It goes without saying that the hospitality industry is currently navigating uncharted waters. As an industry, we have survived many events that made a severe impact on our financial well-being. 9/11, SARS and numerous recessions have all threatened the fiscal health of the hospitality industry. However, none of these events have had the global impact on hospitality revenue management that COVID has. 

Keeping up with the Generations

How will we begin to recover? Well, the key to success for any hotel in any market is understanding your customer. Understanding who they are, where they are traveling from and what methods they are using to book reservations are all key data points for any hotel revenue management company. At the best of times, this task was a challenge. Now, this has become even more difficult as customer behavior has changed drastically during COVID.

However, when we look into the trends, we may be able to predict generational behavior. Unsurprisingly, our older generations are not flocking back to the airport terminals. The baby boomer and silver hair generations are fearful of returning to travel. This is understandable as these are the age brackets that are more susceptible to serious health implications from COVID. Conversely, the Gen Z and Gen Y generations who are between the ages of 24-37, are returning to travel with vigor! Although they are on tighter budgets, these younger generations are ready to book their short term bucket list vacations.

Knowing your key demographics is crucial to effective data analytics in the hospitality industry. Understanding the needs and behaviors of different age groups will be critical to implementing profitable revenue management strategies in the post COVID landscape. 

Recovering with Tech

Revenue managers are only as good as their data. As the old saying goes “revenue management is selling the right room, to the right customer, at the right time.” As our industry adjusts to the ever changing needs of our guests, accurate data will become even more critical to implementing strategic revenue management strategies. 

With an effective BI tool, we will be able to utilize the data that we collect to create memorable experiences for our guests. For example, if your key demographic is of the baby boomer generation, highlighting the safety of your property will be crucial. This generation will only return to travel if they feel secure. Utilize your website and other marketing channels to display the efforts your property is taking to ensure proper sanitation. Building confidence in the safety protocols at your property will be critical to getting this generation of big spenders to return. This is just one small example of the power of collecting and utilizing data. More importantly, utilizing your data to understand customer preferences will help us to create bespoke offerings that will entice these travelers to return. 

Where will they go?

Across the globe, there remains chaos and confusion over what destinations are open to travel. Furthermore, there is no consistency among countries regarding vaccinations, thereby muddying the waters even further. For example, Thailand has not approved the Sputnik vaccine that was created in Russia. Russia was the largest source market for Thailand pre-pandemic. This is a prime example of what can happen when your historical data is not properly analyzed and represents a huge missed opportunity.

At the time of writing this article, 26.9% of the world’s population has received one dose of a vaccine and only 13.5% is fully vaccinated. In order for this pandemic to end, a large share of the world’s population needs to be immune to the virus. The United States currently has the most people fully vaccinated, with over 162 million. More crucially, India is second with 89.4 million people fully vaccinated. India is a large source market for Southeast Asia and it goes without saying that these numbers are of huge importance to the tourism industry in our region. India, along with China and Russia, are the largest source markets for Southeast Asian countries and what transpires in these countries will have a huge trickle down effect on travel.

Consistency across borders and also within countries would go a long way to easing the confusion and assist with implementing strategic revenue management tactics. Clearly, this is easier said than done, but the pace and scope of the global recovery depends on it. Beyond the immediate priority of mitigating the impact of the pandemic, countries will need to create a “new normal” for the tourism industry. Diversifying, shifting to more sustainable tourism models and investing in new technologies could help to shape a responsible recovery of tourism. 

Heading towards Recovery

As Western countries begin to recover from the financial effects of the pandemic, many of the 660 million people in Southeast Asia are still grappling with COVID-19 outbreaks and the effects of economic inactivity. We have seen creative initiatives implemented in an attempt to expedite recovery. For example, Phuket opened as a “sandbox” destination as of July 1st. Meaning, the city is allowing tourists to visit with no quarantine restrictions as long as Phuket is their single arrival and departure point. After a 14 day stay, they may travel to other parts of the country. Additionally, Thailand is planning to open to all vaccinated tourists without any restrictions in mid-October. The move is seen as a “calculated risk” to stimulate tourism and the economy. Since Mid-July, the Maldives has been fully reopened to all travelers. All that is required is a negative PCR test to enter the country.

Perhaps most interestingly, is the decision of Macau to reopen to mainland China without a mandatory 14 day quarantine. Under this protocol, travelers must produce confirmation of two vaccine doses in addition to a negative PCR test. Conversely, Australia is sticking to it’s plan of not reopening to international travel until the middle of 2022. Clearly, there are strategic attempts being made to stimulate travel across the region. However, there is a lack of consistency across the southeast Asian region which makes predicting a timeframe for recovery incredibly difficult.

Furthermore, there is an opportunity for further consistency across the vaccines. Recent studies have shown that mRNA vaccines have a much stronger efficiency against the Delta and other variants of COVID. This lack of stability makes it more imperative to focus on the demographic data of your key markets. Remaining aware of these trends will allow you to pivot faster than your competitors and expedite the recovery of your hotel.