Wharf Hotels President Thomas Salg is contemplating new strategies to lead Marco Polo Hotels in a new direction post-pandemic. Salg believes that the industry is not entirely in the black yet, based on the current business outlook.
“In Asia Pacific, the big picture is that every market is starting to go back to pre-pandemic levels with increasing regional travel, but the long haul is just starting to come back as well as foreign investments.” Salg said in his recent visit on the 10th year anniversary celebration of Marco Polo Hotel Ortigas Manila.
Salg recognizes the importance of the long-haul market, as these travelers tend to stay longer and spend more. However, he acknowledges that the industry’s recovery has been slower than expected. An example he gave was China which made waves in the pre-pandemic and was expected to respond to the revenge travel boom in the post-pandemic so there was a resulting increase in energy costs, utility costs, and cost of living. But China went into savings mode and their expected return didn’t materialize. So, when the return of tourists in Asia-Pacific was not in the same speed as the hotels expected, the increase of operating costs were unexpected either when labor costs continued rising.
“Prices continue to rise, and it seems like it’s not temporary. Operating costs, such as electricity, remain high with no signs of decreasing,” Salg explained
A new business model
Salg states that customer behavior has also changed even before the pandemic.
“We used to have the categories of business and leisure travelers. Nowadays, these lines are much more much more mixed. We need to have offers for both—business travelers, who still wants to relax and enjoy life, and also for leisure travelers who still need to do a little bit of work,” he reveals
Recent findings in other markets have shown that people like to come to a destination for business and then stay one or two more nights for leisure in the same place. Research is now looking at this aspect as much as the other.
“The core values have not changed, such as having a clean room, hot showers, a good night’s sleep, and waking up refreshed the next day after completing business or leisure activities. However, how people experience things and look at them has changed. People want something different. The good night’s sleep aspect has not changed. When we say good night’s sleep, it means ensuring that everything is taken care of so that I can rest and be ready for the next day, whether it’s for business or exploring the city.”
Technology
Saig states the importance of utilizing technology to adapt to digitalization and attract the younger generation. He discusses the need to reevaluate traditional hotel services such as minibars and room service to enhance the customer experience.
He also highlights the significance of optimizing hotel operations through technology
“How can we effectively implement 24-hour room service, or would it be more beneficial to reinvest those resources in other activities that make more sense? The pricing of laundry services in hotels is particularly important for short-term stays of one or two nights. These investments are significant for hotel owners, and we are interested in exploring optimization technology to streamline the booking process for customers.”
In today’s digital age, customers are more inclined to book online rather than through traditional travel agencies. However, there should be a balance between technology and maintaining personal guest interactions. While automated check-in kiosks may be practical for quick checkouts, hotels still value face-to-face interactions with guests.
He added that hotel Wi-Fi usage should be managed during its peak demand, during evenings and weekends. He also proposes using intelligent chips to optimize elevator energy efficiency by storing energy on the way down for later use when going up.
A brighter future
In the interview Salg made it clear that Marco Polo will be up for some reengineering to address different generations, different needs, to focus more on the experience and technology without putting aside the physical relationship.
In a latest news release, Marco Polo Hotels announced a comprehensive rebranding to address to the evolving behavior of guests and addition of numerous enhancements.
The brand’s new visual identity and colour palette, Viva Magenta, will be deployed in stages to consumer-facing marketing materials and hotel collateral throughout 2024 and into 2025. Changes are expected to be progressively introduced at the other properties in the next few years, including investments in the interiors, as well as improved guest experiences.
People’s preferences and expectations have changed, and hotels must adapt to stay competitive by making a few targeted modifications.
