With many hotels shutdown long ago, and those that have managed to stay afloat with essential services now closed, it is evident that coronavirus (Covid-19) has dealt a deadly blow on the global hospitality sector, and particularly the once burgeoning Nigerian hotel market.
Moreover, the mounting impact is expected to last long after the virus is curtailed, putting the acclaimed resilience of the tourism and hospitality industry to test.
But as governments, global economies and businesses marshal out their recovery plans, the hospitality sector is not left out, though business will never be the same post coronavirus.
First, the hospitality sector, which depends on huge inflows from air passengers, corporate events and business travelers, will wait for a while as people will be reluctant to travel soon after the virus is curtailed.
When normalcy returns, businesses open their doors and people begin to travel again, the few people who will step out of their comfort zones, will be looking for great deals from hotels.
It is obvious that with the grounding of economies, many businesses will collapse during coronavirus scourge, leaving companies bankrupt, millions of employees sacked and sufferings following. The sad reality would be low purchasing power for many across the world, and the collapse of the ‘middle-class’, which has become target of many companies in recent time.
With the low or no purchasing power, budget offerings will become key market across hotels in the world. Budget hotel brands such as Ibis, Best Western, Red Roof Inn, Extended Stay, among others will soar as guests will be looking in their directions.
Top global brands will also position their budget offerings to lure guests. The likes of Golden Tulip Essential, Hampton by Hilton, Park Inn by Radisson, Double Tree, among other budget to middle scale offerings by top hotel chains will also be in business shortly after coronavirus scourge is over.
“It is expected that many people will not be willing to travel soon after the scourge is over because of safety concerns, fear and most importantly, low purchasing power. So, travel will be skeletal and on budget after coronavirus”, Kachi Etokwu, a hospitality expert, explained.
He maintained that many hotels would be offering essential services long after coronavirus because patronage, which has been impacted by low purchasing power, would take long to improve.
For Femi Ogunyombo, a hotelier, the anticipated low purchasing power among guests across the world would force hotels to further scale down their services to match budget in the interim while luxury offerings would be abandoned until economies and businesses start to boom again.
“The likes of luxury hotels and resorts, four- and five-star offerings would suffer the worst patronage after the virus is curtailed because many people and even corporate organisations will resort to budget travel to match their low purchasing power and to cut costs”, Ogunyombo, disclosed.
Aside budget travel, another trend that will rule the global hospitality scene after coronavirus scourge is curtailed is heavy discounts to lure unwilling guests to stay in hotels.
Recently, the management of Kempenski Hotel Gold Cost City, Accra, Ghana, slashed its room offerings with heavy discounts to woo guests to take advantage of the lull in business occasioned by the huge impact of Coronavirus to enjoy the hotel, which for many, is surprisingly still open.
Until May15, 2020, guests can enjoy Superior Single room for $160, while Superior Double room goes for $180 inclusive of bed and breakfast at Kempenski Accra.
The rooms, which before now went for $250 and $300 respectively, are witnessing almost 50 percent discount, which has never been offered before even during the annual Ghanian independence anniversary.
It is expected that the rates would be slashed even more after May 15, if patronage did not improve as expected; all in effort to stay afloat.
According to RoomOne, a hotel data outfit, it is going to take time for hotels to restart after coronavirus is over and when they do, it would be more of essential services, heavily discounts offerings and guest-friendly mode to lure unwilling guests back to the hotel.
The outfit noted that guests should expect as much as 70 percent discount to entice them back, and that luxury offerings will be shelved for now, while rates would starting picking up when global economies rebound.
Andrea Hughs, a Sandton, South Africa-based general manager, disclosed that there would be no standard rating post coronavirus as most hotels would be willing to sell luxury rooms at standard room rate if guests insist.
“If a hotel gets 20 guests who insist on staying in superior room but would pay standard room rate, it would be a bad business decision to decline such offer when over 100 rooms are empty,” Hughs said.
He explained further that post coronavirus era, many hotels would be in reopening or opening mode, hence huge discounts are allowed to woo guests.
