By Georges Panayotis
In just a few years our industry went from a phase of progressive adaptation of economic models to one of major disruptions that impose self-examination for all. This major change comes at a time when most of the European markets have been upset by economic, geopolitical and security crises. Since then, the morale of entrepreneurs has been low and development projects are struggling to find a good return on investment. And yet, this fundamental choice is inescapable: one must be either actor or victim of any restructuring that is underway.
In light of a deflationary economic spiral and pressure from new players, hoteliers must turn towards a development model that favors low-cost and hybrid products, and also turn towards a model that is able to integrate the arrival on the market of a pre-existing accommodations supply that is coming from real estate.
Mistakes of the past must not be repeated such as opposing residence hotels, online distributors, community websites and now sharing platforms. It is not about being naive, but rather imaginative. The worst would be to do nothing and play "personal". Conrad Hilton's command for "location, location, location" ignores another detail that is now essential: the destination constitutes the leading reason for travel. It must take priority over strategies that are too individualist.
With a global tourism market in constant growth -but increasingly volatile in its choices- the priority is to strengthen the destination in light of international competition. The difference between operators will come from who respects the basic elements of a customer experience that they all claim to provide, but that so many lack. It may be time to change the rules, be able to give first in order to receive later: (re)create a climate of conviviality, sharing, empathy … with the complicity that created AirBnB's good image, even if the reality is sometimes different. Who could be better qualified than hoteliers to recreate socialization between clients. More than price and product, the successful experience is one that relies on authentic values and not just on a marketing spiel.
This search for a new economic model does not exclude the natural tension created by the urgency of the situations. It is a typical example of the franchise model that has not evolved much, whereas the conditions for doing the job and the commercial setting also make it necessary to lay all the cards out on the table. It's the type of situation that needs to be dealt with among family.
We have the right to not always agree, to raise voices during discussions, but a family is able to look beyond individual egos in order to advance in the right direction. The most important is to respect one another's legitimacy and find the right balance. What is true for relations between franchisors and franchisees, is equally true for relations between distributors and hoteliers, between traditional actors and newcomers from the sharing economy.
I keep saying it: the table is big enough for everyone to have a seat and partake in the main dish without disturbing all those present. It is not about knowhow, it is the best interest of an industry that has what it takes to feed upon the growth of tourism without making a display of all its division and lack of anticipation.
