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Challenges in the Hospitality Industry in the year 2020

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This pandemic causes several challenges in the Hospitality industry.

Due to COVID-19, the hospitality industry is facing drastic changes.

Because of lockdown in various countries around the globe, the hospitality industry is facing a huge drop in reservations.

And a large number of cancellations at the ends of both leisure and business.

Even after lockdown, it’s difficult for people to reach your hotel.

As the fear of the virus is still bear in their minds.

It’s a huge challenge for the hospitality industry to gain trust in their customer so that they will choose their hotel instead of others.

Also, there are a number of challenges in the hospitality industry that they have to tackle this year.

a woman sitting on sofa thinking about challenges in hospitality industry.

Let us now see the challenges in the hospitality industry in year 2020-:

The first step in overcoming the crisis is regaining the guest’s confidence.

The guest must feel a sense of safety while visiting the hotel.

Hotels can help mitigate the fears of their guests by maintaining proper sanitization.

Also by regular check-up of staff temperature and they must wear masks in the hotel premises.

Hoteliers must make sure guests know via marketing or messaging the measures are taken by them to guarantee guest’s safety.

Communicating guests about the measures hoteliers are taking to ensure their safe stay in the hotel will play a huge role.

Guests must feel safe enough to travel again and stay in hotels during their visits.

The industry won’t bounce back to the normal occupancy level.

Until guests are having an assurance that their stay won’t impact their health negatively.

The hotel industry should start adopting the latest technologies, to ensure the safety of staff and guests.

When new technologies are installed in the hotel then it reduces the chances of human contact.

For this, investments are required and many hotels are facing challenges in arranging funds.

But many have already adopted it. Many hotels have eliminated the front desk by giving guests options to check-in online.

As social distancing is the need of the hour, your hotel can adopt mobile PMS for superfast check-ins and check-outs.

Guests mobile apps must be able to connect to switches in rooms to avoid contact with switches.

Payments for beverages, drinks, etc must be done digitally.

Coins and paper money can transmit the virus from one person to another.

Use a mobile app for ordering food and beverages in place of a paper menu.

Till last year, hotel revenue managers can rely on historical data when making pricing decisions.

But after an unexpected and never known before an event like the COVID-19 crisis, historical data is not much help.

Countries for estimating demand take cues from other nations or states that are days or weeks forward in the COVID-19 curve.

They can also gather information from social media, price charge by competitors, look to book ratios, etc.

Hoteliers need access to real-time pricing intelligence to properly capitalize on demands.

Thus, after that hotels will able to bounce back and book rooms at strategic rates.

As we cannot foresee exactly how and when people will be traveling again, hoteliers will need to pick up on patterns and take decisions accordingly.

Thus, for all these, we need to automate the revenue management process and place a high emphasis on revenue.

An image showing financial crisis as challenges in the hospitality industry

Due to COVID-19, the whole world is facing huge damage which results in an economic crisis.

Hotels remain shut down, thus occupancy rates continue to the dropdown.

Consumers are not looking to book new trips or travel in the coming months, resulting in more cancellations than booking.

Thus, there is a huge reduction in cash flow due to the impact of the COVID-19 pandemic.

Below are the options which lender and borrower can do-:

  • Because of COVID-19, the financial performance of business hinder.
  • Thus it affects the business ability to meet its repayment obligations under a loan agreement.
  • The borrower must be aware of when it is due to make a repayment.
  • The borrower should enter into early negotiations with their lender
  • This is to defer scheduled payments, reduce the amount of repayment, or in more extreme circumstances, attempt to restructure all of their debt.
  • With creditors concerning actual or anticipated financial difficulties.
  • Lenders and borrowers should consider the impact of negotiating on the borrower’s actual or anticipated financial difficulties.
  • And, the borrower can request to modify loan terms and defer payments from their lender.

Cleanliness is not a new issue for hotels.

The demand for cleanliness should not be a surprise, especially at the times of the COVID-19 outbreak.

Overall hygiene is crucial for the good health and safety of staff and guests in the hotel.

Keep hand sanitizers in check-in points, gym, basement hall, etc.

All the frequent touchpoints of the hotel require thorough cleaning.

Disinfect pieces of furniture, cutlery, crockery, surfaces, etc is essential at regular intervals.

Give your hotel staff proper training about the hotel cleaning process.

You can also use technology to automate certain tasks at your hotel and also enhances coordination among departments.

A housekeeping software works in complete harmony with the front desk of your hotel

Thus, improving service efficiency effectively, and reducing paperwork.

It keeps you inform about every room status.

Furthermore, this software also helps housekeeping managers easily delegate tasks to workers, monitor tasks for timely completion.

And also helps avoid duplication of work.

Employees need to be made aware of the guidelines of the World Health Organization and/or Centers for Disease Control.

These guidelines provide information to avoid the spread of infection.

It includes hand washing, surface cleaning, and respiratory hygiene, to ensure employee safety as well as that of guests.

Staff should also have access to, and encourage them to wear personal protective equipment.

As it will assure guests that the hotel and its staff are concern regarding their health and safety.

The hospitality industry has a deal with a number of setbacks and returns stronger. This shall also pass.

But first, they must be well aware of the challenges in the hospitality industry.

Due to this pandemic, the first challenge for the industry is to regain their guest’s trust and confidence.

They must be prepared enough to tackle the financial crisis and manage revenue.

Various measures must be taken to safeguard the health of the staff and guests.

And deliver their guests a new experience.

Please share views in the comment box.

If you want to learn about the functionality of QloApps then you can visit this link: QLO Reservation System – Free Open-Source Hotel Booking & Reservation System

In case of any query, issue or requirement please feel free to raise it on QloApps Forum

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