In 2020, the COVID-19 pandemic became unstoppable and reached practically every country in the world. The impact of this scourge affected both humanity and business, affecting millions of people and causing scores of deaths. In 2021, the hospitality industry is rising from the impact of the pandemic and it’s all about survival and recovery.
When the pandemic struck, major players in the hospitality industry were forced to change their operating strategies. Some even shut their doors. The crisis generated a high level of uncertainty that dogged the industry for close to a year. The impact was so huge, with all segments of the industry and its related partners affected.
Fortunately, with the launch of the COVID-19 vaccine by various companies, the hospitality industry is headed for a rebound. But before that, what must the industry do to ensure its survival and recovery post-COVID?
Impact of COVID-19 on the Hospitality Industry
The pandemic posed unprecedented challenges to the hospitality industry. Protocols initiated to curb the spread of the COVID-19 virus such as community lockdowns, social distancing, stay-at-home orders, and travel restrictions, triggered the temporary closure of many hospitality businesses.
Similarly, even a few facilities that were allowed to continue operating experienced a drastic reduction in business. Nearly all restaurants limited their operations to only take-outs. Travel restrictions and stay-at-home orders brought a sharp decline in hotel occupancy and revenue.
However, the reopening process is slowly beginning, as authorities ease restrictions. The travel sector is open and the tourism sector is slowly becoming vibrant. These have given energy to the hotel sector, as travelers seek accommodation, food, and entertainment. Importantly, these events take place amid strict observation of COVID-19 protocols.
Even as the hospitality industry recovers from the impact of the pandemic, the disease has redefined how hospitality businesses operate. With this in mind, hospitality businesses such as hotels should redefine their operations in the COVID-19 business environment.
There is a need to ensure both employees and customers remain safe and healthy. The pandemic equally impacted the research agenda of hospitality marketing and management scholars. Hospitality scholars should shift their focus to coming up with viable solutions for the industry during and post-pandemic.
Survival and Recovery Tips for the Hospitality Industry
Even as the world works hard to contain the COVID-19 virus through vaccines, the hospitality industry must endure the impact of the pandemic and come out on the other side for recovery. While there are no easy solutions, the stakeholders in the industry must come up with decisive action.
The following are six areas that the hotel industry must observe to survive and pull through the crisis:
Guest Relations
Hoteliers must have a selling brand when their sales can’t. It’s time to reach out to their potential customers with empathy and practical tips. For example, hotel departments can offer advice on COVID-related subjects like house cleaning, home sanitizing, yoga stretches for keeping fit in confined places, and even recipes for eating well on less. It’s a moment to serve customers first, and sell later.
Operations
For hotels that are already open or those that are planning to open in phases, the standards must be up. For example, hotels with multiple restaurants can open one first while shutting or reducing the number of outlets that don’t influence operations. Kids’ clubs, the spa and pool can open another day. To augment cash flow and optimize the operating restaurant, a facility may consider offering take-outs and even delivering F&B to the local community.
Communications
It is time to keep the lines of communications open between service providers and their customers. Positive hashtags such as #WeAreAllInThisTogether can help do the trick. It’s time to give customers a new experience while remaining supportive and not exploitative.
Branding
In a time of crisis, the hotel’s story must be relatable. Guests seeking accommodation today want to see an additional effort on housekeeping and hygiene. Reduced number of staff and application of technologies such as AI, IoT, robots, and contactless payments are some of the concepts hotels should implement at this time.
Even as providers expect differing needs of their guests such as business people, families, or couples, they should offer their services wholeheartedly and remain confident in their processes. They should follow up with their guests after they have left, and add value to their lives by sharing fitness, hygiene, or cooking tips.
Finance
At this time of recovery and survival, it’s vital to reduce costs. However, hotels should equally focus on protecting their brand. Improving efficiency, reducing waste to keep F&B costs down, and eliminating investment plans where necessary, are some of the tips to manage finances during this time.
Where it’s possible, hoteliers might also consider negotiating a reduction in rental costs or suspending leases. All the same, providers should be careful while handling room rates because it can cause credibility issues when trying to reinstate normal charges after slashing them.
Human Resource
Even with a limited workforce, hoteliers should set an example here by taking care of their staff. No one is spared from the pandemic. Providers should address their employees’ mental and socio-psychological needs. Importantly, they should help their employees serve their customers from anywhere—virtually, on a property, or in the community.
For staff working from home, providers should ensure they have complete virtual access. This might call for investing in software and training to keep in contact. They should be able to communicate regularly daily. However, all these should happen without compromising on security—whether on property or online.
Final Thoughts on Survival and Recovery
With the pandemic still raging, reduced staff, and lost revenue, the hospitality industry has to redefine its job. There are no perfect answers, and all players in the industry must show endurance and resilience. Ultimately, technology is playing a crucial role in reshaping the hospitality industry during and post-COVID.
Hospitality service providers should consider using big data, artificial intelligence, and IoT to help the industry recover from the COVID-19 impact. In the words of Charles Darwin, “It is not the strongest or the most intelligent who will survive, but those who can best manage change.”
Author Bio:
Alex Mirza, The Founder & CEO of Mogul – Humanizing Travel. Its platform Staymogul.com provides booking, service, and Mogulrecruiter.com provides talent solutions for the hospitality industry.