Philip Anandraj shares Impacts of COVID-19 on the Hospitality industry and Way Forward

As the world suffered from the pandemic that is Covid-19 over the past year and until even now with still the possibility of returning with another full-fledged impact not just in India but across the entire world, the main focus of the governments and all the businesses right now is the safety of everyone including themselves while being able to sustain or conduct activities in a somewhat sustainable manner.

While this may be the focus that needs to be continued without fail, the implications on the respective economic growth and corporate profits have led to a huge sell-off in the equity markets around the globe, which is a clear sign of a greater income gap leading the rich getting richer and the poor getting poorer. The impact has been humongous and not yet predictable on both the supply chains and the revenue.

Philip Anandraj points out that there have been numerous instances of budding and healthy businesses being shut down not to mention the entire disruptive effect on the tourism and travel ecosystem. Many were obligated to do pro bono service to the society under the garb of the emergency situation which most of the governments were ill-equipped to handle, for instance, many hotels were turned into isolation centers all around the world and many were not compensated well even in such a time of need where businesses were already suffering huge losses.

What should you be doing and what to focus on

• Check the impact on Occupancy and create a mitigation program
• Talk to your managers to discuss what they expect from the performance.
• Understand that the loss will be permanent or delayed. For investors, they must understand the impact on performance payments.
• For staff: assesses the impact on Occupancy which develops a risk reduction plan.

Philp Anandraj Hotelier tabulates Mitigation and Operational Impact

• Understand the impact on Revenue, Income, and Profit
• Be realistic and have the basics to understand important financial points and any breach of loan agreements.
• Reduce all operating costs at high cost and expense. Reconsider or postpone repairs and other major costs where possible to save money.
• Install an improved revenue management system and pricing models to respond to faster market development.
• For users: manage your payments to providers.

Financial impact

• If your predictions highlight the need for funding, check out the equity or available credit sources.
• Open to existing lenders and involve them in mitigation and contingency plans.
• There may be other lenders who can move quickly to provide temporary support. However, know that these may have higher interest rates and financial structures.
• Be sure to apply for a tax refund and other forms of financial assistance.

Making full use of your key stakeholders

• Open a conversation with discount providers, hiring, etc.
• If you break the agreement, talk to your lender to ask for a refund where this is a temporary problem that will not affect performance.
• Philp Anandraj hotel teaches us that focusing on HR, talent, and communication in giving your people clarity, and maintaining communication and ethics in this difficult time is really important.
• Give your visitor different cancellation options to keep the customer longer.

Keeping programs under active review

• This is a flexible and fast-moving environment. Be sure to keep an eye on changes in the situation and the possible consequences.
• Be prepared to respond quickly to changes outside of your normal business and business processes.
• A different management framework may be needed for decisions to be made quickly, coordinated, and implemented.
• Use the buffer time in between the waves to re-evaluate your business, train your employees and try to develop new products to be flexible, looking for new opportunities.

Conclusion

It is now safe to say that while these challenging times must have exhausted all the momentum that your businesses had strived to achieve over the past years of your experience and yet if you were able to survive then this situation is definitely going to turn in your favor because now is the time when all the frustrated tourists and yearning to experience good staycations. Philp Anandraj is optimistic as life is indeed getting back to normal and while it is also true that the possibility of a third wave is scary but it is pertinent to remember that it even means that more and more customers would cling on to their desire to venture outside of their comfort zone before being trapped in their homes once again.