Most hotel sector operates with very small margins, and since it’s a very strong cash market, several hotels or restaurants are going to see desperate times ahead. With this Covid-19 virus, we have been in uncharted seas, and given what others might claim, we don’t have a way to properly fix it now. Short-term demand is near to zero and perhaps because of largely due to the current uncertainty the long-term production has not been impacted.
Many of the significant sports events like the Olympic games, International tours and imperative business trips have all been stopped.
Even after those toughest situations of the past, hotels or restaurants have not been pressured to shutter. It is very much clear that this beautiful industry is having the toughest of times. However, here are some key points from the AP LBC hotel experts for independent hotels to bear in mind during this Covid-19 crisis.[/vc_column_text][vc_column_text]
Giving discount and slicing the prices is not the smart way[/vc_column_text][vc_row_inner el_class=”bd-row-img-left”][vc_column_inner width=”1/2″][vc_single_image image=”318″ img_size=”full”][/vc_column_inner][vc_column_inner width=”1/2″][vc_column_text]Since the 2008 financial crash, hotels made drastic price declines. As a result, all hotels were lost and it took a long time to rebound from the pre-crisis ADR. Independent hotels need to hold together now, so it’s crucial not to start a competition to the bottom by getting nervous and dropping the rates relatively low to lure travellers.
With a keen watchful eye on the business market around you and maintaining your range around it, you are doing your best to hold prices in the field. If required, you will allow discounts for arrivals in the next few days, but be careful to hold long-term rates stable.
Putting a revenue management process in place would allow you to focus your decision on analytics rather than a feeling a sense of fear, and you can, therefore, continue increasing the rates slowly as the demand increases.[/vc_column_text][/vc_column_inner][/vc_row_inner][vc_column_text]
Showing empathy with the customers is going to be important[/vc_column_text][vc_row_inner el_class=”bd-row-img-right”][vc_column_inner width=”1/2″][vc_column_text]It’s not the notion that you can reimburse back all the money your customers have paid to you, but you can demonstrate some flexibility and providing postponement options, even at historically non-flexible levels (like the current crisis) definitely.
Your customers are probably as troubled as you are and most of them would love having you in contact. Packaging offers, first-visit upgrades or value-added plans can go a long way towards making your customers feel happier while enabling you not to slash your potential earnings too deeply.[/vc_column_text][/vc_column_inner][vc_column_inner width=”1/2″][vc_single_image image=”319″ img_size=”full”][/vc_column_inner][/vc_row_inner][vc_column_text]
You can turn your prospect on giving hidden discounts[/vc_column_text][vc_row_inner el_class=”bd-row-img-left”][vc_column_inner width=”1/2″][vc_single_image image=”320″ img_size=”full”][/vc_column_inner][vc_column_inner width=”1/2″][vc_column_text]While you don’t want to publicly post the lower prices, you can also function to give potential customers a great deal in many ways
- Genius deals on booking.com or members-only deal on Expedia, are suggestions of how to non-publicly deliver cheaper rates.
- You may give certain discounts behind a login or with a promo code (for instance, on your website).
- Offering more value than a lesser price. There can be optional updates, free food, pick-up from the airport, etc.
- You should try marketing by email to your current mailing list and offer it interest in a way that makes them feel different. This way you can draw new customers to the market. You have to be very creative in this scale.
Manage the rate plans and cancellations very wisely[/vc_column_text][vc_row_inner el_class=”bd-row-img-right”][vc_column_inner width=”1/2″][vc_column_text]Hotels are also in dire straits, so you must educate customers that all of this is a really complicated circumstance. Although booking.com is increasing pressure on hotels to accept non-cancellable prices, we also believe it would place you in a better spot to get customers to book on non-refundable terms, with pre-payment at the time of booking.
Compared to free-cancellation, you can place the non-refundable offer at a better than usual discount, and you can even expand it farther into the future should you wish to. Even if they want to cancel, try postponing guest bookings rather than cancelling.
If guests make a cancellation request, clarify the complexity of the scenario and attempt to convince them to move to another date at no additional expense. That way, you’ll retain the booking, while at the same time, you’ll demonstrate the visitors you care for.
Effective communication with the customers can help a great deal in these days. Believe it or not, periods such as these will also have a positive effect. People come together in tough times and now is the time to bring the unique touch into play.[/vc_column_text][/vc_column_inner][vc_column_inner width=”1/2″][vc_single_image image=”321″ img_size=”full”][/vc_column_inner][/vc_row_inner][vc_column_text]
Ensure that your hotel is the best to book[/vc_column_text][vc_row_inner el_class=”bd-row-img-left”][vc_column_inner width=”1/2″][vc_single_image image=”322″ img_size=”full”][/vc_column_inner][vc_column_inner width=”1/2″][vc_column_text]
Where would the guests prefer to go if a need arises for travel? Will he or she prefer a hotel that claims all its public surfaces are sanitised five times a day, or to the hotel that doesn’t specify it? It is recognized that any hotel will put on utmost efforts to keep its guests secure, but if it’s not well conveyed, how can the guests learn and feel reassured?
It is the right time now to bring in effect a personal touch in your interaction with the customers by encouraging them and having them realize that you are in charge and the exact steps that you have placed in motion. You can do so through your website, social media, and e-mail newsletter.[/vc_column_text][/vc_column_inner][/vc_row_inner][vc_column_text]Importantly, the hotel staff must be vigilant and realize that their wellbeing and welfare is at the same degree as the clients. Hold a simple strategy in mind when communicating with the team about examples – let them share their doubts and concerns. Be sure that they are informed of the measures being implemented so that they can inform the customers and ensure that the approach is regularly shared.
Our name “About Partners – Luxury Brands Collection truly reflects our community of independent hotel with whom we work closely as a trusted partners to support their global sales and brand positioning. For us, it is about the power of the collective, working within the APLBC community guarantees unrivalled service quality and a team committed to your success.[/vc_column_text][/vc_column][/vc_row]