Q1/Q2 2026 Review: The Defining Challenges for the UK and EU Market

Speaker A: Hello and welcome to Hotelier's Voice Live, the Kensington edition of the Roundtable Roadshow. I'm Ryan Haynes and we are here to talk to you about some of the news and the industry moving issues about and get some of the insights from the hoteliers that I've got joining me, including Jonathan Liu from, uh, Ferdy Hotels, Ina Nekrasova from Hotel Cafe Royale and Joe Morgan from the Other House. So firstly Jonathan, you from Ferdi Hotels. Tell us a little bit about that business.

Speaker B: Ferdi Hotel celebrates its second birthday this month. We have eight hotels across Southern Europe and Northern Africa and we're really aiming at that upscale lifestyle segment.

Speaker A: Excellent. And you're all across Europe now?

Speaker B: Yeah, so we're in Malta, Portugal, Hungary, Czechia and Tunisia as well.

Speaker A: Now, quite a different perspective here because here at the Reconcilia Roundtable we've got a lot of London hoteliers as well as UK portfolios. But across Europe, how is business going?

Speaker B: It's really varied. Lots of things are happening in the world, lots of ups and downs. But what we're seeing is a lot of Europeans are now staying within Europe for this summer season and we're seeing some really great demand into, into Malta, into Tunisia. Um, and people still value that time away, they still want to have that experience, they still want to uh, let go and enjoy their time off. So demand is strong, but it's up and down.

Speaker A: I was going to say because here in the UK we experience a lot of fluctuating demand patterns, a lot of shortening windows. Are you seeing the same thing across Europe?

Speaker B: We're seeing some shortening windows, but we're also seeing new opportunities. For example, in Malta this week, uh, we have direct flights from jfk, which is brand new, which is opening up a whole new uh, segment for the Maltese market.

Speaker A: So I mean when it comes to the hotel industry there's a lot more competition and um, particular we're seeing competition, uh, from alternative accommodation, how it's reshaping pricing, guest expectations and the positioning of hotels. How is that affecting your business?

Speaker B: We need to compete at that experience level. You see so many other platforms, companies, agents that are pivoting towards, uh, end to end, one stop shop. So people want to be able to book their flights, book their hotels, restaurants and experiences. And as hoteliers we have to respond to that. We don't need to necessarily provide the full end to end, uh, experience, but we need to have partners that can work alongside us to deliver that experience. Because people, for my hotels at least aren't necessarily Come to the hotel, they want the destination, they want to experience the culture. That's what they're looking for, not just a bed, shower and breakfast.

Speaker A: So I mean the fascinating thing is two years old, you've had to sit, think about that product design from the outset as to where guests uh, are today. So when it comes to that evolving guest expectations, with that constantly changing, how do you keep your finger on the pulse?

Speaker B: It's talking to our guests, it's responding to what they want. They're the ones that tell us what is valuable and then we respond to our product and our services back to that and we try to focus on those things that really matter. We don't want all the bells and whistles, we don't want to put extra cost in where the guests don't want it. It's really focusing on what they demand of us.

Speaker A: We talk about technology a lot, potentially it being equalizer in the industry. How do you utilize things like mobile check in digitalization across the business?

Speaker B: Being a new brand, we've been able to be digital first in our design and what we're trying to do is get all of our people as much time with our clients and customers, customers as possible. So the technology element is really back of house and giving the tools to our team to make that experience something special.

Speaker A: I was speaking to Porto Bay Hotels. There's a lot of focus on automation where AI plays a role, particularly in portfolio groups and you've got clustered or your headquarters and you're managing all these properties nowadays. How much of that is a key component within the tech stacks that you've got?

Speaker B: We have a lot of automation, we have a lot of AI in place, but it's trying to do those jobs that are, ah, boring, repetitive. For example, in our reservations, uh, I remember working a reservation for the day where you're doing arrivals checks and you're just going through lists and lists of people. We can automate that, it's just a series of rules and that means that our people and reservations can be on the phone, they can be talking, they can be converting rather than doing the admin that we can automate.

