The Corona (COVID-19) virus global pandemic is an unprecedented crisis, and hotels are among the many businesses feeling the effects, as global travel restrictions come into force and entire countries face ‘lockdown’ procedures. This article will offer tips for hotel owners looking for ways to optimize revenue and limit the damage.

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What is the Effect of the Coronavirus Crisis on Hotels?

The Corona (COVID-19) crisis has significantly impacted the hotel industry and hospitality as a whole, with travel restrictions being imposed by governments around the world. Local, national, and even international events have been canceled, with examples including the ITB Berlin Travel Trade Show, UEFA EURO 2020, and the Olympic Games.

As businesses face restrictions and workers are uncertain about travel and job security, many business trips and events have also been canceled. Meanwhile, the financial insecurity caused by the crisis has meant fewer people are booking holidays, even for later in 2020 or 2021.

Hotels worldwide are experiencing declines in occupancy of up to 90 percent and, in some cases, are even being ordered to close. This means substantial revenue loss, despite ongoing costs. As a result, many hotel owners have to contend with cash flow issues and problems they have never experienced before and could not foresee.

11 Tips for Hotels During the Corona (COVID-19) Crisis

For many hotel owners, the current Corona (COVID-19) virus crisis will seem bleak, and knowing what to do can be difficult. However, hotels that are still functioning can take measures to protect guests and hotel staff, and optimize revenue. Below are tips on how to do this and prepare for the future when normality resumes.

Tips to Communicate Hygiene Measures

Hygiene is one of the most important things to focus on during the Corona (COVID-19) crisis, and the following tips can help:

1. Adopt Preventative Measures for Guests and Staff

Perhaps the most important step any hotel can take is to adopt preventative measures to protect guests and staff members. These measures should include developing regular hand-washing routines, practicing appropriate social distancing, and teaching employees to avoid touching their eyes, nose, or mouth.

On top of this, measures can be rolled out across the hotel to keep guests safe. For instance, rooms and public spaces will need to be cleaned regularly using disinfectant products. Any laundry should also be washed using a disinfectant, and you will need to keep accurate records in the event that contact tracing is required.

2. Communicate Your Hotel’s Hygiene Measures to (Potential) Guests

In addition to taking action, it is important to communicate the measures you have taken to guests, or potential guests, to inspire confidence and alleviate any concerns they may have. For instance, explain the measures you have taken to keep people safe on your website homepage and during the booking process.

You can send out a pre-arrival message for any guests on the books who are still planning to stay at your hotel. This message can explain some of the precautionary measures you have taken to minimize risk and provide instructions for the guests to behave responsibly during their stay.

Tips to “Optimize” Your Hotel Revenue

A key part of day-to-day hotel management involves optimizing revenue, and the tips below can help:

3. Online Distribution Channels

Where distribution of hotel rooms is still possible, it is important to capitalize on the full range of online distribution channels. This means, for instance, working with online travel agents, registering with global distribution systems, and optimizing listings on hotel metasearch platforms.

During periods of low demand, it is especially important to try to plug any gaps in your distribution mix and ensure that your hotel is as visible as possible to the customers seeking rooms. Remember not to neglect your own hotel website either, as this is your most valuable distribution channel due to the lack of commission fees associated.

Find more detailed information about distribution management in the article “Tips To Increase Your Hotel Bookings Through OTAs“.

4. Pricing Strategies

During the Corona (COVID-19) pandemic, it may be sensible to adopt some of the pricing strategies you might adopt during other periods of low demand. This might mean charging lower room rates in order to fill rooms that might otherwise be left vacant. However, there is a balancing act here.

If demand is very low and you are dealing with a tiny amount of guests, lowering prices can be detrimental, as you may not attract extra guests and end up receiving less revenue from the guests you have. It is also important that your pricing decisions during the crisis do not have longer-term implications, affecting customers’ perception of your hotel.

Our article, “Pricing Strategies to Increase Your Hotel Revenue”, explains more.

5. Up-Selling and Cross-Selling

Where sales are still possible, it is important to capitalize on the extra revenue gained through up-selling and cross-selling efforts. Examples of up-selling include encouraging guests to book larger rooms or rooms with a better view, which you can sell to them for more than the original price they would pay.

Cross-selling, on the other hand, involves selling additional products or services. In hotel settings, this might mean encouraging guests who have booked a hotel room also to book a spa day or use the hotel restaurant. During the current crisis, these efforts may need to center on long-term bookings or voucher sales.

Find more detailed information about upselling strategies in the article “How Much Revenue Could Your Hotel Make From Upselling?”.

6. Food and Drinks Deliveries

One of the more innovative ways some hotels adapt to the Corona crisis is by joining delivery services like Deliveroo and Uber Eats to bring in revenue from food or drink deliveries. This can help you avoid situations where food supplies are going to waste and can help reduce cash flow issues.

Alternatively, depending on local government advice, some hotels can also create pick-up services, where local people can order online or over the telephone and then collect food or drinks safely. In terms of additional tips, it may be sensible to contact locals and regular guests who may have a desire to support local businesses.

Corona-covid19-hotel industry

7. Sell Gift Vouchers

Some hotels offer gift vouchers, which can be used for rooms, meals in the hotel restaurant, or use of hotel facilities like spas. Offering these vouchers and promoting their availability on social media may be one way to keep revenue from local or regular guests who are willing to support their favorite businesses.

Those customers who purchase a gift voucher can redeem it once the property is open again or when travel restrictions have been lifted. Meanwhile, the advantage for those in the hotel sector is the ability to continue earning money, which can be essential for limiting short-term cash flow problems.

