We are faced with a new virus that spreads very rapidly and without a proper cure and/or vaccine and as guests/customers have canceled most/all of their travels, hotels have been forced to adjust and adjust fast.

Cash is vanishing much faster than is accumulating and under this situation, the management priorities are very clear; safety of staff and guests first and second, cash conservation.

In some markets, the volume/occupancy at the hotels has dropped to the single-digit, while few other destinations are reporting slightly better performance but none above 25%-30% occupancy and in some cases hotels had to closed-down. This has been going on since the latter part of January 2020 (6 weeks), and the economic impact is immense.

Very bleak indeed, and can the world control this virus? Unfortunately, nobody can foresee how long this situation is going to last.

COVID-19 (a pandemic) is a major world-wide problem dominating the headlines and many businesses are starting to contemplate how this outbreak is shifting customer needs, employee expectations and impact on the way we live and behave.

As is the case with any crisis-emergency-epidemics it is imperative for hotel leaders to be able to react quickly and avoid panic and confusion. Accept that when faced with a crisis of this dimension, people need reassurance and proper guidance. A clear message must be given to all that management is responding fast and all efforts will be made to stabilize the situation.

Considerations, Precautionary Measures, and Actions by Hotel Operators

(Planning, risk management, health measures & infection prevention, cost controls, communication).

“Remember that prevention is better than cure” Of course, different location calls for different actions/response as there are hot spots/clusters of infections and Governments regulations and travel directories may be different from places to places.

The following are basic guidance and advice for the hotel operator/s and with the objective to bolster safety response/protocols and actions. "The DOS and DON'TS" during this nasty coronavirus outbreak that has a serious direct negative impact on the whole travel and tourism industry and all its people. Brands must be mindful of the decisions they make as the impact on customer loyalty and the employee experience may last long after this health
pandemic blows over.

It is never too early to be prepared. Must always have a contingency plan in place for unusual situations and ensure that your hotel is not suffering more than necessary. Don't panic and don't make snap decisions in any situation that may arise, leaders must maintain control and provide guidance at all times.

This is a time for heads of the organizations to be precautious, pro-active, focused on hygiene/safety/security and align the whole team to handle/manage the situation the best they can.

Remember that even during this difficult time, it is important to maintain your "public image" keeping things as positive as possible for internal (employees) and external (guests/partners) morale and motivation. Leaders need to call on a wide range of leadership styles, strengths and behaviors to help their organization and teams to move forward. Must gain trust from all subordinates.

General Response Planning

• Creation and implementation of a flexible/agile response plan for dealing with the emergency, focusing on employees, guests, and facilities. The hotel General Manager, assisted by key Executives and Department Heads (the committee) develops and drives this plan.
• A written plan that takes into account potential virus exposure to employees and guests and proactive steps aimed at reducing the probability of transmission. The plan also includes the ongoing business/promotion activities, cost containment measures, and potential interruption of basic supplies/utilities. A fluid plan that can be adapted as the circumstances evolve. The plan must be clear on what is mandatory and what is voluntary.
• Important that the plan takes into consideration existing contracts, collective bargain agreements if any, and is in compliance with local laws and regulations as necessary.
• Be ready and prevent any potential criticism/accusation from external and internal parties; guests, authorities/officials, insurance, shareholders, employees of non-compliance/not caring. This can be very damaging.
• Communication; it is of the utmost importance that all the employees are fully familiar with the plan and of what is expected from them. In house guests and visitors are also to be informed of actions and activities that the management has put in place and reassured of their safety and wellbeing.
• It is also necessary that owners/shareholders and other stakeholders are kept informed of the evolving situation in case there is a need for additional funds to operate the hotel.
• Is the outbreak classified as "force majeure?". This will have a direct impact on insurance, claims/refunds/cancellations, contracts/budget performance and in some cases on loans repayments.
• Regular communication with the local health officials for advice/updates on the situation.
• Keep a record of cancellations/lost business and keep up-dating your monthly forecast for the next 3 months as you must have a clear picture of the cash flow status.
• How realistic is you forecast? And how much cash you need to weather the storm?
• Negotiation with lending institutions to obtain some debt reliefs.

Wise to also consider;

• Plan B in case the situation becomes worse/uncontrollable.
• Business continuity and resiliency planning especially for finance and maintenance people.

Guests

• Waving of cancellation fee and allow guests to cancel or change reservations with no penalties.
• Extend loyalty/recognition programs benefits/points. Time to show care and concern.
• Change of dates/rebooking of events when/if possible at no cost to the guest. Not appropriate to hold medium-large events in the hotel during the period of the outbreak but can promote virtual meetings/seminars.
• Assess if it is necessary/appropriate to renegotiate groups/packages/promotions contracts.
• Body temperature check of all arriving guests and of all movement in-and-out of the property, front, and back. Isolate all people with high temperature (37.5 and above) and notify concerned medical/authorities.
• Obtain past 14 days' travel history of all guests at checking-in, and on a confidential basis. Basic information on their present health condition (precautionary measure). The objective of this is to define how to handle arriving guests who have been in infected locations as defined by the WHO or by the local authorities as you have to avoid the spreading of the infection in your hotel. This is not an easy task but must give confidence to all your people, guests, and staff.
• Must avoid accepting infected/potentially infected guests at all costs as this will be the reason by the officials to close a hotel.
• Make available hand sanitizers including alcohol-based disinfectants, face masks, latex disposable gloves, and others as per guest request on arrival and during their stay. If appropriate, can also place those in the rooms.
• Assess guest preference on housekeeping service in their rooms, if daily or at their preference as they may want to avoid contact with cleaning staff.
• Single-use/disposable and sealed cups/containers and bottled water in guest rooms.
• Provide guests with all information on safety/best practices, what you are doing to keep things clean and safe for guests and staff and provide a 24hrs point-of-contact in case of need/emergency.
• Offer automatic check-outs without guests having to stop at the cashier/front desk.

