Does your property have a coronavirus strategy?

The coronavirus, though unprecedented in scale, is not the first global crisis to hit hard the hospitality industry. What should hoteliers do in dire times like the one we are experiencing right now? It is time for “Crisis Management 101.” This approach is similar to how hoteliers should be dealing with any regional or global crisis, whether with Zika, the coronavirus or the hurricane season.

In this environment of coronavirus scare and travel bans, hoteliers should develop and implement a crystal-clear coronavirus strategy:

• Mandate a “single voice policy” for all employees and departments so that the property has a consistent messaging regarding the coronavirus: you do not want your employees telling “different stories” to potential and existing guests.
• Adopt a “No Penalty” cancelation policy, for both transient and group business: 

Transients and SMERFs: Hoteliers should adopt a “No Penalty” cancelation policy. Period! Advance bookings, non-refundable rates, etc. - these are force majeure circumstances!

Corporate groups: Unlike citywide conventions and exhibitions, corporate meetings pose very little risk for communal spread of the coronavirus. The risk for catching the virus at a corporate meeting is actually lower than catching the flu. Yet, if a meeting planner decides to cancel a meeting, hoteliers should adopt a “No Penalty” cancelation policy. No questions asked! Full refund of prepaid and deposited accommodations, function rooms, catering and AV equipment. 

The coronavirus crisis will be over sooner or later and hoteliers would once again start chasing these exact corporate and leisure transients, SMERF organizers, tour operators, meeting planners and corporate groups. Guess whether you would be able to bring back a transient contract or a corporate group to your property if you have been greedy and refused to return a deposit or refund a prepayment citing a clause in the contract? 

We should learn from and never repeat the fiasco in Berlin after the cancelation of ITB! Some hoteliers in Berlin refused to treat the ITB cancelation as a force majeure event and refused refund prepaid accommodations and non-refundable reservations and deposits.

• Provide honest and up-to-date information regarding the situation in the hotel location/destination. Example “We do not have any cases of the virus in our city”
• Announce the fact that you do not have guests from countries severely affected by the coronavirus and countries with an existing travel ban (Ex. China, South Korea, Italy, etc)
• Clearly announce - on the hotel website, social media, via a decal at the front desk, etc. - what is your property’s coronavirus prevention program: We clean, spray, disinfect daily, we wear gloves and masks, we provide antibacterial hand soups, HEPA air purifiers, we have increased the time housekeepers spend on cleaning rooms, etc.
• Do not discount! Discounting does not help hoteliers defeat the negative impact of the coronavirus scare! Discounting smells of desperation and does not generate extra demand. Instead, re-learn how to sell on value and not on rate alone and come up with creative and enticing promotions focused on your drive-in and short-haul feeder markets.
• Develop a robust Feeder Market Channel Strategy vs the usual market segmentation channel strategy. Focus on your short-haul feeder-markets and especially on your drive-in feeder markets. Why? People will continue to travel, especially on short-haul and shorter stay trips. 
• Short-haul feeder markets can save the day! Analyze carefully all short-haul feeder markets and identify the ones that matter. Are there weekend specials, family, museum, special occasion packages, “Gas Refund” promotions on the website, F&B packages, etc. targeting the drive-in feeder markets? Launch SEM, GDN, GHA, CRM marketing campaigns, multi-channel campaigns, etc., geo-targeting the important to the property drive-in markets.
• Long-haul feeder markets: Don’t abandon these markets - there will be long-term negative impact if you do so. Analyze if there are any long-haul feeder markets that are not affected by travel bans, flight cancelations, etc. and are still salvageable. Are there promotions in the respective languages for the next travel season and any website messaging that need to be developed for these markets? Work with your overseas partners and launch a few digital marketing campaigns, geo-targeting these few long-haul feeder markets that can still generate business. 
• And finally, don’t panic and pause or decrease disproportionately marketing spend, but re-direct ad dollars toward the shirt-haul and drive-in feeder markets. 
• Etc.