Hospitality sector anticipates rise in summer business

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This article was published 26/04/2024 (514 days ago), so information in it may no longer be current.

Brandon’s hospitality industry expects a stronger rebound than last year as summer approaches. Despite the challenges posed by the pandemic, businesses are anticipating healthy growth and planning to cater to the expected rise in demand for their services.

Travelodge by Wyndham Brandon general manager Alexey Volosnikov said the hotel is on track for increased summer business, having focused on renovations and staff improvements to enhance the property over two years.

“While last summer saw a notable presence of construction workers due to local projects, this year we anticipate a more typical guest profile,” Volosnikov told the Sun in a phone interview on Thursday. “We expect about a 15 per cent increase in business compared to last summer. Our figures from January to April show a 10 per cent growth compared to the same period in 2023, indicating positive momentum.”

Brandon’s overall economic development, Volosnikov said, plays a significant role in the hotel’s expectations, adding events, competitions and increased travel from Canadian and American visitors also contribute to the optimism.

With eight hotels in the area, including three- and four-star options, there’s ample room for growth in the market in the summer months, he said.

Volosnikov added the hotel increased its staff ahead of the summer months, particularly in housekeeping and maintenance.

“Previously, we had one full-time maintenance staff member; now, we have three, working staggered shifts to accommodate guest needs,” he said. “Increased staffing extends to our entertainment offerings, with more live bands and events planned for the summer.”

With increased staffing and plans for renovations in the pipeline, hotels like Travelodge are poised to meet the growing demand with expanded services and accommodations.

Manitoba Hotel Association president Michael Juce said the positive trajectory observed last summer would be sustained from May on, noting last summer was the first in a couple of years where the industry operated without pandemic-related constraints, leading to a boost in activity.

Measures such as the provincial government’s decision to lower the gas tax, Juce said, will likely encourage more travel by putting additional money in people’s pockets.

“We’re hopeful that the momentum from last year will carry over into this summer,” he told the Sun. “The reintroduction of direct flights from Chicago and Denver to Winnipeg in May, along with Brandon’s existing connection to Calgary, will also enhance accessibility to the areas, potentially attracting more visitors.”

As summer is peak season for the industry, Juce noted there is a general need for additional staff, including students, post-secondary graduates and seasonal workers. The demand is driving a significant ramp-up in staffing, especially in remote resort properties, he said.

For lounge/bar owners like Guinness Tavern co-owner Niral Patel, the focus is on revitalizing and expanding their offerings to attract more patrons.

Patel acknowledged the challenges posed by the summer months, especially with a significant portion of their clientele being students, many of whom travel out of town.

To counter this, Patel outlined plans to support and host more events and introduce new cuisine and drinks to diversify their menu offerings.

“We’re actively promoting events to attract more foot traffic downtown in summer,” he told the Sun. “We’re supporting initiatives like the Brandon and Area Car Enthusiasts Club event, where they showcase vintage cars downtown. Such events help drive interest and activity in the area and our lounge.”

With renovations underway, including an additional underground lounge for private events and entertainment, Patel anticipates a surge in demand and is prepared to hire more staff to meet the increased requirements.

“We aim to host more events like pizza nights and themed parties to attract a diverse crowd in summer,” he said. “Our current capacity is around 100 people, but with the basement, we’re looking at accommodating up to 150 guests at a time.”

The expectations of these entrepreneurs are in line with the Canadian Federation of Independent Business’s recent barometer, stating small businesses in Manitoba are reporting a slight increase in optimism heading into the summer months.

Spokesperson Brianna Solberg said business confidence for the next three months increased 2.4 points to 48.6, adding the long-term confidence index for the next 12 months increased 0.7 points to 51.4, slightly above the national average of 47.5.

“The most significant increase in confidence was reported by businesses in the hospitality sector (a 7.9-point increase in short-term optimism). This would indicate that restaurants, hotels and other tourism operators are optimistic the warmer weather could mean increased consumer demand,” she said.

This is a positive sign, Solberg said, as the lack of consumer demand has steadily increased since the second quarter of 2023 and continues to be the top factor limiting business growth and sales for over half (53 per cent) of Manitoba small firms in April.

CFIB’s findings are based on 657 responses from a stratified random sample of its members from April 2-17. The advocacy group said it is deemed accurate within a margin of plus or minus 3.8 per cent, 19 times out of 20.

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