COVID-19 impact on hotels & HR action plan

COVID-19 IMPACT ON HOTEL INDUSTRY & PLAN OF ACTION
By G. Angelini

Businesses have been severely affected, and all destinations are suffering, some more than others following the COVID-19 pandemic. The whole travel and tourism industry, including airlines, hotels, agents and many others, are experiencing severe financial difficulties. In some markets, the volume/occupancy at the hotels has dropped to the single-digit, while few other destinations are reporting slightly better performance. Still, none above 25%-30% occupancy and this has been going on since the latter part of January 2020; the economic impact is immense. Very bleak indeed, and can the world control this virus? Unfortunately, nobody can foresee how long this situation is going to last.

COVID-19, long-since a pandemic, is a world-wide problem dominating the headlines, and many businesses are starting to contemplate how this outbreak is shifting customer needs, employee expectations and impact on the way we live and behave. Time to recalibrate?

We are faced with a new virus that spreads very rapidly and without a proper cure or vaccine. As guests/customers have cancelled most, if not all, of their travels, and hotels have been forced to adjust and adjust fast. Cash is vanishing much more quickly than it is accumulating. Under this situation, the management priorities are evident: firstly, the safety of staff and guests and secondly, cash conservation.

As is the case with any crisis-emergency-epidemics, like the present coronavirus, hotel leaders must be able to react quickly and avoid panic and confusion. Accept that when faced with a crisis of this dimension, people need reassurance and proper guidance. A clear message must be given to all that management is responding fast, and all efforts will be made to stabilise the situation.

Considerations, Precautionary Measures & Actions by Hotel Operators
Planning, risk management, health measures & infection prevention, cost controls, communication

Of course, different location calls for various actions and responses as there are hot spots/clusters of infections and Governments regulations and travel directories may be different from places to places. The following are basic guidance and advice for hotel operators and to help bolster safety responses, protocols and actions—a few 'DOs and DON'Ts' during this outbreak, that has a severe direct impact on the whole travel and tourism industry and all its people. Brands must be mindful of the decisions they make as the impact on customer loyalty, and the employee experience may last long after this health pandemic blows over.

It is never too early to be prepared. Must always have a contingency plan in place for unusual situations and ensure that your hotel is not suffering more than necessary. Don't panic and don't make snap decisions in any situation that may arise; leaders must maintain control and provide guidance at all times. This is a time for heads of organisations to be precautious, pro-active, focused on hygiene, safety, security and to align the whole team to manage the situation the best they can. Remember that even during this challenging time, it is vital to maintain your 'public image' keeping things as positive as possible to boost the morale and motivation of both internal employees and external guests and partners.

General Response Planning 

• Creation and implementation of a flexible/agile response plan for dealing with the emergency, focusing on employees, guests, and facilities. The hotel General Manager, assisted by key Executives and Department Heads (the committee) develops and drives this plan.
• A written plan that takes into account potential virus exposure to employees and guests and proactive steps aimed at reducing the probability of transmission. The plan also includes the ongoing business and promotion activities, cost containment measures, and potential interruption of basic supplies and utilities. A flexible plan that can be adapted as the circumstances evolve.
• Important that the plan takes into consideration existing contracts, collective bargain agreements if any, and complies with local laws and regulations as necessary.
• Be ready and prevent any potential criticism or accusation from external and internal parties: guests, authorities, officials, insurers, shareholders and employees regarding non-compliance or for not caring—as this can be very damaging.
• Communication is of utmost importance to ensure all employees are familiar with the plan and of what is expected from them. In-house guests and visitors should also be informed of actions and activities that the management has put in place and reassured of their safety and well-being.
• It is also necessary that owners and shareholders are kept informed of the evolving situation in case there is a need for additional funds to operate the hotel.
• Is the outbreak classified as 'force majeure?' as this may have a direct impact on insurance, claims, refunds, cancellations, contracts, budget performance and in some cases on loans.
• Maintain regular communication with local health officials for advice and updates on the situation.
• Keep a record of cancellations and lost business and keep up-dating your monthly forecast for the next three months as you must have a clear picture of the cash flow status. It is also wise to consider a plan B in case the situation worsens or becomes uncontrollable.

