In Step: Owners and Operators moving forward, together (or not)
— 11 experts shared their view
The Current COVID-19 crisis has put incredible strains on hotel owners, operators and managers. Steps to alleviate the current pain points are well noted - fee reductions/deferrals, closing of properties, reduced staffing and services - but these are likely not sustainable over a long period. Still, solutions to the problem created by drastically reduced occupancy and rates are required.
Hence, the question is what do you believe are the most important steps/accommodations (a) owners and (b) operators can/should take to establish an even stronger relationship that will better enable their hotels to (1) recover from the current crisis in a timely manner and (2) better withstand future crises.
CEO - Senior Hotel Asset Manager at Global Asset Solutions
All stakeholders need to review the business model. 1) All invoices and contracts with should be reviewed, renegotiated or cancelled. Since 2008, we accumulated cost, which can be cancelled during this challenging period. 2) In addition, the payroll (largest expense in hotels) needs to be constantly reviewed versus pick-up in room, but also in F&B, and other operating departments. 3) The profitability by outlets should be checked every day. 4) Budget zero should be prepared for 2021. 5) In terms of revenue, the RM will also need to train the team for more upselling/cross-selling to ensure we maximise the opportunities on each guest.