Resilient sector continues to innovate, says HOSPA CEO

Jane Pendlebury, CEO, HOSPA, told attendees at this week’s EY Hospitality Breakfast Event that the sector would continue to perform, despite issues around government support, with innovation and training at the forefront.

Pendlebury said: “The big issue in the sector had been employment costs, but that has now been replaced by Business Rates, where we are hoping to see some changes. In reality, whatever happens, we’re resilient as an industry and we manage to deliver, whatever the government does; we’re used to the government ignoring hospitality. We just get on with the job at hand. A positive frame of mind always helps us as an industry.”

Looking at employment, Pendlebury said: “It’s now less acute finding people, but it’s still an issue; freedom of movement across Europe would be a great thing to get back and help the industry.

“The younger generations are more demanding in terms of career development. At HOSPA we have bought our professional development back in house. With the price of universities increasing and putting people many are opting to leave school to  go straight into the workforce. As a result we expect to see that grow more people choose to learn on-the-job so our hospitality focussed courses in finance, revenue management, asset management and commercial restaurant management are ideal 

“There are some amazing things going in hospitality to make it more attractive to young people and their parents. There is a career to be had in hospitality. However, outside the industry it looks like hospitality is only working in a bar, for example but we have so much to offer. It’s about educating the British public of this. Hospitality is fabulous for rapid promotion - it’s a pure meritocracy.”

Technology was seen as an opportunity for the sector, with Pendlebury commenting: “AI isn’t new to the sector, we have been using it for a while in revenue management, but across the sector we aren’t seeing people being replaced by AI. 

“Technology has changed marketing entirely and it’s a much more commercial role - marketers  now have to be aware of the whole booking system (I prefer process or - God forbid - customer journey!). Star ratings are increasingly irrelevant, bookings will much more driving by influencers and reviews and marketing will be much more around how to drive returning guests and attract new ones potentially using AI rather than the traditional hotel website.

“Booking lead time is as short as ever and it’s also affecting meetings and events, which makes revenue management harder than ever. The good news is that systems are very adaptive and can quickly pick that behavioural changes up, which is hard in terms of predictions, but ultimately we are still seeing good results.

“For the younger generations, technology has changed socialising. Now, you see your friends online gaming, you don’t  reducing the desire and need to go out for human interaction. They’re even ordering their food online to be delivered, whilst gaming. That generation - particularly if they’re not earning enough - are less likely to stay in hotels for leisure. Those who grew up during the pandemic will have a different experience to the previous generations.”

The introduction of bed  tourist taxes at the discretion of mayors was expected to be the next issue to impact the sector. Pendlebury’s concern was that the money raised would not be used to promote and support travel. There are some very practical issues around the execution of different regional rates - some standardisation would be useful.   but even if this was the case,  This is just another cost to reduce the bottom line, making it even harder to succeed, trying to remain positive the feeling was that the sector would as ever adapt and prevail.