WAKE UP HOTELIERS !

HOTELIERS NEED TO GET OFF THEIR BACKSIDES AND STOP FEELING SAD FOR THEMSELVES AND CREATE NEW REVENUE STREAMS 

The last few weeks have certainly been the toughest ever seen for the tourism and hospitality industry. Thousands of employees are job less, hotels are closed, and strong revenue OTB ( on the books) for 2020 has been wiped out in a matter of weeks.

As the proverb says, “Calm seas never made a good sailor”. This is a time where you will see people and leaders differentiate themselves in how they deal with the crisis.

From a revenue perspective, let’s consider how hoteliers can work creatively to unlock new revenue streams.

Understand What You Can Offer

You should start by reviewing your resources to understand what products or services you’re able to offer.

The good news is that there has never been a better time to move aspects of your business online. Not only is the technology widely available, but you have a huge captive audience who are looking for online services, entertainment and education to keep them occupied.

According to research ,  users in the India are spending more time on social media, doing more online shopping than ever and are streaming more. Now is definitely the time to be more creative with your revenue streams.

7 Ways To Generate Revenue During Lockdown

1. Dark Kitchens & Meal Delivery

While restaurants have been forced to close in many cities, the demand for online food orders has never been higher. This represents two distinct opportunities for hotels.

Firstly, you can turn your restaurant’s kitchen into a ‘Dark Kitchen’, which serves customers exclusively through online or phone orders. Most dark kitchens use third-party services such as Swiggy and Zomato, which combine instant local reach with order fulfilment.

The second option is to reach out to local restaurants who are already established on these platforms. Some will be experiencing a surge in demand and may wish to outsource production to larger kitchens.

With the savings from having no dining room or waitstaff, dark kitchens have significantly lower overheads and higher profitability. An approach you can start at this time of crisis but continue afterwards.

2.  Offer outsourced CSR to Corporates 

You can also sell food from your kitchens to corporates who would like to do their CSR activities by providing food for doctors and essential services .

3. Future Bookings

With the first glimpse of light at the end of the lockdown, many guests may be persuaded to keep their bookings. Some will even be ready to make new reservations. 

Changing your booking terms can help make the most of the prospects. You may offer vouchers which can be redeemed over the next 6-12 months. Alternatively, you can provide flexible date changes and payment options.

For these options, focus on the domestic market and staycations first. National travel restrictions will likely be lifted far sooner than borders being reopened. Even OTAs are helping in selling forward vouchers on their sites.

4. Diversification 

Diversify your segments and channels. Open your hotel to the doctors and key workers who need to stay closer to hospitals and care facilities. You can provide special offers and discounts, generating income and helping to support the community.

You should also focus on corporate and group bookings - particularly for conferences and events. Many will be postponed, offering new business opportunities while competitors are still reacting day by day.

5. Partner with Suppliers To Sell Online

Online shopping has never been more in demand. You may consider working with your trade suppliers to provide their products to your customers on your website.

Products could include cooking ingredients and groceries, room amenities, linen . towels ,  toiletries, or even cleaning products - with sensitivity. These could all be sold online with secure card payments taken through your website.

6. Virtual Health, Beauty & Wellness Packages

It’s easy to overlook the more luxurious aspects of life at the moment. But there is a spike in demand for online fitness, health, beauty and wellness. Have online self help services. For example you can teach someone to do a facial on themselves with step by step instruction for a small fee. 

Yoga teachers, personal trainers, language coaches can all provide online courses or one-on-one coaching. Similarly, your spa staff may be able to provide relaxation techniques and guided meditations as packages.

7. Get Commercially Proactive

The commercially proactive hotels will undoubtedly weather this storm best. By being flexible and creative, you can find new sources of revenue which will support your business not only in the short-term but also for years to come.