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Coronavirus and Hotels: 5 tips as an anti-crisis strategy

Coronavirus and Hotels: 5 tips as an anti-crisis strategy
These are the days that we will all remember as the time of the Corona Virus. It is certainly not an easy time. We are at the mercy of events, many of us are counting cancellations, lost revenue and are activating promotions driven more by panic than by a real strategy. However, hospitality businesses have faced challenges before and ultimately have overcome them. 

So let's not get too discouraged and let’s start using this time to  consider how we can mitigate the damage and display confidence that everything will soon return to normal.

Many of you are asking us for advice on what to do now and so we wanted to share our perspective and some (hopefully) helpful tips:


Don't lower the prices, but rely on yield rules.
Right now there is a drop in arrival and price reductions are largely irrelevant to customers who simply may not want to travel. Blanket price reductions will ultimately continue to hurt your business. When demand starts to recover, you don’t want to be selling underpriced rooms. Use our yield tools to help vary your prices based on occupancy. Set you bottom rate and ensure you prices increase in accordance with demand. 


This is a period of uncertainty, customers have a thousand doubts about whether or not to book and the more restrictions you put on sales, the more difficult it will be to receive new bookings. It is preferable to have flexible cancellation policies to leave freedom to the customer. People will simply be hesitant to book any sort of non-refundable rate in the current climate. 


We have seen a lot of requests from guests asking for cancellations outside of normal terms and other asking for reimbursement of deposits already paid. Try to mediate with the client and offer vouchers with long deadlines for reusing the credit.


Upselling and Upgrade
Enter into a dialogue with existing and potential customers. Given you occupancy may be significantly down and revenue suffering, there is opportunity to incentivise guest to make / honour bookings with some great room upgrades. Keep your entry level rooms free, they are the easiest to sell. 


What sets you apart from your competitors? Now is the time to really emphasise it! Create those super special packages and go to town with your additional services. Advertise them on your site, try and attract some new bookings from what is currently a smaller pool. 


Ultimately these are difficult times. We hope they pass quickly and we wish all hoteliers the best of luck and the best of health.