How Hotel Business works during the COVID-19 and its effects
Safety of the people has been the topmost priority of governments and businesses too. It is safe to say that hotel business facilities are on the way to functioning relatively faster than other sectors despite being the first to be impacted.
A significant change observed is the drastic drop in the hotel business profit margin of all businesses.
To keep up with the situation, businesses have had to go through several changes to keep up with the situation, especially financially and operationally.
Be it the hotel business around the globe, this industry is unpredictable. The decision to shut down restaurants and hotels obstructs the travel ecosystem and visibly impacts tourism globally.
As a team, hotel operators and investors are working hard to alleviate cash and working capital problems and maintain close contact with their stakeholders.
Hong long will COVID’s effect last on Hotel Business.
Research says that going back to normal might take as long as 2 years. People into hotel business investment do not beg to differ.
Although the industry is slowly recovering, its operation is still impacted severely. Creating a new hotel business plan is expected to ensure the safety of customers and employees.
The hospitality industry is expected to make major changes to its operations in the COVID19 to ensure the health and safety of employees and customers and increase customers’ willingness to patronize their business.
Management scholars that work at a hotel business school are also most likely to be affected. Due to the pandemic, hospitality scholars are forced to answer questions, focusing on their research work.
On a positive note, the middle-class expansion expected to happen by 2023 stands as a ray of hope for the sector.
Research says that by 2030, approximately 5.3 billion people will be added to the classification of the middle class, with its spending going up to $64 trillion.
Asian countries are predicted to have the most hotel business growth since China and India account for around 43% of the people coming under the middle class.
Many companies in China have already begun post-recovery planning, hoping for a good hotel business review.
How to improve hotel business during the COVID-19
The hotel business outlook may be blurry at present. It is undeniable that, from a business perspective, the travel and hospitality industries are the sectors most affected by the economic impact of the pandemic.
Hotels and airlines have gone through unparalleled losses. The growing number of COVID cases has prompted global travel bans and social distancing agreements.
For the majority of us, this is a scary and uncertain time. However, the industry has pulled itself out of many political and economic hardships, emerging stronger.
Some ways that explain how to do hotel business in a better way are:
By allowing hospitals to set up a recovery facility give an impression of reliability to possible customers.
Create a hotel business plan template that delivers attractive new concepts that fit newer trends like a ‘vacation.’
Being productive and performing tasks that are usually pushed ahead. Using less efficient time to process activities such as asset counting, security plans, defining standard operating procedures, social media plans, etc.
What Can Hotel Owners Do?
Managing finances has to be, if not most, one of the most crucial out of the hotel business objectives. You can check the hotel business plan sample doc to check the mandatory list of financial elements.
Short- and long-term financial management is crucial, especially in a global crisis like the coronavirus.
Today, reducing expenditure costs can help survival in the short term. Still, it should not be at the expense of long-term prosperity.
The coronavirus will force hotel owners to make difficult decisions regarding investment, activities, and employment.
To survive a difficult time like this, leaders that are empathetic, courageous, proficient at hotel business development, and have a good vision are needed in the industry.
To increase the financial income, the owner can try different methods. Some of them are listed below after analyzing certain hotel business reports and hotel business review magazines.
The list is applicable for all hotel business types and thus, can be considered as hotel business tips in the present scenario.
Tip 1, Reducing Hotel Business Expenses
They could try reducing hotel room prices for guests, or at least ones that are frequent travelers.
Reconsidering cancellation policies and including a more welcoming hotel business structure assures guests to book their travel without the risk of cancellation fees.
Hotel occupancy has almost halved, being a by-product of travel restrictions and the general fear of the highly transmissible virus.
To cut costs, hotels can consider shutting down a part of the hotel or floors that are not being utilized. Hotels that have restaurants can expand their business and make their services available for online delivery.
As previously mentioned, hotels can also dedicate a part of their area to converting into makeshift hospitals and isolation wards.
Providing a safe space to the ones in need, such as the infected, ones who need to be isolated due to primary contact, post-travel quarantined people, the homeless, and more during a tough time like this not only gives a sense of satisfaction to oneself but also creates an image of reliability and hospitality.
Tip2, Reduce Unnecessary Additional Expenses
In this crisis, it is recommended that hoteliers carefully review their investment spending plans to determine extension opportunities.
They should consider having contingency and hotel business continuity plans. A more acceptable method may be to maintain hourly wages but reduce weekly working hours or switch full-time employees to part-time employees.
Although it is always important to protect your employees and maintain morale, it is also important to optimize work arrangements, and forecast staffing needs based on daily changes in business volume.
Reducing even one day’s job in a week cuts labor costs by 20%. Besides, there are chances for employees to agree to switch to part-timing since it is a better alternative to losing their job, as many have during the pandemic.
This time could also be utilized to train employees by cross-training. During cross-training, employees can help each other grow their skills and explore work they had not done before.
Making small changes like using low energy consuming light bulbs, having lighting timers, and other instruments that ensure low energy consumption helps reduce utility costs.
Small costs can make a big difference. Instead of hiring designers, the hotels can opt for free available templates.