Speaker A: The great thing from your perspective is the fact that uh, you've got a lifelong career but also family history in hospitality. So you've seen the challenges and how they've evolved.

Speaker B: Absolutely. I grew up in hospitality, my, my family had restaurants and really seeing that change all the way through different technologies. Internet has made a huge, huge difference. But in essence it's the interaction with the people that hasn't changed and I think that's what's most important now. How do we bring that experience? How do we make someone feel valued? Uh recognized that that's what true hospitality is.

Speaker A: Thank you very much. Well Jonathan, we're not alone on this sofa. Uh, we've got to introduce our other two guests. Uh, so Joe in a ho from a pretty much luxury hotel experience here in London. I mean one of the big stories coming out and I guess you know, shifts that we're seeing in the market, ah, challenges perhaps you've got is luxury, um, travel shifts towards experience. What is the meaning and power of pricing for hotels particularly? You're competing a lot in this luxury segment. Um and therefore pricing if you lower it too much is unsustainable. So how do you look at how you define that brand luxury experience and maintain pricing that actually reflects the right level of guests to secure the occupancy you need?

Speaker C: Yeah, it's a great point and it's particularly challenging nowadays when we've got more macro and microeconomic uncertainty and we have more luxury rooms supply into London like we've never seen before. So Absolutely. Keeping uh, in uh, in line with what your brand offers and continue to offer that brands value while also maintaining your pricing, not diluting your brand equity which is really important, has been really tricky of course. Um, but what I think is really important from our side is to remember who we are, the DNA of the hotel. Really look at the type of customers that we are there for and who we're trying to attract and then not go not be one product for everybody. So really focusing on those that's uh, you know that, that are the right customers for us. But uh, also equally you know one misconception in luxury is that if somebody has pricing power and if somebody has money that they don't care about value for money or they don't care about the price. It's absolutely not true. In fact uh, trying to offer a ring to a lawyer from us and negotiate a price on that has always been very interesting experience. Experience because these are actually the people that do know how to handle their money very well. So again understanding how uh, our teams can be empowered in making sure that they can close deals, have that flexibility with the right type of customer but also equally highlight the value that they're getting by staying with us and understanding that price is not the only thing that you know, you can negotiate at. Um, so yeah, but it's been a very interesting experience for sure. Particularly with the influx of amazing hotels into London recently. To continue to deliver the best value for money that you can go.

Speaker A: One of the key conversations we've been having here at the Kensington London Roundtable Roadshow was around brands and that brand experience, storytelling almost being a key element. Looking at the other house and the other hotels that you consult on, how do you ensure that you can, you know, deliver that experience across operations that reflects the price that they're paying?

Speaker D: I think it's really about trying to understand your guest and what they are looking for and what's important to them. And that goes across different groups of guests which can make it harder because, you know, what matters to a family traveling or a couple traveling or someone travelling for corporate, um, are all very different. So it's trying to encourage your team to understand that, to talk to our guests to try and find out as much as we can about them before they come and then think about things that will be important to them. We were talking earlier about the staycation mark it and like having recently had a half term and doing more things for families because we saw a huge influx of families coming to stay into London, which we don't always necessarily get. So the shift in our uh, guest profile, we have to then think about what is that experience because quite rightly as in I said it's about making sure that guests feel that they're getting value and they're getting the experience that they're paying for with the rate. It's no longer just enough to provide know bed, breakfast and a shower that works. You actually have to provide a whole experience and, and people really like to feel that they're part of something, particularly in London because it's almost like so many little villages in London make up this big city. So it's great to be part of a locality and actually show that to your guests when they're staying in the capital.

Speaker A: The um, Chief Brand and Marketing Officer at Mandarin Oriental did share some of his insights there about the need for deeper connection with the guests. Authenticity, human connection, the sense of belonging. And obviously, you know, the risk of lowering rate is that hotels then become interchangeable and if you see yourself as quite iconic or different in, in a hotel it, it's so essential to maintain that price. Now I know in a particularly uh, in the last conversations that we've had, it's how brands can really enable you to sell more at the hotel, not just attain a certain level of revenue, uh, or, or room rate for the property.

