Considerations to operate under levels 3 & 4’s restrictions

Properties have been closed for 6+ weeks counting losses with zero cashflow, which is naturally unsustainable and beyond survival. The Tourism minister advised in a webinar hosted by the department on 29 April that: level 1 is expected to activate only around 1 December which is frankly too far out for most owners and hoteliers. Level 2 allows local business and interprovincial travel which we might reach in Oct/Nov. (that is 5-6 months from the date of this publication).

Levels 3-4 only allows for service provision to companies in possession of an essential services certificate (surrounding by its own set of red tape changed several times), and to offer self-isolation/quarantining. The latter is not ideal due to the health risk posed to the building (in the case of mixed-use establishments and aparthotels). Most would then opt for offering accommodation to essential service companies. Easier said than done as interprovincial travel is generally prohibited aside from a window over month end. This means that majority of potential business would lie in surrounding areas and further afield but still within the province. The apparent peak of the virus will reach in September only and CPT itself is expecting 80 000 cases of which 10% would be critical according to local government reports. Sad to say but we could expect demand to come from this anticipated event and in the months prior to its arrival as all prepare for it.
We aim to outline some options available to all accommodation providers to indeed operate during levels 3 & 4 albeit at a limited capacity but to soften the blow of zero income.

Summary of levels of allowed activity for accommodation and restaurants

– Compliance

o Essential services certificate can be applied for by writing to the Dept of Tourism ( contact me on jaco@hotel-revenue-manager.com for details and requirements)
o One can apply on www.bizportal.gov.za as well but the accommodation option has been mysteriously removed since entering level 4. Suppose one could list Supply of Essential Services as an option but no clarity on this and neither confirmation that it covers our sector. (we can assist obtaining the certificate if you contact us)
o Amended Occupational Health and Safety Act have been aligned outlining additional measures required from operators and available from us should you need a copy

– Operational Considerations
o F&B not allowed except for food delivery. Consider advertising this and deliver to outlying areas. Reminder of the curfew between 09h00 and 20h00
o Open a small %age such as 10% of rooms initially to keep costs down whilst measuring the demand pickup and staff accordingly.
o Reception can be limited hours and closed between 21h00 and 06h00 due to existing curfew.
o Opt for contactless check-ins and departures and the least amount of guest/staff ‘face time’ as possible, throw away the usual bells and whistles and keep it simple, efficient and sincere (don’t worry the guests will understand)

– Pricing
o from research a general Cape Town ‘winter rate’ or low season rate is acceptable. But forget about limitations and opt for room only rates.
o Open all OTA’s, IBE, GDS and wholesalers, don’t discount deep but do join tagged promotions. Don’t undercut yourself.
o A recent meet up with one of the major OTA’s indicated demand from October onwards, is for 3+ guests for stays between 1 and 6 nights with 7 as the max. 85% of searches was from local IP addresses. Be flexible and don’t restrict rates and its conditions. Ensure you have an advance purchase deal, NRF rate and fully flexible rate plans available (year-round actually) to appeal to all searches and convert optimally. Child policies are generally outdated and forgotten and should be up to date.

– Sales and Marketing
o Hammer the database emails, share your staff photos ‘on the front line’ (fully kitted with PPE), and base the feeling around ‘care of duty first’. Offer some rates but the message should offer confidence, cleanliness, safety and care as primary and price after this.
o Ensure your own website have information on your cleaning policy, limited services and precautions in place to instil peace of mind for potential bookers.
o Share good news and inspirational quotes with the core that ‘we are in this together’
o Look at the corresponding level 3 & 4 industries allowed to operate in your city and outlying areas and pick up the phone: tell them you are open and follow up with emails.
o List and or contact the following aggregators of essential service accommodation:
 H-Solutions
 Ubuntu-beds
 Cape Town Tourism
 Villas & Hotels for Africa
o Consider a charity drive and or fund raiser if you have a large property of following

Remember there are also several funding options available (read here)

We are available daily, please get in touch, we help where we can without obligation. We are in this together and have to make it work, it too good to lose.

Stay safe and take care.

jaco