For instance, in place of special and distinguished hotel business card design, a hotel business card template can be used instead of a dedicated designer.
Tip 3, Ensure the safety of the hotel environment is maintained
Being in the Covid-19 era demands hoteliers to focus on ensuring the health and safety of employees and guests is not compromised. Even post-pandemic, this area is completely uncompromisable.
Establishing that the property has the facilities and measures to protect guests and staff during their interaction is extremely crucial.
A regular restocking of necessities such as cleaning equipment, gloves, sanitizers, and masks must be maintained to function safely.
In addition, maintenance tasks and regular servicing of air conditioning must be done so the spreading of infections can be prevented.
To ensure Covid guidelines are maintained, points of contact could be reduced. Doing this will ensure the safety of people and help the hotel business name gain recognition in the tourist community.
It shows how much the hotel cares about every detail of a guest’s stay. All hotel guests must be informed of the various measures taken, procedures followed, and strategies to ensure everyone’s safety during and during their stay.
You must also specify an emergency phone number and an emergency referral point. Below are some points that need to be considered.
1), Better hotel environment ventilation
Analyzing and controlling ventilation in the building can improve the quality of the air we breathe and reduce the risk of acquiring indoor health problems, including preventing the spread of the virus that causes COVID19 indoors.
The WHO guidelines aim to identify the key issues users should consider when evaluating indoor ventilation and the main steps required to achieve recommended ventilation levels or improve indoor air quality to reduce the risk of spreading COVID19.
It also includes suggestions on how to evaluate and measure different parameters, especially in healthcare, non-residential and residential environments, provided that a person is receiving home care or home isolation.
2), Better disinfection measures for the hotel environment
Considering the virus’s ability to spread rapidly, it is important to have health and safety policies asserted, particularly for a business whose hotel business rates depend on in-person interactions.
To comply with this, hoteliers must promote proper safety measures such as no contact services, sanitizer dispensers at entrances and exits, self-service systems, and forbidding unnecessary work gatherings.
Moreover, hotel operators must closely monitor the health of their employees and take reasonable precautions to ensure that the disease does not spread within the hotel premises.
Therefore, hoteliers must implement, modify, reconsider, update or adopt established agreements to ensure that employees do not contribute to the spread of infection.
The same applies to sanitation policies, routine disinfection of commonly used surfaces and other areas, and certain steps to prevent the spread of the disease.
It is best to have a detailed plan on operating costs, workers’ compensation, and business interruption of hotel business insurance coverage.
Tip 4, Safety Training Knowledge for Epidemics
The operation of a workplace has visibly changed after the enforcement of physical distancing and hygiene maintenance.
Appropriate training methods need to be implemented to provide relevant general and company-specific measures effectively. Employees should strive to maintain physical distance based on social distancing guidelines and business orientation.
Although finding the right training approach may be taxing for many micro-businesses, it can be corrected by inculcating hygiene practices and receiving online practical tools to help with training them.
By having timely sessions to update employees with new and improved hygiene measures, businesses can demonstrate that their companies take COVID19 risks seriously and adjust their work environment accordingly.
This should increase employee confidence, convey the message that the workplace is safe, and at the same time clarify personal responsibilities for employees.
Training before or after returning to work is essential. Companies should consider an onboarding process for all employees, covering new and improved hygiene and physical distance measures.
This helps show that companies take COVID19 risks seriously and adjust their work environment accordingly.
This should increase employee confidence, convey the message that the workplace is safe, and at the same time clarify personal responsibilities for employees.
The training provides safety and contributes to compliance, emphasizing the importance of safe work. It will build confidence in the workplace that safety comes first.
Employers should also implement strong local agreements with the support of unions and labor representatives where appropriate to monitor compliance with new operating agreements.
Corrective actions should originate from this monitoring and can be strengthened through advice, guidance, and support from external law enforcement agencies (such as the local environmental health team).
Tip 5, Safe and Independent Dining Environment
The fact is that there is no proof that the virus is transmissible by food. This is applicable to even fruits and vegetables. In actuality, using a temperature of at least 70 degrees Celsius while cooking could kill the virus.
Due to the chance of proximity, opening buffets is not recommended. Buffets make physical contact with another individual almost inevitable.
While dining, a distance of a minimum of 1 meter must be maintained, and staff should wear a mask at all times.
For dining indoors and outdoors, the distance between the back of one chair and the back of the other chair should be at least 1 meter. The guests facing each other should also maintain this distance.
Tip 6, Try Minimizing The Usage of Swimming Pools, Gyms, and Other Common Areas
Public areas pools and gyms can be used safely. Still, certain restrictions, depending on national guidelines, must be implied to ensure safety. In particular, the following measures must be taken:
A maximum of people allowed in the public area must be specified to ensure sufficient physical distance
cloth mask policy required by local or national regulations
handwashing stations, especially in the restroom area and changing rooms
Towels to be used only once and need to be put in a bin for laundry after using
disposable drinking water
sanitizing doorknobs and other high contact areas.