Employees

• Daily briefings/meetings for updates on the situation and of a plan of action. A continuous reminder of hygiene matters; hands washing, avoid touching the face, avoid shaking of hands, daily changing uniforms, shoes and others, maintain a safe distance and others. Sharing of the good practices as received from the company, from the authorities, from the industry and WHO. Without creating panic and confusion, conduct conversations and training on how to manage during crises.
• Develop a face mask policy as appropriate and ensure compliance (disposable masks).
• Review the status and compliance with the hotel/company vaccination policy.
• Strict instruction not to report to work if not well (a sign of cold/flu symptoms, fever or other related). Also not to report to work if there are confirmed virus cases in employee's housing complex/community or they had to visit hospitals, attended funerals, assisted old people.
• Remind all employees to stay away from large events and activities; sports, conferences, seminars, campaigning, weddings/celebrations, etc. Employees to notify the respective supervisor, in advance, if have to attend those.
• All must understand (as above stated) that an infected staff, or guest, is a reason for the authorities to shut down an entire property/hotel that must be prevented.
• Body temperature screening at employees' entrance for all coming and outgoing employees and every 4 hours (or less if there are concerns) during the work shift for all employees including management staff.
• Elimination of all business travels for all. Employees to report of any personal travels, leisure/family etc.
• Clarity on the handling of employees or guests requiring to be quarantined, who is doing what. Coordination with local health officials is a must.
• Change uniforms and/or working cloths on daily basis
• Provision of sanitizers to all staff including alcohol-based (60%-75%) disinfectants and promote usage.
• Importance of staff morale-motivation-alignment and caring attitude as all are on the same boat facing a common problem/crisis.
• A constant reminder to all to avoid the so-called "socially irresponsible actions" and of course of any stigma/discrimination.
• Invite/solicit the whole team to build-up personal immunity and a healthy lifestyle. Provide lectures/advice on this if necessary.
• Regular briefings and up-dates via knowledge sessions, video conferencing, walls of learning/posters, emails, etc. and continuous guidance. Take this time to learn and grow.

Labor cost

• It is a proven fact that during the crisis and with a caring attitude from the top, the entire work-force will respond positively and will contribute with whatever they can to the needs of the hotel/organization.
• It is also important that the whole team participates in labor cost savings including the top management, with no exceptions.
• A clear message to be given that the labor cost has to be reduced but without retrenching anyone. Savings can come from; Clearance of all accrued leave. Implement a no-pay period/s leave for all. Reduction of working day/pay. Splitting of functions/multi-tasks. Freeze of all hiring and of all replacements. Offer/solicit advance leave and others as appropriate. (there are times when management may need to consider extended pay leave for "needy" individuals, but those are exceptions and should be discussed with respective supervisor).
• Implement flexible working hours with the objective to avoid the busy rush-hours and crowd public transport, buses, subway, etc.

Hotel facilities

• Closing of outlets and other facilities based on demand and on safety. If feasible, look at shortening outlets operating hours. Simplified menus and spacing seating.
• Closing of room floors if there are savings.
• Special attention to sport/recreation areas/facilities; adequate chlorine for the swimming pool, clean gym equipment after every single use, close the sauna/steam/Jacuzzi.
• Assess if SPA treatments are appropriate or not.
• Continuous cleaning of children's recreational areas if any.
• Prepare a couple of rooms/areas exclusively for emergencies, perhaps one in the lobby area and one in the guest rooms areas close to exits.

