Bill Geist's Zeitgeist

Not Out of the Woods Yet

Over the past few weeks, the media has been absolutely giddy over the return of tourism across America. And, we are too...though we are cognizant that it certainly isn't the case everywhere.

A new report from the American Hotel & Lodging Association (and, they should know) holds that 21 of the top 25 hotel markets in America remain in "Depression" or "Recession" status. in May, San Francisco continued 70% off its May 2019 Rev/Par pace....and Boston, New York City and DC weren't far behind. Only Tampa and Miami were up over 2019 levels.

Let's certainly celebrate the return of travel...but let's not forget our partners in our urban centers.

Like That Will Have a (Positive) Impact

Not to throw shade at the head of the Hotel Association of New York City, but his recent support of Mayor Bill de Blasio's summer-long waiver of Hotel Room Taxes is perplexing, at best, and reckless, at worst.

Don't get me wrong, there are some destinations where $18 a night might influence a potential visitor to choose another city. But, honestly? This is freakin' New York City. A destination that isn't up for debate on haggling over price. It's also a City with a pandemic-induced budget hole that could use those revenues to shore up other parts of the economy or infrastructure. To forfeit an estimated $30 million of tax revenue on a feel-good gimmick that's simply not needed to jump start the hotel sector is amazingly short-sighted.

The consumer tax savings on a $300/night room is roughly $18, it's $12 on a $200/night stay and $6 on a $100/night stay. So, don't call me elitist when I say people wouldn't let $18 blur their desire. That's a drink in the hotel bar for people willing to spend $300 a night...and a hot dog for those attempting to be frugal. 

If the powers at work here really want to help, don't waive the Room Tax. Use it to subsidize a portion of theatre tickets so the theaters and their crews and companies are made whole...but that tickets are more affordable to the tight-fisted (but culturally sophisticated) consumer this summer. That will capture people's attention. Broadway on Sale for one Summer only? That will cause theatre goers that might fear an unmasked city to take a chance and return. The same with admissions to sporting events and museums. And, let's find a way to help our restaurants come back.

The Mayor deserves huge props for dedicating $30 million in recovery funding for the work of NYC & Company. But, forgiving a fee that hardly anybody notices when there are so many ways to maximize this revenue? Unforgivable.

One Year Ago Today

It was March 3, 2020 when I felt the first sting of what was about to become the most devastating year of a generation.

I was in-market with a client interviewing community leaders and stakeholders for a project. The day prior, America recorded its 100th case of the virus and all six deaths were confined to a senior living facility in the State of Washington. It still wasn't "real" to most of us.

And then, the GM of a resort sat down with me for her interview...and revealed they had just had their first cancellation. It was a piece of business that was valued at $1 million...and it was to have occurred the following week.

As I look back upon the last year, I marvel at how America's response to the incoming threat was so wrong. And, I ache for all those who have lost loved ones and livelihoods.

Reimagine a Floor?

Many restaurants that have managed to remain open for the past year are hanging on by a thread, praying for the weather for outdoor dining to return, government restrictions to relax and consumer fear to subside. 

I'm not sure how I missed this piece by Laurie Jo Miller Farr that ran last month in The Travel Vertical, but the concept of restaurants and hotels partnering at a high level is brilliant. As she opined: "Urban hotels are removing beds, dressers, nightstands from hotel suites and re-furnishing them as private dining rooms. Limiting interaction with others, there’s a waiter to serve plated meals from a nearby restaurant and some of the guests are opting for an overnight stay. Aimed at a local targeted audience, why not?"

If you missed the story too, catch it here. This could be the bridge to Summer.

Image Credit: Le Crocodile in Brooklyn

Ghost Hotel Kitchens

We talked about Ghost Kitchens last Fall...those restaurant and food truck operations that pivoted during the pandemic in an effort to keep people employed. These entrepreneurs flipped their then underperforming kitchens to provide other culinary genres for take-out and delivery (thus "ghosts"). Imagine a Mexican place also doing pizza under a different name. Or Italian. Or...anything.

So why not apply the same concept to hotels? Those that have maintained food service operations typically do so as a loss leader (it doesn't directly make money but is central to the hotel's overall appeal...and, thus, profitability). 

These kitchens typically sit empty at lunch. Why not target those local businesses that still have employees working on site to provide lunch delivery?

Check out this recent article from Skift for more inspiration.

And, it took a pandemic to realize what an opportunity this has always been, sitting right in front of our eyes?

Oy.

Missing a Market?

As Americans over 65 are increasingly in line for their vaccinations across the country, one could make the case that they may be the first back out on the road.

Indeed, TravelAbility's Jake Steinman said as much in an article he posted earlier this week, adding that this cohort is also sitting on 70% of this nation's discretionary spending power. They're also more likely to require special accessibility features in hotels, restaurants and attractions.

