A Post-Crisis Top-3 Revenue Management Action Plan
— 14 experts shared their view
The global hospitality industry has been through every perceivable calamity over the past decades: earthquakes, tsunamis, tornados, major floods, terrorist attracts like 9/11, SARS, global recessions, epidemics and pandemics like SARS, MERSA, ZIKA, swine flu and now COVID-19.
After each crisis the industry came roaring back and I believe it will recover very quickly after the current COVID-19 crisis and prosper like never before.
Naturally, each region and destination has had and will have its own decline and rebound curves as far as hotel occupancy, ADRs and RevPARs are concerned. Recovery post COVID-19 will also be unique to each region, destination and property and will greatly depend on a) the underlying economic conditions in each region and destination, b) the preparedness of each property for the post-crisis period, and c) the lingering impact of short term tactics employed in each market during the crisis.
This down time of low hotel occupancies or property closures is the perfect time for POST-CRISIS planning, revenue optimization action plan development, product and marketing campaign ideations.
The question to the Revenue Management community is, which specific action-items SHOULD be included in a hotelier's Post-Crisis Top Three Revenue Management Action Plan? In addition, please suggest one creative, OUTSIDE-THE BOX idea... something we may not have seen yet in revenue management. Just an idea... big or small.
Task Force Director of Sales & Marketing and Revenue Management Consultant
While none of us have any idea when the virus outbreak will be contained and when currently closed hotels will be allowed to open again, we can and should get ready for the day which will eventually come. At the same time, we can't plan too early without proper data and information.
- Action A: Resist the temptation to hand over your inventory, promotions and rate strategy to the OTAs. In past downturns, the industry has used the distribution power of the OTAs to capture as much business as possible as quickly as possible. The current situation could provide the chance for a reset of that dependency. Make sure that ownership has approved that strategy, is willing to wait for a longer return. Watch the behavior of competitors to not get left behind.
- Action B: Forget your knowledge of booking pace, seasonality of your market in the short-term. Historic trends no longer apply. Discuss with RMS providers on how they are going to change the algorithms driving their systems.
- Action C: Focus on local/ drive markets while consumer confidence builds over time. Expect that group business and corporate travel will take longer to recover. Maximize your CRM. Ensure that your Sales & Marketing teams shine - while recovery will take a while, IBT, Wholesale Sales can drive revenue that is fenced to a certain degree