In an interview with Invest:, Simone Kuska-Villanueva, Corporate Director of Sales and Marketing at The Florida Hotel, shared how they have implemented technological solutions to enhance guest experiences, noted the shift of younger generations in their travel destinations, and why Orlando needs to advocate for direct air routes from Asian markets.
Can you outline some critical successes and achievements from the past year and discuss the impact of the major renovation project on the local economy?
We were one of the few companies here in Orlando that successfully completed our commitment to renovate despite the challenges of the pandemic. While most companies shut down or faced limitations, we remained open throughout the process. We kept our staff employed and carried out a complete renovation without interruption. Looking back, it was the best decision we could have made. Renovating a fully occupied hotel is undeniably challenging, but with only 20 rooms occupied out of 511, the process was much smoother and quicker. It truly worked out to our advantage.
What are the current conditions of the hospitality sector in the Orlando region?
From my conversations with various sales directors and staying closely attuned to developments in each convention hotel, it’s evident that after the pandemic, there was a palpable eagerness among people to travel for vacations. Orlando, with its theme parks reopening, became a trendy destination. Additionally, the extra spending dollars many received from the government further fueled this trend.
However, as we entered 2023, Orlando’s prominence as a vacation spot waned slightly due to several factors. First, some individuals grew weary of the theme parks, especially given the need for significant new attractions. Second, the younger generation began opting for more adventurous destinations, such as Europe, as it has become more accessible and affordable. This preference change is evident during spring break, where destinations like Cabo, Alaska, Fiji, and Paris have gained popularity over traditional spots like Daytona. Consequently, Orlando experienced minimal growth in 2023, with the city’s overall growth rate reaching only 2%, primarily driven by rate increases. Moreover, there was a decline in occupancy, indicating reduced convention and transient business. This trend will likely persist into 2024, with Orlando facing increased competition from alternative travel destinations.
As a female leader in the tourism and hospitality industry, can you share any challenges you have encountered?
I frequently encounter the question about challenges as a female leader. Over my extensive career spanning nearly four decades, I have consistently found that being a woman in leadership has not presented any inherent disadvantages or obstacles. In addition to the typical challenges leaders face, I have navigated the additional hurdle of English not being my first language. Still, success has been primarily derived from my dedication and effort, coupled with a willingness to embrace and excel in my role fully.
Reflecting on the past, I acknowledge that the landscape for female leaders has evolved significantly. Compared to when I began my career in the 1980s, today’s environment is notably different as we see a more equitable distribution of leadership roles.
How is the tourism sector shifting in Greater Orlando, particularly with the funding and efforts to redefine Orlando beyond its identity as a theme park destination?
Regarding the tourism sector, there has been a noticeable shift away from the traditional narrative of Orlando solely as a theme park destination. We are beginning to see more emphasis on other aspects, particularly in sports. Events like soccer, basketball, and the Pro Bowl bring new opportunities and attention to our area.
However, despite these strides, it’s clear that we still have room to grow. We compete with major metropolitan areas like Las Vegas and Chicago on the convention side. One of our biggest challenges is the need for large hotels to accommodate sizable events. Unlike cities like Vegas, where you have multiple hotels with thousands of rooms, we do not have that scale here.
Have you observed any other emerging challenges or trends in the tourism sector or the industry?
The international travel sector must catch up, particularly in key markets such as South America, Europe, and Canada. One significant factor contributing to this delay is political dynamics, which has created uncertainty and hesitancy among potential travelers. Additionally, I have observed a notable shift, with some international groups expressing reservations about visiting Orlando or the United States due to concerns about our political landscape. Unlike in previous years, where political factors may not have deterred travelers, there is now a growing trend of individuals opting to boycott destinations based on political disagreements.
Moreover, logistical challenges such as visa processing add another complexity for international travelers. Delays in visa issuance, particularly in regions like South America, can deter potential visitors who opt for destinations with smoother visa procedures.
What initiatives can ensure the city’s future growth and development?
I firmly believe that we need to address the issue of Asian air travel into Orlando. It’s a significant market that we currently need to include. Despite Orlando being one of the largest airports globally, direct airfare from Asia has yet to come to our city. This means travelers from Asia often have to fly to other destinations before reaching Orlando, which could be more efficient. Orlando must rectify this situation and establish direct air routes from Asian markets. I’ve been advocating for this, and I hope the city will prioritize addressing this issue soon.
How does The Florida Hotel attract and retain top talent?
The biggest challenge we are facing is staffing. Before the pandemic, we had a staff of 229 employees. With higher occupancy levels, we are doing the same job with just 150 people. It’s been a shift where everyone has to take on multiple roles to ensure smooth operations.
Furthermore, we have revamped our model to maximize profitability. We recognize that we can only do so much to increase rates, so we are focusing on optimizing our bottom line. This means getting creative with how we allocate resources and streamline processes. Part of this strategy involves increasing wages. In 2020, our housekeepers were earning $15 per hour. However, with the current market dynamics, we have raised the starting wage to $20.00 per hour to attract and retain talent.
Can you elaborate on the impact of population and tourism growth in Greater Orlando on the hospitality industry?
Over the past two years, we have yet to experience significant population or tourism growth. It feels like we are at a standstill, especially in 2023. Orlando’s occupancy rates in 2023 were down 1% compared to previous years, and we have yet to return to pre-pandemic levels. It may take several more years to reach those levels, especially with uncertainties surrounding visa issuances and pricing strategies in the airline and hotel industries.
Price increases have been noticeable across the board, contributing to the challenges. Hotel rooms that were once $119 are now priced at $250 per night, and theme park admission costs have risen significantly. Similarly, a day at Disney now costs $179 on weekends, so it would quickly go over $1,000 for a family of four. With these escalating prices, some travelers are looking at more affordable destinations like Paris, where they can stay for four days.
What are The Florida Hotel’s upcoming outlook and top priorities over the next few years?
Our top priority is to complete the training initiative, which will help fill our hotel rooms. Despite not achieving the ideal average daily rate (ADR), we are running at a 90% occupancy rate and making money, which is crucial for our current situation.
Looking ahead to 2025, our strategy will shift with the opening of the new Universal Epic Park nearby. This development is expected to attract a significant influx of visitors to the area and the return of citywide groups that had chosen other destinations in recent years. We anticipate that by 2025, business will return to 2019 levels or even surpass them, leading to increased profitability with higher ADRs.
