Although hoteliers are used to managing the ups and downs of economic cycles, the COVID-19 era provides altogether unique and daunting challenges.
As unemployment figures in the U.S. continue to grow to staggering proportions and travel has come to a complete standstill, much of the industry’s focus has understandably shifted to how large corporations and hotel brands are faring in an environment that eliminates travel in the name of safety and social isolation. Chainwide occupancy and RePAR forecasts have been cut by previously unimaginable numbers.
However, according to STR independent hotels represent nearly 40% of all hotels in the U.S., and their fate represents a bellwether for the future of the industry. More than anyone, independent hoteliers are forced to lean on all the tools available to them to survive the current environment – and if possible, position for the future.
Here’s a viewpoint from the trenches.
Focus On Guests
The entire industry is dealing with the loss of a significant period of business with no known end in sight. April is typically when hotel occupancy begins to heat up, but April and May are already forfeited. The summer months look uncertain, at best.
With this in mind it can be easy to lose hope, but there are several things independent hoteliers should remember:
Every guest interaction matters. Even if the only way you are speaking with guests is when they call to cancel reservations, that conversation is an opportunity to build a relationship with that guest down the road. Travelers will remember who worked with them when it came time to cancel everything. This is also an opportunity to see if groups are willing to shift their reservations to a later date, and to let guests know about what improvements you are working on during the months of sagging occupancy.
Depending on your hotel’s segment within the market, you may be able to rely on local business in the short term. Our upcoming independent property, the Hotel Pommier in Indianola, Iowa, has continued to find support from local construction work. As always, the value of positive reviews is amplified during stressful periods like this. A traveler recently reserved a room at our hotel for July, coronavirus or not, based solely on our property’s reviews.
With so many other challenges impacting your business, it can be hard to stay guest-centric. But doing so can be both a short term boon, and the surest path to success when recovery comes.
Re-evaluate Your Tools – and Put them to Work
As Amazon has shifted just about everything about the way Americans consume, spend money and make purchases, we believe that new technology solutions can not only help hoteliers weather the current storm – but also restructure and make more efficient the way they do business after the crisis subsides.
Prior to COVID-19, hotels began investing in high-level tools to maximize their rates, better improve communication between workers, and streamline operations on both sides of the front desk. Now it is time for those innovations to prove their value – and help independent hotels, in particular, remain in control of their business.
There is no swiss-army knife that will help your hotel overcome low occupancy, so it is best for independent operators to find a combination that works for them. For example, we use Cloudbeds’ property management system to interact directly with OTA booking engines, which is both cost-effective and a multi-pronged approach to connect to selling opportunities via other channels. It’s also an efficient tool for independent hoteliers’ day-to-day operations, as it offers more options for many different room types and price points.
This platform also gives us the capability to instantly reflag any hotel in just a few clicks. Through this process our independent Apple Tree Inn is scheduled to complete a full rebrand this spring, becoming the Hotel Pommier. The tool also has helped manage rates and compare rates with competitors during turbulent periods, allowing us to seamlessly roll out the reflagging of the hotel while ensuring we remain competitive with what other properties in the area are charging.
In general, using the right technology should make it easier for an independent property to change the way they are doing business, quickly. That kind of nimbleness and flexibility are critical in times of crisis. Our property also uses Deputy’s workforce management software to chat with hotel staff and keep them informed about our operations. Our team also uses Notion, which combines many of the features we like best in several other applications all into one, improving our property’s organizational processes.
By researching the tools we needed ahead of time, we were able to equip our team with everything they require to keep our hotel in business while laying the groundwork to help us upscale our brand when that day eventually comes.
Remain Competitive
Sometimes, an empty hotel can provide opportunities. Hotel Pommier is using the few months of downtime forced upon us by COVID-19 to conduct a top-to-bottom renovation, coinciding with
its recent name change. Now is the time, and the only thing we are keeping in each guestroom are the sinks. We are fortunate to be in a position to do so.
Unfortunately, labor remains the highest cost operators are forced to strategize around. While you may be cutting hours for housekeepers, F&B, and even-front desk workers, hoteliers also have an opportunity to continue training workers to help differentiate your property when business picks up.
Here in Iowa, we are using this time to build relationships with local vendors and educate our front-desk associates so they can act as tour guides for guests. We are leaning into Hotel Pommier’s status as the only independent hotel in the area, and drawing on past success gained recommending local areas — such as the nearby ice cream shop — as a way to stand out.
None of this is to say that this is an easy or straightforward time to to own or operate a hotel. Far from it. For many in our industry, including indies, these are the most challenging times we will ever face.
At the same time, there are upsides to independence. We have greater flexibility, which is priceless in many ways. We have unlimited freedom to decide how to innovate without being tied to brand-approved vendors or partnerships, as many brands are.
In times like this, ingenuity is vital.
As independent hotels struggle to move forward, they can rely on the facts and advantages of independence to help them carry through.
