Hospitalitytrends: het operationele draaiboek

the Future of HospitalityChallenges. Wow. Okay. Looking ahead, what are the expectations for the hotel market in the coming years? Are there specific challenges or opportunities you foresee for the industry in The Netherlands? Well, I think we're still working in a in a blessed industry.

Erwin van der GraafAt the end of the day, everybody wants to go on holidays, and everybody wants to travel and explore and meet other people. So our the perspective of our of our industry will always be good. Of course, there is a few few things that we we need to notice that and I'm speaking now specifically for The Netherlands. Labor market is challenging and will remain challenging. The demographics in the country show that a lot of people will leave the market at some point because they will retire, and the inflow of new talents to the to the to the business is probably not at the same level. So Mhmm. The the talent pool in which we all fish is getting smaller. Smaller. Yeah. The number of businesses in hospitality business in The Netherlands are still growing. So that's a challenge. And that's also why we are so busy with the hospitality packs to attract talents to the hospitality industry and to show them how great it is to work here Mhmm. And what the opportunities are, and not only in the hotel business, but also in the catering business, in the travel business, in the leisure business, in the event business, which all make up together in the hospitality business.

Erwin van der GraafAnd it's not it's often seen as a as a side job industry, something you do when you're a student or when you work part time or whatever. And we also wanna show all the great examples of people that are actually building up their careers in the, in in in the industry. So that's sort of labor markets that will remain a challenge for our business in the years going forward. Sustainability. And I can't repeat enough how important it is, and it will become even more so. And we can dig into that later a bit more in detail. But I think if today you're a hotel and you're not you didn't invest in sustainability and you're not ready yet, you're gonna have a tough few years ahead.

Erwin van der GraafMhmm. So these will in my opinion, these are the key elements for our industry going forward. Yes. The business will remain strong. We see in a lot of in, for example, in Asia and in South America that the middle classes are getting bigger. So it means people are getting budgets to travel either in their own country, but at some point international or intercontinental, and they will come to Europe. I mean, Europe is still very popular. And if they're in Europe, there is a big chance they will also come to The Netherlands or to Amsterdam. So in terms of business, I'm not so concerned, but I think there is more of a red flag when it comes to labor markets, and there is more of a red flag when it comes to sustainability.

the Future of HospitalityRight. We touched that indeed later on sustainability and the and the other points you just highlighted. The hospitality workforce. So the hospitality industry has faced significant labor shortages in the wake of the pandemic. That's correct. Right? Okay. What are some of the biggest challenges you're seeing in the hospitality labor market, particularly regarding recruitment and retention?

Erwin van der GraafRegarding recruitment and retention in our business, well, we we we in The Netherlands, we we have a beautiful, report. It's called the the labor market monitor for the hospitality industry in The Netherlands, which gives us a very clear picture, for example, on number of students that start a study in leisure or in in hotel business. It gives us an idea of these students that leave their education. And if they go if they start working in the business or not, it tells us something about the the number of people starting to work in the business, but also the number of people leaving the business. Right. What what for report was launched, actually, just a few weeks ago, and it's very interesting.

Erwin van der GraafWe see in The Netherlands that the average working week in hospitality is short. In average, it's twenty two hours. So a lot of people work part the part time percentage is very high. Of course, we have a new generation entering the labor market that puts a very different weight on work life balance. So we need to take that into account, and we need to accommodate that. We see, for example, in The Netherlands that almost four I think it's 39% of the of the workforce in hospitality business is having a migration background, which is which is great, but which is also very interesting and something we need to that we need to accommodate.

Erwin van der GraafSo these are a few of the the the trends that we see here today.

the Future of HospitalityRight. Right. You mentioned the hospitality pack pack. And efforts like that and on deck hospitality, the those those campaigns are designed to attract people to the sector. So how effective do you think these initiatives have been in addressing the labor market challenges and what more can be done?

Erwin van der GraafWell, I think, they're effective, probably not as effective yet as we want to, because the labor market challenge in the hospitality business is not solved yet. But in all in all fairness, I mean, it's it didn't happen yesterday, and it will not be solved tomorrow. So there will always be, some kind of pressure, which is also healthy because it also means that companies in our business, they need to keep on investing to accommodate talents and to make sure that they have a good proposition as an employer.

the Future of HospitalityHow do you see the role of education and vocational training evolving to support the hospitality industry in attracting talent?

