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JLL vice-president for advisory and asset management Paavan Patel shares his insights and recommendations for the Asian hospitality sector in this exclusive interview.
The travel and hospitality industry today is driven by evolving consumer preferences, technological advancements, and a growing emphasis on sustainability. As travellers increasingly seek personalised experiences, companies are adapting their offerings to meet these demands.
Patel presents his observations and suggestions for the regional industry below, highlighting key trends in travel and hospitality, including the integration of data analytics and AI, sustainability, experiential travel, the importance of digital transformation for competitiveness, and exceptional guest experiences.
What emerging trends in hospitality do you think will most significantly impact hotel owners, operators, and investors in the coming years?
As we look to the future of hospitality, several emerging trends stand out that I believe will significantly impact hotel owners, operators, and investors in the coming years. Firstly, the integration of advanced data analytics and AI is revolutionising our industry.
We’re seeing a shift towards more data-driven decision-making, which enables more accurate forecasting, dynamic pricing strategies, and personalised guest experiences. This trend has the potential to dramatically improve both operational efficiency and guest satisfaction. Sustainability is another crucial factor that’s gaining momentum. As environmental awareness grows, we’re seeing increased demand for eco-friendly practices from both guests and investors. This shift may require initial investments, but it’s likely to yield long-term benefits in terms of cost savings and guest appeal. The rise of experiential travel is also reshaping our industry.
Today’s travellers, particularly millennials and Gen Z, are seeking authentic, unique experiences. Hotels that can offer distinctive, locally-inspired offerings are likely to gain a competitive edge. This trend is influencing how we design, operate, and market properties. Technology-enabled personalisation is becoming increasingly important. The use of IoT, mobile apps, and AI to create tailored guest experiences is no longer a luxury but a necessity. Whilst this requires significant investment, it has the potential to greatly enhance guest loyalty and RevPAR. We’re also seeing a growing focus on health and wellness, accelerated by the pandemic. Properties that effectively incorporate wellness elements into their offerings may see increased appeal and the ability to command premium rates.
Lastly, the continued growth of alternative accommodations, like Airbnb, co-living, and apart/condo hotels, is pushing the industry to innovate. We may see the development of new hybrid models or strategic acquisitions by traditional hotel companies in response to this competition. These trends collectively signal a shift towards more dynamic, guest-centric, and technology-driven approaches in hospitality. In my view, owners, operators, and investors who can effectively adapt to and capitalise on these trends will be best positioned for success in the evolving hospitality landscape.
How important is digital transformation for hotels today, and what are the critical areas where hotels should focus their tech investments to stay competitive?
Digital transformation is crucial in today’s hospitality landscape. It’s not just a buzzword; it’s a necessity for hotels to remain competitive and meet evolving guest expectations. In my experience, the most successful hotels are those that strategically invest in technology across various touchpoints.
We’re seeing a strong focus on mobile-first solutions that enhance the entire guest journey, from booking to check-out. This includes everything from user-friendly apps to contactless check-in and digital room keys. Another critical area is data analytics and AI. These tools are transforming how we understand our guests and personalise their experiences.
They’re also revolutionising our revenue management strategies, allowing for more dynamic and precise pricing. I’m particularly excited about the advancements in smart room technologies. IoT devices are not only enhancing guest comfort but also improving our energy efficiency, which is a win-win. We can’t overlook the importance of robust cybersecurity measures.
As we collect more guest data, protecting it becomes paramount to maintaining trust. In the F&B sector, we’re seeing great results from implementing data-driven systems for menu engineering and demand forecasting. This tech is helping hotels optimise their F&B offerings and significantly boost revenue in this often-underutilised area.
Of course, it’s not just about implementing new technologies. Successful digital transformation requires a holistic approach – rethinking processes, training staff, and fostering a culture of innovation. Whilst the initial investment can be substantial, we’re seeing that hotels embracing these technologies are reaping rewards in terms of operational efficiencies, cost savings, and most importantly, enhanced guest satisfaction. In today’s competitive market, staying ahead of the digital curve isn’t just advantageous – it’s essential for long-term success.
What factors do you consider when advising hotel owners and investors on expanding their portfolios or entering new markets, particularly in a post-pandemic landscape?
When advising hotel owners and investors on portfolio expansion or entering new markets, we focus on several key factors, especially in the post-pandemic landscape. We closely examine the economic recovery patterns and evolving travel trends in potential markets.
This includes analysing both leisure and business travel recovery, as well as emerging concepts like ‘bleisure’ travel. We assess the competitive landscape, looking at existing supply, pipeline projects, and how well the market has absorbed new inventory post-pandemic. This helps identify potential gaps a new property could fill.
We also consider the property type and positioning. We’ve seen increased resilience in extended-stay properties and those with strong leisure appeal, which influences our recommendations. Operational efficiency is crucial, so we evaluate the potential for implementing new technologies and sustainable practices that can enhance guest experience whilst optimising costs.
Ultimately, our goal is to provide insights that will maximise the long-term value and performance of the asset within the owner’s or investor’s overall portfolio strategy.
In your experience working with luxury hotels, what makes an exceptional guest experience, and how does it translate into long-term value for the hotel operator?
For me, an exceptional guest experience is multifaceted and goes beyond just high-end amenities or opulent surroundings. It’s about creating a seamless, personalised journey that anticipates and exceeds guest expectations at every touchpoint. Personalisation and attention to detail are paramount. From remembering the room temperature preferences to curating experiences based on individual interests. In luxury hospitality, it’s often the small touches that make a big difference. Staff should be empowered to proactively address guest needs, often before the guest even realises they have a need. Let’s also not forget that luxury travellers are now increasingly seeking authentic, destination-specific experiences that go beyond traditional tourist activities, so curating unique local experiences is a must. And whilst the human touch is crucial, technology should enhance the experience, offering convenience without being intrusive.
