Strategy CRITICAL to Post-Pandemic Hospitality

Daniel Del Olmo, President at Sage Hospitality said, "When I joined January 2020, the world was a very different place. We had an opportunity to essentially reset as part of the five-year strategic plan that we developed... Strategy really is mostly about what you choose not to do versus what you do... We've been much more focused as an organization... we are the experts in experiential business versus the commodity businesses".

The New Era of Hospitality

The hospitality industry has faced unprecedented challenges over the past few years. The onset of the COVID-19 pandemic and the subsequent economic shifts have forced hotel groups to re-evaluate their strategies and adapt to a rapidly changing environment. For many, this period has been an opportunity to reassess their core values and redefine their strategic direction. Daniel Del Olmo’s quote encapsulates a profound insight: strategy is as much about choosing what not to do as it is about deciding what to pursue.

Navigating the Pandemic and Inflation

The COVID-19 pandemic disrupted the global hospitality industry, bringing travel to a standstill and significantly impacting hotel operations. This crisis, coupled with rising inflation, created an environment where traditional approaches to business were no longer viable. Hotel groups had to innovate and adapt quickly, focusing on areas that would provide sustainable growth and customer satisfaction in a post-pandemic world.

The Art of Saying No

In strategic planning, the power of saying "no" cannot be overstated. It is essential for organizations to determine which opportunities to forgo to concentrate on their strengths and core competencies. This approach allows for a more focused and effective strategy, enabling businesses to allocate resources efficiently and enhance their value proposition.

Sage Hospitality's Strategic Focus

Sage Hospitality, under the leadership of Daniel Del Olmo, has exemplified this principle. By choosing to focus on experiential business rather than commodity-based services, Sage Hospitality has carved out a niche in the luxury hospitality management sector. This decision to prioritize unique, high-quality experiences over commoditized offerings has been instrumental in solidifying Sage's reputation as a leader in the industry. 

Experiential Business: A Competitive Edge

The shift towards experiential business involves creating memorable and personalized experiences for guests, setting Sage Hospitality apart from competitors who focus solely on the basic accommodation. This strategic focus aligns with the evolving preferences of modern travelers who seek more than just a place to stay—they seek enriching experiences that resonate on a personal level. 

Strategic Resilience and Growth

By honing in on experiential services, Sage Hospitality has not only navigated the challenges posed by the pandemic and inflation but has also positioned itself for future growth. This focus has enabled the company to build deeper connections with guests, foster brand loyalty, and command premium pricing, which are critical components of a successful strategy in the luxury hospitality market.

The essence of effective strategy lies in the deliberate choices an organization makes about where to focus its efforts. Daniel Del Olmo’s insights highlight the importance of identifying what to say "no" to excel in chosen areas. Sage Hospitality's commitment to the experiential business model serves as a testament to the power of strategic focus. By prioritizing unique guest experiences over commoditized services, Sage Hospitality has not only weathered the storms of recent years but has emerged stronger and more resilient, poised for continued success in the luxury hospitality sector.