
Industry Report
Hospitality – Staying ahead through change
The standstill enforced by the Covid-19 pandemic gives hotels the opportunities to move towards changes that will arise when hotels re-open. New learnings must be imbibed and actions purposefully directed.
Change is an incessant constant. The COVID-19 pandemic as an event, together with the response of humankind and the aftermath of the event, is undoubtedly a marker for a major change in many aspects of life, of methods of living and working, and of lifestyles.
The hotel sector to needs to incorporate many changes. In this article, I have made some suggestions for changes that have longer-term implications. The short and medium-term changes are many; some of these have also been briefly stated at the end.
Adopting the Right Attitude
Embrace Change
Voluntary changes yield better results than forced ones. The pandemic is a significant trigger for change, necessitating a positive and proactive attitude to navigate through the challenges.
Confidence and Positivity
Maintaining a positive outlook is crucial. Confidence in the future will lead to better decision-making and the creation of a hospitable environment, even with new norms like wearing face masks.
Service Adaptations
Service with a smile may not be visible behind masks, but the quality of service should still bring a smile to guests’ faces. Creative use of masks can remove monotony and reinforce the hotel’s brand.
Fundamental Cause
Avoiding a Race to the Bottom
The pandemic is not a result of competitive rivalry but a global health crisis. Therefore, the response should not be cut-throat pricing but maintaining reasonable pricing to avoid long-term financial pain.
Platform Consolidation
Local hotel chains should consider consolidating their digital and loyalty platforms to derive cost benefits while retaining individual front-end characteristics and revenue management strategies.
Credit and Cash Management
Credit Worthiness
Thorough credit appraisal of customers and corporates is essential. Incentivize cash or credit card sales with lower rates compared to bill-to-company or travel agent sales.
Debt Service
Restructuring debt obligations through meaningful dialogue with bankers is crucial, as debt service remains a significant challenge during these times.
Operational Efficiency
Cutting Costs
Identifying and removing unnecessary expenses (the “fat”) from the cost structure is essential. This includes optimizing procurement processes, recovering lost key cards, and addressing service lacunae through discounts.
Staff Management
While reducing staffing costs, it is important to balance fixed cost management with maintaining staff motivation. Petitioning for a service charge levy to benefit staff can provide financial relief.
Digital Sales Capability
Reducing Reliance on OTAs
Enhancing digital sales capabilities and reducing dependence on OTAs is critical. Hotels must develop their own digital platforms and offer competitive digital solutions.
Encouraging Digital Check-In
Promote digital check-in and in-room check-out to minimize interaction and waiting times at reception, while ensuring robust digital security and guest identity verification.
Food and Beverage Adjustments
Social Distancing in Restaurants
Gradually reopen restaurants with social distancing norms, reducing table capacities and rethinking buffet services to limit guest interactions and ensure safety.
Redefining Buffets
Streamline buffet offerings, reducing the number of items to focus on quality and taste, and introduce specials for the day instead of extensive daily spreads.
Banqueting and MICE
Social Distancing in Events
Adapt seating arrangements for meetings and social functions to ensure social distancing. Consider alternatives like sanitization tunnels for large events.
Managing Pre-Function Areas
Implement strategies to avoid crowding in pre-function areas, such as staggered service times or in-room service for meals during events.
Short and Medium-Term Changes
Enhanced Cleaning Protocols
Implement rigorous cleaning standards for rooms and public areas, including daily changes of bath linen and face mask disposal policies.
Health and Safety Measures
Conduct periodic medical testing of staff, temperature checks for guests, and replace biometric access controls with alternative methods.
Packed Food and Social Distancing
Offer packed food options for corporate clients and ensure social distancing norms are maintained in public facilities and event spaces.
The hospitality industry must adopt a strategic approach to navigate through the changes brought by the COVID-19 pandemic. By embracing innovation, enhancing digital capabilities, and maintaining a positive attitude, hotels can stay ahead and ensure long-term resilience and success.
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