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Regroup To Relaunch in a Post-COVID-19 World

The Hotel Industry Is Not Business as Usual
Brenda Fields
Brenda Fields
HNN columnist
August 17, 2021 | 12:51 P.M.

Who knew that fist bump greetings, breathing fresh air or seeing big smiles would bring such excitement?

After a global lockdown for nearly a year and a half, we have returned to a new world. We have discovered that markets, distribution channels and supplies have dramatically changed. Business, as we knew it, is not going back to the pre-COVID-19 days for many years. Now what?

Start With a Fresh Plan

Dusting off the 2019 business plan and putting it back into action may be the equivalent of competing in the Monaco Grand Prix with a Volkswagen Beetle. Despite its best efforts, it’s just not going to work.

Nothing is the same. Business cycles and markets have been significantly transformed. Daily hotel operations had to change early on to manage the containment of COVID-19 as well as to inspire customer confidence in traveling. Keeping in mind that we are the hospitality industry, hoteliers can figure out ways to provide measures for guests’ safety while at the same time, incorporating that measure of welcome and hospitality for each guest throughout his/her stay. Additional training and staffing adjustments may be key to delivering exceptional guest responsiveness to meet that goal.

The labor force has also been altered. Many top professionals have left the industry. Conversely, many experienced professionals are still available and are willing to offer their talents to a variety of positions.

Smart business planning is based on a deep level of detail. The emerged environment creates the necessity to rethink line items on the annual budget. Take the time to think through the new business playing field. Budget allocations and expense distributions should start at zero-base. Do your research. Evaluate new needs in operations and ensure that precious dollars spent on marketing result in the best return on investment.

Innovate Pricing

Smart pricing is more than a singular revenue-management strategy. Why not consider a different approach to pricing? Was your previous strategy based on discounting to generate demand? Did you automatically offer a discount when “retargeting” a potential customer who left the reservation page on your website? There are lots of opportunities to rethink pricing other than discounting.

Conversely, is it really wise to charge a resort fee of $50 for Wi-Fi and a beach umbrella on a room that costs $1,200 per day? Smart pricing requires an equal combination of business acumen, customer insight and creativity.

Fish Where the Fish Are

Business development is key. Inexperienced marketers may think casting a wide net will result in more business. But the idea of being “all things to all people” is one that will lead to messaging that lacks “oomph” and will lead to misspent time and effort. It’s more cost-effective to “fish where the fish are,” so market and sell to specific segments that provide the greater ROI.

Start with your existing business. Work your database and reach out directly with personalized messages. That has proven to be effective to keep your property top of mind when that person or that account is ready to travel.

Online travel agencies and third-party distribution channels have also experienced dramatic changes to their businesses. Hoteliers can now pick and choose. Take the time to evaluate each distribution channel. Having an in-depth knowledge of each channel will lead to effective decision-making in choosing partners and in getting the best results.

Digital marketing, if strategized and executed well, is probably the most effective in reaching a target market. Understanding and anticipating needs is an important component in crafting messages and content for social media channels, distribution channels, websites and all other marketing communications. Advertising online is complex and ever-evolving, and it can be costly. Create strategies that make an impact. It starts at the top to understand the intricacies of the multi-channel world to ensure consistency in messaging. Technical expertise is easily cultivated, but a top-level overview oversight comes from expertise based on experience.

Perfect the Basics

There are many challenging components over which hoteliers have no control, such as changing government regulations, supply shortages and increased prices. Customer service should move up to the top list in terms of priorities, because it will go a long way to inspire customer confidence, generate loyalty and thereby build revenues.

To drill down marketing to the most basic, the easiest and least-expensive tactic is to just respond promptly and genuinely to customers and guests. How many times have you taken the time to rate a product by giving thoughtful feedback? Was that feedback acknowledged, and was it specific to your comments or was it an automatic computer-generated message? If you received customized feedback, you more than likely felt a greater sense of trust and loyalty to that brand. Take the time to customize all communication for greater impact.

Redefine Staffing Needs and Hiring Criteria

Changes resulting from the COVID-19 fallout will more than likely require staffing revisions. It may be more advantageous to close the spa, add additional seating in the bar or hire public relations representation in key locations.

As part of the zero-based budget and planning process, think through staffing needs. With labor costs representing up to 50% of the total operating expense, it's critical to ensure that each position performs at top efficiency. Experience matters, now more than ever. Employers not only have the opportunity but the need to fill positions with qualified and well-trained staff. With such a large pool of available staff that was affected during the pandemic, there is ample opportunity to hire an overqualified person who can train and be a role model for inexperienced staff.

But how many human resources personnel are still using the previous criteria and methods in hiring? The online job application process offers the benefit of prescreening, but what may be overlooked is a potentially stellar applicant whose online application does not hit the right boxes.

Take the time to think through job responsibilities and revise job descriptions incorporating new criteria based on changes created by the pandemic. Those hiring should apply a multidimensional approach to evaluating candidates.

Brenda Fields is the founder of Fields & Company, a boutique hotel consultancy practice.

The opinions expressed in this column do not necessarily reflect the opinions of Hotel News Now or CoStar Group and its affiliated companies. Bloggers published on this site are given the freedom to express views that may be controversial, but our goal is to provoke thought and constructive discussion within our reader community. Please feel free to contact an editor with any questions or concern.