The coronavirus, though unprecedented in scale and is not the first global crisis to hit hard the hospitality industry, so what should hoteliers do in dire times like the one we are experiencing right now? It is time for 'Crisis Management 101'.
This approach is similar to how hoteliers should be dealing with any regional or global crisis, whether with Zika, the coronavirus or the hurricane season.
In this environment of coronavirus scare and travel bans, hoteliers should develop and implement a crystal-clear coronavirus strategy:
- Mandate a “single voice policy” for all employees and departments so that the property has a consistent messaging regarding the coronavirus: you do not want your employees telling “different stories” to potential and existing guests.
- Provide honest and up-to-date information regarding the situation in the hotel location/destination. Example “We do not have any cases of the virus in New York City”
- Announce the fact that you do not have guests from countries severely affected by the coronavirus and countries with an existing travel ban (Ex. China, South Korea, Italy, etc)
- Clearly announce - on the hotel website, social media, via a decal at the front desk, etc. - what is your property’s coronavirus prevention program: We clean, spray, disinfect daily, we wear gloves and masks, we provide antibacterial hand soups, HEPA air purifiers, etc.
- Do not discount! Discounting does not help hoteliers defeat the negative impact of the coronavirus scare! Discounting smells of desperation and does not generate extra demand.
- Develop a robust Feeder Market Channel Strategy vs the usual market segmentation channel strategy. Focus on your short-haul feeder-markets and especially on your drive-in feeder markets. Why? People will continue to travel, especially on short-haul and shorter stay trips.
- Short-haul feeder markets can save the day! Analyze carefully all short-haul feeder markets and identify the ones that matter. Are there weekend specials, family, museum, special occasion packages, “Gas Refund” promotions on the website, F&B packages, etc. targeting the drive-in feeder markets? Launch SEM, GDN, GHA, CRM marketing campaigns, multi-channel campaigns, etc., geo-targeting the important to the property drive-in markets.
- Long-haul feeder markets: Don’t abandon these markets - there will be long-term negative impact if you do so. Analyze if there are any long-haul feeder markets that are not affected by travel bans, flight cancelations, etc. and are still salvageable. Are there promotions in the respective languages for the next travel season and any website messaging that need to be developed for these markets? Work with your overseas partners and launch a few digital marketing campaigns, geo-targeting these few long-haul feeder markets that can still generate business.
- And finally, don’t panic and pause or decrease disproportionately marketing spend, but re-direct ad dollars toward the shirt-haul and drive-in feeder markets.
Crisis Management: The global hospitality business is no stranger to crisis management, read articles about how to manage a crisis, response to situations, PR & Crisis Communications and more - Click here
Max Starkov is a hospitality and online travel industry technologist and digital strategist with 20 plus years of experience in hospitality technology and digital marketing, hotel direct online distribution and revenue management, OTA channel management, hotel CRM and branding strategies.
Until recently, Max was the Founder, President & CEO and more recently, Founder and Board Director at NextGuest (formerly HEBS Digital) in New York City, the hospitality industry’s leading digital consulting, technology, CRM and marketing firm with 150 employees and offices in North America, Europe and Asia Pacific.
For over 20 years now, as a hospitality and online travel industry expert-consultant with all major expert knowledge networks, Max has consulted Wall Street analysts and investment bankers worldwide on the online travel marketplace, hospitality industry, online travel agencies (OTAs) like Booking Holdings, Expedia, Trip, HRS, etc.; bed banks like Hotelbeds.com; metasearch players like TripAdvisor, Kayak.com, Trivago; on Google Travel (Ex. Google Hotel Ads); Social media travel advertising (ex. Facebook's Travel Ads) and Amazon's travel initiatives.
Max has co-founded and served as President & CEO of three consecutive online travel startups: Travelbreak.com (OTA and online travel marketplace), WhaleMedia Technologies (hotel SaaS technology - CRS and Website Booking Engine developer), and NextGuest Digital (formerly HEBS Digital) www.NextGuest.com, the hospitality industry’s leading DMS, CMS, CRM and consulting services firm.
Max is a published author and recognized "thought leader" on travel and hospitality inventory distribution, technology and digital marketing strategies, and a recipient of many industry awards, including the HSMAI "Top 25 Most Extraordinary Minds in Hospitality Marketing.”
For over 20 semesters Max has been an adjunct professor on hospitality technology, online distribution in travel and hospitality, hotel digital marketing and CRM at New York University's Tisch Center for Hospitality & Tourism.
Max has an MS in Economics of International Tourism & Hospitality and an MBA degree, Beta Gamma Sigma Honors, from Fordham University in New York.