Help for guests

• Wave cancellation fees and allow guests to cancel or change reservations without penalty.
• Extend loyalty and recognition programme benefits and points—this is the time to show care and concern.
• Facilitate change of dates and rebooking of events whenever possible at no cost to the guest. It is not appropriate to hold medium-large events in the hotel during the period of the outbreak, but you can work to help promote virtual meetings and seminars.
• Provide assess, where appropriate, to renegotiate contracts for group and special package promotions.
• Perform body temperature checks of all arriving guests and all staff/vendor moving in-and-out of the property—both front and back of house. Isolate all people with high temperature (37.5 °C and above) and notify the relevant medical authorities.
• Obtain past 14 days' travel history of all guests at checking-in, on a confidential basis. The objective being to define how to handle arriving guests who have been in infected locations, as defined by the WHO or by the local authorities, to avoid spreading any infection in your hotel. This is not an easy task but must give confidence to all your people, guests and staff.
• Avoid accepting infected or potentially-infected guests at all costs as this will be a reason officials would use to lockdown down a hotel.
• Make available hand sanitisers including alcohol-based disinfectants, facemasks, disposable latex gloves, and others—as per guest requests, on arrival and during their stay. If appropriate, these items can also be placed in the rooms.
• Assess guest preferences on housekeeping service in their rooms, whether daily or at their request—as they may want to avoid contact with cleaning staff.
• Single-use, disposable and sealed cups and containers and bottled water should be placed in guest rooms.
• Provide guests with all information on safety and best practices and what you are doing to keep things clean and safe for guests and staff and provide a 24-HR point-of-contact in case of need or emergency.
• Offer automatic checkouts without guests having to stop at the cashier or front desk.

Help for employees

• Hold daily briefings or meetings for updates on the situation and of a plan of action.
• Continuous reminders on hygiene matters: hand washing, avoiding touching the face, avoiding shaking hands, daily changing of uniforms and shoes, maintaining a safe distance and others.
• Sharing of best practices from the authorities, industry partners and the WHO
• Without creating panic or confusion—conduct conversations and training on how to manage various situations during crises.
• Develop a facemask policy, as appropriate, and ensure compliance—procure disposable facemasks.
• Review the status of and compliance with the hotel or company vaccination policy.
• Give strict instructions not to report to work if any staff are not feeling well—particularly if there are any signs of fever, or cold or flu symptoms. Staff should also be informed not to report to work if there are any confirmed virus cases in their housing complex or community or if they have visited any hospitals or attended any funerals.
• Remind all employees to stay away from large-scale events and activities, team sports, conferences, seminars, campaigning, weddings, celebrations, etc. Employees should notify their respective supervisor, in advance, if they have to attend any such functions.
• All parties must understand, as previously stated, that an infected staff, or guest, is a reason for the authorities to shut down an entire property or hotel—and that all reasonable steps must be taken to prevent this.
• Carry out body temperature checks at the employees' entrance for all incoming and outgoing employees, and in any event every 4 hours, or more frequently if there are concerns, during the work shift for all employees including management staff.
• Eliminate all non-essential travels for all staff.
• Provide clarity on handling employees and guests who require quarantine or self-isolation—state who should do what, and when, to facilitate this. Coordination with local health officials is a must.
• Provide sanitisers to all staff, including alcohol-based (60% - 75%) disinfectants and promote their usage.
• Stress the importance of staff morale-motivation-alignment and a caring attitude as everyone is in the same boat and facing the same problems.
• Give constant reminders to all staff to avoid the 'socially irresponsible actions' and, now more than ever, not to stigmatise or discriminate.
• Invite the whole team to help boost their immunities by promoting healthy lifestyle activities. Provide lectures and advice on this where appropriate.

Saving labour costs

• It is a proven fact that during the crisis and with a caring attitude from the top, the entire workforce will respond positively and will contribute with whatever they can to the needs of the hotel or organisation.
• It is also essential that the whole team participates in labour cost savings, including the top management—with no exceptions.
• A clear message should be given that labour costs have to be reduced but without retrenching anyone. Savings can come from clearance of all accrued leave, implementing unpaid leave periods, reduction of working days or pay, splitting of job functions, multitasking some roles, hiring freezes and offering advance leave as appropriate. There are also times when management may need to consider extended paid leave for individuals in need—but these would generally be exceptions and should be discussed with the respective supervisor.
• Implement flexible working hours to help staff avoid the busiest rush-hour periods and crowded public transport, buses and underground systems.

Hotel facilities

• Close outlets and other facilities based on demand and on safety—where feasible, look at shortening the operating hours of outlets.
• Close room floors—if there are potential savings.
• Particular attention should be provided to sport and recreation area, which may need to be closed outright. In any event ensure there is adequate chlorine in swimming pools, disinfect gym equipment after every single use, and close the sauna, steam room and jacuzzi.
• Assess if spa treatments are appropriate or not.
• Provide continuous cleaning of children's recreational areas, if any.
• Prepare a couple of rooms or areas exclusively for emergencies, perhaps one in the lobby area and one in the guest room areas—close to exits.

