As the global hospitality industry has been around for close on four millennia, it has faced the brunt of numerous socioeconomic and geopolitical issues.
This has resulted in an industry that has been able to adapt in the face of sudden changes, shifting its operational foci to suit the needs of the times.
Of late, however, industry professionals and those seeking to invest in hospitality-centric enterprise have been wondering about how hotels and other accommodation providers can be made even more resilient in the face of war and the heightened economic instability that comes in its wake.
With this in mind, the question we need to ask is this: Is there such a thing as truly crisis-proof hospitality?
Defining crisis-proof hospitality
Admittedly, no industry can call itself 100 percent crisis-proof, but it always pays to be ready for any issues that may come about.
In the case of the hospitality industry, a good working definition could be hospitality that develops, implements, and maintains resilient operational strategies that will enable both hotel management firms and individual properties to adapt, survive, and even thrive during highly disruptive, evolving, and potentially long-running situations.
Possible strategies may include establishing operational agility throughout the organisation, making safety and security a key priority area, adopting innovations and relevant technologies, and reinforcing relationships with stakeholders.
developing, implementing, and maintaining resilient business strategies that allow organizations to adapt, survive, and thrive during unforeseen disruptions, such as pandemics, natural disasters, or economic downturns. Key strategies include fostering agility, prioritizing safety, leveraging technology, and maintaining strong relationships with stakeholders.
What characterises a resilient hospitality business?
There are six main concepts adapted by companies that seek to make themselves more resilient in the face of impending and ongoing crises.
These are:
- Being proactive For this, an approach best referred to as The 5 P’s can help arm hospitality firms against a crisis: predict potential issues; prevent any damage to property or reputation; prepare contingency measures well beforehand; perform to the best of abilities when an issue does come up; and perform a post-action assessment to see where they can do better;
- Strategic diversification Especially for companies operating in countries where tourism is a prime contributor to the national economy like Thailand or the Philippines, it does not pay to advertise or promote to a single market. In which case, market research plays a major role to determine potential revenue streams based on age groups, sectoral mix for business travellers, and even gender dynamics;
- Operational agility Flexibility is key when it comes to making companies or individual properties crisis-proof. Both staff and facilities need to be restructured so as to be ready for any developments that may arise. Especially in times of economic crises, this may involve restructuring workflows, reducing costs by making adjustments with suppliers and contractors, even modifying amenity and menu offerings;
- Tech integration The right tools go a long way in making properties resilient in the face of ongoing instability, especially if relevant technologies are applied throughout the organisational structure from front end and housekeeping to F&B and assets management. Technology may also mean the implementation of measures related to contactless service, as well as digital marketing;
- People-centric leadership We have pointed out in previous articles that industries like hospitality, MICE, and tourism all require a human face as well as a human touch in order to become successful, and this human element also works in the case of resilience development. In this case, it involves investing significantly in employee training in compliance with evolving safety and service standards, as well as to offer guests reassurance in the event of an issue; and
- Ensuring strong brand trust Knowing that a property is well prepared for a crisis without stinting on service quality is one way by which they can build their brand appeal with the public. Indeed, the knowledge that a property or a member of a known hospitality management company complies with the relevant standards for institutional hygiene, overall safety,
Guidelines for short- and long-term resilience in hospitality
On a practical level, there are several strategies that may be applied to make hospitality businesses more resilient, often starting with quick fixes that may eventually become long-term strategies.
Managing economic downturns, for example, may involve short-term solutions such as the management of prime costs throughout a property which may be done by giving more importance to labour and food costs to maintain healthy profit margins even with a decrease in customer traffic.
Rethinking marketing strategies and foci is another way, particularly if companies and properties shift from traditional advertising and marketing tools to digital, making the most out of free channels on social media to maximise their audience reach or hyping up loyalty programmes to maintain the engagement of their current client base.
But while these may be effective, hotel management companies still need to contemplate long-term solutions to keep their enterprise crisis-proof and resilient.
In which case, it is recommended that continuous learning regarding crisis management and prevention be mandated for staff, putting an emphasis on learning from previous issues as well as relevant case studies from within the global hospitality sector.
At the same time, establishing stronger networks with industrial peers as well as suppliers and relevant government agencies develops a community-based approach to resilience which will benefit all stakeholders over time.
Finally, never underestimate the power of innovation in hospitality and the way advancements have driven its growth and ensured its very survival well into these uncertain times.
