Hotel Recovery Strategy Ideas To Prepare You for Reopening During COVID-19
Now is the time to get your full hotel recovery strategy and reopening marketing plan in order. Although the coronavirus (COVID-19) pandemic continues to ravage the global travel and hospitality industry, travel demand continues to pick up — slowly, but surely — in many destinations.
Today, I’m breaking down some specific hotel reopening and recovery marketing strategies based on three distinct phases of reopening:
In the first phase, your hotel is likely closed due to government conditions like restrictions on business or travel.
In the second phase, local restrictions are easing and your hotel is allowed to operate again.
Finally, the third phase sees travel demand increasing and the opportunity to really recover both occupancy and revenue.
This is a long one, so feel free to put the kettle on or skip straight to whichever section feels most relevant to you:
TABLE OF CONTENTS:
Part 1. No demand and/or your hotel remains closed
Part 2. Some demand and/or your hotel is reopening
Part 3. Growing demand and/or your hotel is in recovery mode
Hotel recovery strategy during closure, shutdown, or zero demand
We don’t need to go down the politics rabbit hole, but yes, some destinations are reopening sooner than others.
Which means, some hotels are open for business right now — but many are still not.
If your hotel is still closed, use this time to get organized, and look ahead to future recovery by nurturing your relationships with past and future guests.
1. Take care of marketing “housekeeping”
A good place to start? Check out this article on hotel marketing during a crisis. I go into tons of detail there about all the marketing “housekeeping” tasks you’ll want to get ahead of.
Prioritize these things now, to be ready when demand picks up again.
Some of the suggestions in that post include:
Audit your marketing assets, and think about what content you need improved or supplemented
Review all of your external listings and social media accounts. Spend some time capturing new, high-quality images or video, and make sure all relevant information is filled out, accurate, and up-to-date.
Create useful, entertaining content like a “Chef at home” series, virtual workshops, inspiring music playlists, or really, anything related to your destination that sparks a sense of wanderlust. (More ideas in this post.)
Create a hotel lead magnet to capture more emails and communicate with potential guests (Such as an ebook about your destination or maybe a pre-travel checklist)
Review expenses, such as software and other tools (Here are my favorite hotel marketing tools.)
Read Next: 25+ Hotel Marketing Tools To Have In Your Toolbox Right Now
2. Revisit service, safety, & cleanliness standards
Your COVID-19 safety and cleanliness procedures must be clearly displayed on your hotel website.
We like to think our hotels are already beacons of good hygiene and cleanliness, don’t we?
But it’s 2020, folks: read the room. You have to show guests that you’ve gone above and beyond your typical “high standards” to exceed their expectations.
No one is exempt from this.
Here’s what your hotel should communicate on your website re: COVID right now:
Your prevention plan and *updated* safety protocols
Your flexible cancellation policy (I strongly recommend waiving booking cancellation fees entirely right now.)
Contact information if guests have any questions or concerns
Frequently asked questions regarding COVID-19 and your hotel or destination (Here’s how to write your hotel COVID FAQ page)
How your hotel (and/or brand) is helping the local community
Here are a few helpful resources to guide you in creating your hotel’s COVID-19 procedures and messaging:
With your hotel coronavirus protocols prepared, now is the time to communicate any and all changes to guests.
Again, start by displaying your procedures prominently on your hotel website.
I recommend using an announcement bar that sticks to the top of every page. It’s also wise to incorporate this message “above the fold” on your homepage — as in, visible right when the user lands on the page, before they scroll down.
In 2020 (and probably well into 2021), your COVID protocols are the first thing a potential guest needs to see on your hotel website. Put this info front and center.
…but don’t stop there!
While you’re auditing the rest of your hotel content, update your social media accounts and online listing pages, too. TripAdvisor and Facebook both have specific COVID sections where you can place relevant procedures and protocols.
Read Next: Why Social Proof Matters More Than Ever For Your Hotel
3. Update property signage & directions
I talk about digital marketing a lot but your analog content is more important than ever as we need to minimize physical touch points for guests.
That means a lot of your property signage likely needs updating. As printing times can vary, it’s good to prepare as much as you can pre-reopening.
Consider your hotel’s onsite guest journey. What happens when guests arrive? With whom and what do your guests interact?
From your front desk to the elevator, then into the room and around the property, there are dozens of points where signage should be considered.
