Mastering Hospitality in Uncertain Times | Glenn Haussman & Cesar Wurm @ CLIC

Glenn: Hey, everybody. It’s your hospitality friend Glenn here at the California Lodging Investment Conference. I found Caesar Wurm over at IHG Caesar. It’s great to see you in person.

Caesar: Thank you.

Glenn: Let’s do one of these things.

Caesar: Yes, sir. Yeah. Looking forward to it. And also we’re going to do the panel a little bit. But that was good seeing him.

Glenn: Yeah. So here this morning at the conference we just got this Bruce Ford of Lodging Econometrics. Yeah. Just got off stage and he got us thinking about there’s a lot of unknowns out there right now. Right. We’re beginning of a new administration. There’s a lot of changes going on. So how do you navigate what’s going on in your world in a sea of uncertainty? Yeah.

Cesar: Well you’re exactly right. And it’s an uncertainty also presents a lot of opportunities. Right. Right. There’s always concerns. But I choose to look at okay, what it opens up for us to focus on. So for example government business right now is a little tricky right. Because people are not quite sure what funds they have to perform, you know, business travel or conferences related to government business.

Glenn: I mean, if they don’t know if they’re going to be there next month, then it’s hardto planfor that. Yes, that is a.

Cesar: Good that is a good point.

Glenn: Yeah.

Cesar: But also that allows group and events has been really, really strong for us and the overall for the industry. So it’s really something we’re focusing on with our hotels to overindex.

Glenn: Yeah. Well, quick context. Just so everybody knows, the meetings business has really been fueling performance for our incredible industry here as that business travel really hasn’t recovered to that pre-COVID level. Correct. Right. Correct. So it’s been a super bright spot for companies.

Cesar: Oh, it’s been amazing. So we’re very, you know, very smart on how we’re replacing the business. So you protect the good healthy pattern so you benefit from the opportunities you have. Business travelof course leisure travel remains pretty robust as well. So it’s just it’s just being very fluid. And you got to be very quick on your feet to adjust to the unknown.

Glenn: So I’m starting to feel as a consumer a lot of pricing pressure. Yes. And I’m really concerned about that next trip I’m going to take and how much I’m going to want to spend on a on a hotel. Yes. So how are you guys starting to navigate the fact that there might be some resistance to the pricing that we’ve been putting out there?

Cesar: Yes, it’s a great point. I think customers in general, it’s hard everywhere. Its prices are high on almost everything. So we’re really focused on value proposition. Right. Because we just heard as well the cost pressure for hotel operations remain high from insurance labor and so on cost of goods. So it’s very important that when the customers show up that we’re really delivering a true experience.

Glenn: That’s right. And that’s really what it’s all about. Because if you can make that emotional connection to the customer, then you’re really going to shield yourself from some of that. You know, that pricing pushback I think out there. Right. Exactly. Because everybody’s willing to spend more for a really good time. And that sense of security. Yeah, their money is well spent.

Cesar: Exactly. Like, you know, I think if you go to an expensive dinner, for example, as long as you feel the value was there, the experience. You won’t complain about the price.

Glenn: Yeah.

Cesar: You won’t complain about the price unless it’s a bad experience that you didn’t feel like it was worth. Right? The expand. All right, so it appears that the higher powers want us to suck up to her right now. So they’re going to shut us down. Yeah. It was great talking to you.

Cesar: Thank you. Always a pleasure.

Glenn: Thank you. To subscribe to the podcast and all of that kind of stuff. Text the word hotel to six, six, eight, six, six. See you later. From windy California