COVID-19’s effects on the hospitality industry have been wide-spread, shutting down properties and reducing travel and leisure across the world.
Lodging businesses who have seen impacts of the pandemic hitting their bottom line should strive to emerge stronger and better prepared after COVID-19. As travel came to almost a complete pause, many hotels and resorts were forced to suspend operations. Now is the time to revisit the approach for a changing business landscape as the industry moves towards recovery.
The following are strategies for revenue management and financial recovery that will be important for lodging businesses to consider.
- Launch a campaign to rebook canceled reservations: One way to potentially generate new reservations is to launch an email campaign to those travelers who had to cancel reservations during the height of the pandemic. This is business that was previously already won so offers a pool of travelers that have, at a minimum, familiarity with the brand and potentially, loyalty to the brand. Also, travel forecasts predict that demand from local feeder markets should rebound before other travel markets, so a focus on promoting in drivable-distance markets during the rise in demand could prove fruitful.
- Don’t underestimate the importance of Business Intelligence, Data and Trends: Different markets will recover at different paces. Knowledge of regional travel restrictions, governmental guidelines and COVID-19 response rates is imperative to understanding consumer behavior post-crisis. Historical benchmarking data and trends will be obsolete in the near future and won’t be a useful resource on which to rely. It is increasingly important to consider business intelligence tools, such as Power BI to provide business analytics to utilize moving forward. The uncertainty of COVID-19 has led to discussions of the virus being seasonal. If that is the case, any new insight on profitability, booking and cancellation patterns and business opportunities will help in the decision-making process in the event of a future pandemic.
As stories of heroism from medical personnel, first responders, volunteers and other essential workers emerge, several lodging businesses emerge as centers of relief and are offering special or discounted rates to those serving communities during the crisis. The industry continues to adapt to challenges, and it is hopeful for recovery sooner rather than later. In the meantime, the importance of thinking ahead, strategizing for recovery and capitalizing on demand and revenue opportunities as they arise will help lodging businesses adjust to the “New Normal”.
Republished with permission from Resort Trades, copyright June 2020.
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