short stay where I encountered many happy employees who explained the employer’s importance for the region. The hotel is heavily involved in its local community (Hotel Hof Weissbad, CH).

These examples explain why I am motivated and excited to enter our industry. Change clearly is possible, and surely there is more to come. The many passionate, driven, and exciting people I have met in hospitality will drive that change. And when company culture and structures evolve, they will realign again with employee needs.

Recognition, learning and development opportunities, healthy work hours, and fair salaries will foster a happy, creative, and innovative workforce. A happier and more diverse workforce will understand the needs of future guests and markets. They will ensure the hospitality industry's future success. In conclusion, we should remember Of Swiss and German nationality, Sofia Strahl is a final year student at EHL who will graduate in June 2022. With internship experiences at the 5 Star Hotel Il Sereno on Lake Como, and Client Manager Assistant Role in the Branding Agency, Landor & Fitch, Sofia has a keen interest in a hospitality graduate position linked to business development / sustainability and, or sales. Sofia is fluent in German, English and French. She is passionate about design and creative brands, sustainability, running and outdoor sports such as hiking, skiing and bouldering. Sofia can be reached at sofia.strahl@ehl.ch.

Sofia Strahl has written this article under the supervision of Prof. Dr. Sowon Kim who co-chairs the LeadingHôtelières Chapter of HoteliersGuild.

The authors are our top female students interested in a career in the hospitality industry. Should you be in search for talent in the following areas (interest of the students) please contact us and we will forward you their respective ▪ ▪ ▪

Sofia Strahl, GPA 5,41- interested in business development, sustainability, sales Mary Barnett, GPA 5,25- interested in F&B Sara Moukhtarzadeh, GPA 5,5- in technology, luxury

MAKING - A - C H A N G E

IMPORTANT NOTE TO MEMBERS!