How to Survive the Recession
At minimum, the next few months and quarters will be difficult for the lodging industry. Beyond that, no one can accurately forecast. In the past few weeks, I've talked to a number of owners and operators, and no matter what segment they're in, they all seem to tell the same story: Business is bad, real bad, and they expect the doldrums to continue unabated for the foreseeable future.
Clearly, some hoteliers are in survival mode and are desperately seeking ideas to help them through these difficult times. Here are a few dos and don'ts I've gleaned from some of the brightest minds in hospitality. Perhaps you can adapt them to your operations to survive-or, better yet, thrive-in this environment:
Do increase funding of sales and marketing, but don't spend foolishly. Because the old paradigms of sales, promotions, PR and advertising may be outdated, it's smart to check with professionals (your ad agency or a hotel marketing consultant) to determine new directions. Undoubtedly, your revamped marketing plan will focus on the Internet, with particular attention to the various iterations of social media.
Don't position your property as "luxury," but do stress value in your marketing message. With the current media hysteria over irresponsible travel spending by corporations, it's tough to be labeled a luxury hotel or resort or, worse yet, a resort and spa. (The absolute nightmare, of course, is to operate a "resort, spa and casino" in Las Vegas.) Yet, you can't lower standards-or rates-for those guests still willing and financially able to stay with you.
Do monitor labor expenses, but don't furlough workers unless absolutely necessary. Good help is always hard to find, and your best employees may have found work elsewhere if you lay them off and try to rehire later.
Don't drop your chain affiliation, but do take advantage of all revenue-building and cost-saving programs offered by your franchisor or membership group. Even when times are flush, it's silly not to exploit every assistance your franchisor offers. After all, you're paying for it.
Do keep your radar active for solid acquisition possibilities, but don't make deals that seem too good to be true. They probably are.
If financially feasible, don't hold back on planned or ongoing renovation or expansion projects and do be sure to incorporate as many green elements as possible. Once the economy turns around and people begin to travel again, up-to-date and refreshed properties will be the first to enjoy rebounds in occupancy and rate. And you'll reap operational dividends from a more-efficient and more-sustainable property.
Want to use this article? Click here for options!
© 2012 Penton Media Inc.
Acceptable Use Policy blog comments powered by Disqus
Most Recent
Career Center
| Enter Keyword(s):
Enter a City: Select a State: Select a Category: |











