LONG ISLAND, N.Y. – Back on Feb. 29, 2020, Glenn Haussman, president of Rouse Media and host of the Long Island, N.Y.-based No Vacancy podcast, wrote an article about the labor shortage. The world changed radically a few weeks later, but strangely enough, the labor shortage is still relevant. HX: The News caught up with Haussman to explore the labor topic, as well as a few other issues in the world of travel.
HX: The News: How would you characterize the labor situation these days in the hospitality industry?
Haussman: It is a serious problem that is not going to go away. The hospitality industry is going to have to wake up and find solutions, which could include doing a better job of explaining why the hospitality industry is a phenomenal business to be a part of, and really show that pathway to success. There were a million jobs that were open pre-pandemic, and imagine how much that is now.
HX: The News: During our interview with Vinay Patel, he explained that occasionally he could not have guests in certain rooms because he did not have the workers to clean them…
Haussman: And that is not just Vinay Patel. I’ve heard that story over and over and over again. They’re saying that people are coming out on the weekends and certain weekdays, and we’ll just leave the rooms out of service on Tuesday, Wednesday, and Thursday because they’re not selling them anyway. It’s crazy. Or the worst-case scenario is that they could sell them, but they can’t get those rooms cleaned and they’re screwed, and that’s frustrating.
HX: The News: Why is this a problem?
Haussman: Nobody wants to be a housekeeper. There are too many other options for folks who would normally go into housekeeping, and that’s preventing things from ever going back to the way they used to be.
HX: The News: Why is there a negative perception of the hospitality industry, even beyond the housekeeping jobs?
Haussman: Well, there may be a negative perception, but it’s really more that there is not an accurate perception. When people think about the hotel business, they think about front desk jobs or general manager of the hotel. They don’t think about CEO of a management company. They don’t think about owner, investor, or technology companies that sell into the hospitality industry. The hotel business is so much more than what people believe it is. I love this business because it’s all industries in one. It’s an atmosphere of amazing people and you can do almost any thing that your heart desires and still be in our hotel business. There are different sectors. There is a whole food and beverage side of the industry, a technology side, a marketing and PR sides, sales jobs, group business, so many things. You could be an HR manager or a regional vice president.
HX: The News: You did a podcast/youtube video recently about Chesapeake Hospitality being acquired by Remington Hotels. Do you think M&A activity will remain strong or cool down?
Haussman: We are just at the beginning. There will be many many more M&A deals coming that are going to reshape our business. I particularly think there will be a lot of management companies shaping up to be able to figure out ways to handle the expense side. We’re seeing massive companies come together on the management company side, and that’s something that had primarily happened on the hotel franchising side.
HX: The News: Will all that activity be better for the industry or worse?
Haussman: It’s unknown, but better things may be that it will be easier to negotiate better prices. Bad things will be fewer companies for which I can do speaking gigs at. It really depends on your point of view.
HX: The News: Will the trend of business travelers adding on to their trips for leisure continue?
Haussman: It was already a trend that’s been around for a very long time. However, hotels are finally waking up to the trend because it’s becoming more prominent as we rethink the way that we want to live our lives. We’re seeing an acceleration of trends that were already there. Like all other things in COVID, we’re seeing changes that were inevitable or already taking place. People were already becoming a little more untethered from work and did not need to be there five days a week. When you combine digital nomads with a new generation of travelers who have more flexibility, I think we’re going to see hotels that need to cater to this type of traveler in a much more meaningful way.
HX: The News: What’s the level of satisfaction among hoteliers when it comes to their occupancy rates and their rate prices?
Haussman: It really depends where you are. Now more than ever is a situation of the haves and have nots. The have nots seem to be those big inner city hotels, while the haves and the super haves are in resort locations or just in places where people are traveling to and from. A lot of hotels are reporting to me now that they are at 2019 numbers and better. New York City has a long way to go in a lot of ways. There are amazing pockets of positivity that are really transforming things.
HX: The News: Do you foresee any impact on travel now that masks are not mandatory in many airports?
Haussman: I think it’s negligible. I will say that as the mask mandates were rolled back outside of mass transit, that made a big difference. Anecdotally, the second that mask mandate was lifted, I know hoteliers who immediately saw their rooms filling up. I think people were more tolerant when they had to wear a mask on an airplane because they did not have to do it once they left the airport, but the whole thing when it was all masks was a turn-off. There will be great relief in airports everywhere, for sure.
HX: The News: How do you think trade show travel will fair?
Haussman: I’m somewhat optimistic about that. I think we will see a return of a lot more people to shows like HX: The Hotel Experience Powered By AAHOA. What I’ve seen that during downturns, you’ll see companies returning but not as many people per company. It’s a great opportunity for trade show organizers to really connect with those decision makers who are probably hungry to come out.