Erwin van der GraafWell, I think that's very critical. We also see in our labor market money tool that 40% of the people working in hospitality business in The Netherlands doesn't have a a professional background. So they didn't have any education or schooling or training to work in hospitality business, meaning that we need to learn them and teach them on the spot, which is completely fine. But that means that we will need to work hand in hand with educational institutions to provide the training, to provide the guidance. And, of course, I I always say hospitality industry, and that means it's it's an industry, and it's it's a profession. I mean, it's just it's not a job that just, you know, just happens along the way. You need to you need to have skills, and you need to learn skills.

Erwin van der GraafAnd, of course, like many businesses, it's professionalizing rapidly. It's digitizing rapidly, meaning that the skills we require for a lot of positions in our industry are getting, well, more demanding, I would say. Mhmm. And in general, I mean, our society is getting more complex and more demanding, also meaning that the level of education we expect and we need from, from our people is also, evolving.

the Future of HospitalityI I get it. It's everything is moving faster. And especially for an industry like the hospitality industry, it's it's very challenging to

Erwin van der Graafkeep up and adapt. Well, you know, what we also see is, of course, that guest expectations are evolving. And Guess so. Yeah. And clients, they're very well informed. And, by the way, not only guest and client expectations, but also employee expectations. Yes. They're evolving. They're very well informed. I mean, online, they have already been everywhere and seen everything in their minds. So we need to deliver.

the Future of HospitalityYes. I agree. We need to deliver. Let's go to the next point, the sustainability. Sustainability has become a central topic across all industries. How do you see sustainability impacting the hospitality sector in The Netherlands and what measures are hotels and hospitality businesses taking to meet and for the mind, environmental, social, and governance expectations, ESG?

Erwin van der GraafWell, those are a lot of questions in one sentence. So I'm gonna Yes. I know. I'm I'm gonna cut it a bit in pieces with the first one. I think it's super important, and I think it's also still underestimated Okay. In a number of of senses. We see that and I'm speaking now about hotel business that are big corporate clients. They also need to report on sustainability and on their efforts. I mean, there's the CSRD, the the corporate sustainability reporting directive, which is introduced, and a lot of companies are still struggling a bit with it, but it will get more and more important over time.

Erwin van der GraafAnd every company will need to report on their efforts in terms of increased sustainability, also on their carbon emissions and everything. We have a lot of clients today that would only book hotels that have an eco label certification because, like, that's only then they can be sure that it's not, greenwashing or window dressing. But, actually, hotels are living up to what they say they do, and they can prove it. So there will be high demand for hotels to move into eco certification. Otherwise, they will lose business from corporate, corporate clients that require them to actually, for example, measure their carbon footprint because these companies also will need to report on their current their carbon footprint.

Erwin van der GraafThere are companies that are giving their employees not only a monetary travel budget, but they're also giving them a a carbon travel budget. Oh, wow. Okay. That's an interesting one. Yeah. So, I mean, theoretically, by the end of the year as an employee, you can have still a few thousand euros left in your travel budget, but you have no more carbon, budget left. So you

the Future of Hospitalityneed to walk or take your bike. Okay. Interesting. It makes you think of how how will I how will I travel? Will I take the train?

Erwin van der GraafAnd, of course, that also, incentivizes hotels that have invested in their sustainability. Because if you are in a hotel with a lower carbon emission and a lower carbon footprint for the room that you're selling, it's more attractive for those corporate travelers to book it. So and that that's that's one angle to look at it. I think another very important angle is from the financing perspective. We know that banks are today giving a discount if you can prove a certain level and ambition of sustainability for your company. And I think we shouldn't be naive here. I mean, in in very short time, this, interest discount on your loan will become an interest surplus on your loan if you can't, provide all these details on your sustainability efforts.

Erwin van der GraafSo borrowing money or getting a mortgage for a company that which is very sustainable will be much cheaper as for a company which is too late to invest in sustainability. So there will be a big competitive advantage for those or disadvantage for the other hotels that didn't invest. It means you cannot stay behind. You need to be in time. You need to act first. I mean, your your financing cost will go up. And at some point, I mean, the banks will close the tap, and they won't finance companies anymore that are underinvested in terms of sustainability.

the Future of HospitalityWow. Very interesting indeed. I wanna go to the next point, diversity inclusion. Diversity and inclusion have become key priorities for many companies globally. What role do you see for diversity in shaping the future of the hospitality sector?

