Preparing Your Hotel for a Recession and Then Growth
Preparing Your Hotel for a Recession and Then Growth
An unfortunate outcome of the coronavirus crisis is its likely to plunge the world into a recession, this is something all business leaders need to be aware of. Employment is down by 20% as a result of employers (understandably) tightening their belts to survive. This will have a knock-on effect on people everywhere regardless of the industry they work in.
Where a global recession is something we cannot control, what we can control is how we prepare and work through it. This way we limit the effect on us, but this means taking action now. Laying the foundations for success while we have time to do by planting seeds in our customer’s minds through an effective hotel marketing plan and doing so while we have a captive audience.
The good news is growth is inevitable too. As the world returns to normal more people will be making up for lost time and that means being liberal with their wallets, stimulating the industry, the economy, and its recovery.
Not only does a hotel need to factor the inevitable recession into their COVID-19 marketing strategy, but also how they plan on recovering from it. Developing a strategy is the key to getting through this and that means investing in quality marketing now.
Have you investigated and applied for all possible support?
We were shocked to hear that some small companies haven’t investigated or applied for help from the government. Some are unsure how to go about it, while others believe it’s too much hassle. Some companies adapted early and may have remained profitable, or at least have enough put by to support them.
Regardless of your situation you should still find out what you’re entitled to. We don’t know how long this situation will go on for, but what’s for sure is that COVID-19 will be an ever-present threat in some form for at least the next 12 months. If help is on offer, take it.
What about your creditors?
By this we mean your bank or landlord. We know rent is a contentious issue in the hospitality industry right now and every case is different, but if help from a landlord is on offer then it may be worth taking them up on that.
The same can be said from your bank if they offer a payment holiday. Now advice from financial experts says if you can afford to not take a payment holiday then you shouldn’t. But if you feel it would be beneficial then consider it. It may give you some additional income/capital to spend on marketing or other important things to prepare for life after coronavirus.
Are your team being utilised correctly?
Depending on the nature of your business your employees may be working from home, taking the opportunity to train or furloughed. Lots of companies have come up with creative ideas to utilise their staff, from supporting the NHS by cooking meals, creating makeshift hospitals out of hotels or helping care workers. Is there anything you can do to keep them employed and busy?
Prepare for life after the pandemic
Where coronavirus is going to be a threat until a viable vaccine is found, don’t forget to prepare for life without it. That means continuing to engage with customers online, market your services and have a plan in place to hit the ground running when social distancing measures end.
Prepare Your Marketing Plan Now
It’s now the public who are feeling the pinch. The reality of social isolation has started to set in. People are coming to terms with this temporary loss of freedom and are looking forward to the day when they can carry on with their lives. This means going to restaurants, booking city breaks, brunch, rearranging that hen party, a well-deserved and overdue spa break etc.
Plant the seeds for this now. Prospective customers will be already looking ideal venues and locations. They will be more interested in the experience than a good deal too, so focus your efforts on this. Your regular customers will simply want to return to you, where new customers will be looking for the most enticing and tantalising experiences available. Be that for them. They are looking for you.
Customers may also be prepared to ‘push the boat out’ and celebrate their freedom when the day comes. While offering deals may not be necessary, it’s also important to not get carried away and unreasonably hike up your prices. Remain competitive, customers may be more willing to spend money than usual, but they also know profiteering when they see it.
This is the time to reconsider and build your brand. A hiatus from regular customers is an opportunity for reinvention. You USPs matter now more than ever, they will be seen and appreciated in new ways. Even if you don’t change anything about your venue or service, at the very least mix up your online presence to make it look like you have. Freshen your branding, take pictures from new angles, remind customers what makes you special.
When the restrictions are lifted people are going to want to take advantage of this.
What is it you can do right now to guide the stream in your direction?
Get in Touch with Virtual Solutions today for a no-obligation consultation where we’ll share some actionable insights and advice to help support your business through these challenging times.