Some examples of property signage you may need to create:
Requiring masks be worn in your public spaces
Self-parking as an alternative to valet parking
Limiting the number of people inside the elevator for social distancing
Changes to your housekeeping procedures
Changes to operating hours or capacity limits in your F&B outlets
Changes to operating hours or capacity limits in your spa or pool
Changes to operating hours or capacity limits in your gym or other recreational areas
And that’s just the Front of House… You’ll also want to consider creating new signage for the Back of House, keeping your hotel employees informed of new procedures and feeling comfortable as they move around different areas of the building.
Read Next: How to Write Your Hotel COVID-19 FAQ Page
4. minimize physical touch points with tech
Building on the previous point about printing signage, the new hotel normal in 2020 means reducing as many physical touch points as possible.
This goes beyond rooms, too.
Hotels must consider all the different customer interaction points at their restaurants, bars, and other outlets. Savvy Hotelier’s article on reopening your restaurant after lockdown is a useful reopening checklist to reference.
Some of these changing customer expectations can be still addressed with signage, sure. But as the Wall Street Journal reports, many hotels are turning to technology as a means of changing the guest experience post-COVID.
What does this actually look like?
Voice-activated digital assistants like Amazon’s Alexa or Google Assistant, which can be programmed to control lighting and operate TVs
Mobile apps with features like digital room keys and secure payment processing
Messenger chatbots to easily order fresh towels or in-room dining service, as well as answer frequently asked questions like check-out time or restaurant operating hours
In some ways, the pandemic has forced many industries to adapt and innovate — hotels are no exception.
You can expect to see some of these advances in hotel technology become the norm going forward, so now is a good time to get on board if you can.
Read Next: Hotel Trends That Are Here To Stay, In 2021 And Beyond
5. Communicate with customers — Consistently
Earlier this summer, a survey conducted by Fuel Travel found that 75% of North American leisure travelers are open to receiving communications from hotels — even if they aren’t able to travel yet.
The topics those travelers were most interested in hearing about are:
Packages and specials for future stays
What the property is doing to protect guests
What the property is doing to protect staff
How the coronavirus is affecting the local area
The property’s COVID-19 response and procedures
If you’re a hotel marketing manager and unsure of what to post or share right now, start with the bullet points above.
Communicating with customers is always important.
Consistent communication is how hotels build a brand relationship and stay top of mind during a slow period or temporary hotel closure.
Remember, you have many channels at your disposal…
Hotels can use social media platforms like Facebook and Instagram, create and share stories on a hotel blog, and of course, utilize regular email communication through your CRM.
That last one is key.
An email list is arguably your hotel’s greatest marketing asset, so don’t be afraid to use it!
Is your database pretty small? Don’t fret. Here’s how to create a lead magnet and grow your hotel’s email list.
Keep sending those valuable, relevant emails consistently.
Provide future guests with value now, whether it’s a “Book Now, Stay Later” offer or useful content related to your destination. Entertain, delight, inform — just show up and show up consistently.
Watch the quick video below to learn the most effective email list-building strategy for hotels. ⤵
Hotel recovery strategy when it’s time to reopen and demand is growing
Is your city and/or hotel open for business? Welcome to the next phase of recovery.
Earlier this summer, research from CBRE estimated that hotel demand in the U.S. could take anywhere from 6-10 months (from January 2020) to recover. That was June — and the curve has not exactly been flattened. CBRE also suggested it would take 12-16 months for RevPAR and ADR to recover, but again, the situation remains (at least in the U.S.) very much not under control.
One thing I must say here is to tread carefully in this phase — we’ve seen the devastating impact of places reopening too soon, or too haphazardly. While your destination might be reopening, you could just as easily have to backtrack if there’s a sharp increase in cases.
My point is not to criticize or get political. It’s that your situation could still change suddenly.
In 2020 and beyond, the best thing any hotel marketer can be is nimble. Be prepared to throw everything out and go back a few steps, if need be.
(Source: GIPHY)
6. Monitor travel restrictions and demand
I’m certain you’re already doing this, but it’s worth mentioning.
To understand when your booking demand might pick up, look to your local and federal governments for changes to travel restrictions.
In places like the United States and Australia, travel can be restricted between states and sometimes, even cities or counties. Throughout Europe, there are all sorts of rules and requirements for travel between EU and non-EU countries. There are also talks of creating “travel bubbles” between countries who seem to have a firm grasp on the virus.
It’s a lot to keep up with, I know.
