Hospitality Cadence News

"Beyond Fair Wages: How Hoteliers Are ‘Walking the Walk’ to Win the Labor Race in Hospitality”

The hospitality industry faces a critical challenge as it contends with a tight labor market, compounded by wage inflation, shifting workforce expectations, and recent labor strikes that have elevated workforce concerns to the forefront. In this competitive environment, the mantra for success is simple but essential: hoteliers must "walk the walk" to attract and retain talent. This call for action encompasses fair wages, diverse incentives, and visible career development opportunities—elements that are now more crucial than ever for hospitality leaders to stay relevant and build robust teams.

At the recent "A View from the Top" panel during The Lodging Conference, hotel executives emphasized that to attract and retain the workforce, hoteliers need to prioritize competitive wages and a supportive work culture. Julie Arrowsmith, CEO of G6 Hospitality, explained that they have leaned heavily on leadership training and active engagement with hotel owners to embed retention practices across all levels. This approach not only ensures employees feel valued but also keeps owners and managers aligned with best practices in employee management. By focusing on face-to-face interactions rather than just virtual communications, G6 builds a cohesive environment that is conducive to employee loyalty.

Similarly, Arash Azarbarzin, CEO of Highgate, highlighted that competitive wages alone aren’t enough. Retention, he notes, is built through mentorship, education, and international training programs, fostering a culture that motivates employees to grow within the company. This "walk the walk" mentality is critical, especially as turnover rates continue to press hotels across the board. Azarbarzin’s approach of frequent on-site visits demonstrates how a visible, approachable leadership style contributes to stability, even within high-turnover positions, by showing genuine interest in the individual contributions of each team member.

Another key insight from the panel, shared by Geoff Ballotti of Wyndham Hotels & Resorts, underlined the importance of bringing younger generations into the hospitality fold. With Generation Z workers prioritizing jobs that align with their values—emphasizing transparency, diversity, and clear career progression—hotels must rethink their recruiting methods and workplace structures. Gen Z and Millennials seek not just a job but a career that supports a balanced work-life dynamic. Evolving practices, like flexible scheduling and career advancement programs, respond to this demand and create a work environment that meets modern expectations. As hospitality schools and major brands pivot to include these elements in their training and operations, the industry as a whole becomes more appealing to new entrants.

Beyond traditional incentives, technology plays a pivotal role in enhancing employee satisfaction. Hoteliers are increasingly adopting tools like AI-driven task management systems to streamline workloads, reduce stress, and boost productivity. John Murray of Sonesta International Hotels pointed out that technology can significantly improve employee experience by automating tedious tasks, thus allowing staff to focus more on guest interaction and high-value service activities. Implementing these solutions is not only a practical move but also enhances job satisfaction by reducing burnout, especially in roles that involve repetitive tasks.

While wage inflation remains a concern, hoteliers are finding innovative ways to keep costs sustainable while boosting worker benefits. For instance, sustainability and social responsibility initiatives, like energy-efficient infrastructure and waste management, have dual benefits. Not only do they appeal to eco-conscious guests, but they also create a sense of pride and engagement among staff, who feel part of a positive environmental impact. Moreover, wellness initiatives, particularly in upscale properties, provide staff with access to wellness programs, enhancing both morale and productivity.

As labor challenges continue, proactive measures are critical. The concept of building a strong "employer brand" helps attract talent by positioning hotels as desirable places to work. Initiatives like competitive pay, personal development opportunities, and even partnerships with educational institutions to foster career paths all contribute to establishing a hotel as a “top employer” in its region. This positioning has become essential in retaining and drawing in the best talent, as hospitality remains an industry marked by rapid change and high employee turnover.

In short, staying competitive in the current labor market demands that hotel leaders combine fair compensation, cultural inclusiveness, and modernized working conditions. By walking the walk through these methods, hoteliers not only build loyalty and reduce turnover but also inspire a new generation of workers who value alignment between their career choices and personal values. This shift is not just beneficial for employees; it bolsters the brand image and operational stability, ensuring that hotels can maintain high service standards and profitability in a demanding market.

