'Crisis is a way to rethink our models and come up with the next hospitality model'

The pandemic has brought the world to a standstill and paralysed every industry. The hospitality and tourism sector is believed to be the worst hit that has directly impacted employment for many millions. The World Tourism Organization (UNWTO) has been closely monitoring and suggesting ways to the governments in order to mitigate the impact of Covid-19. To drive tourism’s recovery, UNWTO recently partnered with Sommet Education granting 30 scholarships for world-class education programmes and support career climbers and switchers, entrepreneurs and innovators develop themselves and their projects. BW HOTELIER talks to Benoit Etienne Domenget, CEO of Sommet Education, to further understand the UNWTO Hospitality Challenge and his views on the hotel and travel industry.

What, in your view, is the socio-economic impact of the COVID-19 on the hospitality and tourism industry?

I am convinced that this crisis is the undesired spark that will help us reconcile visions of the world that have been opposed for far too long. Uncontrolled globalization without limits is not sustainable and nor is the temptation to withdraw or the pursuit of idealized economic deceleration.

We have the unique opportunity to create a “Day After” that is more balanced and more sustainable, and Hospitality will be one of its driving forces. Hospitality is so much more than an industry. Hospitality at its core is the art of service, dedication to others, the quest for generosity, as well as openness to the world.

Hospitality, amounting to 10 per cent of global GDP and accounting for one out of nine jobs worldwide, will be one of the main contributors to the rebound of the world economy and to job market recovery.

It is possible to combine the development of world exchanges, travel, access to leisure for the many, while being more respectful of resources, more engaged in nurturing local communities and businesses. Managing this complexity is the challenge of our generation. Is it also our commitment towards the next generation.

According to you, what will be the dynamics of the Global Tourism and Hospitality Industry?

According to UNWTO Panel of Experts, domestic demand will recover faster than international demand which will start recovering mostly in 2021.

During this summer the hospitality sector will be more focused on local travel than ever. The limited cross border movement of people and goods will mean prioritizing local producers, establishments and service providers giving a chance for economies to regain their strength. 

With the lockdown being lifted in some parts around the globe, the hospitality sector has been given a chance to reinvent itself in a more sustainable manner and focusing on accommodating the expectations and behavior of the newly shaped customers looking for modern but safe experiences. 

History tells us that this steep downturn will be followed by a strong rebound of the industry. Hospitality is one of the most resilient industries and has already demonstrated its ability to recover quickly, as it did after 9.11 and the 2008 crisis.

How shall the industry manage the changing customer needs in terms of safety and hygiene? Your perspective.

New practices need to be implemented, such as providing staff with protective equipment, implement Health and Safety protocols to ensure the well-being of all staff and customers alike. There are many measures which can be implemented in terms of sanitary measure such as a deep-cleaning process in all hotel rooms, fitness areas, and all common space in order to mitigate the risks, however, the changes go beyond health and safety protocols. Indeed, the Hospitality industry needs to reinvent its frontiers and it experiences. 

What are your suggestions for the speedy recovery of the industry?

The current situation presents numerous opportunities for the hospitality industry allowing the players to re-center their activity on such principles as sustainable growth and placing focus on turning their businesses locally. By being able to provide the consumers with local goods and services, domestic tourism and local discoveries, it will be possible not to miss the opportunities within the holiday season due to travel restrictions and rebuild the industry on a national level first thus giving a chance to small and medium sized businesses to stay afloat.

Do you think that domestic travel will be a game-changer in the post-COVID-19 performance of the industry and why?

Due to international travel being heavily limited, businesses in travel and tourism sectors are obliged to adapt their offering and shift to local travel. According to OECD, domestic tourism accounts to 75 per cent of the total tourism in its member states, and while it has also been heavily affected by the travel restrictions, it is foreseen to expect a quicker recovery once the containment measures are lifted, compared to the international tourism. Not only moving to domestic services allows many organizations to keep the operations running, but it also allows to meet the rising demands of the general public looking for alternatives when it comes to recreation and holidays as the pandemic moves into its fifth month since its arrival in Europe.

While it is unlikely that domestic tourism could compensate for the decline of international tourism flows, focusing on local travel will allow the hospitality businesses to readapt their business models and take time to come up with new services and solutions whilst the international travel restrictions are still effective. 

Sommet Education will grant 30 scholarships to the winners of co-crafted UNWTO Hospitality Challenge. What was the inspiration, mission and vision behind it?

We are very glad we have been able to partner up with UNWTO as at Sommet Education we greatly support their vision, values and development goals. With one of the current priorities of UNWTO being to promote connections among the actors that form part of the entrepreneurship and innovation ecosystem in tourism, the joint Hospitality Challenge will allow us to reunite career climbers and switchers, entrepreneurs and start-uppers in their hospitality project development through fully sponsored dedicated education programmes.

The contest, granting 30 scholarships to the most promising projects driving innovation, sustainability and digitalization is based on the United Nations Sustainable Development Goals, the implementation of which will allow to arrive one step closer towards rebuilding the Hospitality Industry.  The criteria for selecting the best projects will be based on integrating smart experiences for the future, embracing sustainability and harnessing the impact of new technologies which are the principles Sommet Education also advocates in its study programs across its international hospitality education institutions.

How UNWTO and Sommet Education are going to work together in the time of crisis for the Hospitality and tourism industry to grow back better? Share the plans.

Both UNWTO and Sommet Education share the desire to rebuild one of the most hurt but also crucial sectors in the world economy. By providing the scholarships, 30 individuals will have access to one of 15 study programs best adapted to their project and giving them the possibility to fill the academic and practical skill gap necessary to take their ideas further. More importantly, with the involvement of Eurazeo, leading global investment group from which Sommet Education is a portfolio company, we will able to provide the top 3 projects with seed money to enable their plans become reality carrying real impact and change.

Will the scholarship promote entrepreneurship, innovation and diversity in the hospitality sector? How?

Hospitality has a long history. Through this Hospitality Challenge, we are looking for goods and services that are able to re-invent our traditions and meet emerging customer needs and expectations. Be it luxury, hotels and hotel-related operations, ideas linked to food & beverage or even smart real estate, we shall be looking to award the ideas that promote new ways to travel and consume more respectfully of the resources while not compromising on the experience. This is what we wish to explore and support. Moreover, with the digitalization slowly having started its integration in the hospitality industry before the crisis, it is now a great opportunity to promote the digital transformation through the innovative business ideas that the challenge shall reveal.

What is your message for the industry? Share some positive pointers for better times ahead.

Even though bringing aboard many challenges, my view is that this crisis is also a way to rethink our models and come up with the next hospitality model, which is not going to be exactly the same as before the COVID-19. We have been given a chance to reinvent ourselves and invest in what really matters. Sustainable practices and innovative business models are going to shape the hospitality of tomorrow. 

At Sommet Education, we are very committed to our students. We want to provide them with the best education possible and prepare them for the best professional opportunities, especially in the current context where the ability to apply soft skills and manage uncertainty is highly valued. 

Any other pearls of wisdom to cheer up the industry and anything that we may have missed but needs to be addressed.

I believe that the hospitality industry has a great role to play in the post-COVID-19 world: not only from an economic standpoint, for the economic rebound, but also to convey values that are extremely meaningful for the day after.