Safety measures

• Set strict protocols for handwashing, coughing, sneezing and reporting symptoms.
  Over-communicate this in particular the social distancing.
• Consider a face mask policy and compliance as/if appropriate.
• The virus can live on surfaces and objects for a few days in particular where the infected people droplets land. Everything that is associated with infected people is contaminated and potentially infectious and this is the reason for continuous cleaning and disinfecting anything that guests and staff would touch frequently; Lift buttons, light switches, door handles, toilets, telephones, TV controller, in-room safe, coat hangers, all surfaces, tabletops, chairs, crockery, cutlery, tableware, floors, rugs, containers, trolley, vehicles, etc.
• Detailed processes for handling line and guest’s laundry.
• Usage of proper disinfectant products (hospital-grade) and disposable cleaning tools throughout.
• Frequent washing of bedrooms comforters/duvets, pillows, mattress tops, bed runners, curtains. And frequent shampoo of carpets.
• Review the whole process of handling food from ordering, inventory, receiving, storage, requisition, preparation, and serving. Apply strict safety in all aspects. All food handlers to wear gloves and change those often. Not the time to serve/promote raw/uncooked food nor buffets.
• Ensure that all visitors/vendors/suppliers/deliveries practice all safety standards.
• Assess if appropriate for those people to enter the service areas or not.
• Disinfectant rugs at front and at back entrance.
• Review the process of garbage disposals and of any changes/improvements to be made.
• Review the efficiency and cleanliness of the hotel central and individual air filtration & purification system. Is there a need for UV air sanitation in specific areas?.
• Good practices posters/reminders on hygiene and safety throughout the property.
• An appropriate time to conduct a fire drill with an evacuation exercise and assess readiness.
• Disposable face masks (basic information);
• Wearing of face masks is a useful preventive measure and cultural habits in some countries/locations in particular if one has a cold/flu. But, it must accept that the mask does not provide an adequate level of protection when faced with an infected person as based on experts, the virus is spread from normal respiratory droplets and in particular by coughing and sneezing.
• Important to recognize that there are infected people who are not showing any signs of sickness but they infect others, this is probably the biggest reason/source of so many infections.
• Ideally should maintain a distance of 1.5 to 2.0 meters from any encounters that in most cases is not feasible in the hotel and in particular when taking public transports.
• Note that wearing disposable surgical masks prevent you from touching your nose and/or your mouth as normally the infection takes place through nose-mouth-eyes.
• We need to remember that disposable masks attract dust/dirt and must not be reused. Special attention when taking off the mask and how it is disposed of. Business Promotion and Activities & Recovery Plan
• Ensure that your hotel doesn't suffer more than necessary during the current situation and be ready. Be up-to-speed with the various travel advisories/restrictions and other relevant updates.
• Maintain the brand image & pricing during the crisis. Don't drop your published/retail rates as reducing rates, in general, does not stimulate demand and protect your online image. Offer discounts from those rates and/or added value. You can get creative with packages like "two for one " or "three for two" including F&B services and others but those must be for a specific period of time.
• Keep service levels and a sense of security/safety during those periods. Spend more time with guests as this is time to make friends (of course practice hygiene basics like no shaking of hands, maintain the so-called social distance, etc. with all encounters and with the guests).
• Continue looking for new markets during and after the crisis. Does the local market/community offer any opportunities?
• Promote web conferencing. A good time to position your hotel in this potential line of business as virtual event platforms/online events is growing very fast.
• Don't cut your marketing budget, you may need to increase it at the end of the crisis as you may have to "buy the business".
• Develop a strategy for the image for tactical advertising activities and based on the local situation, assess if to continue advertising (tactical) or not and how; if digital or other efficient ways.
• Thinking post crises and identifying new opportunities and articulating the vision for recovery.
• Prepare an attractive welcome-back campaign/package ready to go and implement as soon as the situation improves (avoid wasting time at that time).
• Assess the opportunity to promote the destination with other travel and tourism-related industries; airlines, agents, tourism offices, etc.
• Monitor your competitive set of what they are doing better than you.

Others

• Any Government assistance/reliefs? taxes, fees, utilities, etc. who is handling?Look at the possibilities of renegotiating with vendors/suppliers with the objective of cost reductions without impact on the quality.
• Any opportunities to reduce repairs, maintenance and utility costs?.
• Time to review existing outsourcing agreements and assess if those services can be temporarily done by the hotel/staff.
• Based on the status of the cash flow, this is an appropriate time to do renovation/product up-grades and speed-up the planned schedule. Clarity on Insurance Coverage and Responsibility
• This is also an appropriate time to review all insurance coverages what's it includes and what's not. General liability, business interruption, natural disasters, force majeure, directors and officers liability, claims and others.
• In the unfortunate case that an employee contracted the virus while working (on-site or on a business trip). Whether he/she spread it to family members, to other employees and/or to guests, the hotel must be clear on what is the coverage/who pays for what including the best/most suitable cure/hospital, time off, medical expenses, permanent disability if any, death benefits and others. Hotels must be covered and prepared for any
  possible scenarios.

Suggestion

Stay away from the "infodemic" (fake news) as those are creating unnecessary/additional problems and panic but do consult with your local health authorities and follow the WHO guidance.

Continuous message to all; we’ll get through this, we just need to continue to support one another.

Giovanni Angelini
A 50 year veteran of the Hotel-Hospitality-travel industry with a wealth of experience acquired in 4 Continents, Asia in particular. A long term resident of Hong Kong and Retired Chief Executive Officer of Shangri-La International.

A board member of several large corporations and member of many industry related and quality management organisations. Founder of Angelini Hospitality, providing consultancy and advisory work to developers and hotels-travel-tourism organisations.

Recipient of two Honoris Causa (Doctorate) in Business Administration and in Global Business Leadership, four Lifetime Achievement Awards, the 2006 Corporate Hotelier of the World, Maestro del Lavoro (2014) and of several other recognitions and awards.

www.angelinihospitality.com