The hotel should focus on survival in these years of business uncertainty.
According to the reports of the Hindu business line, 25% of hotels have shut down in past years because of a reduction in supply.
The hotel industry had high hopes for a recovery in 2022, but a sudden rise in Omicron cases slow down bookings across hotels.
Hence, curbs the hope of inflows of cash and hotel industry recovery.
However, in the past two years, the industry has learned some valuable lessons, and keeping in mind those lessons they should invest their time and energy in surviving the pandemic.
Why I am focusing on surviving, because, when you manage to survive this tough time, your business will see a new light and ample possibilities.
Revival is out of the box if you cannot survive this difficult time.
In this blog, I have pointed out some of the points you can consider for helping your hotel to survive in these unprecedented times.
Now, let’s have a look at some tips which you can follow to focus on survival in the year 2022:
Seek for Government support
Government supports is crucial for the survival of the hospitality sector.
The government needs hotels businesses to improve national income, economic stability, and the influx of cash.
Seek help from your government by asking them for the support you need for your business.
You can ask them to revise the eligibility ratio or extend the period of the loan, avail funds at low cost, or for tax benefits.
Governments have launched various schemes to support hospitality.
For instance, Extension of a moratorium on forfeiture of business tenancies, tax reliefs, providing financial grants and loans
Display your efforts
This pandemic shifts the behavior of customers and their expectations are not the same.
Hence, you must be adapting, implementing new changes, and customizing your hotel during the pandemic to cater to the needs of your guests.
Hence, show your potential guests what’s new like upgrades in hotel technology, room service options you are providing, and more.
You can make use of your website, or indulge in organic or paid marketing of your business.
Make them aware of the Covid-19 protocols you follow to safeguard their health.
When the potential customers know that you are presenting them with valuable services and prioritizing their health, they will consider your hotel for their next trip.
Moreover, you can engage your social media followers by sharing images and videos of your hotel or making them experience a virtual tour.
Through it, customers will get to see the details of your hotel, and it’s a great way to market your hotel and attract customers’ attention.
Deciding time to re-enter market
If your hotel is in a country where the restrictions on travel and staying in hotels are lifted.
So, your first step should be to understand the market by gathering as much data as possible.
Afterward, get ready with the next steps you want to take.
Take clues from the points below:
- Know whether the local hotels start taking reservations? Have the rates changed? If yes, then what rates market is charging?
- Sevices other hotels are offering?
- Are they open their hotel fully or only a few areas of access are allowed?
- Do they also open their restaurant?
- Do staff enter the room where guests are staying for taking orders, room servicing, or something else?
Hence, after a thorough understanding of the market, re-enter the market.
Follow the phased approach to re-enter the market. Your main focus should be creating positive earnings before interest and tax business.
Only then you can think of surviving this crisis.
Hence, you can call less number of staff back to work from the hotel. To know the requirement of staff perform break-even analysis and use standard occupancy forecasting.
Moreover, for employees where remote services are possible, utilize many remote services. For instance, finance and accounts, sales, reservations.
When occupancy reaches near 60 percent of the occupancy level of pre-pandemic, then you can open more areas.
Following new trends
Covid-19 has changed the focus of the hotel towards technology. Although the technology was always a part of hotels.
But now everything become tech-focused. Hence, to adopt the new normal you must follow the trend and improve operational efficiency.
For instance, using a digital room key or an application in a smartphone allows keyless entry in a room and ordering food from the hotel’s kitchen.
Moreover, introduce automatic opt-out cleaning programs to streamline the daily room cleaning process.
These technologies will give convenience to guests and increase their confidence.
More points to to consider to focus on survival
- You will run out of cash if you utilize all of the funds that you keep for expansion or growth for meeting working capital requirements or contingency expenses.
- So, keep a check on it.
- Ensure the revenue strategies are backed by proper data and always up to date with the market trends.
- Find your niche and stick to it. For instance, activities you conduct, attractive locations, any festival happening in your locality, easy access from the city.
- Find out where hotels bookings are happening (i.e, OTA channels or GDS).
We know in the past 3 years the business of hotel industry is gone through a lot of uncertainty.
And, it becomes difficult to generate revenue or we can say survival has become a tough job.
Hence, I have chalked out a few points where you can divert your attention to sail your business smoothly until the pandemic is managed and comes to end.
THus, if you want to focus on survival of your hotel, ask help from the government, following a phased approach, apply new trends and more.
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