Smart ways to protect hotel business during the Corona virus outbreak.
Coronavirus outbreak has affected many lives in many countries and is still spreading like a wildfire. Along with precious lives, it has hit business sectors, the Tourism sector being on the top. The hotel industry entirely depends on tourism and is suffering a major loss due to travel restrictions and lockdowns.Due to the increased level of cancellations, the occupancy rate has declined drastically (as low as 15%). Most of the hotels have started to shut down operations and cut off their staff.
But is this a right solution to save your hotel business?
Such outbreaks have occurred in the past and the world has seen the after-effects such as the recession period. The hotel industry has survived then and it will survive now too. There’s no need to panic and take decisions that will affect the business in future.
Here we bring you smart ways to protect the hotel business that you have built over the years, from the Novel Coronavirus outbreak.
- Care for your staff and guests
First and foremost, put the safety of your staff and guests on top priority. Hotel business runs on two main entities, your staff and your guests. Keeping your staff motivated and happy will result in a better quality of service which will benefit in making your guests happy and cared for. Take preventive measures for the health and safety of your guests. Seeing your efforts at this time of crisis will instil a sense of loyalty in them and you will see them as repeating guests in future. It’s a wise idea to stock up on safety masks & sanitizers to maintain a hygienic environment where guests will feel safe.
- Work on new technologies
This is the right time to learn and implement new technologies or software that will help you and your staff to tackle such situations in the present as well as in the future. Training yourself and staff on softwares and technologies that will work on providing smart revenue management solutions in times of crisis should be a greater boost to the overall morale as a hotelier.
- Focus on local market
With International and state borders closing down, local travel could also provide you with some revenue keeping your occupancy floating a bit up. But before you open for local travellers make sure you show that you are doing best to keep things clean & safe for staff and guests. By stating clear and transparent health and safety guidelines to everyone through hotel property website or social media channels will help to build trust and confidence in your property and get the local guests to book after the lockdown down period
- Providing flexible stays with extras
The bookings are being cancelled and this is the right time to provide flexible booking options for the future. Moreover you can offer a refund if they choose to cancel their trip. One can provide few add-ons for future bookings that will grab your guests attention. This will avoid booking cancellations and instead make your guests postpone their vacation booking dates at your hotel.
- Work on marketing strategies
Your marketing will play a big role in your sustenance for the future. Implement creative marketing strategies that will keep your brand awareness and brand loyalty at the top than your competitors.
Reaching potential guests is important but keeping your current guests connected is more important. Offer some loyalty package to your current guests so that they will book your hotel for their future trips.
Also educating and informing your guests about how your hotel is able to handle the pandemic with all safety precautions will make them feel safer to stay with you in future.
- Measure your hotel’s performance in times of crisis
Of Course during the crisis, the performance of most of the business especially hotels & resorts is bound to stay low, but if managed smartly, the negative impact on the revenue can be kept at a minimal level. There are few metrics that a hotelier should keep an eye on other than focussing on just profits which will be anyways low.
Maintain your target RevPAR. A hotel’s RevPAR is the right indicator about your property’s performance in the market. Even reducing it to a small amount can ensure easy recovery in the post-crisis period.
Also keeping your eye on the RevPAR index helps in deciding the hotel’s performance. The RevPAR index shows your hotel operations and how it is handled as compared to the competitors in the market. Leading in the RevPAR index guarantees that you are ahead in the market.
These are some of the smart ways you can follow to handle and come out of situations like these. With a proper crisis management team working on the plan and with the support of the staff to maintain the health and safety in your premises, you can be sure to protect your hotel business today and also in future