The hotel industry like many others is facing unprecedented times at the moment. with many hotels around the world recording zero occupancies as a result of the COVID-19 pandemic,
Occupancy Percentage has always been a good performance indicator for the hotel industry. So, when these percentages start plummeting to zero globally, the magnitude of the problems facing the industry becomes glaring before our very eyes.
For now, most hotels are empty except for those operating as quarantine centres and the few with long-staying guests. The situation could never be any worse for an industry that promised so much just a few weeks back and the situation will take a couple of months at least before any form of normalcy can ever return. At least 12 months if we go by what the scientist requires to get an approved vaccine.
That been said, global economies cannot afford to be on lock-down for that long and sooner rather than later, countries will gradually ease on their lock-downs and we shall start experiencing more economic activities springing up here and there across the continents. With this, we expect to see increase in travel demand. With the travel industry rebound we should expect fresh breathe of life for the hospitality industry.
If and when these lockdowns are relaxed, the hotel industry like many others in the service sector; restaurants, spas, catering and nightclubs will have to contend with the veracities of the global recession, while also faced with the realities of the new normal. This means, that as people start adopting new ways to live with the virus, the hospitality industry must find ways to do business with the people and the virus pending when a vaccine is found and administered globally.
The new normal will pose serious challenges and will bring great uncertainties to hotel owners, operators, managers, employees and travellers altogether. To survive, drastic measures will have to be taken by proactive hotel managers. For many, revenue maximization will not be in the equation, rather cost-cutting measures will probably be their only available option.
This is indeed is a wake-up call for many hoteliers as they must change their modus operandi if they must survive the competition after the lockdown. This may sound easy, but change will call for lots of strategic thinking, strategic planning and strategic implementation.
As we begin to flatten the curve, and proactively planning for a rebound of the travel sector, demand can help your hotel make up for lost revenue. Travel demand will steadily increase, and your hotel must be ready to take full advantage. The question thus; is Your Hotel Ready for the New travel Demand?