After the height of the coronavirus pandemic (COVID-19), people will continue their lives normally. However, always with the feeling of “trauma and stress” before what we went through. The consequences of this event already mark the year 2020 and not only for hospitality, but for the global economy.
Those who know me know that I am passionate about the Tourism Industry, especially hotels. From an early age I have been working in this segment and I am always seeking to learn and improve, improving everything that involves this profession.
I study this market a lot, I read, Research, I try to be surrounded by people who can add value to this profession and I see how many good people are involved in this cause to present possible solutions post-pandemic together.
Impacts on possible payroll reduction
In Brazil, hoteliers continue to expect a final position from the federal government, which could possibly help both the entrepreneur and employees in this sector. After all, one depends on the other.
If there is no mutual assistance from the federal government, other problems may be aggravated,caused by a possible reduction in the payroll in the hotel industry in general.
It is up to the hotel industry in Brazil to visualize through its various associations what the international market has applied to withstand this crisis already. Remember the best practices in another article, when I mentioned the need for hoteliers to come together at that time.
In parallel to this, I wrote a series of three previous articles portraying this important subject, where I note that hoteliers should not expect only an attitude from the state or federal government, but on an emergency basis plan with your teams an internal strategy of all that is possible to reduce, cut, negotiate.
Each hotelier must have a contingency plan
As much as state aid comes, in my view it still won’t be enough to bear the burden of expenses that a hotel development has, even if it is closed for a certain time. I believe that all help will be very welcome, but every hotel entrepreneur, manager, entrepreneur, hotel manager should immediately have an emergency contingency plan in your business.
What is the biggest challenge today for companies to await government help? Will this liquidity they are actually addressing reach their destination? Will you get to your hotel? Perhaps this is another major challenge for the state to hotel companies.
If you, a hotelier, need financial contributions from any financial institution in the country, these banks will hardly fail to charge a guarantee of your assets. As much as we see valid initiatives, banking institutions never get lost. They may even extend the term, but the interest will be there.
Once the goods are not sold, it never sells again
For the hotel industry to go its way, it needs a box to support its operation. The fixed cost of a hotel development is very heavy and, added to the variable expenses, it becomes even more challenging to maintain the operation without revenues going into business immediately.
Do you remember the truck strike in 2018? After the strike, the resumption of hotel companies is always slow, because once the goods are not sold, it is never sold again. It is a macro analogy to get an idea of the size of the financial loss that will occur if there is no strategic planning that helps management at this difficult time.
Valuing the Business Intelligence area
The year 2020 for hospitality is to forget or take a great learning of all this and recover as much as possible so that 2021 returns to normal. I would recommend here BI professionals (many hotel companies do not have this function and many still unfortunately do not believe in this professional)..
I explain: now is the time to value and greatly your business intelligence (BI) team, strategic sales professionals and relationship with the market. For hoteliers who do not believe in the BI professional, be careful not to enter a tariff war “fighting” with products smaller or lower than your thinking only of their survival.
Hospitality should recover faster than other sectors
Those hoteliers who don’t like to exchange information to the market, thinking it’s a waste of time, will have to change their minds. See now how important it will be to analyze your competitive basket of your market together.
Analyzing the information presented in the Chinese market, experts from this market show optimism for the hospitality market. Other similar outbreaks have occurred in the country in the past. Therefore, the hotel sector should have a faster recovery ahead of other markets.
Bringing to our reality, post-coronavirus (COVID-19) people will be unafraid, but will move on with their lives normally, promoting the slow recovery of the economy. That’s what I hope and believe.
The reflection remains for all: the planet is asking for 40 days to breathe, and as the planet recovers, we need to protect ourselves.
@NilsonBernalHospitality
Co-Founder and CEO da Plataforma Bymschool. Consultor na área da hotelaria e hospitalidade, palestrante e escritor. Atua na Indústria de hospitalidade há mais de 25 anos em companhias como Complexo Jurema Águas Quentes Resorts, Bourbon Hotéis & Resorts, Mabu Hotéis & Resorts, Bristol Hotéis & Resorts e Atlantica Hotels International. É embaixador pela Divine Academie Française des Arts Lettres et Culture (Paris). Membro Executivo de Honra da Academia Europeia da Alta Gestão desde abril/2019. Atualmente mora nos EUA estando a frente de vários projetos.