PwC US Hospitality Directions- May 2020
Ghosting is never a good look. If your hotel has closed completely due to the coronavirus, now is not the time for radio silence. With millions of travelers confined to their homes due to the coronavirus pandemic, people are likely daydreaming about travel or looking for entertainment from brands they admire.
Hotel-guest communication is one of the most important and decisive aspects of a speedy and healthy recovery. The boundaries of communication have significantly stretched in the last decade and simply greeting the guest and replying to a post-stay survey wont cut it anymore. Its safe to assume that in the post-coronavirus travel landscape, real, open, and transparent communications with your guests will weigh quite heavily.
The early glimpse of demand recovery in APAC fuels us, in the Americas, with optimism. In Europe, consumers are starting to envision their next trip as some countries move to relax lockdown restrictions. North American travelers still have trips booked for June through December 2020.1
Using CRM to reopen and engage with every guest
In the context of the coronavirus crisis, the health concerns, and the travel restrictions, destinations are suffering significant losses. While its not at all hard to get overwhelmed by the current situation and be tempted to sit back and just wait for it to end, what will eventually make the difference between the winning parties and the losing ones is what is done right now.
According to a special forecast from STR and Tourism Economics, due to the COVID-19 outbreak, the hotel industry is projected to report significant declines across demand, occupancy, ADR, and revenue per available room (RevPAR) in 2020. While travel has come to a virtual standstill due to the COVID-19 outbreak, the market is expected to regain its footing in the latter part of the year and next year.
As Coronavirus (COVID-19) continues to impact travel globally, it is important to observe industry forecasts and trends that will ultimately shape your recovery strategy as hotels begin to plan for the initial rebound in travel demand.
Based on the conversations Im having this week with our KTN clients, it seems that hotel sales teams are finding that theres a lull in activity right now. The flood of calls and emails regarding cancellations and postponements has abated, and most hotels are lucky to have even a trickle of RFPs coming in from traditional channels. For most markets, being too aggressive with traditional cold-call prospecting right now might be perceived as being insensitive. As a result, salespeople might be finding themselves with far more downtime than theyve had in years.
Based on research from CBRE, from the start of the US outbreak in January 2020, it is predicted that it will take approximately 6-10 months (June) for US hotel demand to recover, and 12-16 months (December) for ADR and RevPAR to recover. Therefore, hoteliers need to take the necessary steps to adequately prepare for recovery, while also setting proper expectations and KPIs.