Dear Colleagues
It’s almost unreal typing the word ‘pandemic’ and how to ‘downscale or close your hotel.’
Uncharted waters indeed. All posts and media talks about how to sell, how to protect staff and guests, how to contribute to the community, offering beds should hospitals run out, and and … I am yet to come across the hard questions. The questions that asks : ‘are we able to trade or not?’
Demand is dwindling faster than we can process cancellations. Here in sunny SA we still had hope, but it was smashed with the Presidential speech 5 days ago. Some clients still had a trickle of demand which we manage to generate, but after Sunday it all cancelled. In addition to selling a room, the challenge of the National Disaster Act’s contents and trading restrictions on F&B, put another nail in the coffin.
Questions quickly arose, (even at our aparthotel): do we close, do we stay open, do we run at 10% capacity?
In this post we wish to highlight some key considerations. (there are obviously a host more but these should help you decide)
Have a look at our illustration based on 3 scenarios or download it here: Covid 19 operational considerations pdf
As for ourselves: we are keeping the lights on in 10% of the operation as our source market allows us to. Very last minute business exist from local at lower than normal rate, but we fill the beds and keep the staff that would otherwise have had nowhere else to go.
We are on duty daily and keeping our eyes on business patterns in order to manage the day to day and rebound post pandemic, to ensure maximal profitability. We have seen a stabilisation in demand/supply Aug-Sep ’20, and very small but positive upturn in Oct. (remember all the cancelled events from sport to CTICC will take place later in the year and we foresee a bumper Oct to Apr ’22 if we get there, Deo Volente.
Remember: we are also seasoned hoteliers and can do more than just revenue:
- setting of operational standards and training
- training and coaching of managing (example: managing discipline in the workplace)
- sales and marketing plans
- operational and financial assessments and audits
- rooms/food/beverage cost control and improvement of departmental profit
- outsourced:
- payroll
- accounting
- reservations management
- housekeeping
- menu planning: design, costing & implementation
- budgeting and forecasting
- online marketing and anything in between.
Stay safe and stay in touch
Best, Jaco
