2023-11-29
The scarcity of resources, environmental degradation, and consumers’ pursuit of quality of life have driven the quest for sustainable development. Facing this global issue, it is crucial to understand how the hospitality industry can balance operational efficiency with environmental protection, low carbon footprint, and harmony with nature. Let’s delve into this through an industry dialogue.
Moderator: Charlie LI, CEO of TravelDaily
Panelists:
Thienprasit CHAIYAPATRANUN, Vice President of Thai Hotel Association
Elton SUN, Vice President of Hyatt Hotels Corporation Greater China, CEO of UrCove
JIN Hangyong, Vice President of Zhejiang Hotel Association, Vice President of New Century Tourism Group
FENG Jie, Senior Consultant of Meituan Hotel
Sharon TSUI, Chief Brand Officer of nakedRetreats
Dialogue Transcript:
Moderator: Talent is crucial for the development of the hospitality industry. How can the hospitality industry enhance its appeal to young people for employment?
Thienprasit CHAIYAPATRANUN: Post-pandemic, Thailand’s tourism has recovered by about 65%. Most workers returned home during the pandemic and later rejoined their workplaces. The industry must offer higher salaries or persuade vocational schools to nurture talent, providing graduates with career development paths. Roles in customer service, marketing, and other revenue-generating departments are seen as promising for graduates.
Moderator: How can we attract more young people to this industry?
Elton SUN: In over 40 UrCove by Hyatt hotels, most general managers are millennials. With extensive data-driven empowerment, jobs have become more flattened and procedural. We strive to create an atmosphere appealing to the youth. Unlike traditional hotels with strict hierarchies, we focus on two things: raise salary and enhance cultural atmosphere in our hotels. Our general managers, following the flattening of organizational structure, don’t have separate offices; they work alongside staff. We allow hair dyeing, ear piercings, and tattoos – things not typically permitted in other companies.
JIN Hangyong: The development of young talent is a priority for New Century. First, business success naturally lead to higher staff incomes. For instance, our Hangzhou team’s income has doubled compared to six years ago. Second, professional managers need to communicate more with shareholders to advocate for pay raises. In the 1980s, labor costs accounted for less than 10% of the total operating cost at Xiaoshan Hotel, but now it is 30%, but we must do so. Third, we dare to break new ground. We collaborate with top graduates from tourism vocational schools, offering salaries up to 8,000-10,000 yuan. Young people seek respect and recognition. The youth is our business partners, and a success in business means their income can be raised. It’s about practicing ideas and learning from mistakes. Young people may lack experience, but they have passion, and an error-tolerant mechanism is essential to motivate them.
FENG Jie: First, we need to consider the perspective of young talents. Twenty years ago, when we were young, our companies provided us with ample learning and growth opportunities. Today, we should offer the same to the current youth, keeping them passionate about the industry and life. Secondly, from customer perspective, we often encounter young service providers in hotels or flights as consumers. Their enthusiastic interactions and contributions are vital to the industry.
Sharon TSUI: nakedRetreats is a young brand, established in 2007 by a South African founder, with many foreigners in the operational team. The founder’s accidental entry into the hospitality industry in Moganshan has shaped the brand’s innovative, bold, and playful DNA. The “post-wave” generation has many opportunities to offer ideas and take on projects. Born in the social media era, they are naturally adept at photography, video editing, and social sharing. The industry needs their bold innovation and willingness to experiment, utilizing their international perspective under a well-defined strategic direction.
Moderator: In the daily product design and development process of hotels, how can ESG (Environmental, Social, and Governance) principles be integrated to form a positive cycle with hotel investment returns?
Thienprasit CHAIYAPATRANUN: The Thailand Hotel Industry Alliance strongly encourages hotels to practice sustainable environmental goals. We aim to save energy and resources and respect the environment. Our green leaf symbol represents our commitment to energy and resource conservation. This approach reduces energy costs and improves waste recycling, benefiting the entire industry.
Elton SUN: At UrCove by Hyatt, our focus is twofold. We minimize the use of building materials and maximize space efficiency in product development. Operationally, we adhere to eco-friendly practices, using sustainable materials for packaging, toothpaste, toothbrushes, and combs. As young people become more environmentally conscious, green hotels are not just a business strategy but a necessity. For instance, in our five Shenzhen hotels, we stopped providing small guest amenities and rewarded guests with coffee vouchers for their environmental contributions. This initiative reduced guest amenities by 37% without negative feedback, and guests have responded positively, appreciating their own contribution to environmental commitment.
