Due to a soaring economy and cheaper travel costs, the hotel industry was growing rapidly before the pandemic. Before the pandemic hit, the hotel industry had been growing for ten consecutive years.
However, with the coronavirus spreading and the economy collapsed, hotels have suffered greatly. With the economic future of hotels still uncertain, here are some tips on saving your hotel business during COVID-19.
Mitigating the Spread of Coronavirus
After the pandemic hit, the hotel industry collapsed. Current tourists had to leave; future tourists were barred from visiting. Furthermore, an enclosed area full of large numbers of strangers provides ample opportunity for the virus to spread, making hotels very dangerous.
Initially, after the virus hit, many hotels offered themselves up to become isolation centers for sick patients. This helped keep the businesses afloat during the pandemic and employees on the payroll. However, this is not a sustainable long-term strategy, and not all hotels can do this.
Therefore, as the economy and tourism reopen, hotels need to take adequate measures to stop the coronavirus spread as guests return. Here are the policies that need to be implemented:
- Regular Temperature Monitoring of Guests and Employees
- Mandatory Mask-Wearing In Indoor Spaced
- Proper social distancing measures. In New York, hotel capacity is 25%.
Cut Down on Costs
While your hotel business might be up and running, it will be at a limited capacity. Therefore, you can be sure to expect the next several months to a year to be relatively slow.
Hoteliers should have an effective contingency plan to deal with this crisis. The first step is to secure cash flow, namely with effective pricing strategies and cost control. There are several ways to do this, such as:
- Closing unused areas of your hotel for the time being.
- Investing in energy efficiency to cut down on costs.
- Make prices more attractive and relax cancellation policies.
- Reduce employee salaries and hours. However, if you do this, make sure you’re also reducing your own wages and re-assure employees that this only a temporary measure.
- Seek help through government assistance and private loans.
Re-evaluate Your Business
However, reduced business can also present opportunities. Firstly, you can do a thorough review of what works in your hotel business and what needs improvement. Compare it to other companies and see where your hotel business has come in comparison to other hotels. Furthermore, invest in training your employees and forming plans for your business’ long-term success.
When the coronavirus finally subsides, guests and tourists will come back, and business will return to normal. However, your business must be in the best shape possible when that happens.
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