Welcome back to paradise
An interview on the future of travel with Kevin Froemming, Executive Vice President and Chief Commercial Officer, Playa Hotels & Resorts
Playa recently welcomed guests back for the first time in months. How did it go? What has the response been like?
After months of planning and preparation, we were confident in our ability to deliver the same exceptional experience while implementing new approaches to protect our associates and guests. However, we knew the last word would ultimately rest with our guests and first-hand accounts from our top travel agent accounts.
We are very pleased as it seems that our guests and travel agent partners are very impressed. Social media, personal accounts and ongoing press coverage have been positive, and the business has exceeded our initial forecasts. But most rewarding for all of us has been the “smiles” from our guests and in the eyes of our associates from behind the proper face coverings.
I feel confident in the future of travel and this is because of the historical resilience of the industry. 9/11, the 2008 financial crisis, SARS… we’ve been able to fully recover from these completely shattering events. Leisure travel tends to recover faster than business travel, so I believe we are positioned for earlier recovery than other segments of the travel industry.
Kevin Froemming
What role do you see travel advisors playing in the future of travel?
Travel agents are fundamental to our success and, frankly the success of the Caribbean, as consumers approach their vacation planning a little differently than before… looking for advice they can trust and brands, such as Hyatt and Hilton, that add a layer of confidence.
Our efforts early-on have been working directly with the travel agent community through advisory boards and daily contact… and using the results to help craft what our resort teams would implement upon the resumption of our resort operations. The result is a product that travel agents can recommend without any reservations and one that our guests will hold as a standard-bearer for all future travel plans.
Our brand-lead strategy involves strong US brand names that bring new customers into this market. What we have done for agents is ensure they can be competitive with tools like our agent portal, opening our marketplace to loyalty members with points, inviting agents to experience our products, etc.
And the results are tangible based on our early work and getting the travel partners involved and on property to review.
What are some of the other ways you are winning back business during these challenging circumstances?
Inherent to our formula for success, long before the arrival to COVID-19, are our partnerships with Hyatt and Hilton, some of the most trusted hospitality brands in the world. The familiarity of these brands among general consumers sets us apart from our competitive set and we are seeing the results now more than ever as consumers begin to make future travel plans…driven by confidence in their care and not solely price points. We are not just “winning back” business…all indications are that we are getting new business from consumers who hadn’t considered us in their planning prior to COVID-19.
We must make sure that customers know that it’s safe to come to our properties and travel agents are continuously pushing this message out. Safety and brand confidence aren’t the only thing bringing back business. The focus is shifting to relaxation and fun. We’ve gone to great lengths to ensuring entertainment and F&B is just as good, if not better than pre-COVID times, despite changes like social distancing.
We’ve seen an uptick in on-property revenue via our new QR technology. We can now offer special promos for things like spa treatments and cabanas on an instant basis, where all guests need to do is utilize their phone to receive great savings.
How has the pandemic changed how you are marketing your resorts?
We’ve taken the same approach as countless other resorts… assuring guest safety first and foremost. However, a differentiator in our approach has been not losing focus of our core offerings… the fun along with the stress-free relaxation that our brand of all-inclusive delivers.
I’ve seen much of what is out there today and, to be honest, where is the fun? Consumers want our assurance of their care… but the only reason they are considering a getaway is just that… to get away from the day-to-day imagery and limited movement of a world none of us imagined just six months ago.
How have you adapted the product post-COVID-19?
Our resort teams, led by some extraordinary operational leaders and working hand-in-hand with our brand partners such as Hyatt and Hilton, have delivered a product beyond any of our expectations. From the moment we shuddered the first property back in March, they went to work… often leading efforts within our destinations and providing counsel for the tourism sector.
Our crowning achievement is our Playa SAFE STAY initiative that represents every facet of resort operation and, more importantly, representative of a product that assures guests complete peace-of-mind.
To say their work has and will be instrumental to our success is an understatement and the result is a product that is easy to market and sell simply through word-of-mouth. More than once, I’ve thought that while I could never conceive what has transpired over the last six months…I could never conceive a more talented and experienced resort/operational team to get us on track for success as we come back online and for years to come.
Beyond increased health and safety measures and protocols, what are some of the ways you think the industry will be different post COVID-19?
We are seeing a change in the channel mix with more of the business being shifted from the tour operators to the direct channel—it remains to be seen whether this is a temporary shift due to the current circumstances or a more permanent trend.
Travel agents have taken this crisis seriously, but they need direct relationships with hotel companies and key partners. I believe there has never been a more important time for agents to promote brands that customers have confidence in. We are already experiencing major shifts within the travel trade community post COVID-19.
The need for exploration along quality time with those we love is part of human nature. Our industry is resilient and built on the fundamentals of meeting those needs… and this will not change.
What has/will change is the level of trust and familiarity when consumers are looking for their next get-a-way. Low price points is not the only deciding factor as consumers are very cautious and driven by peace-of-mind in their wellbeing.
What are your projections for recovery in terms of being back at 2019 levels?
Most industry experts predict a substantial rebound sometime in 2021 and, while that sounds good in a boardroom, our focus is on simply putting a phenomenal product in the market for today and looking forward to tomorrow.
While I agree with the experts, how quickly we get there depends on outside factors such as the availability of flights, the confidence consumers have in traveling to particular destinations and country restrictions that eliminate various segments of our business mix.
Do you have any tips on how agents can increase bookings in the current climate?
Empathy for the clients and understanding the varying levels of apprehension with each call or inquiry. I’m convinced that travel agents and their role in planning travel has been elevated substantially as a result of this pandemic. Consumers want a real connection and a real trust in the recommendations. In-turn, travel professionals must have a real confidence in each product they recommend.
How are you feeling about the future of travel?
I feel confident in the future of travel and this is because of the historical resilience of the industry. 9/11, the 2008 financial crisis, SARS… we’ve been able to fully recover from these completely shattering events. Leisure travel tends to recover faster than business travel, so I believe we are positioned for earlier recovery than other segments of the travel industry.
But I’m reminded each day, whether checking-in on Linked-In, fielding emails from past colleagues or reaching out to travel professionals across the globe, the impact of COVID-19 on our industry has been catastrophic.
But travel is returning and, while our short-term future may look a little different, the long-term future remains very bright and the result for traveling consumers will yield better product choices with added service and care.
