_Hoteliers will need to win the hearts and minds of their customers
However, now that we are beginning to see the easing of restrictions present throughout lockdown, many people are considering whether they will be able to benefit from a 2020 domestic holiday. For hoteliers, June-August is a critical time as it makes a large proportion of the annual cash flow and if these months are missed then some hotels may not open until March next year.
Hoteliers have been working hard behind the scenes to ensure that they have stringent measures in place to ensure the health and safety of their future customers. The majority of hoteliers are gearing up to open on 4th July in line with government guidelines.
There is recognition that hotels can’t operate as normal, and there has been much talk already of the banishment of the breakfast buffet, amongst other things. Hoteliers are placing equal emphasis on ensuring their hotels have strict cleaning processes in place to guarantee their customers’ safety and comfort, whilst trying to ensure that the atmosphere remains pleasant and not too clinical throughout their stay.
There’s no doubt that many people remain fearful and will be weighing up whether they feel safe staying in accommodation, and if they do choose to, placing high levels of scrutiny upon where they stay. But at the same time, most of us have never spent so much time at home, and are keen for a change of scenery. That’s why, unless the government enforces a much stricter lockdown, I can foresee an uptick in domestic holidays, with occupancy rates reaching 25-30% over the summer.
Though this is a big drop on the traditional pre-Covid-19 hotel occupancy rate which would have been around 70-80% for these months, we expect these to remain at circa 25-30% for the rest of the year and then grow gradually as people adjust to the new normal.
In the short term, we expect the UK domestic leisure sector to return first with a considerable business being generated by staycations. There is nervousness about travelling abroad and more practically, there is currently a lack of clarity with regards to how people might even achieve this. As such, UK hotels in coastal resorts, close to national parks and traditional tourist destinations will benefit from this the most.
I’d argue that hotels are in a strong position to benefit from this. Within the traditional hotel sector, there were already stringent cleaning measures in place to maintain good hygiene standards and certifications to prove this, unlike Airbnb, which, despite implementing a new Cleaning Protocol for hosts in the wake of Covid-19, will struggle to provide the same guarantee. With so much emphasis on public health, future customers will want a level of cleanliness and sanitation they can trust, which hotels offer.
The major brands are aligning themselves with hygiene specialists to demonstrate the levels of cleanliness in the hotels by certification. Solutions being planned include pre-ordering meals as much as possible, providing clear protective screens at reception and a much-reduced front of house team, introducing a one way system with separate entries to enter and exit, no coffee and tea making facilities in rooms and meals being served via room service with disposable cutlery and crockery, rather than in the restaurant and bars.
In addition to domestic leisure, we are also approaching the peak of event season, with many people having plans for weddings and all sorts of sorts of celebrations. Whilst these undoubtedly won’t be the same as pre-Covid-19, there are many creative solutions being put forward by hoteliers to ensure that these events can go ahead as planned in the safest and as close to the original format as possible, within the new social distancing guidelines.
Whilst I don’t foresee business events like conferences going ahead, it will be possible that family events and domestic holidays can continue this year under this new normal, making happy customers and providing hoteliers with much-needed summer income.
The UK hotel sector is resilient and as long as hoteliers are adaptable and flexible, it will bounce back once customers place their trust in the hospitality sector.