The spread of Coronavirus (COVID-19) has caused concern and panic throughout the country. In an industry that is reliant on travelers, the reduced travel demand inevitably caused a financial dent in the industry.
Michael Bellisario, a senior hotel research analyst said in a recent news release, “Hotel stocks fell off a cliff at the end of the month due to mounting COVID-19 concerns domestically, and the broader stock market correction has disproportionately impacted travel-related stocks. Increased cancellations and stricter corporate travel policies will impact near-term profitability for both hotel owners and hotel brands.”
Hotels need to have a crisis management plan in preparation for situations such as these. Going through some sort of crisis is inevitable, and when it strikes most can’t afford to lose the entirety of their bookings. Here are some practices that will help negate guest anxiety and bridge continual revenue to your property.
Be prepared
Most people don’t want to assume the worst is about to happen, but if you don’t have a crisis management plan in place, then you’re already behind. A crisis management plan provides an overlying plan for any potential crisis, from human-made issues to natural disasters. Ultimately, hoteliers need processes and procedures of an emergency response plan to enable them to hit the ground running. If you’re coordinating the entirety of your response efforts during the crisis, things will get messy.
Document a prevention plan that protects employees and guests. Once your hotel has decided on prevention measures, train your employees to ensure everyone is unified on the standard procedures. This should include interactions the staff has outside of the building should the topic arise.
Reassure guests
Now that you have your plan in place and have notified your staff, it’s time to reassure the outside world. While the hotel itself can’t stop something like COVID-19 from spreading, you may consider waiving cancellation fees and offering alternative bookings. Everyone should be notified on your website, email and social media platforms; if this isn’t enough, provide an FAQ on your website.
If the issue has subsided and you know that your hotel is safe to book, don’t leave it up to the guest’s imagination. Release a statement that clarifies any uncertainty. While this issue isn’t permanent, you want to persuade guests to come back. Depending on the crisis, it’s likely that the guests are rescheduling and not canceling.
Plan for the future
Begin assessing the current impact the crisis has made. Look at your hotel metrics like ADR, RevPAR, Occupancy, etc. Analyze market trends such as tourism to your destination. If similar events have occurred, look at those trends and check out the period of recovery. If you’re noticing increased bookings from the local market after periods of crisis, find ways to market your hotel towards locals. If your hotel has a decrease in fly-in guests, you’ll need to adjust your digital marketing strategy to account for decreased air travel. Be creative in the ways you combat occupancy issues. Even if you begin promoting a staycation at your hotel, you shouldn’t concern yourself with a permanent rebranding effort. Noting a previous crisis can help you establish a timeline for a digital marketing strategy.
If you’re in the midst of a crisis and struggling to find talent, contact JDI. Joseph David International is regularly ranked among the top hotel recruiters because we work hard to find the ideal fit for your operation as well as the needs and wants of the candidate. For more information about our hospitality recruiting services, please click here.