Indeed, the evolving mindset of consumers is steering the hospitality industry towards greater environmental consciousness. Take, for example, the scenario of extended hotel stays in China. The country boasts around 16 million hotel rooms, with the top ten hotel chains accounting for half of these rooms. By reducing room cleaning by just 10%, the industry could save an estimated 17 billion kilowatt-hours of electricity and 10 billion milliliters of chemical products. By starting with these incremental changes, hotels can not only make significant strides in environmental conservation but also bolster customer loyalty through their commitment to sustainability.
JIN Hangyong: Over a decade ago, New Century initiated an environmental plan where all toothpaste, toothbrushes, and razor packaging are made from biodegradable materials. We also launched a ‘1 Million Kilometers’ campaign, encouraging participation in city walking, cycling, and jogging through a mini-program. Participants earn points redeemable for coffee, bread, room, and vacation vouchers. This campaign emphasizes that environmental responsibility is not just personal but a societal progression and our care for the planet.
Increasingly, travelers are seeking to patronize and collaborate with service providers who uphold noble ideals and demonstrate social responsibility. The sense of social responsibility among young people is also growing. We are committed to continuing this meaningful journey together, making a positive impact along the way.
Moderator: From a platform perspective, how do you support the industry and take on greater social responsibility?
FENG Jie: Meituan’s “Green Mountain Plan” encourages consumers to opt-out of cutlery. We ensure that merchants provide biodegradable containers and bags. In the hotel sector, young people are the future main consumer group. They receive extensive education on water conservation, low carbon, and environmental protection, but there’s a gap in societal practice. We hope more hotels will attract young people to join this movement.
Moderator: Has Meituan labeled hotels as green?
FENG Jie: We plan to introduce this label by the end of the year. It requires efforts from multiple parties. Once labeled, customers should recognize the option to forego cutlery and amenities, while hotels must commit to this practice. The hotel staff and platforms should provide necessary information and publicity.
Sharon TSUI: nakedRetreats has been a frontrunner in ESG practices. For instance, naked Stables in Moganshan, opened in 2011, was Asia’s first resort to receive the LEED Platinum certification from the U.S. Green Building Council (USGBC). The resort features 30 treetop villas and 40 rammed earth houses, each independently constructed. We’ve invested in fresh air systems, sewage treatment, geothermal heating, and solar power. This standard is followed in all our properties, like naked Water in Suzhou and naked Hill in Nanjing. The materials for the rammed earth cottages in Moganshan are locally sourced, and the treetop villas used local bamboo and traditional building crafts. Our design studio, staffed with Harvard-educated architects, seeks high-quality partners for interior landscape materials and wooden flooring.
Moderator: How significant is artificial intelligence in the sustainable development of the hospitality industry? Could you share some experiences and attempts in this area?
Thienprasit CHAIYAPATRANUN: AI can’t revolutionize the hospitality industry, at least not in Thailand, where human touch in service is crucial. However, we’re actively adopting AI to reduce costs, like using video conferencing or card machines to minimize paper use, reducing staff numbers, and combining human service with technology.
Elton SUN: We initially focused on being community-oriented and digital. From foreground to background, everything is considered for digitalization, using voice technology to attract customers, analyzing data for customer needs, and managing operations in a closed loop. All processes are evaluated for digitalization potential, with systems handling repetitive tasks.
JIN Hangyong: New Century embraces technology to enhance efficiency. For example, during “Double 11”, our products reached sales of 150 million yuan in 10 minutes. Solutions proposed by Fliggy (Alibaba’s travel service platform) utilized modern technology, significantly boosting the sales of our resorts during the sale, resulting in an 800% growth.
Feng Jie: For consumers, practice has shown that many are receptive to robot services. These robots can take elevators and deliver items directly to guests, changing the service model in the hospitality industry. For instance, we have self-check-in machines and AI live broadcasting systems in hotels. In live streaming, virtual characters, designed as managers or friendly waiters, can promote the hotel around the clock, proving AI’s success in driving sales.
Sharon TSUI: At nakedRetreats, we focus on high-end resorts where human interaction is crucial. While we use technology to improve efficiency, like using apps to check room cleaning status and confirm check-in times, we embrace technology to convey eco-friendly messages and enhance efficiency. However, for ordering meals, we rarely use iPads. Professional waiters recommend seasonal ingredients and pair drinks, offering a warm, personalized service. We stay firm with the practice to preserve luxury services that reflect human warmth and emotion.