Thursday, December 12, 2024

Wyndham plans strategic growth amid diverse market demands

Wyndham Hotels & Resorts is all set to navigate the dynamic hospitality landscape and meet the evolving needs of its travelers. As the company continues to expand its footprint in the Middle East and Africa, it faces a landscape marked by rapid growth, diverse market demands, and increasing competition. Wyndham’s strategic approach is designed to address these challenges while capitalizing on new opportunities to enhance guest experiences and operational efficiencies.

In an interview with ArabiaTravelNews.com, Jean-Claude Abi Khalil, Development Manager for the Middle East & Africa at Wyndham Hotels & Resorts, shares insights into the company’s strategic plans for expansion in the GCC and Northern/Western Africa. Abi Khalil discusses how his expertise will support property owners, Wyndham’s commitment to sustainability, and the pivotal role of technology in shaping the future of hospitality.

Q: With your extensive background in hotel operations, sales, and asset management, how do you plan to leverage this experience in your new role, in the GCC and Northern / Western Africa?

Leveraging my background across various hospitality functions, I will serve as a strategic consultant to property owners in the region, combining operational expertise with an entrepreneurial mindset, allowing me to guide owners in selecting the brand that best aligns with their market needs, desired positioning, and business goals.

It’s crucial to maintain a delicate balance between the interests of the property owners and the brand, and I focus on building strong alliances and nurturing dynamic relationships with various stakeholders. Whether it’s a new construction project or a conversion, I will assist and support the owners throughout the entire branding process—from initial concept to road mapping and execution—ensuring a smooth, sustainable, and successful opening of their properties.

Q: What is on the agenda for Wyndham Hotels & Resorts in the region? What are the opportunities for more midscale expansion in the region?

Wyndham has a strong commitment to expanding our footprint in the Middle East and Africa, where we currently operate 71 hotels and have 26 more in the pipeline. Saudi Arabia remains a key growth market for us, especially given the rapid development of new tourism destinations and the exciting prospect of the FIFA 2034 tournament. Alongside a market focus on Upscale and Upper Upscale properties, there is a growing demand for high-quality midscale hotels, particularly as the country opens up to more tourists.

In addition to KSA, we see significant opportunities for developing economy and midscale hotels in key gateway cities across Africa. Our strategy involves identifying these high-potential markets and ensuring that our brand offerings align with the evolving needs of travelers in these regions.

Q: What are some of the key challenges you anticipate in transforming hotel operations in these diverse regions, and how do you plan to address them?

Transforming hotel operations across such diverse regions can present challenges, particularly when dealing with the unique dynamics of each market. For example, the cost of construction and extended project development timelines are significant hurdles in some countries. To address these challenges, we work closely with property owners and engage experienced international hotel consultants who can bring their expertise to the table, ensuring that projects are completed efficiently and to the highest standards.

Q: How do you see the role of technology evolving in the hospitality industry, particularly in enhancing guest experiences and operational efficiencies, while maintaining the personal touch?

Over the past few years, Wyndham has invested $275 million in technology to ensure that every hotel, regardless of size, has access to the latest innovations in the industry. Our Guest Engagement Platform, for example, is designed to increase revenue and enhance guest experiences. This includes our Payment & Billing solution, which simplifies travel management by providing easier booking, central billing, and central payment—driving increased direct bookings.

While technology plays a crucial role in streamlining operations and improving efficiencies, we are equally committed to maintaining the personal touch that defines the hospitality experience. Our goal is to blend the best of both worlds, leveraging technology to enhance service without losing sight of the human element.

Q:  More and more travelers are looking for sustainable accommodation when they travel. What ESG measures is Wyndham Group taking to not only meet government directives but also to attract sustainable-first guests?

At Wyndham Hotels & Resorts, sustainability is a core part of our values, and we are committed to leading the way in environmental stewardship through our Wyndham Green Program. This program is designed to help our hotels reduce their environmental footprints and operate more efficiently through a series of eco-friendly initiatives. The Wyndham Green certification program comprises five progressive levels, addressing sustainability elements such as energy and water conservation, waste diversion, and operational efficiency, along with guest and employee education and engagement.

Sustainability is no longer optional—it’s a brand standard for all our hotels and is the future of our industry.

Q: How do you plan to foster relationships with travel agents and other industry partners in your regions of focus?

Building and nurturing relationships with travel agencies, industry partners, Destination Management Companies (DMCs), and key accounts is central to our strategy. Our Global and Regional Sales Support Teams, located across major hubs and cities worldwide, are dedicated to delivering business, developing exceptional relationships with global clients, and driving revenue to our 9,200+ hotels across all continents. This focused approach ensures that we remain a preferred partner for travel professionals and continue to drive growth in our key markets.

Q: With your deep experience in asset management, what are the most important aspects and priorities on which to focus when it comes to hospitality investment to get the best ROI?

Achieving the best ROI in hospitality requires careful consideration of several factors, including the choice of city, hotel size, brand, and business model. Wyndham Hotels & Resorts offers a diverse portfolio of 25 brands ranging from economy to upscale and distinctive, ensuring that we can match each development project with the brand that best aligns with the owner’s goals and business aspirations.

Additionally, our award-winning loyalty program, with over 110 million members worldwide, drives growth through direct bookings via our industry-leading brand website. This not only fosters long-term loyalty against competitors and Online Travel Agencies (OTAs) but also enhances the overall ROI for property owners.

Q: Looking ahead, what is your outlook for the region in 2025 and beyond?

As we look ahead to 2025 and beyond, the rise in living costs and reduction in non-essential spending will undoubtedly impact the luxury travel segment. However, this presents an opportunity to adapt by developing more high-quality economy and midscale hotels. Wyndham Hotels & Resorts remains committed to making travel possible for all. Our focus will be on expanding our presence in key markets, ensuring that wherever people travel, no matter their income or circumstances, there will be a Wyndham hotel to welcome them.

Q:  What key trends do you foresee shaping the future of the hospitality industry in the Middle East and Africa?

One of the key trends we foresee is the rapid growth of branded residences in the Middle East and Africa, driven by rising affluence, increased mobility, and the desire of wealthy investors to expand their property portfolios. Dubai, for example, is already home to the highest number of branded residences worldwide, and the UAE is second only to the US in terms of development pipelines for these properties. This trend represents a robust investment opportunity with a promising future.

For travel agents, staying ahead of these trends will require a deep understanding of the evolving market dynamics and the ability to offer clients tailored solutions that align with these emerging opportunities. As for Wyndham, our growing portfolio of 71 operational hotels and 26 more in development across the region ensures that we will be well-positioned to meet the needs of travelers in this rapidly changing landscape.

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