Hotel Revenue Down? Tips to Keep your Hotel Business Lean

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As the COVID-19 pandemic continues to hit the hospitality industry, hotels are continuing to see huge drops in occupancy and incoming revenue.  Hotels and the tourism industry are doing their best to keep their heads above water due to global travel bans and a world of social distancing. We put together a list of tips on how to run your hotel extremely lean to help combat the lost revenue during these difficult times. Even though this pandemic is causing chaos to your business, here are a few suggestions to help maintain some control.  

 

Review Your Marketing Plan

When revenue is down, how can you further leverage tools you already have to be more effective? Utilize social media, email marketing and digital advertising!

Digital marketing is an effective way to communicate with your audience in a measurable and strategic way. Make sure you are using the right messaging. See this article for more about copywriting during the COVID-19 pandemic. Consider marketing campaigns that incentivize guests to book in the local area. Try and access what people are looking for currently and then try and seek to fill those needs.

Run Processes Lean 

With less revenue, systems must run leaner. Take this time to strip your business of the excess spending. Be sure to have proper documentation of any services you are canceling. Look for ways to make processes more streamlined or possibly even automated.  Again, look into how you can further leverage the tools you already have. Eliminate the unnecessary forms of waste so your processes are efficient. An example is to trim costly items from the food and beverage menu by buying more seasonal produce and be more creative in menu development with an eye towards savings.

Review Your Vendors 

Make sure to have a proper list of all of the vendors you are using. A way to stay organized and become lean quickly is to review all agreements to ensure that you’re getting all that you bargained for at the right price. Also, when business ramps up you will want to check in with this list and re-engage with your vendors so that you can hit the ground running quickly. 

Communicate, Communicate, Communicate 

Talk to your staff. Talk to your guests. Talk to your potential guests. Let each party know what is happening in specific and tailored outreach. Communication helps put worries at ease. 

Plan, Plan and Plan

Now is the time to think about the future of your business. How can you prepare for a busier time? Make sure your online presence is in order and your hotel website is running smoothly. Implement new health and safety precautions for the “new” customer. Consider what plans of action you need to implement to attract future customers once the world opens up again.

All of these tips can be helpful to keep your business lean. Use this time to take care of the health and safety of yourself, your guests, and your staff. With some planning and communication you can use this time to make your business lean while ramping up for a busier time. Being productive and proactive will help pave the path for a successful future.