Sounds like a perfect time to start re-imagining how we all serve this growing market. To get you motivated, check out our conversations with Jake, Greater Lansing's Julie Pingston and Visit Mesa's Marc Garcia on DMOU podcasts.

Room Immersion

Themed hotel rooms are nothing new. The Sybaris chain of hotel suites for amorous couples was launched in the mid-70s. A couple years ago, Travel & Leisure featured 20 such rooms around the world including homage rooms to 007, Batman, Star Trek and more. In Fort Wayne, home of pro music gear supercenter Sweetwater, select rooms in one of their hotels are tricked out in various music motifs and genres for visiting musicians. And, I've raved before about a '60s-looking hotel on the outside doubling down on being a '60s hotel on the inside, complete with shag carpeting and lava lamps.

My new fave is a collaboration between our friends at VisitLEX and the simply sensational 21c hotel. Based on "The Queen's Gambit" (if you've yet to stream this gem, treat yourself), you can now immerse yourself in chessmaster Beth Harmon's world...right down to imagining chess moves as you lie in bed.

Simply brilliant. And, channeling Samuel L. Jackson, "what would make sense in your town?"

The Chilling View from the Cliff

I'm sure that our political leaders believe this is all a case of Chicken Little. And sadly, they likely believe the data coming from the American Hotel & Lodging Association (AHLA) is being manipulated to paint a darker picture than reality warrants. Of course, that begs the question: If the AHLA isn't surveying its members, who would? 

The latest intel is scary as shit. 71% of hotels will be forced to shutter in the next 6 months without immediate assistance from local, State and Federal governments. I'm quite sure that the release of the vaccine is causing our elected officials to believe that they've dodged a bullet. Surely, impacted businesses can hold on until Spring, they likely think.

No. Every day that this industry is forced to wait is a death warrant for some of those 71%. The study shows that 71% will fail by June...but how many will close in January and February, typically the slowest occupancy months of the year in North America? 20%? 25%? 

And how many restaurants and retailers, hoping against hope that they'll score enough revenue over the Holidays will wake up on New Year's Day and say "we're out?"

If action doesn't come swiftly, I wonder how many elected officials will have challengers in the next election that have lost everything because of our government's ham-handed response to the virus, have a compelling story to tell and knowledge of what it takes to make an economy hum...and will kick their uncaring partisan asses to the curb.

While it's the last thing I want to see...we'll likely all be better off in that scenario.

Who's Working?

I've always been fascinated that nobody seems to care that the two most important jobs in the land are simply ignored for two months every four years. Indeed, the jobs of those running for re-election at any level are pretty much abdicated as incumbents turn their focus solely on keeping their jobs.

In a normal year, I suppose we could let this slide...but, this is far from a normal year. There are initiatives on the table that require immediate attention. Not after the election and not after the inauguration. Now.

And, as the Senate turns its attention to confirming a Supreme Court Justice (when the ranking Party blocked the previous administration's attempt to fill an empty seat on the grounds that an election was nigh), forgive me for my short-term view of the world. In the hotel world alone, the absence of another round of Federal relief will force 74% of hotels to lay off additional staff and 67% would face closing their doors and moving into foreclosure.

And, the Administration is tinkering with another round of aid to the airline industry because they've got a bigger lobby.

Every hotel in the land should ensure that every employee is registered to vote. And, every hotel should provide transportation to the polls next month for those that choose to vote in person.

Because this Congress and this President have failed you all.

 

Bringing the Pain Front and Center

The team at the Cabarrus County CVB has been masterful at their use of video during the pandemic. Their "Pit Stop" video early in the crisis was one of the most hopeful and heartfelt videos we saw last Spring.

I know that many of us in the Destination Marketing sphere believed that the unimaginable carnage that descended on the travel and hospitality industries during the second and third quarters of this year would result in a newly sophisticated appreciation of our role in the economies and quality of life in our communities. While many people supported their favorite businesses by stepping up their patronage of those that could deliver product virtually, distantly and/or take-out, so many of our community leaders have yet to fully understand the acute pain.

With all due respect, they have been dealing with their own struggles and, unless they knew someone from the hospitality and performance sectors, they haven't yet experienced the pain.

Donna Carpenter and her crew are back with two new videos. One encourages area businesses to get certified as safe and healthy with the voices of local partners spreading the message. Which, of course, is the most effective way to get viewers engaged.

But, it is the second video that is so amazingly powerful. "The State of the Hospitality and Tourism Industry" peels back the happy face we typically show the world to showcase the pain our partners experience as they are forced to layoff staff and potentially close their doors. It puts a face to the pain; it gives voice to the agony so many feel.

And, we can surely hope that it will resonate with Local, State and Federal leaders that there are so many of their constituents crying out for their help.