Improved forecasting and digital marketing strategies in times of crisis

Marketing, much like disaster management, requires foresight, planning, preparation and every capable employee.

The hospitality industry is increasingly feeling the pinch of the novel coronavirus (COVID-19), as several governments continue to implement lockdowns, impose travel bans, and cancel events. In the European Union, which has recently been declared the new epicenter of the pandemic, occupancy has dipped by double digits in major cities like Berlin, Barcelona, and Rome.

The EU government earlier in March estimated that the virus is costing Europe’s travel industry an estimated 1 billion euros per month. In China where a chunk of global tourists come from, growth is projected to fall below 5% in 2020, a record-breaking low in over 30 years. The World Travel and Tourism Council has already warned that the pandemic could cut 50 million jobs worldwide in the travel and tourism industry.

However, hoteliers must accept the truth about the travel and hospitality industries: crisis, whether in the form of a pandemic, a natural disaster, or a political or economic meltdown, is inevitable. According to software and services provider Cendyn, there are several ways to prepare for a disaster, and the hospitality industry must be well-equipped to battle the headwinds.

In the digital age, hotels can leverage new tech capabilities and communicate in more innovative ways to reach new audiences. In the midst of a disaster, a hotel’s marketing arm should be alert at all times, ready with several contingency plans in case initial ones fall short.

Marketing in the time of a crisis
It’s tempting to reduce or eliminate marketing spend in times of crisis because it can be turned off instantly. It also feels less impactful than other expense reduction moves, such as cutting staff hours.

Resist the temptation! Marketing in times of crisis is what can keep a hotel top-of-mind in what is essentially a battle for market share and getting enough bookings to cover overhead.

Rather than reducing spend, hotels can refocus their marketing strategy to better allocate existing budget by adjusting segments, messaging, pricing and offers. By understanding the demand in the market as it grows, Cendyn suggests strategising accordingly whilst letting the travelers know that you are open and ready as ever for their business.

Amidst the threat of COVID-19, many businesses announced that they will not be closing, but emphasised that they are taking extra steps to ensure the cleanliness of their facilities and the safety of their customers. Many of them have put in place rigorous cleaning routines to ensure cleanliness and put guests minds at ease.

A hotel’s customer relationship management (CRM) software is a source of rich guest data that can be used to personalise emails and create campaigns that are hyper targeted to specific audiences. Marketing teams can use this to segment and communicate with future bookings, previous guests and potential guests based on their location and preferences.

However, it is important to keep email sending to a minimum. Inbox saturation isn’t a good look, especially given current conditions. Developing a personalised, targeted email marketing strategy allows you to make specific offers to certain segments that may be interested.

To find out what customers are looking for in spite of a crisis, the A/B test never fails. It’s important to check whether new strategies will work by running some tests and achieving the right balance of visuals, offer, and copy.

Creativity wins
At the end of the day, digital marketing is a hotel’s best bet. It could be an email or a post on social media, but the important thing is to maximise all online platforms to reach existing and new customers. Hoteliers can also leverage loyalty by building special packages that they can sell directly via email.

“The smart move is to bring together revenue and marketing to craft a cohesive strategy that uses both pricing and marketing to minimise losses and maximise opportunities. Each crisis has its own specifics, so you’ll adapt your segments accordingly as your team identifies the bright spots and leans into those opportunities,” analysts at Cendyn said.

When Germany faced COVID-19, #StrandedInBerlin became a popular hashtag when a group of people decided to bring together those affected by the cancellation of ITB Berlin. Hotels can capitalise on these types of opportunities and offer their services creatively during a time of crisis.

To think outside the box, hotels must be willing to go beyond their usual strategies. For instance, instead of competing with nearby hotels like they’re used to, they can form partnerships and do some cross-marketing to gain more awareness and a stronger momentum.

Hotels can also be a venue for customers or the local community to contribute to a cause. It could be in the form of a donation box, an online fundraiser, or a raffle—in any case, customers will remember how a business acted in times of crisis.

What lies ahead
Marketing requires good foresight, planning, and preparation, and this doesn’t only involve the hotel’s marketing arm. As hoteliers develop their contingency plans and think about how to operate in various situations, they must bring on board every employee and think about every customer.

Times are incredibly difficult. Uncertainty, coupled with community health concerns and plummeting revenues, makes it really hard to do business today and plan ahead for tomorrow. The only course of action is to adjust quickly to this new reality, dig in for the long haul, prepare staff for the tough road ahead and build resilience across operations wherever possible.

No one knows exactly when the outbreak will come under control and business resumes. But one thing is certain: this too shall pass. The hospitality industry has survived other major global crises and hotels will get through this one as well. To read Cendyn’s detailed crisis survival guide, head over to their website.