The Changing Dynamics of Hospitality Industry

A highly accomplished and seasoned Senior Vice President and Operations Specialist with a remarkable track record of success in leading, managing, and growing operations of all sizes and scopes, Thomas Desousa, stands out as an esteemed industry figure. He is one of the most inspiring motivators and an adept communicator in the industry. Owning a proven record of driving strategic vision and delivering business growth through outstanding fiscal management, operational excellence, and exceptional people management, Desousa is on a continuous journey to add more golden feathers to his crown. Currently, he serves as the Vice President of Operations at Aperture Hotels

Please share with our readers your career journey and current roles and responsibilities.

Over the span of 32 years, my journey in the hospitality industry has been quite dynamic. It all began with my entry into operations at a small roadside Holiday Inn. Soon, I attained the role of assistant general manager at the hotel. I was also fortunate enough to do an internship at a Hilton property near New York City. It was an incredible experience. One of the vice presidents was opening up a conference center and was looking for someone in sales. During my tenure at Hilton, I transitioned from assistant GM to the rooms division manager at the Woodbridge Hilton and later to being in charge of corporate sales for the Sheraton conference center. The vice president who offered me this role emphasized the value of my interpersonal skills, asserting that they couldn't be taught and were vital for success. I ended up at a corporate-managed hotel where I served as Director of sales.  I was one of the first salespeople to be on a GM's track, an unconventional trajectory seen in job roles. I also piloted the first revenue management initiative at the time. I worked at Hilton for 11 years. A significant turning point arrived when a mentor, Steve Porter, overseeing Intercontinental Hotels in the Americas, approached me. His offer to address operational challenges at a struggling franchise hotel in Atlanta marked a pivotal moment. I moved to Atlanta.  From a hotel generating 8.5 million dollars in revenue, I steered it to the top five percent, reaping 14.5 dollars million in revenue. Overcoming a 350,000-dollar restaurant loss, we elevated revenues to 3.5 million dollars. Recognizing this achievement, Mr. Porter extended an invitation to explore various disciplines within Intercontinental. I worked for the hotel performance support division, earning recognition as the upscale director of the year. I was then hired by a real estate group that was one of the hotels that I serviced in Intercontinental. Following that, I could collaborate with a renowned industry figure John Portman. His legacy of iconic hotels, exemplified by pioneering the Atrium Hotel concept, resonated with my passion for creating memorable experiences.

Through projects in India and the U.S. and my partnership with Mr. Portman further enriched my career. From there I met a group in San Diego and tried something different in hospitality. I served as a regional vice president for a parking company. And currently, I am working for Aperture Hotels.

What are some of the latest challenges you notice in the industry?

The current state of the market is undeniably robust and strong. It has rebounded significantly from the challenges posed by the pandemic. Armitron and other key players are experiencing impressive returns, making the hotel industry an attractive investment option on Wall Street. However, there's a noticeable trend of slowing occupancy due to some overbuilding in markets. Yet, the most pressing challenge since the onset of Covid has been the supply of the labor force. The labor force landscape has shifted considerably, with decreased employee loyalty and a prevalent willingness to switch properties for a slight increase in pay. There is an observable change in work ethic where team members are adopting a less professional attitude towards punctuality and other aspects of their roles. Comprehensive training programs, enhanced benefits packages, and competitive pay scales aligned with market norms are crucial strategies to address these issues. A particularly promising avenue lies in repurposing underutilized office spaces. Many individuals have not returned to traditional office environments post-Covid, creating an excess of vacant spaces. Leveraging this, the concept of mixed-use environments is gaining traction. For instance, transforming a building by reserving the initial floors for office spaces, while dedicating the upper levels to residential units, hotel accommodations, diverse dining options, and retail outlets creates a comprehensive and vibrant ecosystem within one structure. The trend towards conversion brands and getting into the economy market that really did well during Covid-19 can also be noticed. In addition, consolidation among smaller hotel companies is becoming more prevalent. As a result, we see small companies merging, forming a larger company with increased purchasing power, which leads to higher profitability. The hotel industry is undergoing a transformation where the focus has expanded beyond the traditional hospitality aspect. The emphasis is now on maximizing return on investment, managing financing intricacies, and leveraging the potential of real estate assets. This transition has prompted general managers to familiarize themselves with expenses below the line which they never had to deal with before.

Are there any new trends in the market that can help alleviate these pain points?

The labor market dynamics within the hospitality industry have been undergoing a significant transformation. Increasingly, there's a shift towards utilizing contract laborers as a means to move away from the expenses often associated with unionized properties. The advancements in human resources practices and the establishment of effective communication channels between management and employees considered unions unnecessary. Due to this, there is an ongoing effort by unions to revitalize their relevance. They are actively working to unionize more hotels and showcase the value they can bring to team members in the modern landscape. As a result, major brands are involved in offering attractive benefits packages, competitive pay scales, robust paid time off programs, and even innovative perks like educational and mental health assistance. Focusing on retention plans, payroll and turnover expenses are significant for the industry. Initiatives to retain talent include providing mass transit cards to enable team members who might otherwise face transportation challenges to reach their workplace and offering multiple meals to employees. Collaborations with government resources and programs catering to special needs and workforce rehabilitation have also gained prominence within the hotel industry.

The realization that the internal customer, the team member, is as vital as the external customers, the guests, has taken center stage. Recognizing the symbiotic relationship among the owner, guest, and team member has fostered a culture that values their contributions. Especially with the new brand concepts like lifestyle brand, emphasizes on delivering service that goes beyond the formalities of the traditional formal queuing process.

How do you envision the future of this industry?

The trajectory of the hotel industry suggests a trend of multiple brands coexisting within a single building. Architecturally designed structures are now emerging with the ability to house three or even four distinct brands, each tailored to specific market segments. Digital age taking over, we could see seamless check-out processes, real-time reservation adjustments via mobile devices, and the fulfillment of guest requests through app-based interactions. Guests will have the power to control their room's ambiance, from lighting to air conditioning, all through their smartphones. So, in the next few years, fully digital guest experience promises heightened convenience, cost savings, and adaptability in an ever-evolving landscape.

What is your piece of advice to your fellow peers?

My biggest advice is to remember what Lee Cockrell said from Disney. Our primary job is to craft moments of magic for people. An exceptional experience whether it's a business traveler seeking a corporate stay or a family stepping into our hotel.  The realization that our efforts can be transformative underscores the significance of every interaction. This can include providing great service, a safe place to stay, and an exceptional offering.