Covid-19 has wreaked havoc on the world and left in its wake, serious economic decline and unemployment rates that rival the Great Depression of 1929, but few industries have been hit harder than hospitality.
With lockdown 3.0 beginning to, an unparalleled vaccine effort and a clear roadmap with an indicative end date, hospitality can start planning its revival.
The next few months will be critical to the short term and long-term future of the hospitality industry and Procura Consulting has written about their strategy to help their clients prepare for any potential challenges the industry will face and what they can do now to mitigate uncertainty and set up for success.
Thinking of reducing your prices? Reduce cost first.
For over a year, the hospitality industry has been plagued with intermittent closures, restrictive lockdowns and travel bans. The majority forced to take precautionary measures to stay afloat, predominantly targeting PAYE spend, relying on the furlough scheme and making significant staff reductions. However, with an exit plan in place and demand forecasted to return in the second half of the year, staff will need to resume duty and leaders will need to look at other ways to remain agile through the first phase of recovery.
Financial stability and profit enhancement seem like foreign concepts to industry leaders at present and the first instinct during the revival phase will be to start earning and at any expense i.e. planning for new ways to attract demand, dropping prices to capture the first onslaught of customers and exploiting every revenue avenue possible. Although dropping rates to demand stimulate your way out of the crisis may seem like a quick fix, it will not be conducive with a sustained recovery, both for the business and the industry.
Read the full article on Procura Consulting website.