“Strengthening Auckland’s Events Proposition: A Strategic Imperative for Hotel Demand”

In the midst of sluggish visitor numbers and an economic downturn, Auckland’s hotel industry finds itself grappling with unprecedented challenges. A surplus of new hotel rooms, lower-than-anticipated occupancy rates, and the pressure of elevated operating costs are posing significant risks to profitability. However, according to CBRE New Zealand’s latest findings, a promising solution lies within Auckland’s reach: a well-coordinated, forward-looking events strategy. Drawing from the success of Australian cities like Melbourne and Adelaide, Auckland’s hotel sector could potentially capitalize on a robust calendar of major events, ultimately boosting occupancy and supporting a range of businesses within the Central Business District (CBD). For hotel owners, investors, and general managers, this approach not only offers a strategic advantage but also ensures a sustainable pathway for growth amidst economic headwinds.

The Events Advantage: Lessons from Australia

CBRE’s "Impact of Events on Hotel Demand" report for September 2024 underscores the power of events as an economic catalyst. Analyzing data from both New Zealand and Australia, the study reveals that cities with a strong commitment to event hosting witness notable increases in hotel occupancy, Average Daily Rate (ADR), and, importantly, in economic benefits that ripple throughout local communities. Melbourne, in particular, has distinguished itself as a model, with its government proactively investing in events to drive tourism and hospitality revenue. For example, the Melbourne Food and Wine Festival, which draws thousands of international and domestic visitors each year, has not only bolstered hotel occupancy but also stimulated surrounding businesses, from retail to transportation.

Closer to home, Adelaide offers a compelling comparison for Auckland. Despite being smaller than Auckland, Adelaide has successfully created a coherent event-attraction strategy that includes cultural festivals, sports championships, and music events year-round. This approach has enhanced its tourism appeal while supporting local hotels with stable, predictable streams of guests. Auckland, by comparison, is hampered by limited large-scale events and inconsistent government investment, making it challenging for hoteliers to rely on event-driven demand.

?Data-Driven Impacts: Quantifying Events’ Influence on Demand

CBRE’s analysis sheds light on the measurable impact of events on Auckland’s hotel market. Take, for example, the Pink concert in March 2024, which resulted in a 12% increase in occupancy compared to surrounding dates, equating to 3,388 additional room nights over just two days. Similarly, the World Choir Games in July drove occupancy up by 21%, translating to nearly 2,000 additional room nights per day over an 11-day period. This data aligns with results seen in Sydney’s internationally renowned Vivid Sydney event, which in 2023 generated 36,891 extra room nights and $18.32 million in room revenue during a low season.

For hotel owners and investors, these figures demonstrate that events not only elevate occupancy during peak times but also drive traffic during otherwise quiet seasons. Such outcomes suggest a clear roadmap for mitigating the current economic pressures on Auckland’s hotels through targeted, strategic event planning.

Building a Robust Events Infrastructure in Auckland

To replicate the successes observed in Australian cities, Auckland must expand its events infrastructure, encompassing both venues and calendar consistency. The recent proposal to increase the number of annual events at Eden Park is a step in the right direction, but more is needed. Major developments like the New Zealand International Convention Centre (NZICC), slated to open in late 2025, will add to Auckland’s appeal as a destination for large-scale events. Still, to fully realize Auckland’s potential, city officials must prioritize regular, diverse events that attract both domestic and international visitors.

Moreover, Auckland’s local and central governments should work closely with the hotel and tourism sectors to coordinate a compelling schedule of events. This could involve dedicated agencies or public-private partnerships to streamline efforts, similar to the role Tourism Australia plays in supporting major events. By creating a unified body tasked with attracting and promoting events, Auckland could circumvent the inefficiencies that arise when competing businesses independently vie for events, allowing for a more cohesive and targeted approach.

Actionable Insights for Hoteliers: Preparing for a Stronger Event Calendar

For hotel owners, general managers, and investors, supporting Auckland’s shift towards an event-driven tourism strategy can involve a series of practical steps to maximize returns. First, aligning marketing campaigns with upcoming events and tailoring packages to cater to event-goers can amplify occupancy and increase ADR. For instance, offering group rates or event-centric packages can attract a broader audience, from concert-goers to conference attendees, while improving brand visibility.

Furthermore, hoteliers should leverage data analytics to track the impact of specific events on room occupancy, allowing them to fine-tune pricing and inventory strategies. Insights from these data points can guide operational decisions, from staffing levels to guest services, ensuring the hotel is optimally prepared to capture demand peaks around event dates.

Finally, as Auckland prepares for an anticipated influx of guests from significant upcoming events, such as the Coldplay concert and SailGP, investing in digital marketing and social media campaigns targeting event attendees could boost direct bookings. Collaborating with event organizers or tourism boards can also provide hoteliers with co-marketing opportunities that enhance their property’s visibility.

