Written by: Dimitris Manikis, President, Europe, Middle East, Eurasia and Africa (EMEA), Wyndham Hotels & Resorts
I’ve been a bit of a conference groupie this year. Any opportunities to head out and mingle with people, talk hospitality and get a feel for what’s going on in our sector, I have tried my best to accept with open arms. All in the name of business, of course.
The travel bug is well and truly back. And although I have perhaps been away from my desk more than I should, being out and about at industry events is always a useful reconnaissance exercise.
Several themes, trends and challenges have kept surfacing.
Sustainability is an ever-present topic of conversation, and rightly remains a crucial ongoing priority as we seek to decarbonise and offer environmentally responsible choices to a growing segment of conscious consumers.
Human resource is another. Staffing continues to be a huge challenge in many markets following a mass exodus from the industry during the Covid years.
And just as the Covid crisis eased, it feels like one curveball event has tumbled into another. The world remains beset by uncertainty – crises in Ukraine and Gaza, climate change challenges and more – these are all situations we must be agile enough to respond to in real time.
So often I get asked about grand strategies and five-year plans. I take them with an extreme pinch of salt, as we’re fortunate if we’re able to predict what’s going to play out over five weeks, let alone five years. That said, we of course have strategies in place here at Wyndham. The key is to remain agile and be able to deal with such events as and when they arise.
Bigger and better in 2024
The strategy is working, and we have enjoyed many successes through 2023 across a number of our brands in the Wyndham portfolio.
Our story in the CIS market continues to evolve, with numerous openings in the likes of Uzbekistan, Kazakstan, Georgia and Turkiye. Meanwhile, in Saudi Arabia, we are on a mission to bring inclusivity into what is a hugely exciting market. We have reintroduced our direct franchising and management rights for the Ramada by Wyndham brand, an important step to fulfilling a significant demand for high-quality, midscale hotels.
In December, we opened the first new Vienna House property since we acquired the brand. Situated in Prenzlauer Berg, near the trendy districts of Friedrichshain and Lichtenberg, it is a vibrant hotel right in the heart of Berlin’s cultural tapestry.
The momentum will continue in 2024. In January, we will pass the 600-property milestone for Wyndham in EMEA, a huge achievement that should be celebrated by everybody who has played their part.
We are also looking forward to expanding our range of extended stay hotels, replicating the success we have had with the concept in the USA. Our main brand, Ramada, will continue to grow in key markets such as the Middle East, while our midscale branded residences portfolio is set to grow with another 10 properties in the pipeline.
Everyone wants to be Wyndham!
Our market share growth in 2024 will be challenged by several competing firms seeking to enter and expand in the midscale space.
It is clear that all major-brand companies are recognising the value of this market, and it feels like Wyndham has become an aspirational model for many operators – this is of course a testament to how well we have done, but also raises the important question of how we remain the leader of this category with new entrants coming to town.
Midscale is on the up for many reasons. People still have a pent-up urge to travel following the Covid period. At the same time, the majority of traveling consumers are facing cost pressures and wanting to derive value from their trips. Air travel is becoming more expensive, as are experiences such as eating and drinking out. Alongside this, everyday cost-of-living pressures are lowering the amount of disposable income people have available to spend on holidays.
Wyndham has been successful because we appeal to the 85% of the market for whom luxury accommodation is either undesirable or out of reach. We seek to make high-quality travel a possibility for all, with brands that exemplify strong standards, safety and trust.
Bringing people back
Our people are at the heart of it, and it would be dishonest if I were to say we have not faced our share of resourcing challenges since the pandemic.
Some markets, particularly in Western Europe, face chronic shortages of labour. Others, including markets in the Middle East such as Dubai, are challenged more by finding the best talent as opposed to volume of staff.
Whatever the situation, we as an industry need to rebuild trust with talent. Too many skilled people were let go during the Covid years and have subsequently been snapped up by firms from other sectors who realise the value of the social and soft skills we teach.
There are lessons to be learned here, and there are some positive signs emerging. In November, Hilton was named the World’s Best Workplace by Fortune magazine and Great Place to Work for 2023. Meanwhile, Forbes once again ranked Wyndham as one of America's Best Large Employers, highlighting team members' willingness to recommend the company to both family and friends.
Key to rebuilding that trust and reversing the talent drain is narrative. There are positive stories out there that need to be told in the right way.
A very clear example of this is AI. A huge proportion of the narrative reaching prospective hospitality talent is that bots will take their jobs away or change them for the worse.
This, in our case at least, could not be further from the truth. We are embracing technology and AI to enhance the experience of our employees and customers – it is about taking away the mundane, administrative tasks and feeing up time for people to add value and do what they do best.
A force for good
In our sector, it is so important to remain upbeat. Hospitality is all about exuding positivity.
I go into 2024 with many reasons for optimism. People are travelling again and want to make up for lost time. There are huge demographics in China and India who want to travel – hundreds of millions of people who can generate prosperity in the EMEA travel sector.
In tandem, markets such as Saudi Arabia are investing more than ever in tourism infrastructure in a bid to diversify their economies. In Europe, I see great potential in the Nordics as travellers seek cooler summer climates and broaden their experiences.
I’m also impassioned by the broader impact hospitality has on the world. Humanity came together to fight covid, but now we see more splinters emerging again as conflicts continue to rage. Hospitality is a tremendous force for good as it unites people, enables the sharing of culture and puts smiles on people’s faces – we will need that positive energy more than ever in 2024 and beyond.