World Panel
Viewpoint13 April 2020

Strategy needs to be ON even when the world is OFF

Hotel Ownership, Development and Management

— 5 experts shared their view

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Strategy needs to be ON even when the world is OFF
This viewpoint was created by
Demian Hodari, Associate Professor of Strategic Management at the Ecole Hôtelière Lausanne (EHL)
Dominic Seyrling
Director – Investments at Archer Hotel Capital

A lot of different angles could be reviewed with respect to the BC/AC comparison. From an owner's perspective, the current crisis will hopefully benefit us in the long term as we are currently busy 'unfixing' some of the fixed costs of our industry. The most significant factor clearly is payroll. As Europe and the US do not seem to be as successful as some Asian countries in containing the virus we may soon find ourselves in a prolonged period of subdued hotel demand which will put increased pressure on cost containment. Hence, simplistic operating models, select, yet experience-orientated service and technical advancements (having shied away from the hotel sector so long) such as automatic check-in will hopefully become the norm more quickly than would have otherwise been the case. 

Setting one's strategy in that direction could reap long-term benefits for all.  

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