Erwin van der GraafWell, I think the hospitality industry, by default, is a very diverse sector. I mean, if you if I only take The Netherlands and I look at the number of different nationalities working in in our hotels, I mean, there are over a 100. So but, of course, diversity is is is very wide. It's not only nationality or ethnic background. I mean, it's also the disabilities. How many people do you employ that has a either a physical disability or who are mentally challenged? Right. That's important. We have a a a beautiful Novotel in Luxembourg where we hired a few staff members, which are have visual impairment, which are now a full part of the team. And it's mean, we strongly believe, and I strongly believe that diverse teams are much more successful.

Erwin van der GraafOkay. Striving to to get your teams as diverse as you can in terms of, you know, gender, male, female, in terms of ethnic background, in terms of people with a disability, in terms of sexual orientation, including the LGBT community, it's super important. And I think the hotels that hire and nurture the most diverse teams will be the one most successful. Most successful. I I fully agree with that. I mean, that's one way to look at it. The other part is, of course, I mean, our our moral obligation. We are all part of this society, and we all have a role to play. And it's also as a as a as a hotel company, you can't only take. You also need to give. So you need to create opportunities for people that are that are challenged.

Erwin van der GraafYou need to create opportunities for people that are less privileged in terms of socio economical background.

the Future of HospitalityYeah. Well, that's my firm belief. I think that's a good a good development because that wasn't the case. When I worked in hospitality sector, you just had to tick those boxes, and that was it. And but now the hotel industry is getting more flex needs to be more flexible to to to to stay

Erwin van der Graafupdated. In in hospitality business, we welcome the world. So we also need to be a a good representation

the Future of Hospitalityof the world. Of the world. I agree. And we've we've been missing that. So I'm really happy with this with development. I've got another thing. Taking societal responsibility is crucial for business today. So how do you think the hospitality sector can further contribute to social change? What are some of the challenges and opportunities in making hospitality a more inclusive and socially responsible industry?

Erwin van der GraafWell, I think in a certain sense, we're already moving pretty much in the right direction. As a hospitality industry, like I just said, it is a dive it is it is a diverse industry. Right? We it also depends what you do as a company. For example, at our core, we have dedicated training programs for people that wanna grow in our industry, but maybe are lacking the education that other people have been fortunate to have. So we have dedicated training programs for men and women with a less favorable social economical background to make sure that also their talents can blossom.

the Future of HospitalityYep. And, of course, I can give you a 100 more examples. But No. I get it. I totally get it. And but I'm wondering, how can we make the hospitality sector more attractive to young people as a long term career choice? Well, first of all, we need to work on our image.

Erwin van der GraafAnd it's of course, image comes from something. Image doesn't happen. There is always a reason why you have an image or not. Yeah. So when it comes, for example, to fair pay, I mean, let's be honest. Our industry is not known, you know, for being very, very high paying industry. On the other hand, we see in The Netherlands that the the the the average wage in in the hospitality industry increased with over 20% over the last four years. Mhmm. So that's already a step in the right direction. Of course, it's not only money. It's also offering modern and attractive secondary benefits and conditions to to people to attract them to come work in a beautiful industry.

the Future of HospitalityYeah. Yeah. I think that's very clear. Let me move on to AI. AI is rapidly transforming many industries, including hospitality. How do you see artificial intelligence enhancing the guest experience in your hotels, and what specific applications or technology technologies are you exploring?

Erwin van der GraafWell, you know, I think that today, as a general manager or as a hotel company, you have so much more information at your fingertips as you could have ten years or even twenty years ago. I mean, today and, of course, it's it's back and forth. Guests are very much inclined to leave a review on anything Yes. Which is good because at least we know what they think, what they like, what they dislike, what they would suggest to do things differently, and we can learn from that. And, of course, I mean, hotel well, I would say an average hotel, they easily have 2,000 reviews on a yearly basis. I mean, not even a very big hotel.

