Navigating Coronavirus (COVID-19) for Hotels
As the Coronavirus (COVID-19) outbreak continues to evolve, we want to share with you some tips and recommendations to keep your business healthy. We recommend periodic business health checks which are an easy and effective way to assist in regaining control and put in place strategies for long term success.
Here are some tips you may like to consider:
1. Staffing considerations
Foremost is the safety of your staff. Ensure they are across the hygiene guidelines and what to do if you have a COVID-19 positive guest.
What adjustments to your business can you make to accommodate the current cashflow?
Talk with staff to see if they can reduce their hours, take leave or an unpaid gap year/sabbatical, extended leave guaranteeing return to work?
Defer recruitment plan to a later date.
2. International marketing
Due to the current restrictions placed on international travel, Tourism Victoria and Tourism Australia have paused their international marketing for the time being. Therefore we suggest you too suspend marketing overseas until flight schedules resume back and international borders re-open. Shift your focus to the domestic market. Once international markets start to recover re-engage back your marketing and sales efforts.
3. Domestic market focus
With stage four travel restrictions in place with no overseas travel at this time and for Australian’s to return home as soon as possible, this is forcing travellers to reconsider their travel plans and holiday locally. Concentrate on intrastate and interstate marketing with more budget and targeting on local advertising. Capture those that were planning overseas travel and convert them to your destination.
4. Data is king
Research your data to define who is your target audience. This will give you key insights on how to market to niche audiences in geographic locations. Consider length of stay add-ons such as food and beverage, spa packages that will attract bookers.
5. Review your online presence
Working 24/7 for you is your online presence. It’s your best marketing tool so ensure your hotel is well represented as best as you can on your property site, across OTA and tourism websites. Check that photos are of high quality and content is accurate and entices the travellers to book.
6. Communication
Use Social Media to communicate important messages to your followers and advise them you are open, following state health regulatory measures to ensure guest safety and have a flexible cancellation policy for peace of mind.
7. Invest in online advertising
Implement online Metasearch e.g. Google, Trivago, Kayak etc, and/or Pay Per Click (PPC) campaigns to where your market is. Also invest in remarketing advertising campaigns to target those customers that have already shown an interested by clicking on your PPC campaign.
8. Make it easy to book
Don’t deter your clients when they finally arrive on your website to book. We encourage you to offer fully flexible rates were possible and ensure that non-refundable rates are minimised or at least can be moved to another date without penalty. Reiterating that reservations can be changed without penalty will give confidence to travellers to book.
9. Try to maintain your position
It’s challenging during periods when cancellations are on the increase. While occupancy and perhaps rate will suffer over this period, it be will for your competitors too. What is truly important is the hotel’s RGI (revenue generation index) and ensuring the hotel is performing well and in the top three in your competitive set.
Try to maintain your market share where possible, it will only make recovering from the lower rates and occupancy harder when demand returns. Look to incentivise the booker with bonus loyalty rewards or value adds instead of heavy price reductions.
10. Reassure the health, safety and wellbeing of guests
Keep guests informed on how you are keeping them safe; increased cleaning of public areas, hand sanitisers, deep cleaning etc. Re-enforce that you are following state, federal health guidelines and best practices to minimise risk.
11. Performance / health review
Now is a good time to review all aspects of the business and look to where you can smartly save, market to new and local markets and best utilise space that may generate revenue. Review any unnecessary costs to the business and consider delaying any new equipment purchase unless you can have a tax and/or saving benefit.
12. Re-negotiate payment terms
Contact your suppliers to arrange new payment terms to assist with managing cashflow. Can you arrange to obtain payments earlier? Talk with your bank to see if you can delay payments, waive fees and or restructure loans.
13. State Government Stimulus Packages
The government is offering stimulus packages and grants to support business during this crisis. Ensure you are across these new packages that can be viewed on the state government websites. Visit www.business.gov.au for further details.
14. Prepare for the rebuild
The market will recover over time, so be prepared with a staged approach to your staffing, marketing and sales efforts for when things start to ramp up.
15. Stay informed
If you’re not already a member, we suggest you align with a Hotel/Accommodation Association to keep abreast of the latest COVID-19 advice for hotels, not to mention the many benefits and savings that come with membership.
Resources on COVID-19 management
The Australian Government Website www.health.gov.au has an information factsheets on COVID-19 for employers.
Coronavirus (COVID-19) information for hotels and hotel staff
The World Health Organisation has a factsheet for getting your workplace ready for COVID-19
We wish you all the best. Stay safe, look after one another and reach out if you need assistance, during this crisis.