Revenue in a post COVID world- what it’s taught us and how we need to shift our focus

“In the midst of chaos, there is also opportunity.” – Sun Tzu 

The Covid-19 pandemic has had an unprecedented impact on the world and quite specifically the hospitality industry. In the midst of the pandemic, the future became unpredictable and even though the economy and the world have begun to return to normal, the post-COVID reality is still one of relevant uncertainty. The radical adaption and creative solutions that were required to survive this tumultuous period are the very things we need to learn from, the very things that will drive hospitality companies into the future. 

Preparing for the future:

“This year we’ve seen the emergence of the ‘catch-up consumer’ or ‘revenge traveller’ – those making up for holiday experiences they’ve missed out on during Covid-19,” says Euan McNeil, Managing Director, Flight Centre Travel Group South Africa.

With a predicted travel boom looming it is important for the hospitality industry to get its ducks in a row to meet future demands and new trends. Remaining flexible and open to the changes within the industry will allow companies to grow in their resilience and face changes with creativity and enthusiasm.  

How to plan for the future in an uncertain world:

Navigating revenue management in 2023 and beyond is going to be challenging, though it is easy to see things may start to normalise and a lot of hotels may go back to what they were doing pre-pandemic. However, some changes are here to stay, and strategies have definitely shifted but getting back to the long-term vision of your business is going to be key to stability and sustainability.  

According to Alan Campbell, Sales & Marketing Director at ANEW Hotels & Resorts, “Having navigated a period of great uncertainty and insecurity, now is the time to be brave as we shape the future of South African hospitality.” 

 Our favourite creative solutions in bouncing back post-pandemic:  

• Strong revenue management – the importance of strong and dynamic leadership cannot be overlooked. Well-rounded leaders like our very own Jolanda Jordaan are required to take charge of the recovery process. It is vital for revenue managers to move away from the role of managing systems and data to one that looks at the bigger picture of the company and revenue’s role in its entirety. Along with this, they should be given the power and responsibility of making decisions across departments.  
• Shorter lead times & longer lengths of stay – the hospitality sector should be embracing more last-minute bookings but longer stays as the travel landscape has shifted thanks to the pandemic. With trends such as revenge travel and digital nomads, hotels are witnessing a shift in more traditional styles of travel and should be ready to embrace and adapt to this change.  
• Adopt a macro view of hotel demand – it is vital to analyse the macro view of demand highs and lows within South Africa. Hotel booking searches, flight searches and trends in hotel cluster search analytics are significant elements that should be tracked on an ongoing basis in order to grasp an idea of the bigger picture. 
• Greater reliance on and investment in technology – Advancements in hospitality technology in the last year or two assisted greatly in strategy development. Companies should invest in high-quality revenue management systems that will adjust rates and alter demand forecasts based on market behaviours rather than just competitor pricing. Accurate forecasting will ensure pricing is competitive and will assist in decision-making rather than just providing a vague suggestion.  
• Loving local – promoting staycations and maintaining a focus on local travellers. While we may be expecting more international travel, domestic travellers should not be forgotten, as they may serve as a future contingency plan during periods of low demand. With this in mind, companies should continue to engage with the local demographic.  

While we should remain open to change and adapt in ways that ensure our business’s survival, we must now begin to look to the future of South African hospitality and create long-term plans for our businesses. It is always helpful to remember to strike a balance between being prepared and open to change.  

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ANEW Hotels & Resorts received The Inspiration Award at Africa’s Travel Indaba 2022 as the organisation that has for the past two years inspired Africa’s travel Indaba community by the way in which it has challenged the odds to rise up and shine. As hospitality specialist, the group offers a uniquely different approach to the industry, focusing on curating a travel experience like no other!