Let’s reclaim travel – together

The signs are everywhere: The travel and tourism sector has proven its resilience and is making its gradual return. After the pandemic impacted visitor spending in GCC markets to the tune of $60 billion – it is now time to build back.

Across the world the indicators are positive, although the revival has also taken new forms including an uptick in staycations, and positive growth in domestic tourism – as more people explore the hidden gems in their own markets.

The travel statistics for 2021 present an optimistic picture, especially for the Middle East and Africa region where occupancy rates recorded an increase of 26.9 percent last year compared to 2020, according to the Middle East and Africa 2021 Hotel Review report by STR.

The average daily rate (ADR) increased 17.2 percent and RevPAR grew 48.7 percent. Of course, there is lost ground to recover, considering that occupancy levels were 20 percent lower in 2021 than in 2019, the pre-pandemic period. RevPAR was still 18.3 percent lower although ADR gained 2.1 percent.

The trends are similar with a number of cities including Abu Dhabi, Amman, Beirut, Cairo, Giza, Casablanca, Dar es Salam, Doha centre, Dubai, Jeddah, Lagos, Manama, Muscat, Nairobi Riyadh and Sharm El Sheikh all registering RevPAR growth in 2021 vs 2020.

By working with our partners – from governments to airlines, tour operators to franchisees – we continue to rebuild confidence in tourism, as people begin to explore once again in this new era of travel. Despite lingering concerns, especially following the Omicron variant, it is paramount to prepare with a positive mindset for the months ahead.

Trends in tourism

I believe that the defining trend for our industry in the coming months will be the continued rise of domestic tourism, as more people seek comfort travel within their own back yard, and a stronger surge in long-haul travel, driven by a pent-up appetite for new discoveries and adventures. Travellers seek deeper connections with nature in less dense destinations, underlining the opportunity for hospitality projects and services in off-the-beaten track locations.

Leading this trend will be the digital nomads, those seeking new experiences to satiate their quest for adventure. With work-from-home dynamics already altering their outlook towards life, as is evident in the ‘great resignation’ by millennials and Gen Z, I believe travel – as we knew it – will return with even more might. However, the new generation of travellers is also more discerning as they seek well-designed spaces and destinations with unique character and individuality. They seek heritage infusions that will propel the launch of innovative lifestyle brands that promise the offbeat experiences they seek.

There is also a growing interest in eco-tourism, a trend the hospitality sector can leverage by highlighting its sustainability considerations. The peak of the pandemic was a time for many hotel operators to make on-site improvements, with a sharp focus on integrating sustainability elements as part of their overall make-up.

For the hospitality sector, the priority remains to safeguard the health, safety, and well-being of guests and staff. We will also need to up the ante when it comes to leveraging technology because hotels are likely to continue evolving as ‘living communities’ where travellers will not only need to rest and dine, but also allow them to remain ‘connected’ while on the move. We must also continue to leverage the exceptional opportunity that digital technology brings to strengthen our operational efficiencies and boost traveller convenience.

An emerging trend is ‘Bleisure travel,’ an imaginative blend of business and leisure, which gained traction during the pandemic. Bleisure travellers have a different set of aspirations and needs, and the hospitality industry must invest in meeting their requirements to build this sector further.

This would also mean revisiting loyalty programmes, which have been overtly linked to business travel by introducing more lifestyle rewards that focus on F&B and experiences rather than the conventional route of room redemptions.

Revisiting business models is key to building the industry. The traditional focus on increased revenue from an uptick in volume of trips must dovetail to the new reality of lesser trips, until the world reaches full recovery, characterised by increased spending per trip. Creating value at every touch point will be a strategic imperative.

From an investor perspective, there is an increased focus on developing long-term hospitality solutions, such as serviced residences, which offer travellers the comforts of a hotel with additional amenities and offerings, while still providing connectivity through online and hybrid meetings.

In short, reclaiming lost travel and sustaining the momentum of growth will require a collective effort. Every stakeholder in the travel and tourism industry must work together, draw on each other’s synergies to create a blueprint for positivity and growth.

I am proud of the work our teams have done to drive elevated safety measures and cementing them as the norm, ensuring travellers have memorable and relaxing experiences across our properties.

We have demonstrated that together we are stronger, and we look forward to continuing to work side-by-side to scale to newer and even more extraordinary heights in the coming months.

Panos Loupasis, VP Development, Middle East, Eurasia & Africa at Wyndham Hotels & Resorts.