Navigating Rising Costs: A Hotelier's Perspective

Jeffrey Perrin CMP, CFMP, VEIP
Global Director, Hyatt Sales Force, Hyatt Hotels & Resorts

Over the last year, I've frequently been asked for my thoughts about pricing increases in travel and hospitality. I completely understand why. Inflation is up around 9%, which impacts the cost of nearly everything. Gas prices have risen by 55%. Air travel costs are up 34%. We've all felt the impact of inflation at the grocery store, where the average cart of groceries has gone from $100 to $180 for the same items!

The cost of labor has also seen significant increases. For example, the average weekly wages of a dishwasher have increased by 38%, and a line cook has risen by 36%. Without question, all of these increases effect meetings and events.

One of the results of rising costs, staffing shortages, and limited food availability is simplified menus at hotels and meeting venues. Some hotels standardize what they offer for breakfast, lunch, and dinner. At a recent meeting in Frisco, Texas, I noticed the hotel had three simultaneous lunch meetings. All three lunch menus were identical! Standardizing menus is an effective solution to lower food and labor costs while still providing a high-quality meal.

Even amid rising costs, people still desire to meet. The increase in leads has been significant, and planners are eager to book meetings. This desire to meet in person creates a higher demand for hotel and meeting space. Inventory is selling quickly. High demand requires planners to book decisions much further out from their events. Planners find that spaces are filling up much sooner, and they must adjust their decision timelines. The challenge then becomes to convince their leadership to work more quickly! I advise that when you find the space you need for your event, BOOK IT!

The meeting climate is changing, and navigating it requires adjusting expectations and timelines. Flexibility is key–flexibility in dates, room night patterns, and programming. Consider, "How can I adjust my event schedule to be more effective?" and "What is still essential? What is no longer needed for my event?" Your hotel and meeting partners want to serve you well. Reaching out to them well ahead of your regular schedule to work together will go a long way in creating a great experience.