Speaker C: Yeah, absolutely. Uh, again it's understanding the lifelong value of a customer is a way more Important metric that sometimes even the revenue generation in a particular day, um, and from our side, uh, we also look at uh, our room product, our suite products and our penthouse products as three different products. And understanding of actually the branding for each has to be different and the type of client that gets attracted by each is going to be very different. One of the things that we've personally uh, introduced that uh, is providing that value for money but also enabling us to spend more at our property is for our high tiered suites. We actually offer car service inclusion so you can be picked up from an airport in a Mercedes Benz and then for each full stay that you're staying with us, you get five hours for service. And actually showcasing that as you can go to Cotswolds, you can go to Thadda and Cotswolds, you could go and travel around for those five hours, um, but also then come back and again spend more time with the property. So this was one of the ways that creative ways of uh, you know, providing the value for money. But equally, you know, the behind the scenes target of that is to increase our suite sales which you know it has helped us to really push some of the suites where the occupancy maybe was sitting at a 20, 30% to really, you know, add that additional 10 percentage, 15 percentage points that occupancy in those.

Speaker A: Jonathan, where do you look to try to attain additional revenue within your properties?

Speaker B: All through the process there uh, are different ways really. For us it's understanding what is going to add value to the customer, then understanding how we can monetize that and deliver something straight to the customer. We don't want them leaving our ecosystem, we don't want them going to find something somewhere else. We just try and make it really easy and as we can get that to our customers and know what they want, it's an easy purchase from them.

Speaker A: I mean, talking about easy purchases, I mean poor website experiences are costing hotels bookings, they're losing bookings. Obviously when online experiences does creates the barriers, unnecessary barriers for guests. And industry data shows that uh, hotel websites convert direct visitors at around 1 to 2% while OTAs convert at around 4 to 6%. So quite considerably different. You know I think that you definitely see a greater connection between guests and the direct channel. But it's important to make sure that that's a smooth journey. How have you approached that? So uh, to ensure that you know, you optimize that direct experience all the time.

Speaker B: The website serves many different purposes. Whether it's information and inspiration, whether it's the actual booking process or once you've actually booked, going back and understanding about restaurants, spas and all those elements. So what we've been able to do is to understand those customer journeys and what they're looking for and to present the right information to the customer. So for example, if we can recognize the guest who's already booked on our website, we, we don't show them, uh, new offers, we'll show them food and beverage and spa offers and we can swap that content out based on that person's behavior. We also have a chatbot that can sit there and answer any questions that need to be answered. And then things that the chatbot can't answer, we then go and investigate and put that back into the website because obviously there's an interest. So it's this constant reinvention that's constant testing, it's constant understanding what the customer needs and we respond to that across

Speaker A: the revenue obviously greater connect, greater conversation with the marketing team to ah, make sure you're not sitting in silos as we always say in the industry. Um, what are some of the developments and real focus areas that you've had to do to ensure that you don't put those barriers digitally?

Speaker C: I think sometimes it's really about focusing on the basics. A lot of the times we use AI as buzzwords and we talk about hotel tech stuff, tags. And then if you start actually experiencing the ghost journal yourself, you'll notice that in a lot of hotel websites I see you know, a basic issue of okay, your room type photos are practically identical. So why are you asking the guests to pay £200 more for one room type than the other? You're not showcasing your amenities in the right way. Guests don't know fully about the fact that, you know, maybe some of the mini bars included or again so it's a thing from our side. Marketing has really helped us communicate, communicate some of these things I've actually property's been doing for a long time. Uh, and again the absolute killers. When a travel agent or a guest says, oh, I didn't know you had that. You really want to avoid hearing this because that means, okay, something, somewhere, some of your communication is not quite working. So really we've focused on okay, what have we been doing well in the property, what should we be showcasing and using leveraging marketing, particularly with now, you know, the having technology to be able to see, separate and create uh, digital uh, groups for guests. You know, those again that book suites, those that book our food and beverage outlets, those that are uh you know, maybe more focused on uh, you know the corporate market or the corporate stays, uh, and marketing our different facilities within the hotel to those groups uh, in a very targeted approach.

