Beyond COVID-19: How We Can Proactively Push Forward As Hoteliers

As many writers and online experts continue to predict the unpredictable and proclaim the doom that has befallen our industry, smart hoteliers are using this time to roll up their sleeves and innovate real solutions.

It does none of us any good to regurgitate or dwell in how bad things. The pandemic is here; we need to deal with this setback just as we've dealt with previous disasters, calamities, and economic meltdowns in the past. 

I must admit though - this crisis does feel different from anything else we’ve experienced in the past. My intention with this article is to give you as many practical ideas as possible so you can walk away with immediate action steps. Why does this matter to me?

Regardless of how tough things are, I'm convinced that at the end of the day when we come out the other side (and we will), the thing that will make a huge difference and determine whether you end up better or worse than when we got into this is in your control. And it begins with how well you manage your cash flow.

Cash flow is a major determinant of how well you will navigate the current storm. 

??A quick practical tip to help with cashflow:

Run different scenarios of cash flow projections and step up your cost-cutting measures. Categories your costs in three buckets; low, medium and high. Move to act on each category accordingly.

We are managers and leaders; problem-solving is our specialty.

For young hospitality professionals, it's easier to fall into despair and get consumed by all the darkness that surrounds us. But those of us that have been in this industry long enough understand that storms are part of the game.

Our industry is nimble, and it has evolved and grown tremendously over the past decade. Despite all the panic and bad news that’s being propagated across the globe (whether it has merit or not), we must always remember that we are managers and leaders.

I liked seeing this post that a fellow hotelier shared as a reminder to all of us.

It’s a great reminder that we are problem solvers. This might be a bigger problem than what many of us have had to deal with but it is a problem that can be solved nonetheless. Our skills, experience, and the insights that we bring to the organization are the best assets to help our brands get through this tough season.

More importantly, we must never forget that we are still in the business of serving human beings. And when human beings feel threatened and unsafe, they will react, which will, in turn, affect our business. That's common sense. 

So instead of holding the perspective of doom & gloom, perhaps it's wiser to see this as an opportunity for our industry to innovate.

Now is the best time to make every member of your team feel involved. Let them become part of the solution. Ask them for ideas, increase internal communication and make sure you tighten up your expenses. Practical things like:

■ Replacing all contract services.

■ Canceling all chef promotions.

■ Decreasing cost from key suppliers.

■ Freezing all new hires.

■ Reducing travel costs.

■ The rotational closer of outlets and guestroom floors.

These are a handful of practical steps you can take to manage cash flow better. What other immediate action steps can you think of now?

When we can find acceptable ways of maintaining that guest connection to our brand and property, bouncing back after the storm clears becomes inevitable.

Understand that our industry relies on people feeling safe, understood, cared for, and served at the highest levels.

In this period, the issue isn't a question of cutting down rates to attract guests. That can only hurt your business long-term.

It's about exercising creativity and reinforcing the customer relationship and excellent services you are known for.

When we can find acceptable ways of maintaining that guest connection to our brand and property, bouncing back after the storm clears becomes inevitable. For this reason, I am encouraging my peers and fellow hospitality professionals to use this stormy season to their advantage.

It is indeed the right move to start taking measures to limit the damage this virus is creating, and those steps will differ based on your region and particular situation. Hotel Online has also done a decent job sharing some broader ideas that every hotel should be implementing to help things stay afloat during this period. 

I also encourage you to go beyond and allow yourself and your team to innovate because even though it might take a while before you gain back the momentum you had, there is still plenty of opportunities for you to make this year work in your favor.

The central concept behind this thinking can be summed in a simple statement.

Travelers still care about local experiences.

That includes both domestic and international travelers. In Thailand, we know having a local experience has been trending, and I'm very sure the same desire will rise to the top after this pandemic.

Why not seize the opportunity to promote more local experiences and create incentives that enable you to "add more value" to your guests, whether they are domestic or international?

Let's follow that thread of promoting local experiences using my city - Bangkok.

Here are just a few of the local experiences one can enjoy on their next stay:

? A boat trip covering the non-touristic and unseen communities.

? Special Thai cooking class and fresh market visit.

? A half-day boat and walk tour covering the art and craft communities along small canals.

?Alms Giving.

Now it’s your turn...

Are there certain experiences you can repackage or innovate to increase desire? How would you use this to reinforce and even build new customer relations? Here are some more practical action steps you can take.

? Instead of going dark with your social media and email communications, use this time to connect, inspire, and instill the desire back into your audience.

? Increase your brand storytelling with relevant (customer-focused) stories that maintain that emotional connection to your brand. Celebrate past guests, reach out and surprise them with digital gifts, share stories of how your team is working behind the scenes if that's happening.

? Create digital parties if your property and management allow for such a thing. In short, innovate! Just because you're a hotel doesn't limit how well you can communicate and create experiences that keep your audience engaged with your brand.

? Design special packages that add value and enable guests to pre-order or pre-book specific local experiences such as the ones mentioned above.

? If you have a world-renowned trainer or chef at your facility, it would be an excellent time to leverage their skills to engage people on social media with different short classes teaching them "do it from home" secrets.

I could go on and on, but I believe you're getting the gist of this. 

Conclusion:

During these dark times, it's easy to dwell and fall victim to factors beyond our control. Don't become complacent or try to force remedies that worked last time, thinking they will be effective this time. 

New beginnings are upon us. Our business has changed. What used to work a few weeks ago no longer cuts it. Whatever plan you had devised for 2020 has to be recreated from scratch with fresh eyes.

What we need to do is think differently and approach things with a fresh mindset. This is a new world order, and we need new creative approaches.

One thing I’m certain is that our industry knows how to take hits and survive. Given the recent rise in conscious travel and the emergence of "going local," we also know that modern travelers are more committed to travel and experiencing new places more than ever before.

If we can lean into what we know about our guests and focus on reinforcing that relationship directly, we can have confidence that in the end, we will rise again.

There are those that will get lost in this storm, and there are those that will emerge more prominent and better than ever. The choice is always up to you.

Speak again soon,

Franck Droin.