This document provides an industry update and short-term and long-term strategies for hotels and properties to consider during the COVID-19 pandemic. In the short-term, it recommends applying for Paycheck Protection Program loans, adjusting cancellation policies, ensuring policies are updated, offering contactless check-in/out, and focusing marketing on future stays. Long-term strategies include focusing on drive-in markets first, increasing digital marketing budgets, continuing direct booking promotions and acquiring new guests with discounts. The overall goal is providing reassurance to potential guests while planning future business.
6. “… when we look to
SARS
we can see that even
after a severe decline,
hotels recovered
occupancy rapidly -
within 3 months of
eased
travel restrictions.”
Robin Rossman,
Managing Director, STR
10. PaycheckProtectionProgram
• There is no cost to apply
• The funding is meant to help retain workers, maintain payroll, and cover
rent/mortgage/utility expenses
• The loan covers expenses dating back to February 15, to June 30, 2020
• The loan can be forgiven and essentially turn into a non-taxable grant
11. Short-termstrategies
• Adjust cancellation policy to
encourage stay date adjustments for
up to a year or simply provide gift
certificates in exchange
• Block out availability if property has
had to close temporarily, i.e. booking
engine and third-party sites
• Ensure your booking engine policies
match your new policies you posted
• Ensure the policies on your email
confirmations match your new
policies
12. Short-termstrategies
• Offer low contact check-in and
check-out options for guests
• Update room or unit
descriptions to speak to cleaning
procedures within the first few
sentences to reassure potential
guests
15. Short-termstrategies
• Focus on bottom of the funnel
marketing activities and staying
connected with loyal guests
• Examples of tactics include
search engine optimization,
Meta search, social media and
email marketing
16. Short-termstrategies
• If you’re running pay per click campaigns:
• Monitor return on your investment
• Remove any locations that have travel bans
• Update ad copy to focus on future stays
• Invest in mobile gaming and video as people spending more time online
17. Short-termstrategies
• Re-think current packages being
offered that encourages low
contact, i.e. take-out dining
options
• Promote direct bookings to
ensure your guests receive the
best customer service
20. Long-termstrategies
• Since drive-in markets will likely
re-open before fly-in markets,
focusing on special rates for in-
state residents and weekend
staycation packages can be
among the first wave of pushes
into the market
23. Long-termstrategies
• Continue promoting direct
bookings and free incentives
• Offer loyalty rates to valued
guests
• Offer a new guest discount to
acquire new business
• Partner with local businesses if
it’s win-win
Don’t turn your booking engine, block out availability for the next few months to be safe, but still allows you to capture revenue for June/July/August
Although there are differences, we can learn a great deal from SARS in terms of speed and length of the recovery process.
The coronavirus crisis is unlike anything the travel industry has seen before - but, it is not going to last forever. And when things do start improving, the speed of that recovery could match the speed of the fallout, according to new research from MMGY.
Recovery mindsets to start shifting 45 to 90 days after the peak.
MMGY Global data on the traveler response during Swine Flu, you get a sense for how travelers think about decisions during crisis.
31% canceled outright while the majority modified their travel plans.
The Paycheck Protection Program is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
This is a nearly 350-billion-dollar program intended to provide American small businesses with eight weeks of cash-flow assistance through 100 percent federally guaranteed loans.
You might be wondering, do I qualify? Yes … Small businesses, sole proprietorships, independent contractors, and self-employed individuals can all qualify
Don’t turn your booking engine, block out availability for the next few months to be safe, but still allows you to capture revenue for June/July/August
In the long-term it can have negative impacts on your business.
People often perceive quality based on price. Selling your rooms too cheap will give travelers the wrong impression and harm your brand image.
Maintaining a voice with current and prospective customers is vital. Marketing has never been so valuable.
Research has also shown that properties that continue advertising through recessions garner greater market share when the recession is over.
Leisure travel will pick back up first, followed by corporate travel and then group travel.
We have also been seeing a substantial increase in road trips in the U.S. over the last two years, which will help properties in the early months of a recovery.
You should also realize that travelers will expect something extra as you lure them back, which means special fares, a recognition of their loyalty, interesting amenities or partner offers.
For a local or domestic traveler coming on a weekend getaway who has foregone their exciting overseas trip, try tying some tickets to local attractions into a three-night stay package for example.
If these businesses are closed, consider putting together an itinerary to visit the perfect picnic spot, nature walk, or self-guided tour.