2 Successful Ways (Tried and Tested) In Rejuvenating City Hotels Revenue Recovery
2020 was an especially dark year for the hospitality industry. In this downtime, hotels in the United States have seen their occupancy rates fall by more than 30% when compared to 2019’s figures. Fitch Ratings predicted that the European hotel industry will only recover in 2023. Of course, these were predictions for the industry before news of the vaccine were announced but to give a safe estimate, 2023 would probably be the year where travel figures may rebound back to its heyday.
Yet, the hospitality industry still stands strong today despite the hits it suffered during cities’ lockdowns and closure of international airports. How did hotels pivot from their usual business model to one that is more sustainable? They must have been doing something right with their revenue recovery strategies!
Day Use Bookings
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As cities across the world shut themselves off from global travel, the market to welcome international travellers began to shrink. Cities went on lockdowns to curb the transmission of the virus and people mostly worked from home. Domestic travel only started as most cities started to recover from the first few waves of infections. The lockdowns implemented by most cities forced many to work from home, and when most cities have flattened the curve, working professionals beg for a different space, one more conducive for work.
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Even as cities start to open up, most governments dissuade the idea of returning to offices to work. This may unnecessarily expose their citizens to the virus during their commute to work, or if safety precautions were not strictly enforced in the office, it could lead to virus transmission between colleagues in an enclosed space.
Enter workcations. Hotels saw an opportunity in this area and they seized it. Workcations allow working professionals to work remotely from a hotel. This can range from anywhere from a restaurant, or a lounge to conference rooms. Benefits were aplenty as power sockets were provided, with food and dining options available as well. Not to mention other perks such as WiFi, free-flow drinks and snacks. Different hotels may offer a variety of these benefits but most of them would definitely have basic ones like WiFi and power sockets. Of course, some people may prefer privacy and choose to book a room to work from. It is great if you have an important teleconference and can do without the distractions.
Working at a different space is a refreshing idea if you have been stuck at home for the longest of time. The change in scenery can rejuvenate even the most fatigued person, and help boost your efficiency at work.
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It’s funny how the pandemic has also created new words like this one. What exactly is a “daycation”? It seems like a blasphemous use of the word vacation, but I think hotels have been extremely successful especially with this marketing strategy. A daycation is simply the use of a hotel room for 8 to 12 hours without staying overnight. It is perfect for consumers who may not wish to pay the full price of a luxury hotel or for people who want a change of “environment” if they are sick of staying/working at home.
Most daycation deals offer dining credits, or additional discounts for in-room dining so guests do not have to worry about burning a hole in their pocket. Like all vacations, all facilities are free-to-use for guests. Guests can go for a dip in the jacuzzi, followed by a sauna sweat out or they can also utilise the hotel’s gym if they’re a fitness enthusiast and then head to the pool for a quick recovery swim. A daycation is a good way for guests to take a break in the present especially if they are feeling overwhelmed, and yet at a fraction of a price of a usual vacation.
Fundamentally, a daycation can be a workcation too, as exemplified above. While these two ways of hotels day-use bookings are more popular now, as more cities open up domestically, consumers can also look forward to making longer bookings such as staycations too. For most cities in Asia, a staycation in a domestic city nearby could be a good way to celebrate the Lunar New Year festivities! Meanwhile, hotels in cities who are just opening up could employ these strategies to aid their route to recovery.