Erwin van der GraafBut you need to aggregate all these reviews where AI is helping us to to aggregate reviews from all different sources, Google, from whatever sites, and to to give us a conclusion where we need to work on, where we need to improve, where we're good. And by doing so, we can make our services and our products better so we're fit, you know, to meet our guest requirements, and we are fit for the future. So I'm glad to hear that you can small example of AI, but, you know, otherwise, it would have been a manual work. Right?

the Future of HospitalityNo. But you I'm I'm glad you mentioned these things that you're doing that already. You're looking into it. It's not being ignored. So that's very important to to to me me and for everyone. Days, there are very few hotels that would ignore

Erwin van der Graafguest reviews. I mean, if you don't do that and if you don't take into account your your your valuable guest face feedback, you know, as a company, you're gonna die.

the Future of HospitalityAbsolutely. Let's talk about Amsterdam, the hotel market, and overtourism. So Amsterdam's hotel market is unique, quite unique, with both high demand and increasing pressure from overtourism. How do you see the balance between maintaining a thriving tourism industry and managing the negative impacts of overtourism on local communities?

Erwin van der GraafTwo things. First of all, I don't think Amsterdam is unique.

the Future of HospitalityOf course, Amsterdam is unique. I mean Of course, is unique. Don't say that.

Erwin van der GraafNo. There are several cities in Europe and globally that are struggling with combination of being very popular and in high demand and at the same time getting Barcelona too. Yeah. Sorry? Sorry. I think Barcelona as well. Amsterdam, Barcelona. Know it's Yeah. Barcelona, but, I mean, even even many more and even cities that may not be so obvious. But Yeah. There is a lot of destinations and cities struggling with this challenge at the moment. And, of course, it's it's very interesting for your local economy, but at the same time, I mean, we also need to think about the people that live in the city or, in this case, in Amsterdam, and it needs to remain a very nice place to live. Because otherwise and I think we all have the scenario of Venice in the back of our minds where there is hardly any people living anymore in the center of Venice and everything is commercialized, then you take the soul and the spirit out of a destination, which we should for sure avoid in Amsterdam.

Erwin van der GraafAt the same time, the reality is that we can't forbid people to travel. We got a beautiful city and a beautiful history and beautiful museums if you wanna show. The the the the hospitality and leisure industry in Amsterdam, I think, is the second biggest employer in the city. So many people depend on their income for that. And it's not like if you would take away the hospitality industry tomorrow, people would have another job. I mean, we just said that 40% of the people working in our business, they have no or very limited educational background. So people are also vulnerable. So we also need this industry to provide income.

Erwin van der GraafYeah. So it's it's a it's a very complicated discussion because today, we see that our local government or local municipality is introducing one initiative after the other to push back tourism. Whereas, in my opinion, a lot of these initiatives, they're very shortsighted, and they're very short term. And, you know, they're not scientifically proven. If it works, it's just They're just doing measures and to do it. Let's do it. And, probably, it will reduce tourism, but at what expense? So that for me, that's too easy. They chase tourists away to another city. If Amsterdam is closing its ports for, like, let's say, the cruise ships, I'm not sure what year, but they wanna ban cruise ships. Is that Yeah. Well, I mean, that's a good example. I mean, they have reduced the number of river cruise ships that can come to the city with 50%, and they are looking to ban all the sea cruise ships in the longer run.

Erwin van der GraafBut, I mean, what is happening in reality, these sea cruise ships or river cruise ships, they can't come to Amsterdam anymore, so they go to Rotterdam. And, of course, for many people, The Netherlands is Amsterdam, so everybody wants to visit the Anne Frankhaus, and they wanna visit the Rijksmuseum and the Van Koch Museum and whatsoever. So cruise ships arrives in Rotterdam because they can't come to Amsterdam. There is 50 touring cars waiting at the bottom of the stairs of the ship, all diesel fueled. And they take on board, like, a thousand cruise passengers. They drive down the highway for one hour to Amsterdam. Then they offload all the passengers who do their thing, you know, during daytime in Amsterdam, and they drive them back.

