Hospitality Businesses: Pandemic Survival Strategies

The hospitality industry has been one of the hardest-hit sectors during the COVID-19 pandemic, with many businesses closing down due to the inability to remain solvent. However, some companies have successfully pivoted their business models and strategies to survive and even thrive during this crisis. This paragraph will explore the various ways in which hospitality businesses are adapting and innovating to navigate the challenges posed by the pandemic and their efforts to protect their employees and meet evolving consumer expectations.

Businesses that pivoted their model or strategy

Many businesses in the hospitality industry have struggled to recover from the COVID-19 pandemic, with some closing down for good. However, some companies have successfully pivoted their business model or strategy to stay afloat.

Domio

The apartment-hotel company Domio offered free housing to medical professionals and first responders in Miami, Chicago, and Nashville. Medical professionals and qualifying individuals could stay for up to five nights for free and extend their stay at a 35% discounted rate. This allowed Domio to remain active during the pandemic and serve communities in these areas.

Kauai Soul Travel

Kauai Soul Travel, a boutique family-owned sightseeing company in Kauai, Hawaii, had to pivot its business to survive. Founder Maria Camero started a personal shopping and grocery delivery service for kupuna (Hawaiian elders) and other individuals.

Stensgar

Stensgar was the first casino in the country to welcome back guests after quarantine. To ensure the health and safety of staff and customers, the casino limited capacity, enforced social distancing, and instituted mask and temperature check requirements. Stensgar suffered financial losses during its closure but has since recouped its losses.

Vegas Party People

The limo operator had to adapt to new transportation carrier guidelines, including rigorous cleaning regimens, providing masks and hand sanitizer, and enforcing social distancing. They also limited their capacity and updated their website to enable touchless payment methods, including credit card and cryptocurrency.

Restaurants

Many restaurants were forced to shut down dining rooms and find alternative ways to deliver meals to customers. Drive-through, pick-up, delivery, and take-out services became the norm. Some restaurants partnered with school districts to provide meals for students.

Hotels

Hotels donated accommodations to healthcare workers and first responders.

Manufacturers

Some manufacturers pivoted to produce personal protective equipment (PPE) for hospitals.

Other Strategies

Other strategies that hospitality businesses have employed include focusing on local sourcing, sustainability, and plant-based ingredients to reduce costs and appeal to changing consumer preferences. Some businesses have also introduced set menus to reduce waste and altered opening hours to save on energy costs.

Focusing on local sourcing and sustainability

The hospitality industry has been one of the hardest-hit sectors during the pandemic. Businesses have had to adapt and evolve to survive, and one of the key strategies has been a focus on local sourcing and sustainability.

Supporting Local Businesses and Reducing Carbon Footprint

By sourcing ingredients and products locally, hospitality businesses can support local suppliers and small businesses. This strategy helps to reduce the carbon footprint associated with long-distance transportation, contributing to more sustainable practices.

Lower Operational Costs and Environmental Impact

Local sourcing can also lead to lower operational costs for hospitality businesses. During the pandemic, volatile prices and supply chain disruptions made it challenging to procure produce from abroad. By turning to local suppliers, businesses can access fresh and indigenous ingredients while reducing their environmental impact.

Embracing Sustainability and Eco-Friendly Practices

Sustainability has become a priority for consumers, with an increasing number of travellers seeking out eco-conscious accommodations and travel options. Leading hotel companies like Hilton, Intercontinental, and Marriott are reducing their carbon footprints by embracing sustainability. This includes implementing energy-efficient infrastructure, recycling programs, and locally sourced amenities.

Zero-Waste Cooking and Farm-to-Table Dining

The pandemic accelerated trends such as zero-waste cooking and farm-to-table dining. Restaurants that establish strong relationships with local suppliers can ensure a sustainable supply chain and reduce food waste. This not only benefits the environment but also enhances their brand reputation and attracts environmentally conscious customers.

Adapting to Changing Consumer Preferences

Consumer expectations and preferences have evolved during the pandemic, with a growing demand for environmental sustainability. By focusing on local sourcing and sustainability, hospitality businesses can adapt to these changing preferences. This may include introducing plant-based ingredients, set menus to reduce waste, and altering opening hours to save on energy costs.

