W.I.T.H. Advisors Share Their Insights: Where Will Demand Come From in 2021?
The new year demands health-conscious hotels with rapid COVID-19 testing and vaccine delivery
by Robert A. Rauch (portions of this article first appeared in Hotel News Now earlier this year)
rauch@hotelguru.com/@truehotelguru
Healthcare, bio-sciences, education, and construction seem to be the best bets for demand drivers in 2021. Leisure travelers will come depending on the current COVID-19 numbers in both their market area and yours. Online Travel Agencies (OTAs), as they always do, will be a big factor during this recession. All of our channels must be open including discounts of all types until demand is normalized, perhaps during the summer of 2021.
To monetize the current demand profile, use aggressive, consistent digital marketing geared to specific groups like brand loyalty members or local guests who use your property for food, beverage, or rooms for friends and family. Constantly stay in touch and be positive about what you and your team are doing in the community. Facebook can laser-target guests to your page, Instagram allows you to do more fun things and email marketing allows you to personalize your approach to guests.
Invest in revenue-driving campaigns such as paid search, remarketing, and metasearch. This will put you in front of the guests that are still traveling or dreaming of travel soon. When “stay-at-home” orders and quarantines are removed, travelers will be ready to get out of the house and travel for leisure and business immediately. Ergo, be the one that is remembered!
Reactivate all dormant accounts and leads, review your Agency 360 report, and opt-in to pay-per-click and pay-to-play offers from reputable third parties like Expedia, Sabre, Booking, etc. Call every single lead and offer them a socially distant idea – meeting in your boardroom for a handful of team members, including snacks, beverages, food and let them know you just want to be there for them if they need anything.
Meetings and events now come with new challenges today. Hotels must find a way to organize their event space according to social distancing regulations and collaborate effectively with planners in a reopening as well as a potential hybrid meeting format. Room diagramming is a first step as is pairing with a supplier of hybrid meetings.
For those who are really wanting to push the envelope, how about offering COVID-19 rapid testing. If universities, basketball teams, and others can do it, why can’t you? Partner with a healthcare organization and offer the tests to guests on check-in. If you make the tests mandatory, you will have volume, costs will likely be reasonable and guests will either love you or “not so much.” Interestingly, there are many places where testing is still not readily available. You might fill up just because of the tests. This can quickly morph into requiring guests to have proof of vaccine.
Forecasting the Future
Demand from group and corporate travel represents a sizable chunk of room nights booked and it is at a much higher rate than leisure demand. It will likely take 3 to 4 years to recover these segments to pre-COVID levels. The successful delivery of multiple vaccines for COVID-19 may return travel to normal conditions sooner than this. Pricing power will have to factor in short-term rentals, new hotel supply and new corporate policies that may or may not encourage business travel.
We can only hope that a slowly improving Q1 of 2021 leads to a strong Q2 with a renewed desire for safe travel. We can face all of these challenges head-on. Enhanced hygiene tools can differentiate one hotel from another and the hotels from vacation rentals. Vaccine delivery will have an enormous impact on travel. First, travelers will feel comfortable making trips they would not even consider before taking the vaccine. Second, corporations will allow their team members to travel to events, conventions and on business meetings Third, consumer confidence will jump to new heights due to pent-up travel demand.
Hang in there! 2021 is here and will be vastly better than 2020!
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I appreciate Robert Rauch and his support. He is a valued member of the WITH Advisory Board and was honored as a WITH “GOOD GUY” in 2019. He is an internationally recognized hotelier; CEO and founder of RAR Hospitality (leading hospitality management and consulting firm based in San Diego); and he has more than 35 years of hospitality-related management experience in all facets of the industry.
Clara
Robert Rauch, CEO RAR Hospitality and Hotel Entrepreneur | sdwithit.com/advisory-board