Regular disinfection during the day
good temperature and virus testing
Many sports and entertainment areas have been closed or operated with limited capacity and improved cleanliness. Some hotels limit the pool to half the normal number of people.
Hotels may now need to be booked in advance to use the pools, sports courts, spas, and other facilities like guests booking massages.
Tip 7, Try To Use Better Safety and Epidemic Prevention Equipments
As known by all, the transmission of the Covid-19 virus happens via respiratory aerosol droplets or person-to-person contact.
The best method of preventing the spread is through ensuring good hand hygiene, mask-wearing, and social distancing norm is maintained.
Temperature monitoring involves scanning people for a specific period to make sure their body temperature has not risen.
Since this is one of the first symptoms of the disease, early detection of high temperatures allows employers to prevent infected people from transmitting the virus to others.
While measuring a person’s body temperature may be reminiscent of images used with an oral thermometer, new generation technology allows us to accurately measure a person’s ambient body temperature from a distance using basic thermal sensors.
When combined with a camera to form a complete scanner package, this provides an easy way for employers to quickly monitor the health of employees and guests in a non-invasive manner.
Check this device if your business or place needs to check all employees, customers, or visitors before entering your facility.
It will save your time and money and help keep your business safe from COVID.
Some features include built-in deep learning infrared thermal face recognition, support infrared temperature measurement, voice alarm, body temperature statistics, abnormal body temperature record, and report.
The intelligent temperature measurement terminal realizes precise infrared, body temperature data display, and voice alarm.
Fast and accurate temperature measurement, remote sensing minimize close interaction. The system works completely autonomously to reduce manual intervention for temperature detection.
Tip 8, Convenient And Secure Contactless Check-in Experience
Without a doubt, the trend for digital and contactless services gained new momentum in 2020.
Due to the wider use of support options such as mobile login, contactless payment, voice control, and biometric identification.
1), Using a mobile key hotel lock instead of the RFID hotel door lock system
Although the RFID hotel lock system is mature and stable, hotel guests have to check-in at the front desk and get an RFID room card to enter the room.
After using the mobile key hotel lock system, the hotel clients can get the mobile key through the mobile phone and then enter the room directly without check-in at the front desk to avoid the risk of infection.
Consumers who are used to using fingerprint and facial recognition to unlock smartphones and laptops will soon expect the same convenience when entering a hotel room.
Unfortunately, these updates’ installation and maintenance costs can be high and unaffordable for organizations that want to welcome them.
If staying ahead of the game is desired, it is suggested to dig deep and invest in it.
2), Issuing room cards will be unnecessary.
Whether in the room, before or after the trip, technology will become the core of the hotel experience.
This new hotel business design will lead to new concepts and more innovation in the industry and help more personalized products emerge.
For many hotel guests, traditional hotel door lock systems may not meet their expectations. Losing a hotel room key or card or leaving it in the room can easily become a nightmare for any weary traveler.
The process of obtaining a new key can be cumbersome and sometimes expensive.
Having an application that has a mobile key platform that captures every step of the process, from initial guest check-in and check-out, public area, and exterior door entry and exit, to create highly accurate images of guest activities is highly beneficial.
Similarly, employee access to their mobile keys is specifically tracked and available for security review.
However, whether you want an RFID hotel door lock system for your hotel or want to replace your RFID hotel lock system with a mobile key hotel door lock system.
Tip 9, Switching to Self Check-in Service Hotels from Traditional Hotels
Previously, the guest experience in a hotel was defined by their interaction with hotel staff, maintaining properties and facilities, and rooms meeting or exceeding expectations.
However, any knowledgeable hotelier knows that the current hotel business trends suggest that today’s hospitality industry has moved beyond this tradition to make room for improved technology and enhanced personalized customer experience.
In the past, guests wanted the front desk staff to be enthusiastic and cheerful. Still, now they prefer mobile check-in so they can skip the line and interact freely (and immediately) with the hotel.
Additionally, today’s guests expect personalized and personal service that allows them to take full control of their hotel experience. Self-service is completely replacing traditional guest services. This gives birth to new hotel business opportunities of saving costs.
Self-service models and their timely implementation are also growing in the in-room experience.
These days, in modern hotel rooms, guests no longer need to call the housekeeping department to get more towels, adjust the room temperature, refill the minibar, or order room service.
With the rapid and constant evolution of in-room technology, guests can handle an iPad that can be used to make a room cool or warm according to their preference.
Guests can also send a quick notification for housekeeping and room service when they want to use those facilities with just a finger tap.
Tip 10, Change the traditional hotel business to a short-term rental apartment.
Under the COVID-19 epidemic, the hotel occupancy rate is quite low, and many hotel rooms are vacant.
While the coronavirus disease will take some time to recover, it is a good idea to convert hotel rooms into short-term rental apartments to help people working around the hotel.
Some vacationers may also choose to stay closer to home for longer periods of time because of budget and quarantine policies. Now, short-term apartments are a good option.
Therefore, turning your current traditional hotel business and some long-vacant hotel rooms into short-term rental apartments will help to improve the business and increase hotel revenue.
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