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b'Around the world, both big-brand and independent hospitality properties are feeling the sting of COVID-19.

I\\u2019m going to show you how to turn this pain into a gain.


If you haven\\u2019t subscribed yet, do it now and make sure to hit the little bell so you\\u2019ll be informed when I upload a new video. You won\\u2019t want to miss anything designed especially for you.

As of the writing of this episode, the COVID-19 coronavirus outbreak has infected 250,618 people, claimed 10,254 lives and spread to 182 countries and territories around the world and 1 cruise ship. As these numbers are certain to continue to climb in the coming weeks and maybe months, the disruptive impact on the global travel and hospitality industry is sure to be lasting and significant.

The first area to feel the impact of COVID-19 were hospitality properties across the Asian Pacific region. It then spread to major global tourism markets like Italy and regional, business centres like Singapore and South Korea and now is working its way across the world.

As a result, the travel industry is at risk of experiencing a business downturn not just from travel restrictions put in place, but from lower levels of global and regional travel in general.
Information, analysis and planning are going to be critical for hospitality property owners and managers facing challenging operating conditions.

So, what can we learn from previous downturns and what do we need to consider to safeguard future business?

Let\\u2019s look at the industry history.

What we have learned from history

For after 911, occupancy levels in New York properties took 34 months to recover from the attacks, and the wider US market took 45 months.

In March 2003, the Severe Acute Respiratory Syndrome (SARS) virus spread across the Asia-Pacific region, causing widespread disruption.

Although the spread of SARS was quickly contained in 4 months, it took a further eight months for tourist arrivals to rebound and almost 18 months for a full recovery of the market.
In the past 15 years, the hotel, resort, inn and bed and breakfast industry have become more resilient to shocks of turmoil. In effect, the time that it takes for destinations to recover from these shocks has significantly decreased.

I realize we are in new territory with the COVID-19 and this can be especially daunting for independent properties including hotels, resorts, inns and bed and breakfasts, but based on history and how well our governments react, the travel industry will recover in time. The faster the virus is contained; the faster global travel markets and the regional hospitality property industry will recover.

While facing lower or no occupancy as a result of the downturn in travel is challenging to all hospitality property owners and managers, you should not panic, but instead, be positive that business nearly always comes back.


You First Instinct

As a hotelier or innkeeper, you should not implement anything you might regret later\\u2014such as dramatic price cuts to attract guests from non-targeted profiles or giving too much business to unclear channels. Rather, you must take a long-term view of what is best for your business.

First, you must avoid making \\u2018gut-instinct\\u2019 or emotional decisions in the face of current market uncertainty. Rather you should focus on rational, analytical and data-based strategic approaches to pricing.

For example:

When faced with a high volume of cancellations or government-ordered closures, properties might be tempted to offer short-term discounts and to start relying on more expensive distribution channels to try and attract bookings when the regulations start to relax.


Instead of panicking, take a long-term view of what is best for your business and if you continue reading, I will share some ways you can do that\\u2026


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