Sequel to the part 1 of my brief hospitality presentation on post Covid-19 business atmosphere for those of us in the hospitality industry. It is my sincere hope that Hotel owners, Managers, resident consultants amongst others; have learnt one or two things.
In this episode, I am going to be ” painting” scenarios and possible Mitigating factors against such.
1. One month post Covid-19 and your hotel does not have a turnover 1m to 5 million. What should you do?
a. Engage your facility for a marketing merger with hotels of equal rating; for hotels that have business tendency to recover faster. It will help your liquidity for recurrent business expenditure.
b. For those hotels that have idle assets and or over asseted, your business may have to downsize that burden for better liquidity and pragmatically manage active and non- gullible machines and others.
C. There will be the need to systematically plough back your sinking funds of the hotel to deal with quick business exigencies. Hotel business variables that can bring quick liquidity for possible ” Breakeven”. E.g aggressive on line marketing and mass consumer marketing events. for “Recoveries” could be faster in such ways. Now is the time to start planning ahead.
d. There is need to recapitalize operational cash flow from owners personal funds to spend your way( the hotel) into accessing ” FUNTIONS” and creaing even distribution of local territorial marketing.
2. Scenarios: Should be world be left with the only option for a ” Vaccine for every one, as result of Covid-19: this will then mean that; we all will have share a common global challenge on Hygiene and health matters as a hospitality concern.
a. Hotels that will introduce a better and stricter hygiene adherencies will systematically recover their business life faster than others.( From guest point of view.)
b. Hotels should begin to think of technological shift in the way we check in and check out guest, soft forms of guest data may capture health history status and growing concerns with regards to evolving health adherencies. ( United Nations may come with some policies for hotels that will do business with their agencies) Please start thinking ahead. The way we do hotel business in the hospitality industry will definitely change; for good anyways!
3. Scenario III. Supply chain could possibly change as hotels with inherent structure of business integration will recover faster than others without business ” Integrations” namely; forward integration and vertical integration. Example: ( Owning a poultry farm, Fractional ownership for needed supply chain consumables with over 1% monthly chunk on turnover.
Own an ancillary business subsidiary for the hotel for cash liquidity.( Pease see a hospitality consultant on this.)
Thanks for reading this piece!
The future which our world has conciously altered has come upon us, so start living it NOW!
Napoleon Mamman- IMC, MNCHA, HATMAN.