NEW YORK, N.Y. – A year ago, the entire world changed as a global pandemic transformed social norms, bringing human suffering and severe business consequences. From a financial standpoint, perhaps no industry suffered more than hospitality, with hotels and restaurants either closing or experiencing massive revenue drops.
HX: The News asked hotel managers, owners, and analysts to reflect on the moment when they realized that COVID-19 would indeed be a “big deal.” The pandemic is not over, but what does the future look like, and what lessons are being learned?
When did you realize the pandemic would be a big deal?
“As a Canada-based company, it was pretty clear that this was going to be a big deal when the Canada/US borders were closed to air traffic. That set off a chain reaction of leisure and business travel cancellations that had, and continues to have, a profound business impact on the hospitality industry.” — John Attala, director of Marketing, Verdant Energy Management Solutions
“What became apparent after 60 days is that the gathering places that were so routine and common in the fabric of our everyday life were now no longer safe for the community. The hospitality industry (hotels and restaurants) was clearly affected the most by this. It was apparent that the health and safety of the employees were of equal or greater concern to the health and safety of the guests.”
— Mary Fehlig, founder and president, The Fehlig Group
“We are in the trade show business, and it’s our job to get thousands of people together for learning, networking, and commerce. Reports from Europe and elsewhere quickly reached the United States and by late March 2020 we had to ponder cancellation of shows and conferences. We felt much of the same pain as our colleagues in the hotel and/or food and beverage industries. When handshakes turned into fist bumps and elbow nudges, we knew that challenging times were ahead.” — Kevin Gaffney, show director, HX: The Hotel Experience Powered by AAHOA
“There was no way to avoid thinking it was a big deal when I saw my whole business come undone in 48 hours. Everyone panicked, advertisers stopped advertising, every event I was schedule to attend or be a speaker at was cancelled and liquor stores started to empty. It quickly became apparent this was going to be the biggest collective crisis of our lifetime.” — Glenn Haussman, president, Rouse Media & No Vacancy Podcast Host
“March 2020 was certainly a bellwether moment. Personally, we knew we were in for an unprecedented experience when the U.S. issued a national shutdown. On the business front, my company, KCL, provides design software for restaurants and other foodservice or catering facilities. Business didn’t come to a halt, but we saw a steep drop in the level of activity in the foodservice design industry. The drop-off was more than just a blip, but thankfully the downward spiral slowed and usage increased substantially by the end of the year.” — Kevin Kochman, president, KCL
“I realized it was a big deal very quickly when the rapid infection rates were posted, but quite honestly didn’t think it would last beyond the summer months of 2020. I had hoped it would be like the seasonal flu which usually goes away quickly with warmer weather.” — Wade Koehler, executive director, Foodservice Consultants Society International (FCSI) Americas Division
“Prior to a year ago, the only time that travel came to a complete stop was in September, 2001 following the events of 9/11. At that time, we knew the impact would be big, but temporary. In March 2020, all travel plans were canceled and no one had any idea how long the ‘pause’ would last. Unlike 9/11, when travelers feared a small group of terrorists, in March 2020 we all feared each other. No one knew how the virus might be spread, who had it, or what it could do to us. The biggest signal of the uniqueness of March 2020 was the cessation of corporate travel. Usually the most robust segment, road warriors were grounded and all in-person business activities were brought to a halt. We had never encountered this before and had no contingency plans for this kind of disruption.” — Del Ross, chief revenue officer, Hotel Effectiveness
“I was with a group of food and beverage directors at a conference in New Orleans on March 12, 2020. All of them were glued to their phones trying frantically to figure out how to logistically serve foods to customers in a safe environment. All their operations were closing and their staff were in a panic mode. I knew that day that this was going to be a real big deal.” — Kip Serfozo, design director East, CINI • LITTLE INTERNATIONAL, INC.
What did 2020 teach us, and what’s your level of optimism?