Hospitality businesses that embrace local sourcing and sustainability not only contribute to a greener future but also position themselves to meet the changing demands of their customers.

Adopting new payment technology

The COVID-19 pandemic has significantly impacted the hospitality industry, with hotels and restaurants forced to close their doors and adapt to new ways of serving their customers. One of the critical points of these readjustments has been the adoption of new payment technology.

Contactless Payment Methods

Contactless payment methods, such as mobile wallets and payment apps, have become increasingly popular in the hospitality sector during the pandemic. This trend is likely to continue in the post-COVID-19 era, as consumers appreciate the convenience and safety of contactless payments. Hotels and restaurants that have implemented QR code technology, for example, allow guests to order food, process payments, and even control room functionality from their smartphones.

AI-Powered Solutions

AI has also played a significant role in the hospitality industry's response to the pandemic. AI-powered face checks are being used to grant guests access while simultaneously checking their temperature for COVID-19 symptoms. Additionally, hotels are now using AI-driven revenue management services to understand travel trends, booking patterns, and traffic sources to optimize their rates and attract guests.

Cloud-Based Solutions

Cloud-based solutions have enabled hotels to offer contactless services to guests and staff. Through web apps accessed via QR codes, guests can communicate with staff in real-time, make bookings, check-in, order services, check bills, and check out without having to download additional platforms. This technology also enables staff and management to share information and communicate efficiently.

Mobile Check-In and Key Access

Mobile check-in and digital key access have gained traction during the pandemic, as they reduce physical contact and enhance the safety of guests. Hotel Zetta, for instance, has implemented a mobile check-in and key access program, allowing guests to check in and access their rooms without touching any physical surfaces.

The pandemic has accelerated the adoption of new payment technology in the hospitality industry, with businesses embracing contactless, AI-powered, and cloud-based solutions to enhance safety, convenience, and efficiency for both guests and staff.

Protecting employees and maintaining communication

A hospitality industry attorney can advise businesses on crafting and revising policies and procedures that protect employees and the company. For example, the Coeur d'Alene Tribe assembled a task force to develop a combination of protocols, including limiting the number of people allowed inside, enforcing social distancing, and instituting mask and temperature check requirements.

Businesses have also had to adapt to new forms of payment technology, such as touchless payment methods. This includes enabling customers to pay and tip by credit card and cryptocurrency.

Another way to protect employees is to ensure that they are not overworked. With a labour shortage, some businesses have had to hire inexperienced staff, which has contributed to a decline in service ratings. To mitigate this, businesses can opt for a more focused menu, which can take pressure off food services and allow for a more tailored and carefully curated customer experience.

Hospitality businesses have also had to adapt to meet consumer demand. Market research has found that consumers want more from businesses during the pandemic. With a continuing coronavirus threat, an election looming, and divisive social issues top of mind, people are craving positive messages and uplifting stories. Hospitality companies are uniquely positioned to use their resources and assets for good. For example, restaurants have teamed up with school districts to provide meals for students, and hotels have donated accommodations to healthcare workers and first responders.

Providing positive messages and uplifting stories

For example, some restaurants have partnered with schools to provide meals for students, while hotels have donated rooms to healthcare workers and first responders. Manufacturers have also pivoted to produce personal protective equipment (PPE) for hospitals. These businesses have not only helped those in need but have also shared positive messages and stories that uplift their communities.

Hospitality businesses have also focused on creating a positive customer experience. Despite staffing issues, some restaurants, like Wahaca, have prioritised food quality, resulting in increased customer satisfaction and year-on-year growth in advocacy. Other businesses have invested in staff training to improve the friendliness of their service, ensuring customers leave with smiles on their faces.

To adapt to the pandemic, many hospitality businesses have also prioritised plant-based ingredients, introduced set menus to reduce waste, and altered their opening hours to save on energy costs. These changes not only help the business but also send a positive message about sustainability and environmental awareness to their customers.

Through these actions and messages, hospitality businesses have played a crucial role in supporting their communities and spreading positivity during challenging times.

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