Speaker A: Now I mean we spoke at the beginning really around sort of how Jonathan and Ferdi hotels are tackling the current market conditions here in the uk. There's been quite a shift uh around sort of demand patterns, uh source markets. Uh Joe if I take you first, I mean this is a particular area you've looked in. I mean we've seen sort of potentially bookings surging upwards around 40% year on year for the UK market particularly since the outbreak of the conflicts in the Middle East. It's down in the southwest. Cornwall for example has seen major boosts in bookings. What are you seeing here in London at the other house?

Speaker D: Yeah, we are seeing that um, normally this time of year we have a lot of multi generational families traveling over from countries in the Middle East. We have a lot of inbound business from the state. So particularly over things like Chelsea Flower show we really noticed and, and we um, many of the rooms here can combination up into be like multiple suites. Um and we're not seeing those big families coming and staying with us across the summer that we've had say with us for the last two or three years. But what we are seeing is much sure to lead British families coming for staycation. Now when it's boiling, I'm not sure I would say London but obviously if you wanted to come to the capital as a family um, we're really seeing that the weather's going to be nice, trains immediately put on the special offers on the train tickets and suddenly we see that, that boost but it is very short lived and it's quite dependent on things like weather, it's quite dependent on things like events. We know we will see the demand coming in for things like Wimbledon I were just talking about but actually seeing that staycation vacation demand is in this volume is something new for us. But it's really good to see London's a great place to go as a

Speaker A: tourist in a. I mean you are the revenue expert here. I mean what's it been like looking at these demand patterns and trying to figure out what's what, predict, forecast, pretty um, plan, determine how to be successful and really make an impact in the market.

Speaker C: I feel like after 2020 all the regular demands patterns are gone. So I think by now by 2026 all the revenue professionals are used to you know seeing very erratic demand patterns. Obviously it's been Interesting. Uh, to echo what Joe was saying, we also noticed huge uh, staycation demands in fact back in March. Uh, and uh, for the first time I was just adding my table. The first time in May, uh, UK actually overtook us as our dominant market. And in May alone we've seen over 120% growth on UK market. Again considering that is usually our top second. So the numbers are big. Um, and funny thing, us also grew in May. However, there is more uncertainty when it comes to summer. It feels like again usually, uh, bigger Middle Eastern families and bookings, they anyway come quite short lead time. But at the moment it's quite difficult to make a call. Uh, but we are focusing on the markets that are there. So we, you know, we're reviewing our family offers, sure that we stay as attractive as it can be for families to uh, stay as that hope choice in London. If you are doing your staycation in London, um, and making sure, you know, we talk about the pool if there's a heat wave and how nice and cool it is in subterranean pool in center of Picasso.

Speaker A: Let me ask you, I mean for years you and I have been on panels talking about the role of systems and technology in supporting you with responding to patterns and forecasting. Does the revenue management system have much of a play right now or you having to really get in there into the weeds and take control?

Speaker C: There is definitely an element of a lot more monitoring and telling the system maybe that there is more uncertainty factor things in. So there is an element of having to work with the system a lot more closely than perhaps you would before. Um, but um, the revenue management systems these days are pretty clever when it comes to short lead times. So even again after the pandemic, a lot of the algorithms have been geared to consider more shorter lead time patterns. So not necessarily year on year, but maybe week on week, uh, you know, having more impact there. But you know, you cannot remove the intelligence of a human outside of this patterns. Again, we talk about AI. AI is great, algorithms are great. Um, but you really need that human level and human layer of, uh, overview of the system, especially when things are so uncertain as they are now.

