This week, co-hosts of the No Vacancy News, Glenn Haussman and Anthony Melchiorri, invited Chinmai Sharma from RateGain and Ron Jimenez from SHR Global to discuss the COVID-19 crisis in the US and what recovery looks like. It was a lively discussion, filled with optimism for the future. Here are our three takeaways from the session, along with some additional notes.
While everyone agrees that recovery will be slow, no one doubts that hospitality will come back stronger than ever.
- Corporate travel will come back first, as companies will be lauded for bringing back meetings and events to help the industry recover
- Geographically, Asia will lead the recovery. In the U.S., coastal cities will rebound faster thanks to international travelers
- Occupancy will come first, followed by ADR and RevPAR
There will likely be changes to the in-room experience following the crisis. Hotels will work extra-hard to make guests feel safe. These will become the norm:
- Amenities such as Purell and hand sanitizers in rooms (and by elevators and throughout hotels)
- Discounts for no housekeeping, ensuring no human interaction – saves cost and feels safe for guests
- Personalization based on guest preferences
- Auditing channels and updating descriptions to reflect safety and cleanliness
Finally, hotels need to be actively working today to prepare for the rebound. They should look at their best segments and determine the best channels to bring in these guests. Hotels with large, clean databases will be in the best position to take advantage of the market.
- Expect shorter lead times
- Keep in touch with the local authority to understand which markets are recovering
- Build guard rails to protect the price
We thank Glenn for his podcast (one of our personal favorites!), and we remain dedicated to sharing strategies and tips like these on how to combat coronavirus related business challenges.