Hotels certainly did not want empty hotel rooms or canceled reservations. Even if hotel owners and operators cannot act as desired due to the difficult demand situation, they can still react.
Hotels certainly did not want empty hotel rooms or canceled reservations. Even if hotel owners and operators cannot act as desired due to the difficult demand situation, they can still react. Existing opportunities must be used to minimize the damage. If a hotel loses bookings and guests are absent, an attempt must be made to reduce costs as well and as quickly as possible. This can be done, for example, by closing floors/hotel wings / F&B outlets / … so that energy costs, among other things, can be reduced. Maintenance work can be carried out instead. Everything that is often left lying around in daily operations can now be done – even the well-known, often postponed turning of mattresses!
If possible, no more goods should be purchased to avoid overstock. Employees should be sent on vacation, overtime should be reduced or even minus hours should be increased. In the “worst” case, a reduction in working hours can also be agreed with the employees – in any case, new hires should be delayed or paused. The dismissal of employees is critical. On the one hand, it will be necessary, on the other hand, the effects will be felt for a long time afterwards, as the hotel labour market is always tighter and employees are hard to find again.
Nor is it advisable to offer extreme dumping rates or discounts. They do not help to fill the hotel and only make it more difficult to reach the actual rate level again afterwards. It should be made use of the agreed cancellation fees. If groups cancel and want to book at a later date, cancellation costs should be calculated and a 15% discount should be given for new bookings as a gesture of goodwill. It is important that hotel operators learn from crisis situations and their challenges and, if not already in place, prepare a crisis management plan. Owners and operators of affected hotels must nevertheless look ahead and compile their learning and optimisation potential in order to be better prepared for the next critical situation.