Erwin van der GraafSo, I mean It's a lot of extra work for the same tourist. It's a lot of extra work. It's a lot of extra pollution. It's a lot of extra traffic. I mean, is that what we want? So for me, that's that's stupid policy. Yeah. Excuse my language.

the Future of HospitalityNo. No. No. I agree. And I think

Erwin van der Graafthat the municipality of Amsterdam or any other city that is confronted with overtourism should assign a good university to study the possibilities that are suitable for that that dedicated destination or that dedicated city that would strike a right balance between the economical benefits of tourism, and the the interests of the local population on the other hand. And that's why we have that's why we have science. Right? Mhmm. For me today, that's completely lacking. There was a lot of policy being made based on gut feeling or the flavor of today. We have no clue what the effect is in the long run, so that really needs more research.

the Future of HospitalityWe need to have it sounds to me we need to have some roundtable conversations with decision makers in Amsterdam, science, Indeed, research,

Erwin van der Graafpeople who do research, the hospitality industry itself. Yeah. Well, it's not even roundtable conversations because, I mean, at the everybody has his own interest. Yeah. But I think we need to have objective feedback on what is working and what is not working. And if it's working, what is the price tag that comes with it? And then we can take decisions and we know, you know, what we're buying into.

the Future of HospitalityRight. That's yeah. This is a subject that is is not the last thing we we to mention. I'm I I think I I think this will pop up more in our in our podcast in the future, and maybe we will do a roundtable conversation, a live one about this because I think it's a very important one being in Amsterdam and myself. Anyway Well, you know, we

Erwin van der Graafjust said that tourism will keep on increasing because Yeah. More people are entering middle class, and they get budgets to travel. So, I mean, thinking this will go away, I mean, it's it's it's not gonna happen. We So need to find more tourists. We need to find means to to to to mitigate the impact and to live with it.

the Future of HospitalityAbsolutely agree. Talking about education. Education is critical in preparing the next generation for careers careers in hospitality. We talked about education a little bit ago. What changes do you think should be made to the curriculum in hospitality schools to better meet the evolving needs of the sector?

Erwin van der GraafWell, let me probably start by by giving a compliment to the vocational schools, to the professional educations in The Netherlands because I think we have a very high level of hotel management education, of leisure and tourism education. So there is already a lot of things we're doing well. And I don't wanna be complacent here, but, I mean, I think we also should give credits to the people that deserve credits. I mean, the level of professional education for the hospitality in The Netherlands is very high. I think what is important, and I'm not sure if it's something that you can weave into a curriculum, but, I mean, back in the days, people were talking about IQ, you know, your intelligence coefficient.

Erwin van der GraafThen it was EQ, your emotional coefficient. Today, in our world, which is changing so rapidly, I think one of the key is AQ, adaptability coefficient, because things are changing so rapidly from one day to the other, and we need to adapt and adjust much faster as and be more agile as as we we did did before, and this pace will continue. So we need to learn people that you constantly need to adjust. And we see that the life well, the the the lifespan of knowledge is getting shorter. I think in IT today, it's only four or five months. I mean, what you learn today is obsolete in five months. Come tomorrow. Yeah. It's it's not the same in hospitality business, but, again, we need to realize that education or the training you had a few years ago may no longer be adequate today.

Erwin van der GraafSo, again, we need to adjust. We need to keep on learning, and I know I'm a strong believer in lifelong learning. Lifelong learning.

the Future of HospitalityI agree. Yep. So with many sectors competing for talent, what strategies can hospitality businesses adopt to retain and support their employees in a competitive labor market?

Erwin van der GraafWell, I think, first of all, you need to be good you need to be a good employer, and you need to be an attractive employer. And we just discussed that labor is scarce, and, it will remain scarce for the future. Mhmm. So there is there is a war on talent. There is only one tool in which the entire hospitality industry is fishing, and you can try to, you know, enlarge the pool by attracting talents from other industries. But at the same time, other industries will do the same in trying to get people from hospitality business to work there. So we need to make sure that working in our business is attractive.

Erwin van der GraafIt's rewarding. It's It's fun. It's fun. It's engaging. And I think I think the big advantage we have as a as an industry, it's a very nice industry to work in. It's It's international. Usually, people are in a good mood because they've been they're they're doing something fun or something nice or so it's it's very rewarding to do. It's fun. You get to you get to meet a lot of international people. Right? Yep. It open opens your window to the world. Absolutely. That's something that money can't buy. Right? And, of course, we should make sure that we offer a fair pay. And, of course, we need to invest in good secondary benefits to match the, well, requirements of people in the labor market today where where life balance has a different meaning as it used to have years ago. But at the same time, we need to ensure that everybody is aware. It's a very nice and fun business to work in, and that that sets it apart from a lot of other businesses. And I'm not I'm

the Future of Hospitalitynot gonna call any names, but I'll let you think. No. I I and you're absolutely right. Yeah. No. Absolutely. It's dynamic. It's a it's a very dynamic industry. And I think for a lot of people that will be very interesting. But indeed you keep on learning and learning and learning. It's not like you get a job and you do the thing for ten years, the same thing ten years. Yeah. You it's it's very dynamic. And also,

