Reference no: EM133292663

Question 1. Read the article about the hotel business ready for the future.

As a team write down your reflections about a hotel product life cycle and solutions you may identify.

COVID 19: Making your hotel business future-ready

Posted on 10 August 2020

Travel and hotel trade professionals are just beginning to find their feet after the unprecedented effects of almost zero global demand due to COVID-19.

One thing is certain: an altered lifestyle will emerge as

a result of this crisis. Businesses will either be sold, shut, hived off and in some cases thrive exponentially. The key to survive and subsequently thrive depends on many factors such as cash in bank, demand, debt ratio, liabilities both external and internal, flexibility and a robust plan to see through this period.

Whilst some factors are beyond a hotel's control and not all issues can be rectified now, there are however key corrections a business can make to position itself for revival and growth as we approach the live with and post-COVID-19 era.

Here is a list of 6 key points that hotel owners and operators need to implement in order for their operations to be future-ready.

Remove any excess from the P&LEliminate fancy cars, fancy offices, and excess manpower whether on roll or third party. Be as lean as you can. This will not only give you the extra gasps you need now to survive but also yield exponential results in time. Discretionary spending will be hugely deliberate for some time to come. Ticket size will drop considerably as consumers realise the immense importance of cash in bank. Invest in reinventing your value proposition to attract the limited demand. Roll out open dated offers, something as simple as a "buy now, stay on any of the next fifty weekends". Make these customisable and flexible for customers post sale to hook the client.

Segregate good and bad costsRally the good spending. Tangible costs headers that contribute to the sustainability of your business. Stay on course with investing in digitizing your business.

Due to the travel restrictions and trust deficit, we will see acceleration in the digital economy. If the hotel is not already on these platforms it needs to be on them - post haste.

Have clear SMART goalsSpecific. Measurable. Achievable. Relevant. Time-bound. For example, enchance the tech capacities of your hotel. Insulate and protect the key performers to retain and to motivate them to help you reinvent.Cut your losses by challenging the status quo, the traditional way of operating, abolish inertia, any spending that does not contribute tangibly to the hotels performance and sustainability. Remove emotion for non-core business, add on to the hotel business. The hotel is the focus... period.

Expect a shift in brand loyaltyThe traditionally-evolved loyalty hospitality brands that have been enjoyed and invested in over decades will deplete. We will see consumer behaviour shifting the loyalty focus to individuals they know and trust. Give your hotel an individual, a person and a face that resonates with the local community your business is situated within and thereby the extended reach. They will be your flag bearers.

Be prepared for Quantitative EasingQE means that inflation will go up in an already slow economic engine, resulting in the slowed demand getting even slower due to low value against price. Invest time in creating new products that help the customer recover lost value, by doing so the hotel will find greater traction than competition almost always.

Engage with your team Connect with your team in a way that is path-defining. Engage in frank and open conversations with all stakeholders to generate new ideas to reinvent the hotel's operating cycle. Suppliers, customers and third parties will become part of the team if we engage them in the hotel's story.