Speaker A: Excellent. Okay, so you are joining us live from the other house for the Kensington edition of the roundtable roadshow for Hotelier's voice. I am Ryan Haynes. And for our final topic here today, we're working in the hospitality industry. So what are we expecting from hospitality to careers today? How do we frame hospitality for a new direct generation and what does that mean and how we rethink service and delivery. Because a lot has happened in recent years that sort of stay home, don't move anywhere massively impacted the industry. I mean one of the things Jonathan, that we're aware of and you travel a lot for work, um, hoteliers, hospitality professionals have always relocated for jobs but that's not happening so much, is it anymore. How do you identify, find and uh, encourage talent to come and work for you?

Speaker B: It's more about selling the lifestyle and the career progression. It used to be just I'll um, work in a hotel while I'm at university. But there are such dedicated career paths now, whether it's in commercial, whether it's finance, there's so many elements that you can actually build a full career, travel the world and really make something of it. So as an industry we have to make more of that development path uh, and talk about that career rather than just being a stopgap to another career.

Speaker A: I mean it is a thing, isn't it Joe, that people come and they get a job behind the bar because it's just a job. They need some money in their back pocket but they are looking for connection nowadays and this is something that hospitality is able to provide. And I guess it's about diving deep into that and really understanding how you're able to offer um, you know, a lot more of a deeper experience and connection with their job, uh, rather than just it filling their bank account.

Speaker D: Yeah, absolutely. I mean gone are the days where people worked all the hours God sent and you know, it's almost you have to kind of get your badge of honor because you worked all the hours that week and, and all of that kind of thing. You know nowadays hospitality like, like, like many businesses are really looking out for the well being of people, looking out for engagement with people, building those people cultures and quite rightly as Jonathan said, those career paths, you can have an amazing career in hospital and follow multiple different strands. It's not just operations. There's finance, there's commercial, there's hr, there's all kinds of different ways in which you can grow your career and across multiple businesses and um, different countries in the world. And that's really attractive to people these days. And the best hospitality companies are really capitalizing on that. As I think you mentioned, people don't want to run up loads of debt going to uni anymore. Hospitality is a great career to be, build and grow within a business.

Speaker A: Jonathan's family is in hospitality. How did you start in hospitality?

Speaker D: My mate's mum ran um, a silver service business and at 15 years old, she taught me how to silver serve. And however many few years later, I'm still in hospitality.

Speaker A: And Ina, how did you start off in hospitality?

Speaker C: Started in housekeeping when I was 17 as a summer job in a luxury hotel. Never, uh, left?

Speaker A: No. I mean, we met when you were working for a big brand. Now you're working for an independent, the, uh, Hotel Caf Royale. What is that experience like, moving from big brands to independent?

Speaker C: Uh, I mean, there's a lot to be liked about a branded hotels because if you're starting your career in there, you really get to know foundations and how to do things well, best practices. However, once you move to an independent hotel, the flexibility and the speed of implementation that you have is unrivaled when it comes to branding. Independent hotels have a lot of leverage when it comes to being more innovative, thinking outside the box, not being told by headquarters. Now you can't do that, you know, for whatever reason. So I think I'm really enjoying it. I'm enjoying it a lot, and that's wonderful.

Speaker A: I mean, hospitality does have a unique advantage in the fact that, uh, what you do every day really matters. You can make an immediate impact on your guests and see the result either in how much they spend behind the bar or the reviews they leave behind. And this is an opportunity for us to really knuckle down and support hospitality workers in recognizing this and being rewarded every single day. So that is a challenge that we have in ourselves is helping employees see. Seeing that impact they make every day. Well, I hope to see you here on the roundtable roadshow at some point with Hotelier's Voice. Do keep tuned. Uh, we got to go back and talk to the round tables that are currently happening all around us. You might hear the hubbub of conversation that's happening, but from Jonathan, Joe and inner. Uh, thank you ever so much for joining me on the couch. It's been wonderful to hear your. Your views and opinions. I'm Ryan Haynes with the Hotelier's Voice. Ciao for now.