As we all know that hospitality industry going through its worst days ever due to Covid-19 pandemic & assuming that first 18 months post reopening of the Hospitality industry will face tremendous pressure.
After Covid-19 Indian Hotel Brand will move faster than International brand due to its Eco working system.
Why Indian brand moves faster than International brand?
International tourists prefer to stay in international hotel brand in India, but due to Covid-19 India may face a scarcity on International visitor. It's mainly for the uncertainty over the flight movement on cross boarder & high protection measure.
Domestic Hotel Brands will gear up faster due to the maximum movement of domestic visitors & within 18 months will achieve the standard occupancy percentage.
Cost of operations will be very economical at domestic brand comparisons to international brands. All the hotels must need to follow the prevention measure such as hygiene & social distancing which will add additional cost to the room tariff than regular price. Now to fit the new price to customers bucket it will be challenging for international brands as regular guests' needs to pay higher prices than earlier prices, which may not be pocket friendly for all guests & it will tend to move them to domestic brands that could fit their budget.
There are chances to see less travelling movement against pre Covid-19 era. This will be helpful for domestic hotels with an inventory of 50-70 rooms inventory to maintain a decent ARR & RevPar along with occupancy%. International Hotels maintaining >200 rooms, capacity could see a fall in the RevPar & Occupancy%.
Best time to drive Direct Booking to the hotel.
Post Covid-19 era the hotel industry mandatorily needs to follow the hygiene & the sanitization process as per guideline. Hence guest will prefer to get the same assurance for their safety directly from the hotel. So this will give extra traffic to hotel website & more rings to reservation telephones for booking.
Strategically speaking, to increase the occupancy% hotel will offer BAR for hotel direct website than the third party seller, which adds additional commission to make the price higher.
The new trend will show that no hotel is specifically for corporate or leisure. All hotels will match the facility & amenity to grab maximum footfall with right price to the right customer.
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