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How Hotel industry is affected due to COVID 19?

  • The Indian hospitality industry is undoubtedly one of the biggest casualties of the Covid-19 outbreak as demand has declined to an all-time low.
  • Global travel advisories, suspension of Visas, imposition of Section-144 (prohibition against mass gatherings), India like most other countries is on a lock down, the consequences of which are unprecedented.
  • It has had a massive falling effect on the hospitality industry in India, with the cancellation of flights & trains across the country.
  • Hotel bookings have faced monumental cancellations and that has had a ripple effect on Travel Agents, Taxi Operators, Handicraft Showrooms etc.
  • Hotels across the country are now closed for more than two month or so with essentially zero revenues while having to bear with mounting fixed costs.
  • How can the Hotel Industry recover after COVID 19?
  • Millennials are the expected to be the first to start travelling once the restrictions are released.
  • So, business should consider the exact ways how to attract them and include them as an essential step in the business recovery plan.
  • Hoteliers can take steps to increase restaurant sales during the COVID-19. E.g. They can change their marketing campaigns and offer the customer specials deals or discount.
  • This way, they might lose money but it will help to increase the bottom line.
  • Given the contagious nature of the virus, it is crucial to have appropriate health and safety policies in place, especially for hotel business that relies on in-person interactions.
  • In these contexts, hoteliers should promote proper health and safety measures that includes Self Payment system, Order through mobile applications, non contact orders and delivery.
  • Also, hoteliers should closely monitor employees' health conditions and take reasonable precautions to ensure that the illness does not spread.
  • Hotels should look to implement the reopening plan in the shortest possible time available, as when demand returns the customer will become a bigger and more demanding ‘King’.
  • Effective digital and social media strategies must be rolled out as part of the communication plan.
  • Discounts can be creatively packaged, by bundling services into customized packages & promotions, without adding to the hotel’s cost while leveraging the property’s exclusive characteristics to remain competitive.

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