Industry Updates

The future of hospitality

A recovery like no other – Deloitte

Understanding how this behaviour has evolved and responding effectively to those changes will be critical to enabling businesses to recover in a post-pandemic economy.

Organizations will need to reimagine the customer experience and take deliberate action to maintain and build consumers’ trust. They will need to develop offerings that reflect the impact of COVID-19 on customers’ health and finances while also encouraging them to get out of the house, travel, and spend.

As well, hospitality businesses will need to manage the operational realities of the new normal, investing in technology to help deal with the burden while building a more flexible, agile workforce.

In an environment of dramatically lower revenues, high fixed costs, less than optimal asset returns, and the need to conserve capital, hospitality organizations will need to determine which areas to prioritize and invest in.

They will need to find the right balance between investment and conservation, one that achieves the highest ROI in the near to medium term. Some of these decisions will endure; others may not. But the decisions made in the months to come will have a lasting impact on the operating models of the hospitality sector for years to come.

The COVID-19 pandemic will eventually fade. The economy will recover, and the hospitality sector—from restaurants to hotels, casinos to sports—will regain its footing and look forward with confidence to a successful, thriving future.

Now is the time for companies to act, adapt to the new normal, position themselves for nimbleness, and thrive in the years ahead.