Weissmann: How are staffing shortages affecting things? Is this a long-term problem for luxury hoteliers?
Greenberg: Because of the pandemic, a lot of Americans, regardless of occupation, are rethinking their lives, their happiness, their location, their lifestyle, their cost of living. This has less to do with people not coming back because they’re still getting unemployment benefits. It has to do with people just not coming back!
Weissmann: “The Great Resignation.”
Greenberg: If I go to a restaurant in Italy, there’s a reasonably good chance that my waiter or waitress sees their position not just as their job, it’s their profession. They would tell you, proudly, “This is what I do.” In Los Angeles, a waiter at the restaurant is waiting for a movie call. It’s not long-term to begin with. Where are they going? They’re going to places where the cost of living is lower. They’re moving out of big cities. In a world where we can work remotely, live remotely, nobody’s punching a clock, it’s crazy to see what’s going on. Because the staff shortage is being caused by that.
Redman: Well, there’s an added element of just bad behavior by guests. The pandemic is starting to recede for some people, and they’re, like, “I have money, and that entitles me to do whatever I want.” So, they go to restaurants and they just treat the wait staff poorly. There’s a selfishness.
Licea: That is driving workers to say, “I’m not getting enough money to put up with this!”
Greenberg: It’s going to change the dynamic of the minimum wage, which it should. But look, I was in a hotel that was open at 100% capacity and had no housekeeping staff. Zero. And at the restaurant, one woman was trying to work three shifts. It was absurd. That wasn’t only because the hotel had a staff problem. They tried to operate at 100% while they were understaffed.
Redman: They’re trying to scale back up, laying tracks while the train’s still going.
Licea: It’s not a forever problem. But it is a long-term problem.
Borges: And going forward, is it going to be staff shortage, or will it lead to staff cost inflation? Luckily for us, we had a meeting on salary-per-hour for our staff in late 2020, and we’re 15% above the average in the country. So, we don’t have any staff shortage. It’s a new world, and you’ve got to pay people better. And when you do, and they’re happier, the guest is happier. The perceived value of our experience actually went up. But in a lot of places, I felt like the value I was getting out of the stay went down. For instance, no housekeeping. The value went down. Guest expectations are being poorly managed by many of us in the industry.
Redman: And there’s no price correction.
Greenberg: I recently was in a hotel and said, “Can you press my suit?” “We don’t do that anymore.” “All right, what about an iron?” “I can’t do that.” “OK, what about a restaurant?” “Not open.” “What about housekeeping?” “Housekeeping comes once every four days.” “And what’s your rate? Have you adjusted your rate?” “No.” So I told him, “Shame on you! You can’t have it both ways.”
Lakin: You have people that are largely paid by tips who are not getting travelers coming, who now are saying, “This doesn’t work for me. It’s not filling my soul. It’s not filling my pocket. I’m out.” And I think to Vasco’s point, once the money is corrected, and they’re paid real salaries, it will turn around. We’re all desperate to reconnect. When I traveled during the pandemic, including to Tanzania, people could not have been more excited to receive me. From the depth of their heart. It was so touching!
Weissmann: Your experience, the economic impact of the pandemic and Tanzania all come together in another outcome for travel. One of the things Tanzania is hoping to do is run a cable car more-or-less halfway up Mount Kilimanjaro. And the operators who are now leading climbers to the summit are saying this is a terrible idea for them, but also a terrible idea for the mountain. They say that to build the cable car, they’re going to take out some of the popular trails for climbers, which will put more stress on the other trails. But the prime minister told me, “I’ve got to get back to pre-pandemic tourism levels and I want to get there in four years.” She is less concerned about the environmental impact or the experience of the climbers than the economy. Do you think other countries, in a rush to restore tourism, may take a similar approach?
Robinson: People want to survive.
Greenberg: By its traditional definition, luxury travel is not based on rate. It’s based on value. So, make people pay more for the climb and don’t put that cable car in.
Glowczewska: It’s a sad prospect, a chairlift on Mount Kilimanjaro, it just hurts me in my heart. Some things should remain difficult and inaccessible.
Lakin: I actually wish more things were inaccessible.
Weissmann: When I first saw the mountain gorillas in Rwanda, in 1983, it cost me $30. But to Peter’s point, they eventually saw the difference between rate and value. The gorilla trekking fee now is $1,500. When I first saw them, I didn’t need a reservation. I just showed up. But now, at the higher price, more people are going, and you’d better have a reservation.
Greenberg: Look at the Galapagos.
Redman: Exactly. You can lessen the footprint and still make money.
Weissmann: But while much of low-density/high-cost tourism is good for the environment, it does mean that only the wealthy can access what are essentially national treasures. It’s understandable that not everyone can afford to stay at a five-star resort, but will the most amazing natural experiences be available only to those with deep pockets?
Lakin: There are options. I trekked in the Democratic Republic of Congo for gorillas, and the permit fee was $300 instead of $1,500. And frankly, it was extraordinary. It’s for a different type of consumer but it was mind-blowing. And importantly, those gorillas are the reason that Virunga National Park still exists. It’s the reason [conservationist and park director] Emmanuel de Merode is doing the work he’s doing there. It’s the reason he built a hydroelectric plant that provides electricity to everybody around the park. Sometimes these levels of wealth are relative. Three hundred dollars for a permit is insurmountable for some people. And for others, it’s once-in-a-lifetime. I recently planned a trip for a retired schoolteacher. She had a very small budget compared to what we usually work with, but she said, “I saw you do rhino microchipping. I’ve been obsessed with rhinoceroses since I was little girl.” I’m like, I’m going to fund this myself. And it was such a great joy. And it doesn’t mean that she can take that trip every year or ever again. But that’s the reality. Not all things are accessible to all people.
Greenberg: And if they’re going to be accessible you have to be responsible.
Redman: Admittedly, a luxury villa is not accessible to all. But should the Seven Wonders of the World be accessible?
Borges: We have to remember that we live in the developed world. Decisions to put cable cars in some natural wonders were done 60 years ago. They probably shouldn’t have been, but they were. And we’ve enjoyed them. And now we stand here questioning whether Tanzania should build a cable car? Yes, it would be great if Kilimanjaro was not accessible to everyone. But it’s their right to build it. They get to decide how to invest their wealth. Hopefully, they will do it in a low impact, high-value way. But we didn’t do that in our world, right? We enjoyed our wealth, but when another part of the world wants to have the same lifestyle we do, we’re, like, but it’s bad for the environment.