The hotel occupancy rate in India has dropped by half in 2021 at 33.8%, from the earlier rate of over 60%, as per the Statista Research Department. There was a prediction of V-shaped recovery with the announcement of vaccines earlier this year. However, the second wave of the pandemic changed the scenario.
With relaxation in the lockdown norms, many states have started opening up their economy, allowing businesses to function. However, the prediction of the third wave has created hesitancy among the customers.
Thus, the hospitality industry continues to face numerous challenges in maintaining occupancy. In such a scenario, what role can technology play?
Sourav Mukherjee, Head- India and Middle East, RateGain
Before delving into the solutions offered by the technology, let us take a closer look at the obstacles posed by the looming uncertainty. The volatile economic environment and varied rules for PCR tests coupled with lockdown in different states have made it hard for hoteliers to forecast any upcoming trend among customers.
Hotels are struggling to keep even the limited staff at reduced salaries. With negligible corporate/business travel and no inbound international travel, relying on leisure travel for business can work only for the short term. Furthermore, only hotels in holiday destinations can survive, while those in tier A and B cities are facing the brutality of the times. An added travel woe is the alltime high fuel rates.
TECH-BASED LIMITATIONS
Owing to deficiency of data, the industry cannot even leverage the tech-based solutions as there is no analysis available to know new source market and demand partners. Both factors are crucial for connectivity in the recovery process. Further, the lack of real-time market pricing and strategy insights is resulting in conflicts.
The limited business has led to a price war, wherein big hotels are eating into the market share of budget hotels. At this point, some of the data-based tech solutions are posing limitations as well. Even though now the hotels are opening up and refreshing their content on brand websites, there is an absence of a strong comprehensive content management platform that can store, curate, augment and distribute content (both descriptive and imagery).
It is essential to increase the conversion rate for business growth. Such data also helps understand consumer behaviour vital for keeping the business up and running. However, the constantly changing consumer behaviour has made it challenging to target the right audience.
The hospitality industry in its current state is in the dire need of a platform for connectivity. The platform should manage and distribute descriptive content. Such a partner must have the ability to foresee and innovate as per changing consumer needs. It should be able to add to the business’ growth and help with methods to retain it.
Hoteliers must look out for specific features in platforms such as their market share of partners, financial sustainability, success stories, problem-solving skills concerning scalability in discovering source markets and channels, real-time market insights and help in bringing supply aggregation.
As travel has resumed in most places, hoteliers can start with targeted campaigns and advertisements related to guestrooms, conferencing, F&B, social functions, etc.
ROLE OF SOCIAL MEDIA
Even in a partnership with a platform, hoteliers – big or small – need to make their presence visible online. Social media plays a crucial role in the growth of the travel and hospitality industry. Hotels can use different online platforms for creating awareness, engagement and conversion. It allows potential customers to know more about the place and they make their choice based on reviews left by the previous visitors. Hence, it is essential that hotels not only serve travellers to the best of their ability but also make sure that their good reviews reach potential visitors.
Furthermore, social media platform insights enable business owners to choose their target audience in specific demography, age group, etc. It increases the rate of conversion and ROI. Businesses can make
the right investment choices with such data and increase their reach by disseminating the right information about their area, especially regarding COVID-19 restrictions.
As travel has resumed in most places, one can start with targeted campaigns and advertisements related
to the rooms, conferencing, F&B, social functions, etc. In order to get to the right audience, it is important to upload fresh content. It will also result in the direct brand business, which definitely yearns for higher yield.
Since the pandemic is not yet over, the industry players have to win the confidence of customers by communicating with them about the safety measures in place, maybe pressing upon the vaccinated staff and travelers. On the basis of user reaction, they can gauge their demands and expectation, thus formulating their policies.
Social media has enabled the hospitality industry to showcase the value of their place and converting it. It must be leveraged in terms of making long-term customers and changing the negative narrative into
a more positive scenario around travelling. Instagram, Facebook to YouTube and others are important tools and they hugely impact the occupancy in the coming days. The industry players need to use these
tools to their advantage without falling for the traditional measures like reducing the prices, which will only add to the misery.
