The hotel and tourism industry is currently going through one of the most difficult times that can be recalled. The COVID-19 pandemic has shaken up the entire world and more so the hospitality industry,
which runs on people connect.
However, I am a diehard optimist and would rather take this time to look at the opportunities that the adversity has thrown at us. There is no doubt that this will emerge as the survival of the fittest and it reminds me of the famous saying – when the going gets tough, the tough get going.
Most hotels have partially started their operations and one would have seen and experienced the new norms that they are following in this Covid era. Now is the time for all stakeholders in the industry to re-strategise’ in a bid to remain financially sustainable.
Already, guests are beginning to seek out hotels, restaurants and banquets spaces where they can feel safe and comfortable. It is important for hoteliers to send out the message that they are ready to provide them with a healthy and safe environment, and actually live up to these promises.
Already, guests are seeking out hotels, restaurants and banquets spaces where they can feel safe and comfortable.
THINKING HARD
The immediate future and long-term prospects demand that hoteliers start looking out for newer avenues for revenues. It is not possible to come up with these strategies in isolation. Entire teams ought to brainstorm after evaluating the present market situation and the competitive scenario. This might necessitate a tough SWOT analysis so that a hotel can choose its target market and new clientele based on its contemporary strengths.
A small but good improvement is evident in the wedding segment, as there was a large backlog of celebrations which were put on hold during the lockdown. The leisure market is also slowly picking up. I predict that the first rays of success shall shine upon hill station resorts. Next in line will be resorts near large cities, where guests can drive to within a couple of hours.
There is no doubt that international tourism can be forgotten this year. But we can hope that it will show a healthy movement post October 2021. This would mean that the entire industry in India must focus on the domestic tourism market, at least in the short term. Already, some buoyancy is visible in states like Gujarat. Gujaratis are amongst the largest domestic tourists and they have started visiting their nearby cities like Udaipur, Mount Abu, Kumbhalgarh, etc., thus boosting the hospitality business there.
The corporate market and conferences segment will surely take some more time to recover to pre-2020 levels. It might show gradual improvement post-vaccination. Otherwise, most business houses might
prefer video conferences and virtual events while continuing with their work-fromhome culture.
The F&B domain is also displaying some new trends, with takeout being the most prominent. Hotels of almost every hue have started offering delivery of their food, viewing this as a viable business opportunity.
Guests, too, have started visiting restaurants, especially those with outdoor seating arrangements. They prefer properties that strictly adhere to social distancing norms. Hoteliers need to take note of this and also look at avenues to increase their F&B business.
They can do this by providing packed food orders to corporates and industries while following hygiene and safety without compromising on taste. Hoteliers can also consider inclusive packages for weddings. How? By increasing the average per cover (APC) considering that there are still stringent restrictions
on the number of people who can attend these events. This is an important initiative to ensure profitability in the banquets department.
MANAGING MANPOWER
Another big challenge that hoteliers are facing is how to maintain the loss of manpower as many of their staffers have moved to other opportunities or even changed cities. My immediate advice to all would be to assess and classify the workforce by doing an A, B, C analysis with the operating team.
This exercise needs to be done cautiously, based on staff performance and not by falling prey to sycophancy. Post this exercise, one can create a fence around their high performers or ‘A’ class of people and ensure that they are well cared for. This will minimise their inclination to leave the organisation.
The ‘B’ class of people need to be put on a performance enhancement programme, which is well outlined with realistic growth plans. This will motivate them to work harder as they know they have good prospects in the company.
The exit of ‘C’ class of staffers might not be a huge loss for the hotel. However, some contingency should be planned so that a resource pool is available in case there is a mass exodus. This is the right time for the hoteliers to restructure their staff to room ratio and bring it down slowly, in line with what one can see in the West. The main reason is that staff cost often comprises 25% to 30% of the total sales. Multi-skilling is the new HR mantra.
In addition to staff cost, the ratio of profitability and costs like gross and net operating profit as well as food needs to be redefined. Hotel lease agreements earlier used to be on a rental basis. However, in the present scenario it is likely to shift into a model of share in turnover or profits.
I strongly reiterate that all stakeholders in the hotel business be patient as this industry will surely rebound. One will see the figures of 2019-20 being met post October- 2021. Till then, we need to be sensitive to our work force and display the right gestures of empathy to guests.
