The hospitality sector will surely have been one of the first sectors to bear the brunt of the economic onslaught caused by the coronavirus. The end of the pandemic is nowhere in clear sight; it is, however, fair to assume that once the coronavirus crisis passes its peak and travel restrictions begin to ease, travel should again take off.
We frequently speak of the resilience of the hospitality industry and while it has always made a comeback, the sensitivity of this sector to crisis situations is higher than most. There is possibly no one sector where the negative effects of this pandemic are as pronounced as in the hospitality sector. Now, however, is arguably the time to engage more actively with clients and partners who may be feeling frustrated, even afraid of what the future holds. Hotels should also be busy preparing a strategy that can be activated at the first signs of normality. In the absence of a well thought-out strategy, the eventual recovery will see you scrambling to try to win some of the business and the only plan that you will have in hand is your room rate.
Do not believe that when a recovery occurs that a cheaper rate alone will attract any significant level of incremental business. We need to understand that while cheap rates may have won business in the past, what we will face now is not simply a rerun of the past but a different reality.
The loss of pricing power brought about by cheap rates will contribute to a slower recovery in revenue in the medium term. If your circumstances permit, it would be better to offer flexible booking policies and enhanced value to your guests.
While trying to win back your foreign clientele, do not forget the local market
The industry is expected to see an initial concentrated release in demand after this pandemic. It is therefore up to us to take advantage of this with the right message at the right time. Hotels would need to be alert and smart to turn a crisis into an opportunity.
The first travel segment that will recover will most likely be the business traveller market as several business trips would have been postponed. Within the leisure market, the recovery will most likely start with the individual traveller. There is no rule, however, that says that previous channels of distribution will retain the same popularity, or that the same geographic or thematic segments will show the same levels of demand.
Group business will, as always, likely take longer to recover even because the planning period is normally longer, but this time the delay will likely be even more pronounced due to behavioural changes brought about by social distancing.
As one tries to win back business, the first channel that can be activated is one’s own website. It is imperative that you take a good look at your website and at your other mediums of communication to ensure that they are fit for the upcoming recovery. You will also need to take a fresh look at the way you address visitors on your website. The aim is to transform website visits into guests.
The website or social media platforms are channels you can directly control, and personalisation in communication is the key. Hotels and other suppliers that run loyalty programmes should be ready with their perks for their loyal clients. Loyalty is based on trust, and as we come out of the crisis, this trust needs to be reflected in all your marketing communications.
And while you are trying to win back your foreign clientele, do not forget the local market. Foreign visitors will only be able to travel once border restrictions are lifted and, until that happens, do not underestimate the ability of the local market to your hotel.
There may never be a better time to attract local guests who, like their foreign counterparts, may still be unable to travel abroad due to restrictions.
Joseph Galea is founder of JG Tourism Solutions, former acting Air Malta CEO