Conclusion: Securing Auckland’s Position as a Vibrant Event Destination

In light of Auckland’s economic challenges and fluctuating hotel occupancy, it is evident that a strengthened events proposition could serve as a crucial driver of demand for the hotel sector. With lessons drawn from Melbourne and Adelaide, Auckland’s hospitality industry has a roadmap for success: consistent investment in major events, government-private sector partnerships, and a focus on a diverse, year-round event calendar. For hoteliers, leveraging this momentum with strategic operational adjustments and targeted marketing can yield substantial benefits. By championing a collaborative approach, Auckland can not only revive its CBD but also foster a resilient and prosperous hospitality ecosystem that serves the broader economy.

“Elevating Global Connectivity: How Vietnam Airlines and Emirates Forge a Transformative Path for Trade, Tourism, and Travel Efficiency”

The recent Memorandum of Understanding (MoU) between Vietnam Airlines and Emirates marks a pivotal moment in strengthening air connectivity between Vietnam and the UAE, fostering deeper links in tourism and trade. Signed during the Vietnam-UAE Business Forum in Dubai, this partnership builds on the airlines' nearly three-decade relationship, moving beyond interline connections to explore broader collaborations in cargo and technical services, as well as potential reciprocal loyalty benefits.

For Vietnam Airlines, this MoU aligns with its goal to expand its international presence and elevate its service offerings by leveraging Emirates’ global network. As Executive Vice President Nguyen Chien Thang highlighted, the agreement allows Vietnam Airlines to extend its reach, enabling passengers to access premier destinations in Southeast Asia, the UAE, and beyond. Similarly, Emirates Deputy President and CCO Adnan Kazim noted the significance of Vietnam as a strategic hub in Southeast Asia, reflecting Emirates’ commitment to supporting trade and tourism in this rapidly growing market. This sentiment resonates with Vietnam’s booming tourism sector, which is seeing a significant influx of travelers and business ventures due to its economic growth and vibrant cultural landscape.

From an operational perspective, the agreement enhances connectivity across key routes, providing passengers with seamless travel experiences between Vietnam and major destinations worldwide. Emirates has been operating direct flights to Hanoi and Ho Chi Minh City since 2012, and it is scheduled to double its frequency to Ho Chi Minh City by January 2025. This increase, strategically timed before the Lunar New Year holiday, aims to meet rising demand from both Vietnamese residents and international visitors traveling to the UAE and beyond.

The cargo aspect of this collaboration also holds substantial potential. Both airlines plan to explore joint cargo services, which could benefit Vietnam’s export-driven economy by improving logistics efficiency and reducing transportation costs. Given that the UAE is one of Vietnam’s top trade partners in the Middle East, this step could streamline trade routes, benefiting key sectors such as electronics, textiles, and agriculture.

On a macro level, this partnership complements ongoing government efforts between Vietnam and the UAE, including their negotiation of a Comprehensive Economic Partnership Agreement (CEPA). Such agreements reflect a strategic alignment of both nations’ economies, with the UAE acting as a critical entry point for Vietnamese exports to the Middle East and vice versa. As of mid-2024, bilateral trade between the UAE and Vietnam had already exceeded $3.2 billion, demonstrating a 43% increase from the previous year.

Overall, this expanded partnership is emblematic of a global aviation trend where major carriers collaborate to overcome operational limits, allowing each to capitalize on the other's network strengths and service expertise. Emirates’ additional MoU with VietJet—a Vietnamese low-cost carrier—further illustrates this trend, with plans to enhance connectivity from key Vietnamese cities like Hanoi, Ho Chi Minh City, and Danang. This move by Emirates solidifies its presence in Vietnam, giving travelers on VietJet access to Emirates' extensive global network and bringing more visitors to Vietnam’s developing tourism infrastructure.

In summary, the Vietnam Airlines-Emirates partnership illustrates a highly strategic move to enhance air travel connectivity, cargo efficiency, and economic linkages between Vietnam and the UAE. This evolution in their partnership is not merely about connecting two countries but rather about amplifying economic cooperation, optimizing resource-sharing in cargo and services, and facilitating seamless travel for a global customer base. The resulting synergies promise mutual benefits that extend beyond aviation, contributing to broader economic growth and fostering closer bilateral ties in tourism and trade for years to come.