“We’re optimistic that by summer and fall of 2021 there will be lots of pent up demand for leisure and business travel that will give a boost to many of the hotels that have suffered throughout the pandemic. With that being said, it may take another full year or two for hotels to begin spending and investing to pre-pandemic levels.” — John Attala, director of Marketing, Verdant Energy Management Solutions
“2020 gave us the opportunity to think—reflecting on what is important and valuable and meaningful. This opportunity to re-energize, refresh, and reengage with ourselves, our employees, our customers, and our communities will be the impetus to reimagine and create our own ‘New Normal.’ Seeing the shift of corporate thinking to the broader aspects of sustainability is very encouraging. It validates the idea that business can be a force for good. More consumers and investors have realized this during the pandemic, creating an awareness and responsibility that encourages continued activism and growth. We are hopeful as we look toward 2021 and beyond. — Mary Fehlig, founder and president, The Fehlig Group
“We in the trade show business are a bit biased, but the pandemic may have taught us that virtual interaction is not enough. We need and want face-to-face networking, learning, and buying. We have seen the phrase ‘pent-up demand’ bandied about, and we certainly hope that is the case. We are optimistic that the Nov. 14-15, 2021 HX: The Hotel Experience Powered by AAHOA at the Javits Center in New York will be a comeback of sorts. We certainly look forward to getting the industry back together.” — Kevin Gaffney, show director, HX: The Hotel Experience Powered by AAHOA
“The first half of the year will be long as much will remain the same. However, come summer, I am confident there will be plenty of business returning as the dam of pent-up demand finally breaks and customers return to hotels in significant numbers. Of course this ignores the significant financial hardship hoteliers have been facing and the reality many might not be around by next summer because of federal and state governments willfully ignoring hoteliers’ pleas for financial relief.” — Glenn Haussman, president, Rouse Media & No Vacancy Podcast Host
“I’ve revised my outlook from cautiously optimistic to straight-up optimistic. Here in the U.S., we have a lot of reasons to feel good about the future. We expect to have enough vaccines for all adults by the end of May, with children to follow shortly after. In addition, the number of cases continues to decrease. On top of that, the new U.S. stimulus package provides a lifeline to restaurants, hotels, and airlines just as the pent-up demand for these things is about to be released. The recovery will certainly have its rocky moments, but we’re moving ahead in the right direction.” — Kevin Kochman, president, KCL
“I think everyone in the meeting industry is hearing that people really want to be back together again soon. My thought is August of 2021 is going to be the key month that a lot of business meetings begin to take place again. I feel very confident with the vaccines and the work being put toward newer treatment plans that 2022 could become the roaring 20’s to this generation where business travel begins to boom again.” — Wade Koehler, executive director, Foodservice Consultants Society International (FCSI) Americas Division
“2021 will be a year of slow recovery and 2022 will continue to heal, but it will be a while for full recovery due to the significant rate loss—to gain that back will take time.”
— Vinay Patel, CEO, Fairbrook Hotels, Chantilly, Va.
“Leisure travel will be strong from the late spring through the entire summer, as vaccination reaches most of the population. Starting in late 3rd quarter, corporate meetings will return and future bookings for conferences and events will reach near-record levels for 2022 and beyond. The pent-up demand for such gatherings will help offset the continued absence of mainstream corporate travel which is not expected to reach its prior levels until late 2023.”
— Del Ross, chief revenue officer, Hotel Effectivenes
“My level of optimism is a 10! This past year, we have used technological solutions to help us limp out of the pandemic. It turns out these technologies are going to be the key to making our industry more efficient, profitable, and resilient. Sometimes it takes a major event to nudge business into a different direction. I think the pandemic has heightened our awareness of customer service and how to build sustainable business models. Unfortunately, we lost some great institutional businesses that could not pivot. My optimism is also a reflection of medical vaccine breakthroughs, and an economy that appears to be rebounding.”
— Kip Serfozo, design director East, CINI • LITTLE INTERNATIONAL, INC.
“I’m feeling optimistic about the remainder of 2021. There is much pent-up demand for leisure travel which will provide a solid boost to the hotel industry. Business travel is starting to pick up now and should return significantly in 2022. To what degree, no one can say for sure. But I think overall, the industry will have bounced back strongly by the end of next year.” — Michael Stephenson, president of Los Angeles-based Wellness Hospitality Association International (WHAI)