BY HOTEL BUSINESS EXPERT INSIGHT
By Amanda Nicholas
The US travel economy experienced a $492 billion loss from March to December 2020. There is no doubt that the hospitality industry was one of the first segments affected by the pandemic and may be one of the last to recover. To keep your doors open and position your hotel for ongoing revenue recovery, here are 3 key points to keep in mind.
Train for the marathon, not the sprint
Hotel revenues are down an astonishing 80% with some forecasts predicting that RevPAR won’t return to peak levels until 2026. We saw post-9/11 that some submarkets of hospitality bounced back faster than others. As the industry pulls together to recover, it makes sense to take advantage of the latest insights gathered on doing business during the COVID-19 era. You are not alone, there are many tools and resources that can help on the road to recovery.
Group, corporate negotiated and many retail segments may be the last to recover, dependent on widespread vaccine distribution and herd immunity. So, what is your revenue generation plan in the meantime? There are several essential businesses that are not only traveling now, but whose production is exponentially higher than ever before. Learn how to redefine your competitive set, target new segments and go after opportunities that exist outside of your immediate backyard.
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Amanda Nicholas, VP of business development at Jacaruso Enterprises has led several revenue organizations through all demand cycles, including Noble Investment Group and OTO Development.