SAHIC 2022 Recap: Rethink, Recover, & Rise

As leaders in design in Latin America and the Caribbean, OBMI Managing Director Liora Haymann and Senior Lead Designer Ana Ramirez represented the firm in two panels and two round-tables at SAHIC, the premier hospitality and tourism investment conference in Panama.

The conference brings together industry stakeholders with diverse expertise, all with one goal, to continue developing the region. Each industry leader brought a unique perspective and topic to the discussions, leaving attendees with a better understanding of the current and future landscape for development and the trends gaining traction in the region. The following subjects outline the key takeaways.

Macro-Economics, Trends, & Key Issues

Recovery 

While government restrictions had limited travel in the region due to the pandemic, Latin America has seen a positive trajectory for recovery now in 2022. For the first time in two years, the Average Daily Rate (ADR) is higher than the 2019 levels.

Pent-up demand from those looking to vacation has led to “Revenge travel,” likely attributed to the increase in rates. Additionally, research was presented that the work-from-anywhere mentalities has launched “nomad visas” which has contributed to increase in travel. These factors have led to LATAM and Caribbean countries seeing the most considerable increase in numbers, providing an optimistic outlook for Q2 2022.

Luxury 

The luxury sector is leading and pushing the recovery for the region. Although we see a change in the classification of luxury, travelers still long for the experience. Time, health, and human connection have become the ultimate luxury. Ultra-luxury hotels offer guests the highest degree of service, sometimes reaching 7 or 8 staff per key.

Flexibility

Following COVID-19, customer behaviors have shifted. The demand for traveling is higher than ever, with guests placing a high value on taking and making most of their vacation time. Many travelers are deciding to vacation in groups, requesting clusters of rooms, or forgoing hotels entirely for a residential rental to accommodate. Flexible travel is a high priority in any circumstance due to the rise in recent uncertainties.

Opportunities

Sustainability 

Studies have proven guests are traveling more responsibly and consciously – focusing on “travel for good,” meaning sustainable practices are no longer an added amenity; they are a requirement.  The rise in importance of sustainability leads to the popularity of newer travel functions such as guests who want to disconnect fully, focus on personal physical and mental wellness, or immerse into the destination’s culture – guest experience remains the critical driver for decision-makers.

In sensitive locations such as Latin America and the Caribbean, the resort’s design must be just as environmentally sensitive as its operations. Hotel brands and operators must begin to turn this into an opportunity and implement eco-friendly alternatives like eliminating plastic to stay relevant in the space.

OBMI’s Wellness & Sustainability Expert, Ana Ramirez, stressed the importance of ramping up sustainability efforts immediately for hoteliers  with a particular eye on helping to mitigate the effects of climate change. As a strategic pillar of OBMI’s design approach she urged for hotel owners and operators to fully integrate sustainability and green strategies to create sustainable communities that have wellness at the core of the business. More on her conversation can be found here.

Innovation

New opportunities with cryptocurrency and blockchain technologies continue to evolve rapidly and saturate the industry. For hospitality brands and operators, this means executing gamification in branded tokens to be used within the destination or brand, and digitizing carbon to provide credits for those who have access.

In the coming years continue to see innovation toward brand and hotel partnerships that will be funded by cryptocurrency and potentially even experiences and opportunities by properties that lively solely in the Metaverse.

Risks

Technology

Although the hospitality industry is seeing success in numbers, many hoteliers struggle to find employees to service the hotel to the high-quality level guests expect. Luckily, technological advancements in the hospitality space allow brands and operators to do more with less labor.

Inflation & Supply-Chain

The impact of covid and disruptions from geopolitical conflicts are causing inflation rates to increase, and further delays for supply-chain. Due to market uncertainty, brands and owners continue to focus on balancing guest expectations while seeking methods to cut costs.

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