Just over one year ago, travel plunged from vibrant to zero in about one day.

Unemployment occurred almost immediately thereafter and was eventually followed by the CARES Act that provided desperately needed funds to help get through the rough patch, which wasn't nearly enough. Several rough patches later, another round of stimulus helped reduce the unemployment rolls and supported owners to get to the next place.

And now, here we are. So, what has changed?

Air Travel

After a year of empty airports, U.S. air travel is coming back to life, albeit the continued use of masks, limited interactions between airline employees and travelers in an effort to reduce costs. For frequent travelers, TSA PreCheck and Clear will be the preferred way to get to your flight through security. If you prefer to keep your mask on through security, you may need to use Clear — they use biometrics. Hopefully you are ready to fly if you have stayed up on your airline status as a flyer, your Global Entry or any other needed documents.

There will also be more automation.

Everything will be touchless, including food, beverage, boarding and checking bags. Most likely, airports will be the last to relax COVID-19 policies and have the fewest amenities of any leg of the trip. Will outdoor dining and cocktail service be available at the airport?

Hotels and Resorts

Hotels have gone through major systemic changes. Housekeeping is no longer a standard for guests during their stay. All front-desk transactions are and will continue to be contactless. Check-in lines will not likely be necessary as it is possible to check in an entire roster of arrivals into a hotel beforehand. Food and beverage ordering will not include printed menus, and all guests will be spread out — no more standing elbow to elbow at the bar waiting for service. Grab-and-go and outdoor dining are happening when weather permits. Will vaccines and a few months of time change that? Maybe, but visitors and locals alike enjoy dining outdoors.

Housekeeping has undergone more than a facelift. Leaders who understand sanitization and safety have put together a massive change in how rooms are cleaned as well as when they are cleaned. Every single room is both inspected and sanitized before every new guest. This might create a benefit that helps to earn some lost market share back from short-term rentals. Public spaces are cleaned and sanitized frequently. And masks, hand sanitizers and partitions rule those spaces.

The hotel sales department has undergone a complete reorganization. Zoom calls replace in-person visits and meetings are going hybrid. This requires sales people to be tech-savvy as many meeting planners are not yet comfortable planning their own hybrid meetings and will be asking the hotel for help. The human resources department has had to endure furloughs, layoffs, rehiring, followed by more furloughs, layoffs and another round of rehiring. They will be required to update handbooks, train staff and essentially start over.

Digital marketing was already a thing before the pandemic crushed our business. Now, without sophisticated digital marketing that includes well-coordinated social media marketing, search engine optimization and crisp up-to-date content, strategic campaigns are more important than ever. Group business remains extremely difficult in states with strict lockdowns and corporate travel is not yet back.

For owners, it is a time to evaluate capital expenditures, top management skills and training, flatter organizations and more. Average rates are down markedly and competition now includes some new hotels as well as short-term rentals. Building revenues based solely on domestic leisure business is not easy, particularly midweek.

Ancillary Businesses/Other Thoughts

Restaurants, attractions, retail and other destination amenities continue to be in flux over capacity constraints. It is not clear that vaccines will necessarily be required for travel within the U.S. There might be legal battles if that does occur, but it is important to note that beating the pandemic is not an option — we must do that to fully recover. Be prepared for shifting tides. But it looks to me like the coast is clear for recovery. It was a long year and not fun for most. So, hang in there and enjoy a recovery that will be just as long as the downturn but headed in the right direction.

Robert A. Rauch
+1 858 663 8998
R.A. Rauch & Associates, Inc.