Here’s a quick list of other factors that could mark the initial rise in travel intent, indicating demand will soon pick up:
Your local and/or federal government is easing restrictions on business operation (ex. restaurants can reopen with outdoor dining or limited capacity)
Your local and/or federal government is easing restrictions on movement (ex. people are no longer required to stay home)
Your hotel website is seeing increased organic web traffic
Your destination and/or hotel is seeing increased volume of searches for relevant hotel or travel-related keywords (you can check this using Google Trends)
You’re starting to receive more future bookings and/or inquiries
Regarding that last one, research tells us that booking lead times are getting longer. That’s a big reason to have a flexible cancellation policy in place!
And honestly, can you really blame consumers for wanting flexibility right now?
According to Adara’s latest findings, U.S. travelers are starting to book accommodation anywhere from 60-90 days out. Meanwhile, many EMEA destinations could see shorter lead times. Expect to see booking lead times vary based on your destination’s unique travel restrictions.
Read Next: How To Increase Hotel Occupancy During Slow Periods Or Recession
7. Optimize your website for direct bookings
Hotel distribution strategies can vary based on the property or market, but generally speaking, the direct channel is the most profitable way to fill your hotel.
When travel demand strengthens, you need to ramp up your marketing efforts to support a direct booking strategy.
It’s more important than ever to provide a clear value proposition for guests to book directly on your hotel website.
Get together with revenue management and other key stakeholders to determine what you can do to offer more benefit to guests who book direct. Figure out that perk or perks — and make it prominent on your website.
Earlier in this article, I mentioned lead magnets as an effective hotel marketing strategy. Having this in place on your website also supports your direct booking efforts. Every email address captured represents a potential hotel guest.
Another recovery strategy for direct bookings is cart abandonment remarketing.
That’s a fancy way of saying, get in touch with potential guests who started — but didn’t complete — a booking on your website. With the right pixels in place, you can do this by automating a reminder email or targeting them with a Facebook ad.
Hotel loyalty programs also drive direct bookings and repeat stays. If you have a loyalty program or are part of a large brand with one in place, your website can be further optimized for those individual loyalty members based on their profile and preferences.
Within the confines of your current structure, if there’s any way for your website content to feel more personalized, go for it.
The best hotel websites speak directly to their ideal customer, either through personalization or on-brand copy.
Read Next: What Features Do You Really Need On Your Hotel Website?
8. Look first to your local & drive markets
With air travel down to record lows, hospitality business recovery will begin with your local and drive markets.
The simplest place to start with this is offering a local resident’s rate or special hotel staycation offer.
In 2020, many folks have spent weeks — or months — self-isolating. People are aching to get out of their quarantines and into a different environment, even if it’s just a “staycation” in their hometown. This is where you’ll see the earliest signs of demand growing.
Staycation-style hotel packages can be as straightforward and simple as you want — Advanced Purchase, Bed & Breakfast, a % off BAR — but keep in mind, this is what everyone else is doing, too.
Stand out from your competitors and shake up your offer.
What sort of experiences are you personally missing right now? Dining out at a restaurant? Going to the movies?
Design a staycation package that actually offers a memorable experience. Try incorporating some unique add-ons, such as:
Private in-room meals
Private dining in your restaurant space
Self-guided walking tours
Exclusive wellness activities, like an outdoor yoga class
In-room movie night with access to a streaming service like Netflix, Hulu, or Disney+
Plus, many more staycation marketing ideas for hotels here
With so many different air travel restrictions and entry requirements still in place worldwide, you can also expect to see increased interest from non-locals living within driving distance of your property.
Consider extending your resident’s rate or locals-only offer to a wider feeder market.
Look at your hotel website’s traffic using Google Analytics and monitor visits from nearby metro areas — these could be your most profitable potential feeder markets.
Read Next: Staycation Marketing Ideas For Hotels and Resorts
Feeling overwhelmed? Back to square one? Use my free hotel marketing plan template to revisit your audience avatar, define your goals and key objectives, and set your hotel up for a successful recovery. Download it below!
Hotel recovery strategy post-reopening, with increasing demand
There’s a light at the end of this tunnel, surely!
Travel might never feel the same, but the desire to explore new places and cultures is still there. The hotel industry has suffered incredible setbacks before — we recovered then, and we will recover now.
But it won’t be easy.
McKinsey & Company provides frequent updates to various business recovery scenarios. Together with research from CBRE, we can set some logical — albeit unpleasant — expectations.
Researchers predict COVID-19’s impact on the travel industry will be worse than post-9/11. As such, STR forecasts for the full recovery of pre-pandemic business levels vary from three years (2023) to five years (2025).
