Maximizing Opportunities and Overcoming Challenges in a Thriving Industry

By Ryan Zarb

The World Travel & Tourism Council forecasted that this would be a record-breaking year for the travel and tourism industry, with more than half of the nations researched poised to surpass historical performance benchmarks.

In an industry that generates approximately one in every 10 dollars worldwide, the influx of travelers has presented both an opportunity and a challenge. For hospitality businesses such as hotels, restaurants, and tourist attractions, the question looms large: How can they manage this surge in demand without sacrificing service quality or guest satisfaction?

Hospitality leaders who anticipate potential issues before they happen and have contingency plans in place to address them are better able to ensure a seamless transition from business-as-usual to unprecedented volume. While there is no crystal ball to predict every scenario, leveraging critical data and insights can facilitate operational readiness. Focusing on important information and applying it correctly is key to a travel season that not only breaks records but sets standards.   

1. Understand the critical points throughout the guest experience.

Certain parts of the hotel experience play a disproportionate role in creating guests’ opinions of their stay. The Ritz Carlton reinforces the emphasis on critical guest encounters with their Three Steps of Service: Warm Welcome, Anticipate Needs, Fond Farewell. This deceptively simple roadmap ensures staff think ahead to the moments that will leave an indelible impression on hotel guests.

Guest check-in provides the all-important first impression. Although increasingly streamlined with the help of technology such as property management systems (PMS), kiosks, and mobile apps, the check-in process remains a key element of guest perceptions. Pre-arrival communication and reception area design and layout can be an important part of this initial impression.

After check-in and for the remainder of their stay, guests consciously and unconsciously recognize how their needs are met, or unmet, by hotel staff. Meeting these needs requires coordinated care, attention, and the effective use of customer relationship management (CRM) systems.

The call to effectively anticipate the unspoken needs of guests has become even more pronounced as travel dynamics have evolved. The persistence of remote and hybrid work arrangements has spurred a rise in 'bleisure' travel—blending business with leisure.

Hospitality businesses should continue to evolve appropriate amenities to cater to this growing segment. This could include versatile spaces suitable for both work and relaxation, meeting rooms of varied sizes, and distinctions that make it easy for travelers to compartmentalize work and leisure activities.

Finally, the warmth and efficiency of the check-out process leaves a lasting mark on the overall guest experience. Bookending the arrival process, many similar operating issues need to be considered.

Proactively thinking through and anticipating these various interactions ensures that each guest encounter is thoughtfully managed by the staff. 

2. Uncover the pressure points in your operational execution.

There are often consistent places along the roadmap of the guest experience where the level of service can fluctuate. All processes have pressure points which can fail when higher volumes of activity are applied. Capturing the right data can help you anticipate where service is more likely to break down.

Food and beverage outlets, for example, must be mindful of the capacity of their kitchens, seating, staff, and supplies to maintain quality, avoid delays, and control congestion and noise levels. Each of these is at risk if cross-functional planning and communication breaks down. Build protective barriers in advance by carefully balancing volume and capacity. 

To uncover potential areas of weakness, begin by mapping out key processes and studying historical volume data. Comparing staffing levels during peak times with service indicators can identify mismatched capacities and highlight specific departments that may require additional support.

Data on the usage rates of premium amenities in hotels during high occupancy periods can also reveal capacity issues, guiding process improvements or expansions where necessary. Analyzing service times, menu item popularity, supply management, and kitchen efficiency during peak dining hours can highlight stress points in food service operations.

3. Develop a game plan.

Contingency plans should be available to prevent or address service constraints. In the restaurant example above, this might mean reconfiguring a seating strategy, modifying dining periods, offering pricing promotions during non-peak times, or even enhancing service during peak times in another area such as transportation. Several strategies should be tested during the planning process to mitigate the potential of disappointing guests.

Effectively allocating servers and training them to manage turn time and monitor table progress (to anticipate guest needs) can have a significant impact on both throughput and guest satisfaction.

To improve capability to respond to high volumes, some service operations build flexibility among their staff by implementing cross-training programs and conducting regular skills assessments. This requires an organizational culture that fosters adaptability and values cross-functional collaboration.

To bridge the gap between theory and practice, a technique our own consultants use is to create targeted prototypes for managers and employees to hone their skills in a controlled setting. These prototypes simulate aspects of the new operating environment, allowing managers and employees to familiarize themselves with their roles and the changes before fully rolling out a new approach.

Focused on specific process areas, prototypes facilitate hands-on practice with planning, team interaction, performance monitoring, and real-time problem-solving, all within a concentrated trial. This approach not only bolsters confidence but also mitigates concerns about transitioning to new methods.

Countdown planning schedules created in collaboration with senior leaders in advance of peak demand are critical. These detailed plans outline the steps of implementation, from performance and resource planning to technology updates and staff training, while also considering simultaneous changes across different areas and their interdependencies.

Emerging technology offers great potential for better capacity planning, which can both reduce costs and elevate service. But caution should be taken. A smooth and relentlessly consistent execution must happen, or the actual guest experience may not meet the elevated expectation. Virtual room keys that fail or centralized help desks that don’t have real-time information can damage guest impressions.

By focusing on critical guest experience touchpoints, identifying operational pressure points, and developing a comprehensive game plan, hospitality businesses can deliver exceptional service without compromise.

This approach will not only ensure that guests leave with lasting positive impressions but will also cement the reputation of hospitality brands as leaders in delivering unparalleled guest satisfaction during even the busiest seasons. Through anticipation, innovation, and adaptability, the hospitality industry can set new standards of excellence throughout the peak travel season.

The top 10 countries for tourism

1. United States

2. Spain

3. Japan

4. France

5. Australia

6. Germany

7. United Kingdom

8. China

9. Italy

10. Switzerland

Source: World Economic Forum's Travel & Tourism Development Index 2024