Hospitality was one of the first industries affected by COVID-19 as travel was forced to a virtual halt early last year. The industry experienced the most distressing year in 2020 and suffered massive losses during the protracted lockdown that was imposed to control the pandemic’s first wave. Hotels across the country witnessed historically low occupancies.
Since October last year, the struggling hospitality sector found some footing after bearing the brunt of this unforeseen crisis. It was on-the-mend and showing signs of recovery, but the second wave of the pandemic has dealt another heavy blow to the industry now. And this second wave has hit us with far greater severity than the first one. With the surge in cases and the ensued restrictions, the sector is losing the momentum it had gained. It was still reeling under the pressure of recovery from the first lockdown and now again bookings have slowed down.
The approach that hotels will have to adopt in 2021 is “Survive – Revive – Thrive”.
Adaptability is fundamental for survival as the behaviors and preferences of consumers have changed as a result of the pandemic. Tech-enabled, seamless yet no-touch travel has become vital and more than ever before, people are demanding for safety and hygiene assurance throughout their journey. From opting for self-driven trips; to preferring no-touch check-ins at airports, hotels and more – there has been a natural re-prioritisation of expectations. Hotels must continue to adapt, be innovative and keep looking at new ways to enhance safety and minimise risk.
Curb on international travel has hit the Indian industry hard, but we must continue to pay greater attention to domestic demand. It will be the bridge between survival and revival. We have already seen a lot of interest being generated in drivable destinations in close proximity to major cities. Pent up leisure demand aided by the diversion of outbound leisure travel to domestic tourism have been green shoots of recovery.
Sustainability and ‘localhood’ have come up as preferences and people are giving more importance to creating a positive impact on local communities, increasingly looking for authenticity. Nature and road trips have emerged as popular travel choices due to renewed interest in sustainability, travel limitations and the quest for open-air experiences.
The revival stage of the strategy is about learning from the situation, reviving core competencies, building capacities and to be ready for the future. There is a saying – “When the sea is rough, the wise fisherman mends his nets”. There is much wisdom in this thought. The current circumstances are disruptive, but they offer abundant learning opportunities. Hotels should utilise this time to re-strategise their operations and focus on how they can further enhance their service for the post-pandemic world.
Getting to the “Thrive” phase once the pandemic is brought under control will depend on how well hospitality businesses are able to adapt in accordance with the changing scenario and revive their operations. Hotels are already much better prepared in terms of their SOPs and cost structures to navigate business interruptions this year.
Apart from the existing set of domestic travellers, hotels have an opportunity to cater to the millions of Indian tourists who visit global tourism hotspots and convert them into patrons by offering quality and exclusive experiences closer to home.
Also as the vaccine rollout gathers momentum, consumer confidence will get a boost to lock in plans for travel after an extended period of plans being on hold.
Uncertainty and apprehensions related to future pandemic outbreaks or restrictions will still prevail and impact the behaviour of travellers. But hotels have to adjust sails and keep moving forward.
The hallmark of hospitality is endless optimism, and I am confident that the industry will thrive. Together, we can reignite a continued investment in the communities we serve and we will emerge much stronger from this challenging phase.
