Jeff Tolkin has just returned from a family trip to Southern California. The New York entrepreneur and his family stayed there for a much-needed break at a well-known five-star resort, although Tolkin was unable to relax as planned. He kept noticing small hiccups, a feeling that the service was both frayed and worn out. Turndown was an hour earlier than requested and the extra body lotion never appeared in the bathroom. There was a power outage overnight, but no generator was running as a backup. The worst part was breakfast. “My son’s eggs were clearly nuclear-fired – in a five-star hotel?” He says, amazed, especially after paying $ 961 per room per night plus a $ 50 resort fee on top comes.
Tolkin’s perspective is particularly relevant because he’s not just an experienced one luxury Traveller; rather, he is also co-chairman and CEO of World Travel Holdings, one of the largest conglomerates in the industry. Tolkin warns that these shortcomings have a long-term impact on the quality perception of such luxury hotels. “Even the rich don’t want to feel cheated: if you ask for good coins, you have to do a good job in the functional areas,” he says to Pizza, you run out of pizza. There is a limit to how much you can take with you before you have the same experience. “
Sub-par service and sky-high prices are a risky mix
It’s a big problem in the luxury travel industry, where profits are rising while it’s still struggling to return to pre-pandemic service levels.
Prices have not only recovered – they are exploding. Delivered to by statistics Robb According to a report from hospitality data company STR, the average daily rate at a luxury hotel in America was $ 321.58 in the second quarter of 2021, more than 7 percent higher than the same period two years ago; Given that 2019 was a stellar year for travel, that’s an impressive feat. Travel agency based in New York Skylark said Robb report that the rates in the resorts in the states had risen even higher – averaging between 20 and 30 percent over the same period.
However, because travelers pay more for a room, they often have a less-than-outstanding experience. Cari Gray who runs Robb Report Best of the Best Awarded Travel Agency Gray & Co, observed defects similar to those of Tolkin. “I was recently in a lodge [that] said they couldn’t get bread for the restaurant because the local baker in town couldn’t get enough flour, ”she says, although there was no discount on the nightly rate. Breakfast and lunch were also served as buffets at another five-star ranch; According to the hotel, the number of staff was too low to offer table service. “I’m sorry folks, we’re still in a pandemic and I don’t want to touch the spoon everyone else has,” she shrugs.
The reactivation of local workers on leave requires time and money, which are scarce among hoteliers who are desperate to take advantage of this new opportunity. “The price to do it has gotten much higher, with more untrained personnel and more material shortages,” she adds. The problem is exacerbated by the fact that temporary workers, who many seasonal resorts rely on, travel to America on J3 visas, mostly from the Caribbean, every year. Thanks to the pandemic, of course, “none of these employees will make it into the country”.
The “Revenge Travel” phenomenon is fueling the wave
It is of course difficult to hold hotels responsible for raising their prices. Five-star hotels that have been limping since spring 2020 can potentially make up for 12 months of losses by increasing their rates to meet rising demand this summer. And they know that wealthy Americans are leaving the pandemic flusher than ever: billionaires, for example, are estimated to be accumulated an additional $ trillion in the first 10 months. You also want to spend it on travel: A. current McKinsey report showed that 44 percent of Americans intend to be content with what has been dubbed “Vengeance Journey” this year. But overwork and under-delivery pose a long-term threat to the reputation of the luxury sector that could be far more damaging than the challenges of last year or so.
This is simply because lavish service is the biggest lure for luxury travelers today. Back in the day, five-star hotels could impress guests with the opulence of their decor and amenities – think maybe multiple pools or a beach club. Today, however, wealthy Americans often live in homes that are more than the physical size of hotels. So service is the USP for VIPs, as Gray explains. “Most of our customers are not very price-conscious, but very, very service-oriented,” she says.
Meg Nolan from Connecticut is running Friend of a friend advice, another luxury travel agency. Nolan has just returned from an east coast resort where rooms cost around $ 1,800 a night this summer. That swimming pool there was space and chairs for 30 guests, but more than 60 were crowded around it; only a rushed waiter took care of their drink orders, which led to hours of waiting. The resort did not compose any cocktails despite the backlog. “I think some hotels have been more honest about their lack of service and staffing issues. This hotel had some very obvious staff problems, but no one said anything, “she laughs.” I just found out because I asked the spa therapist what was going on. “
Amangiri Resort
Photo: Courtesy of Amangiri
Why Independent Hotels Are The Safest Choice This Year
Of course, not all luxury hotels have fallen victim to the temptation to raise prices or hide deficits in order to recover from their pandemic-induced losses. Take Amangiri, Utah, where Nolan sent many customers; his openness was refreshing. “The prices are still high, around $ 2,900 a night, but I don’t think they increased them,” notes Nolan – they are overcrowded and we can’t find the right guides so it won’t be your typical one Aman service. ‘”Grace Bay in Turks & Caicos is another outlier, according to Paul Tumposky, founder of Skylark. Tumposky recalls that spring when prices at five-star Miami hotels hit the prices you normally see over Christmas and New Years. Grace Bay, which offers snowbirds a similar chance of winter sun, did not raise prices. “They said, ‘These are our usual prices this time of the year, these are the customers we want to support’ – that’s a really respectable thing.”
Grace Bay has a particular advantage in the current circumstances, according to Tumposky, as the property is owned and operated by the same company. This is how hotels were traditionally run – think family-run luxury properties on the Amalfi Coast – but many are now property-centric: a developer will work with an operator like Hyatt or Hilton to handle everyday life. These two hotel types have drastically different priorities: Owner-managed hotels are likely to think long-term, want to retain guests for 2022 and beyond, and act accordingly. If a developer sees a property bleeding red ink, he or she will react sharply. “Owners make a Zoom call with the big brands and say, ‘We were killed last year, we want to get our money back quickly.'” For smart travelers, 2021 will be the summer of independent ownership.
Wherever you go, pause for a moment. While many hotels may prove to be inadequate this summer, remember that both sides have responsibilities. If a property like Amangiri is sticking to rates and giving genuine warning about staying, travelers should respond with decency and patience. “So many employees will be excited to see you, and for those who have been on leave, it’s just pretty profound to get back to work,” says Friend of Friend’s Nolan, when someone is that excited, you’re there. “Tumposky agrees. “It’s about expectations in this new environment. Everyone’s job in the hotel has changed, so we have to be open to the new world. “