Health & safety measures

• Consider a facemask policy and enforce compliance as appropriate.
• The virus can live on surfaces and objects for up to a few days, in particular where the infected droplets may land. Every surface associated with COVI-19 carriers is likely contaminated and potentially infectious—so necessitates continuous cleaning and disinfection of all surfaces that guests and staff would touch frequently. These surfaces include lift buttons, light switches, door handles, toilets, telephones, TV remote controllers, in-room safes, coat hangers, all surfaces, tabletops, chairs, crockery, cutlery, tableware, floors, rugs, containers, trolley, vehicles, etc.
• Use proper disinfectant products and disposable cleaning tools throughout the property.
• Frequently launder bedroom comforters, duvets, pillows, mattress tops, bed runners and curtains. Also regularly shampoo carpets.
• Review the entire process of handling food, including ordering, receiving, storage, requisition, preparation and serving. Apply strict safety in all aspects—this is not the time to promote raw or uncooked food.
• Ensure that all visitors, vendors, suppliers and couriers practice all the safety standards. Assess, if it is necessary for such persons to enter service areas or not.
• Review the process of rubbish disposal and implement any improvements which can be made.
• Review the efficiency and cleanliness of the hotel central and individual air filtration and purification systems—assess if there is a need for UV air sanitation in specific areas.
• Place good-practice posters and reminders on hygiene and safety throughout the property.
• Conduct a fire drill with an evacuation exercise—to assess readiness.

Disposable face masks

• Wearing of facemasks is a useful preventive measure and has already become a cultural habit in some locations—particular if one has a cold or flu. But, it must be accepted that facemasks do not provide an adequate level of protection when faced with an infected person—as according to medical advice, the virus is spread from standard respiratory droplets and in particular by coughing and sneezing.
• Important to recognise that there are infected people who may not show any signs of sickness, but can still infect others—which may be the source of many infections.
• Ideally, staff should maintain a distance of 1.5 to 2.0 meters from any encounters—which may not always be feasible in hotels or when taking public transports.
• Note that wearing disposable surgical masks can help prevent staff from touching their nose and mouth—as usually infection takes place through nose-mouth-eyes. However, facemasks must be taken off carefully without touching the front off the mask, properly disposed of, and the wearer must wash their hands with soap for at least 20-seconds (or hand sanitizer where this is not practicable) immediately after taking it off to help avoid contamination getting onto their hands.
• Staff also need to made aware that disposable facemasks concentrate contaminants and become moist—providing an ideal breeding ground for germs) and so must never be reused.

Business Promotion & Recovery Plan

• Ensure that your hotel does not suffer more than necessary during the current situation and be ready. Be up-to-speed with the various travel advisories, restrictions and other relevant updates.
• Maintain your brand image and pricing during the crisis. Do not drop your published or rack rates—as reducing rates, in general, does not stimulate demand and may harm your image online. Instead, offer discounts from rack rates or added-value extras. You can get creative with packages like 'two for one' or 'three for two' and include F&B services and others add-ons, but these must only be made available for a specific period.
• Keep service levels and a sense of security and safety during this period. Spend more time with guests—as this is time to make friends, of course practising hygiene basics like no shaking of hands, and appropriate social distancing with all encounters.
• Continue looking for new markets during and after the crisis. Identify if the local market or community offers any opportunities?
• Promote web conferencing—this is an excellent time to position your hotel in this potential line of business as virtual event platforms, and online events are growing very fast.
• Do not cut your marketing budget; you may need to increase it at the end of the crisis as you may have to 'buy more business'.
• Develop a strategy for the image for tactical advertising activities and based on the local situation, assess if it is prudent to continue advertising, and if not and how to proceed—better leverage digital marketing and other innovative ways of getting your message out there.
• Prepare an attractive welcome-back package now, so that it is ready to go and implement it as soon as the situation improves.
• Assess the opportunity to promote the destination with other travel and tourism-related industries, airlines, agents and tourism offices.
• Monitor your competitors—see what they are doing better than you.

Other help

• Find out about government assistance packages and tax reliefs—specifically appoint someone to handle this task.
• Look at the possibilities of renegotiating with vendors and suppliers with the objective of cost reductions without impacting quality.
• Explore any opportunities to reduce repair, maintenance and utility costs.
• Review existing outsourcing agreements and assess if those services can be temporarily done by the hotel or staff.
• Based on the status of the cash flow—this is an appropriate time to conduct renovation projects and product upgrades—and speed-up the planned schedule.

Clarity on Insurance Coverage and Responsibility

• Review all insurance coverages—what is included and what is not: check for clauses on general liability, business interruption, natural disasters, force majeure, directors and officers liability, claims and others.
• In the unfortunate case that an employee contracts the virus while working, on-site or on a business trip—as well as limiting the spread to family members, other employees and guests, the hotel must be clear on liability. Check what level of insurance coverage exists and who pays for what—including the most suitable hospital care, time off, medical expenses, permanent disability if any, death benefits and others. Hotels must be covered and prepared for all possible scenarios.

Bonus suggestion: stay away from the 'infodemic' of fake news—and those creating unnecessary panic, instead consult your local health authorities and follow WHO guidance.