Pandemic and Profits. Prepare, Don't Panic.
Dear Friends of SKNapp Consulting,
As hoteliers, if there was ever a time to ensure diversity in distribution and market segments, it is now. Properties that have relied on limited channels and too-few source markets are struggling thanks to COVID-19. Hotels with clever, well-trained, data-informed managers who have prepared with solid insights are suffering less and will recover quicker.
Our industry may be in chaos, but you do not have to be! Pockets of promising progress are present, you just need to know where to look.
You simply need to rely on Historical Data, Not Hysterical Data. (See what I did there? You are welcome.)
If you haven't been a hotel manager during sharp occupancy downturns, this could be scary times indeed. Or if you're new to the industry (nice welcome hey!) or new to your property, you'll want to take a few deep breaths.
Breathe in. Breathe out. Repeat.
Then, start with the very basics as I did with a client here in Australia last week when we poured through their past data, trends, reports, meeting minutes (yes really, dull but essential work). Start with internal intel (PMS, even some of those dusty binders on the reservations desk shelf, there's gold in there!). The minutes from your revenue strategy meetings from previous occupancy downturns are likely to reveal which tactical activities worked well and those that didn't. For instance, at some similar previous point in time, some panic-stricken person may have committed Panic Pricing Crimes. Did it work? Did those tactics stimulate new demand or simply diminish profit on reservations you would have got anyway? Beware unnecessary unqualified discounting trap People!
Have you:
been meaning to diversify your market segmentation?
meant to increase the number of channels where inventory is mapped to in your channel manager?
kept intending to get round to analysing which OTAs deserve your partnership and are still earning their commission?
Now the conditions force you to do all of the above.
Short-term thinking hoteliers without long memories and with no documented historical data will suffer the most and take longer to recover. No need to be one of those!
Not sure how to do the above? It is easier than you think. Contact us for consultation or to invest quieter operations time in one of our SKNapp Know Revenue™ training workshops.
A few free sources of reassuring revenue resources include:
Register for this upcoming webinar by IDeaS
One of my gurus is Professor Sherri Kimes, please check out her terrific post, it'll be the best 6 1/2 minutes you'll spend all week: How Hotels Can Survive Coronavirus
Research Paper: RM during Economic Downturn
In the meantime,
Keep Calm
And
Profit On