From an asset management perspective, delivering these exceptional experiences translates into long-term value for the hotel operator in several ways. We have witnessed that guests who have exceptional experiences are more likely to return and become brand ambassadors, reducing customer acquisition costs over time.
Guests who receive consistently exceptional experiences are willing to pay higher room rates and ancillary spending, directly impacting RevPAR and profitability. In the age of social media, exceptional experiences lead to positive online reviews and recommendations, enhancing the hotel’s reputation and driving new business.
As luxury supply increases in many markets, delivering exceptional experiences helps a property stand out from competitors. Properties known for exceptional guest experiences often attract and retain high-quality staff, which in turn helps maintain service standards. Hotels with a reputation for exceptional experiences often maintain higher occupancy rates even during economic downturns, as luxury travellers are typically less price-sensitive.
In essence, whilst creating exceptional experiences requires investment in both hard and soft elements of the property, it pays dividends in terms of financial performance, asset value appreciation, and long-term brand equity. As asset managers, we work to ensure that investments in guest experience enhancements are strategically aligned with the property’s overall business objectives and deliver measurable returns.
With the growing focus on wellness and experiential travel, how can luxury hotels differentiate their offerings to meet the changing preferences of high-end travellers?
The growing focus on wellness and experiential travel presents both a challenge and an opportunity for luxury hotels. To meet the evolving preferences of high-end travellers, it is my opinion that rather than just offering a spa, luxury hotels can integrate wellness into the entire guest experience. This could include in-room wellness amenities, healthy dining options, sleep enhancement programmes, and even architecture and design that promote well-being.
Hotels need to leverage data and technology and offer tailored wellness experiences. This might involve pre-arrival consultations to design bespoke programmes combining fitness, nutrition, and relaxation elements. Hotels do not have the expertise in-house and hence collaborations with renowned wellness practitioners, nutritionists, or fitness experts can elevate a hotel’s wellness offerings and create unique draw factors. Incorporating local wellness practices or traditional healing methods can provide authentic, destination-based experiences that resonate with experiential travellers.
Recognising that many luxury travellers are families, offering wellness and experiential programmes that cater to all age groups can be a strong differentiator. Investing in advanced wellness technologies, such as sleep optimisation systems, bio-hacking facilities, or virtual reality meditation experiences, can set a property apart.
Beyond wellness, creating exclusive, immersive local experiences can differentiate a property. This might involve partnerships with local artisans, behind-the-scenes cultural tours, or exclusive access to local events. As wellness increasingly encompasses environmental consciousness, luxury hotels can differentiate by integrating sustainability into their operations and guest experiences.
Offering programmes focussing on mental well-being, such as meditation retreats or stress management workshops, can appeal to high-end travellers seeking holistic wellness. Some luxury hotels are differentiating by incorporating wellness principles into their very design, with features like advanced air and water purification systems, circadian lighting, and biophilic design elements.
From an asset management perspective, it’s crucial to carefully evaluate these initiatives based on their potential return on investment. Whilst some may require significant capital expenditure, others can be implemented through strategic partnerships or operational changes. The key is to align these offerings with the hotel’s overall brand positioning and target market preferences. By doing so, luxury hotels can not only meet the changing preferences of high-end travellers but also create unique selling propositions that drive guest loyalty, positive word-of-mouth, and ultimately, improved financial performance.
Moreover, well-executed wellness and experiential offerings can justify premium pricing, increase the length of stay, and drive additional on-property spending, all of which contribute to the asset’s overall value and performance.
As a judge for the TDM Travel Trade Excellence Awards, what qualities or innovations do you look for when evaluating top performers in the travel and hospitality sector?
In my role as a judge for the TDM Travel Trade Excellence Awards, I seek out nominees who truly embody excellence and innovation in our industry.
I’m drawn to those who embrace cutting-edge technology and pioneering strategies that propel our sector forward. Whether it’s leveraging AI for personalised experiences or spearheading sustainable tourism initiatives, I’m looking for game-changers. Creating exceptional guest experiences is key. I’m impressed by nominees who craft unforgettable moments for travellers.
But what catches my eye is authenticity – those rare gems that offer genuine, heartfelt hospitality that transcends the typical customer service script. Impact beyond profit margins is crucial. I’m keen on nominees who demonstrate a real commitment to corporate social responsibility, sustainability, and community engagement. It’s about caring deeply – not just for guests, but for staff, stakeholders, and the wider community.
Leadership in our dynamic industry requires more than just business acumen. I value adaptability and strong management, but I’m particularly interested in leaders who cultivate a culture of authenticity and care within their organisations. Whilst financial success is important, I’m more intrigued by how nominees balance profitability with long-term value creation and industry stewardship.
Those who achieve business success whilst maintaining strong ethics and genuine stakeholder care stand out. The true stars are those who not only excel across these areas but also paint a compelling vision for the future of travel and hospitality. They’re the trailblazers moving our industry forward with authenticity and a heartfelt commitment to all they serve.
About Paavan Patel
As a judge for the 2024 TDM Travel Trade Excellence Awards, Patel brings wisdom gleaned over 15 years of extensive experience in the luxury hotel sector.
In his current position at JLL, he provides strategic advice and tailored solutions to hotel owners, operators, and investors throughout the Asia-Pacific region.
Throughout his career, Patel has demonstrated strong proficiency in multi-property asset management, revenue management, room operations, room systems, and pre-opening processes.
Likewise, he has successfully managed a diverse portfolio of hotels and serviced residences with Assets Under Management (AUM).
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