Hilton Chairman and CEO reveals optimism for 2021

The turmoil of 2020 has affected all of us, all individuals, businesses and industries, many in profound and even tragic ways. The hospitality industry is no exception, and has indeed endured one of the most heartbreaking challenges in its history. But in the midst of that challenge an opportunity for resilience emerged, along with important lessons and insights for the future. 

Hilton Chairman and CEO Chris Nassetta, a 37-year industry veteran, shared his perspective on this unprecedented year - what he experienced, what he learned, and what he looks forward to most in the new year. 

What was your biggest challenge of 2020? 
It is so difficult to choose just one challenge! 2020 was incredibly difficult for all of us at Hilton, professionally and personally. We had to make really heartbreaking decisions about our team as we navigated our business through an unprecedented stalemate in global travel. I think perhaps the biggest challenge was managing all that professional stress, including the impact on our valued team members, while also caring for my own family and their health. It goes without saying that I am optimistic that we are making significant progress towards resolving the health crisis in the not too distant future. 

What lessons have you learned? What surprised you the most?
You know, I'm an old school guy. Prior to this, I worked on my phone and with hard copies of what I needed to review closely. I traveled so much that I never worked from home, and neither did my team; we wanted to take advantage of my limited time in the office. This has shown me that there are some things we can do virtually and still be effective, and that the video technology that I had resisted has its benefits! I am still doing a lot on paper, I will never deliver my lists in notepads, but I am visiting many of our teams around the world virtually and it is working. It's also clear that the flexibility that people need right now isn't greatly diminishing our ability to get work done. That part definitely surprised me a bit. 
Of course, I'm still a big believer in in-person connections. Technology is a great tool when you can't meet face-to-face, but at the end of the day, there is simply no replacement for the true relationship building that occurs when you are in the same room as someone. And of course, the big exception to everything I just said are the members of our hotel team. They have not had the ability to work from home and have shown up every day to serve our guests in really difficult circumstances. Part of the reason I'm so eager to get back on the road is to thank you for all that you did in 2020. 

How will the impact of the vaccine be for the hotel industry? 
First of all, the vaccine will be a boon to the vulnerable populations most affected by COVID-19, as well as to healthcare professionals and essential workers around the world. And as it becomes more widely distributed, it will be an important advance for our industry, especially for our team members on the front lines of our hotels. A vaccine, in addition to the common sense safety precautions in place, will help people feel safer when traveling domestically and internationally. That trust will be key to building momentum in recovery around the world and keeping our team members safe as they continue to spread the light and warmth of hospitality.

In 2020, the Hilton Honors loyalty program evolved significantly. How did you decide to increase flexibility? What changes will remain when we travel again?
We always say that our guests are part of our family, and if we are going to say that, we have to back it up with our actions. It was an easy decision to provide more flexibility to our Honors members; it was an empathetic decision and it made business sense. Offering flexibility and a faster path to status next year shows our members that we take their business seriously and have compassion for what is happening in the world. Without a doubt, it generated stronger loyalty with our members, which ultimately makes the program that much more valuable. I've always said that you would have to be crazy not to be an Honors member and enjoy all the benefits the program offers, and that still holds true today. 

How will the meetings and events business evolve in 2021? What changes do you hope will remain even after we finish all this?
We expect hybrid events to be a key part of our events business in 2021; As smaller group meetings become safer, organizers will continue to promote virtual assistance, reaching a much larger audience than before COVID. We also hope that people will be more selective in their decisions to attend events in person for the foreseeable future, which is why our teams are working with our clients to ensure that the events they host are truly top-notch and worthy of a special. trip for attendees.
We have a longstanding relationship with clients in our group and have received their feedback every step of the way as we design and implement our hybrid event offerings and services like Hilton EventReady, our solution for flexible, secure and socially responsible events that adhere to to the highest standards of safety and cleanliness. 

It has managed to maintain significant growth even despite the events of 2020. What development trends will we see in 2021?
We are fortunate to have great partners who have a long-term vision for the industry and understand that being part of our global network will pay dividends for years to come. We work closely with our owners to develop the right hotels in the right markets at the right time, and looking forward to 2021 we expect to see additional growth in drive-to and resort locations with opportunities for new hotels at the scale of the chain. There was a mix of conversions and new construction this year and we expect it to continue into 2021 as construction that stopped in 2020 resumes and homeowners continue to seek the benefits our system provides. 
And of course, as exciting as new development is, we haven't lost sight of the support that owners who are not in a position to develop right now need. That's why we continue to invest significantly in your continued success through increased flexibility, advocating on your behalf at the highest levels of government, and ensuring that our operating model is as efficient as possible.

It has also maintained its commitment to sustainability throughout all of this. Why? How will you keep going as we move into 2021? What should we expect to see from Hilton?
I've always believed that you can't turn your back on commitments just because times get tough. We made a promise to the communities we serve to create a positive impact from both an environmental and social perspective, and now we will not compromise. Through Travel with Purpose, which is our corporate responsibility platform, we continue to make progress towards our 2030 Goals of halving our environmental footprint and doubling our investment in social impact over the next decade. 2020 proved that our hospitality is an unstoppable force for good, and we intend to build on that foundation for years to come.

How do you anticipate that guest expectations will have changed by the time they return to travel? How will you approach this?
We know that our guests are truly focused on cleanliness and safety as they become comfortable traveling again, and they have higher expectations in that regard. Now more than ever, guests are looking for reliability, which is why our Hilton CleanStay program will remain in effect for the foreseeable future to ensure that our hotels are as safe as possible. At the same time, guests are also looking for the friendly and memorable experiences they missed over the past year, so I think the most important thing we can do is remind them that our unique Hilton hospitality has not gone anywhere. Our team members are still creating unforgettable memories for our guests, They just tweaked a bit to make sure we're doing everything as safely as possible. I get messages from guests every day who share the incredible creativity of our team members, and it's a huge inspiration. Overall, I think travelers are still a bit hesitant about what their experience will be like, so we show them that they can still count on us to provide reliable and friendly hospitality. 

If you could have a conversation with Chris Nassetta from January 2020, what would you say to him?
I'd tell him to hold on tight! In all seriousness, I am proud of how we responded to a global black swan event; no one saw this coming and our team members have overcome this crisis wonderfully. I would tell Chris in January 2020 to get ready for a long job, but trust yourself and your team to get through it. I'd probably also tell you to ask your teenage daughters to teach you how to use Zoom! That could have saved me and my team some headaches in April.

Right now, there is a student who thinks that one day he wants to be the CEO of Hospitality. What advice would you give him?
Keep moving towards your dreams - this is still the best industry in the world, full of passionate and committed people. Don't be afraid to raise your hand for new opportunities, learn everything you can about the business, and give it your all. Hospitality offers incredible opportunities in countless disciplines and for people with different skill sets, and the next generation of global leaders is entering the business now. I can't wait to see what they will accomplish. 

What are you most excited to start over as your travels regain full force?
I can't wait to visit our team members around the world and thank them for their hard work in 2020. I did take a few trips to some cities in North America, but am really looking forward to getting back to Asia and Europe. Our team members continued to perform for our guests and help create meaningful memories during a time when it really mattered, just as they have for the past century and will continue to do for a hundred years to come. Despite how tough 2020 has been, the human spirit is very resilient and we still long for the connections that only travel can offer. We will see the return of the Golden Age of travel, and I can't wait to be at our hotels to witness it.