The pandemic seemingly favored certain accommodation types. These were rental pools out of the city (meaning not IN the city), with self-catering facilities, close to some point of interest (natural/man-made) and that have direct access (not via a reception of some sort)
These units shifted their focus to provider of self-isolation units and getting an essential services certificate was quite easy. Those within a sectional title had a bit of a harder time convincing the body corporates to allow accommodation but there was no choice. This is the road we also took together with some of our other clients in the same bracket of accommodation type.
During the higher lockdown levels (4 and 3) occupancy levels were still very low, but one could quite easily close floors and sections of the property based on demand (which was available but weak). Nonetheless the doors stayed open and the phone got answered. Herein lies the key during the lockdown: staying open even if one senior member stayed on site and keeping the fire burning.
Unpaid marketing was doubled (just general top of mind awareness and communication of ‘you are safe’ was repeated over and over), with the idea of instilling confidence through the message.
During the above period even until now, most properties ‘mastered’ the art of improving the acquisition of direct sales. (direct sales which was on everyone’s tongue for some years now) It was made easier due to OTA’s revenues drying up (despite being open and bookable), but all our efforts were geared towards guest history maintenance and management and marketing activities. The result was quite astounding in that as much as 80-90% of the guests accommodated was from direct and repeat customers.
It is quite clear now that we do have the direct business ‘back’ we need to summarize the activities that got them to stay in the first place, and use it as a forward plan to maintain (as this is what we all wanted right?) Secondly, as time goes on, we need to keep our reliance on 3rd parties to a minimum where possible and at a higher selling rate.
Market indications say we can expect a season based on 2019 less 40% and that the apparant 2nd wave of Covid will certainly prolong the recovery. The recovery, back to growing curve will only occur in about 2 years from now. Richard Branson was recently quoted saying the same thing with the same timeline.
Therefor domestic business and leisure is your future clients, rather get them to book direct and if you need a list of tasks of improving direct sales please contact me. Government travel will only resume in Feb next year since the current state of emergency takes us very close to December and the end of 2020
In saying so, you would need to amend your strategy and or source of business. Remember there are always long term lets available so you can go that route as well (but don’t be greedy as high prices won’t convert into sales)
If you need help, just reach out to me
All the best until next time
Jaco