Erwin van der Graafwithin the hospitality pact, we like to underline that hospitality is very wide. I mean, it's the travel industry. And already the travel industry is extremely wide. You know? That goes from a travel company to to airlines to whatever. You have the the the the leisure industry, which is very wide. I mean, it's it's holiday parks, but it's also amusement parks. Yep. It's the the event the event industry, you know, working at a festival or or yeah. Then we have the, which is also very wide, you know, from top notch hotels to fast food restaurants to a nice bar to a beach club for whatever suits you.

Erwin van der GraafWe have the catering industry, which is also widely very broad. I mean, it goes to catering in a in a canteen of a of a company to party catering to big luxurious events. Right. We need to showcase the the the the the very broad tastes we can offer in the hospitality industry. Yeah. And that should also, when you yeah. Go ahead. And you can move horizontally. Right? I mean, the fact that Yes. That's what I'm trying to say. We can move. A hotel or a restaurant. I mean, to next week, you can work in the. And the week after, you can work as a tour guide. And Yep. Yep.

the Future of HospitalityYep.

Erwin van der GraafYep. It's It all requires one specific skill. Transferable. Having having a big heart to make other people feel at ease and giving them a good time. And that's I like that. Just universal. Right? I like the way you how you how you express that. I I fully agree.

the Future of HospitalityAs we look to the future, what are the key trends that you think you believe will shape the hospitality sector over the next five to ten years?

Erwin van der GraafWell, at the risk of repeating myself, we have just been discussing, sustainability. Yep. We have been discussing diversity and inclusion. We have been discussing the need for permanent education and permanent learning. Yeah. You

the Future of Hospitalitysummed it up perfectly. And what advice would you give to businesses looking to thrive in a post COVID COVID hospitality market? Well,

Erwin van der Graaffirst of all, make sure that your business model is still adequate, and review that, well, a few times per year because the world is changing year. So is your business, be it on the revenue side, be it on the cost side, be it on the side of guest expectations, be it on the side of employee expectations. So you constantly need to analyze your own business model, Make sure you are in time to do proper investments in sustainability because, otherwise, your company will die. And, also, make sure to be a good employer for your current team, but also for your your future employees. Because, again, hospitality, it it lives or dies with the people that work in it. And as a company, you want to have the right people. You wanna have the best people. You wanna have the most motivated people, the most engaged people. But that means also from the end the the end of a company, it means that you need to invest in it, and you need to be employer.

Erwin van der GraafAnd people, they they need to want to work for you.

the Future of HospitalityI can sense your passion. I think you're you're in in the right position, Erwin. Fantastic. Okay. I I wanna close this, this this this interview with you. For anyone listening who is considering a career in hospitality, what would be your key piece of advice to help them succeed in the industry?

Erwin van der GraafMy key piece of advice to make them succeed in our industry, well, I think be true to yourself. Don't try to be something or somebody that you're not. I mean, everybody has its own qualities qualities and its own it it it so try to be very close to yourself. Have fun. I mean, it's a very nice industry, but life is short. Don't forget to laugh. And be also aware that you need to seize your own opportunities. Right? I mean, don't wait till the end of the day and somebody comes along and offers you an opportunity and go look for it yourself. Take initiative. Take initiative. Be bold. I mean, what's the worst that can happen to you that you fail? Well, good news for you. You will fail at some point. We we all we all fail every now and then, which is And then you learn. Because if we don't fail, we don't learn. So be bold and try.

Erwin van der GraafBe confident about yourself. Be who you are. Stay remain very close to yourself. Don't try to be anyone who you're not, and have fun along the way.

the Future of HospitalityWonderful. Erwin, thank you so much. Thank you for being on a podcast. I loved your, your your your your feedback, your answers. Again, I sense your passion for the hotel industry. I love it. Thank you so much. Thank Thank you you so much. Let's speak soon. Take care.