When the economy is in a whirlwind and there is uncertainty about job security and the foreseeable economic future, spending habits change. Families and individuals adjust their budgets and limit their traveling spend to save for the future. The recent turn of events has proven that recessions and other types of slowdowns can greatly impact the hospitality industry.
Planning for times like these seems like an impossible task but it is possible. So how can you beat any kind of economic slowdown in the hotel industry? Here are some evergreen tips on successfully riding out a slowdown:
During a slowdown, you might start experiencing more cancellations or shrinking booking volumes. This can seem like the end of the world for some hotels but innovative ones can explore solutions to the problem. For example, hotels know that high booking fees might cause the cancellations.
To incentivize customers, you can create time-limited discounts to subset the decline in bookings or high cancellations. Some hotels have chosen to offer vouchers when customers cancel their bookings. You can use the understanding you’ve got about your customers and hotel finances to determine the best option.
Incentivizing employees for more sales
When sales in hotel establishments decline, it impacts the staffing needed, which leads to layoffs and retrenchments. Employees know this and might try to do everything in their power to prevent it from happening. The problem is that employees might not have adequate skills to bring in more sales.
To incentivize employees, getting Jacaruso.com to host an online sales training event can help formalize this arrangement. Jacaruso helps create and facilitate custom-built training solutions to get more sales and contribute to regaining the books or cancellations you might have lost.
Using alternative booking systems
In a slowdown, your customers that still need to travel might opt for alternative solutions such as booking an Airbnb. To prevent losing business, other hotel managers have chosen to list their rooms on platforms like these. Other solutions used by hotel managers include listing hotels on discount sites.
By advertising discounted prices on platforms like Bookings.com and others can help get more customers despite a slowdown. Some of these solutions can be area-restrictive, so ensure that you’re using the most relevant to your area of operation and company values.
Targeting corporate clients
During slowdown, one of the greatest sources of revenue for hotels and the hospitality industry at large includes corporate clients. Targeting and approaching corporate clients, especially business travelers, can get you more guests during the slowdown. Do not expect these companies to approach you but cold-calling or emailing can help get more sales.
Also, be attentive to RFQ/RFP emails in your mailbox and price the services you are offering competitively. To these clients, do not market prices for rooms only but also competitive conference room space. An alternative to this is targeting corporates, if it can be done where you are operating.
Boosting digital marketing efforts
Digital marketing plays a critical role in driving more revenue and there are various strategies to implement it successfully. Using local SEO is a great starting point and then expanding to other activities. Social media can also be leveraged by effectively using User-Generated Content, sponsored ad campaigns targeted to fit the buyer personals most likely to spend.
Boosting the digital marketing efforts can be very useful and using the outreach strategy to get the word out about promotions or incentives is an effective tactic. These marketing efforts must be customized for the situations you are facing at that time and consider consumer preferences.