Minimize the Impact of COVID-19 on Your Hotel
The impact of COVID-19 is undeniable. The industry has already experienced crises like this. Today, the important thing is to stay calm, find strategies that help your hotel, and prepare for what's coming.
It's true that the rapid spread of the coronavirus, COVID-19, has impacted us all. Tourism has been affected by massive flight cancellations, reservation cancellations, low occupancy rates, and a host of other issues that are now even more acute in the face of this global reality.
It's difficult to stay calm and think positively in these times of crisis, but it's essential to be patient, stop the spread of panic, and resort to conscious decision-making that translates into long-term, profitable actions.
Today, perhaps the best option is to look for opportunities and view this type of crisis as a time to look internally, reinvent ourselves, and consider the future with a better outlook for your hotel.
Remember that tourism has already overcome other similar crises
It's inevitable that the coronavirus will bring back memories of the 2009 H1N1 flu crisis or the 2003 SARS outbreak. On both occasions, the tourism sector was one of the hardest hit by guests' fears of infection. However, the industry was patient, quickly adjusted to this new scenario, and gradually returned to its expected growth levels.
Although a decline in global tourist arrivals is forecast, as was the case in 2009 and 2003, market segment variations can be cited. It's clear that major events have already been canceled, but the behavior of independent travelers or smaller groups can inform strategies to help us cope with this reality in the short term.
Be flexible and communicate with your guests
A crisis is the opposite of any form of celebration, but it reminds us of the importance of knowing how to operate and move forward in these difficult times. If we respond to a cancellation request with patience and empathy, your guest will most likely return when they can plan their next trip. On the other hand, if your response is cold and distant, you may lose the customer forever.
A crisis can bring out the best in you and your hotel. Teamwork is essential in situations of intense pressure. Inform your guests of your actions and tell them about the measures your property has taken to address the current situation. If you have a customer database, take advantage of the opportunity to send them an email about your hotel's new policies.
Use the data to your advantage
Perhaps now is the time to use data to set realistic expectations while developing strategies to address the changing landscape of the industry.
In these cases, it's essential to pay special attention to your hotel's revenue and forecast . It's crucial to monitor your bookings with daily reports that give you a realistic view of what's happening. Give your data context with qualitative information about who's canceling and see what marketing actions you could implement.
If you have a Revenue Management system, use the data it provides to set your room prices based on demand and market trends.
Prepare for the return and look for new strategies
It's very important to prepare for your return. Instead of wasting time trying to recover cancellation fees or lost business, it's a good idea to focus your sales efforts on other sources of revenue.
An interesting alternative may be to consider local or domestic tourism as an option for your hotel. Another point to consider is running marketing campaigns for your most loyal guests and offering travelers a complimentary service through online travel agencies (OTAs).
If you have a guest satisfaction monitoring system in place, take this time to review online reviews and develop strategies to help you continue providing the best service to your guests.
Today is a time to learn, record trends, and reflect on how this process has made your hotel even stronger and more robust.