PrivCo Logo

The Changing Tide of Hospitality

The Changing Tide of Hospitality
October 13, 2021

The Daily Stack is a daily private market insights newsletter by PrivCo, a private company intelligence platform. Read our previous insights.
If you have friends who would enjoy reading this newsletter, please forward this email to them.

An article from my inbox struck me this morning. It was from Axios and entitled “Unruly customers threaten economic recovery”. The article highlights the mounting aggression between customers and service workers over COVID protocols since the pandemic began. The restaurant industry has 1 million fewer employees than it did before the start of the pandemic, and the bad behavior of customers is partially to blame. We’ve already seen how worker shortages threaten to slow down the economic recovery as businesses can’t find workers to meet the rebounding numbers of travelers and diners.

After two weeks involving three domestic flights, I count myself lucky. I never encountered any altercation between a passenger and a flight attendant, seemingly an everyday occurrence based on the many viral videos of violent disputes and flight attendant sound-offs. As more people are traveling, there’s also a shift in the hospitality sector, as hotels are navigating to provide the best possible customer experience for guests while also upholding safety regulations that promise to keep doors open. This task is proving to be difficult for many in an industry defined by white-glove service and the “customer is always right” motto. 

Technology in the hospitality industry is taking root. Trends include a shift to contactless, cashless payments and QR code ordering and menus. Prospera Hospitality, a full-service hotel management group, takes it a step further by offering robotics in its hotels' dining areas and cleaning protocols. The group sells six varieties of hotel bots, including a bow-tied delivery robot for forgotten toothbrushes and extra towels, as well as the “Matradee X,” which will deliver meals without lingering for a tip. Savioke is a Silicon Valley startup making the bell boy robotic.

Others are incentivizing vaccines to curb infection rates among staff and travelers alike even before NYC became the first city to require proof of vaccination for all indoor dining. In July, Union Square Hospitality Group announced that it would require its customers to show proof of vaccine at its restaurants, including the Union Square Cafe, Porchlight, and Gramercy Tavern. While many welcome the added prevention efforts, enforcement can be an onerous task for beleaguered hospitality staff. Many hospitality groups fail to even mention the pandemic on their websites, signaling it’s not something they’ve come around to including in their management offerings. 

A company to watch might be Hello Alfred, as on-demand home services and an increased desire for fulfillment in the home is on the rise. The company offers a resident hospitality model for apartment dwellers with laundry, tidying, and pillow fluffing services. The start-up completed a $42MM Round C last year and acquired HOM, a community generating resource for tenant satisfaction, in May.

For more hospitality companies, log on to our database.

PE firms hold back on vaccine mandates
Private equity employs 7% of U.S. workers but the industry is not eager to enforce a mandate.
GM will be refunded $1.9BN from LG after recalls
The company pulled 142K Bolts after a battery malfunction.
Since last week, PrivCo has added:

185 Companies | 236,181 Funding Activities | 56 M&A Deals

Funding & Deal Highlights:

Alviere raises $50MM from Viola Ventures
Fintech • Round B • New York, NY

Hubilo raises $125MM from Alkeon Capital
Analytics • Round B • San Francisco, CA

Bond Vet raises $170MM from Warburg Pincus
Pet Care • Round B • Brooklyn, NY

Plume raises $300MM from SoftBank Vision Fund 2
B2C Wifi Extender • Round F • Palo Alto, CA

Magic Leap raises $350MM 
Augmented Reality • Equity • Dania, FL

Aquant raises $70MM from Qumra Capital
PLM  Software • Round C • New York, NY

Wise Systems raises $50MM from Tiger Global Management
AI Dispatch Software • Round C • Cambridge, MA

Oshi Health raises $23MM from Flare Capital Partners
GI Health Care • Round A • New York, NY

FitOn raises $20MM from Delta-v Capital
At-Home Fitness App • Round B • Los Angeles, CA

Violet raises $10MM from Klarna
E-Commerce • Round A • Seattle, WA

Forward to a Friend Forward to a Friend
Not a subscriber yet? Sign up here!
Have an interesting topic you want us to include. Let us know!
Copyright © 2021 PrivCo Media, LLC. All Rights Reserved.
Unsubscribe | | Contact Us
PrivCo Logo

© 2024 PrivCo Media, LLC


HomeSign inContactPricing