Marketing-wise, that means it’s time to hunker down and play the long-game…
9. Align your marketing & revenue strategies
For long-term business recovery, your marketing and revenue management strategy MUST be in sync.
As in, communicating daily, striving for rate parity across channels, collaborating on changes to offers, and so on.
Hotel marketers and revenue managers should be the best of friends right now.
As travel restrictions change and evolve, we need to watch closely to see when and how demand strengthens. These two functions will need to work together to uncover new feeder market opportunities and adjust your full recovery strategy as needed.
Distribution will also be a delicate dance — one that hotel marketing and revenue management will need to navigate together.
While prioritizing the direct channel should be a priority, you (still) can’t ignore OTAs.
Online Travel Agencies are (still) trusted by a vast number of consumers and a reliable way for many hotels to get those heads in beds. OTAs remain a critical component of a healthy hotel distribution mix.
Remember my suggestions from earlier in this article: Display your direct booking perks prominently and ensure consistency across online listings, including OTAs.
Read Next: Hotel Revenue Generating Ideas: Experts Share Key Takeaways From 2020
10. Learn, adapt, & adjust constantly
Typical hotel marketing plans look at the business in terms of a full calendar year or often, quarter-by-quarter.
Obviously, 2020 has other ideas.
Hoteliers need to have a month by month marketing plan in 2020 — and still be ready to change direction quickly and often.
That’s why it’s absolutely critical for hotel marketers to look at data, test, learn, and adjust. I shared a few specific strategies for adjusting your hotel marketing plan in a previous article, and the tips there are still relevant in the current climate.
Now more than ever, marketers must be agile, willing to learn, and able to apply data-driven decision making to their hotel marketing plan.
Test as much and as often as you can:
A/B test different homepage calls-to-action to see which one resonates more with potential bookers.
A/B test your hotel email newsletter to see what sort of content your list is more interested in right now.
A/B test your Facebook ads to understand both the audience you should target and the message or imagery that converts best.
We’re all navigating some pretty unfamiliar waters right now, but data and insights can help steer your hotel marketing plan toward a successful recovery.
Read Next: 5 Ways to Adjust Your Hotel Marketing Strategy Throughout the Year
11. Maximize conversions with retargeting & upselling
I mentioned retargeting as a strategy for reopening — reminding past customers of your property and getting in touch with folks who abandoned their cart mid-booking using an automated marketing campaign.
Retargeting should also be part of your long-term hotel recovery strategy. Along with smart upselling, it’s a great way to maximize each and every conversion.
By now, you’ve spent some time improving your hotel website content, building up useful destination-related pages, and nurturing your customer relationships over email and social media.
When you’re ready to fully reopen and welcome the growing demand for travel, it’s time to shift your marketing strategy toward converting those interested users.
Running retargeting campaigns over email and/or social media is how you’ll get them back on your hotel website and back into your direct booking funnel.
But how do you get more revenue out of these bookings? What can your hotel offer as an enticing add-on experience? Every little add-on helps increase your average booking value.
Some ideas for hotel upsells and add-ons include:
Breakfast or another private dining experiences
Spa credit, fitness classes, or another wellness experience
Creative welcome amenities, like a personalized hygiene kit
Pre-booking a private airport transfer
Bicycle, scooter, or another transportation rental
Exclusive reservation for the best poolside cabana or the best table at your hotel restaurant
Bonus points for your loyalty members
I’m barely scratching the surface here!
This final recovery phase is marked by increasing travel demand over time. At this point, you’re in a position to use upsells and retargeting campaigns to really grow your bottom line.
Make sure you’ve factored advertising campaigns into your hotel marketing budget for the year.
Read Next: What To Include In Your Hotel Marketing Budget For 2021
12. Consider new ancillary revenue streams
Thinking beyond guest rooms and restaurants, have you looked into creating new ancillary revenue streams?
The meetings and events landscape may never be the same. More folks are working from home and business travel is on the company chopping block for both health and budget allocation reasons.
It’s definitely time to rethink your meeting and event spaces.
Consider testing out hourly workspace reservations using empty guest rooms or conference space — or go even further and try creating a coworking space in your hotel.
Hotels have dabbled in coworking before — with varying degrees of success — but a post COVID “new normal” environment might actually be the exact conditions we need to finally make the concept work. Pun intended.
Final Thoughts
Phew, that was a long one — thanks for sticking with me!
I hope you found this hotel reopening marketing guide useful and take away some clear action steps for your own hotel business recovery.
If you’re looking for a way to put all of this into practice and ready to show your stakeholders, check out my free hotel marketing plan template below.