Hotels may organize gift vouchers independently or use gift voucher apps to accomplish this. In the Netherlands, for example, a joint venture of suppliers, including Coca-Cola, Heineken, and Unilever, organized a national platform (https://www.helpdehoreca.nl/) to support the hospitality industry.

Tips to Prepare for Better Times

For some hotels, it may be best to focus on boosting performance once we return to normality, using the following tips:

8. Gain Knowledge and Train Staff

While the situation with the Corona (COVID-19) virus is unfortunate, and hotels must contend with revenue loss, it is important to keep an eye on the future and understand that things will improve. With this in mind, one of the ways you could potentially use time is to ensure your business and its staff are as ready as possible for when things start up again.

This may mean providing training materials for employees. In areas where employees are being asked to self-isolate or adhere to strict social distancing, these materials could be distributed online. Ultimately, developing your team’s knowledge will help you be more competitive when things do eventually return to normal.

9. Focus on Maintenance Efforts

While it may not be an immediate concern during a crisis, with your budget under pressure, the Coronavirus crisis does provide hotels with a unique opportunity to perform maintenance work without disrupting guests due to low occupancy rates or temporary closures. This could include everything from fixing broken equipment to thoroughly cleaning.

Essentially, the time can be used to make sure your hotel is in the best possible condition when it re-opens. One of the best tips is also to use this time to take new photographs and videos of your hotel for promotional purposes. After all, rooms will be empty, everything can be made as clean as possible, and hotel walls can be re-painted.

10. Optimize Marketing and Distribution Strategies

Another key way in which hotels can plan for better days is to use time during the Corona (COVID-19) pandemic to optimize marketing and distribution strategies. This could mean re-thinking the platforms you advertise on and the marketing messages you put out in order to attract guests to your hotel in the future.

Consider your unique selling points and the reasons guests should choose your hotel. You can also use the time to think about distribution, optimize current distribution channels and think about new ones, especially when it comes to working with online travel agents, hotel metasearch engines, and similar online platforms.

Our article, “Essential Hotel Marketing Strategies”, explains more.

11. Automate Processes and Use Software Trials

Software suppliers are also suffering due to the Corona (COVID-19) pandemic, as hotels are cutting budgets. However, the two groups can potentially help one another. Low occupancy or full hotel closure provides you with an opportunity to try out new software and automate processes to save on certain labor costs.

For instance, it may be a useful time to re-think your booking processes, how you calculate room prices, your housekeeping planning, or the effectiveness of your current customer journey. Some of the software that may be useful include property management systems, revenue management systems, and housekeeping software.

In many cases, setting up the software systems and building the necessary knowledge will take time. However, many suppliers will also offer free trial periods on their software during the Corona crisis, allowing you to experiment before you fully commit. Examples of software suppliers who offered their software for free during the Corona crisis are Oaky (Upselling tool for hotels) and HiJiffy (Chatbot for hotels).

Tips for Hotels to Optimize Revenue in Low-Demand Periods

For hotel owners, low season and other periods of low demand represent a major challenge, as fewer rooms being booked means less money coming in, and that can have serious cash flow repercussions. In the article “Tips for Hotels to Optimize Revenue in Low Demand Periods,” you find tips to help you achieve this aim and maintain a healthy financial situation.
Conclusion

Why Hotels Should Emphasize Hygiene in Marketing Content

With the outbreak of COVID-19 fundamentally altering the entire travel landscape, hotels need to adapt. One of the biggest areas of concern for travelers is hygiene, and marketing messages need to be adapted to reflect this shift in priorities if you convince people to stay with you.

Read “Hygiene is the New Marketing Message for Hotels” for a more comprehensive look at the importance of hygiene for guests and the ways hotels can capitalize on this through their marketing messages.

How Hygiene Can Be Aided Through Mobile Check-In

A growing number of hotels understand the benefits of mobile check-in apps, which allow guests to arrive and gain access to their rooms without requiring a key, delivering a much more seamless experience. Of course, aside from the extra efficiency provided, this method can also be promoted to maintain hygiene standards.

Check out “Mobile Check-In App for Hotels: What Are the Benefits?” you will find more information about what mobile check-in apps are, how the technology works, and the numerous ways they can be advantageous.

More Tips to Prepare for Better Times

The coronavirus pandemic (COVID-19) crisis has hit the hospitality and travel industry hard. Due to (partial) lockdowns, travel restrictions, and social distancing, business events and holiday trips are postponed or canceled, resulting in a decline in business.

In the category “Corona,” you find tips that help businesses operating in the hospitality and travel industry recover and prepare for better times.

The current Corona (COVID-19) crisis poses significant challenges for hotels, and there are no easy answers. However, using the tips provided, you may be able to keep staff and guests safe, optimize the revenue you are bringing in during the pandemic, and fully prepare for a return to normality to be as competitive as possible.

More Tips to Grow Your Business

Revfine.com is a knowledge platform for the hospitality & travel industry. Professionals use our insights, strategies and actionable tips to get inspired, optimise revenue, innovate processes and improve customer experience. You can find all hotel & hospitality tips in the categories Revenue Management, Marketing & Distribution, Hotel Operations, Staffing & Career, Technology and Software.

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This article is written by:

Martijn Barten

Hi, I am Martijn Barten, founder of Revfine.com. With 20 years of experience in the hospitality industry, I specialize in optimizing revenue by combining revenue management with marketing strategies. I have successfully developed, implemented, and managed revenue management and marketing strategies for individual properties and multi-property portfolios.