The Covid-19 pandemic caught the world off-guard, and the travel industry has been the first to bear the brunt of that economic impact. With our borders likely to be closed for months, now is the time to:
- Assess the impact on your property.
- Rethink your core customers.
- Modify your marketing strategy.
- Communicate with current and future guests.
- Stay informed.
1. Assess the impact on your property
Is your holiday house in a region seeing fewer travellers?
The situation is enough to send anyone into panic mode. Before assuming the worst-case scenario, it's important to assess the actual impact on bookings and occupancy. Each situation is unique – some owners need to make enough to cover all costs including a mortgage, others might only need enough to cover fixed costs like rates, insurance and marketing.
While it's hard to predict how things will play out long term, staying on top of the big picture trends as opposed to reacting to immediate dips will help you prepare strategically.
2. Rethink your core customers
With international travel on hold for now, now's the time to review what kind of guests you're targeting.
Stranded tourists
There are still some stranded tourists, with cancelled flights and closed borders around the globe, some are deciding NZ is safer than their home countries. Others might want to delay returning home for a while. Consider making your property as homely as possible by including things that make it feel like a real home. Things like laundry facilities and good internet are great selling points. Consider offering a weekly rate to attract longer stays, and offering more flexible check-out times.
Returning Expats
Returning Kiwis often don't have a home to move straight into once they touch down. This is a great opportunity for longer-term stays while they get settled and find a home of their own, so consider offering weekly, or even monthly rates.
Staycations
With international holidays off the cards, heaps of locals are still itching to get away for a holiday.
Domestic tourists will likely book shorter stays and look for luxury on a budget to help them feel like they are well away from home. Luxury properties that normally rely on international guests may need to review their rates to accommodate local tourists.
Work-from-homers
Working from home is fast becoming the norm. These people might be keen on a change of scenery and your holiday home could be their next home office! They'll be looking for more luxurious stays with good wifi and a nice spot to work, then relax once it's time to log off.
3. Modify your marketing strategy
Pricing
While lowering your pricing isn't an easy thing to do, it can help attract guests using a price filter to search for longer stays. It's also a good idea to consider adding different rates for a range of stay lengths.
If you’re not using Channel management systems to look at yields, search for similar properties in the area to compare prices with the competition.
Luxury properties might want to offer special reduced rates – just make this clear in the listing.
Flexibility
Flexible cancellation policies are a big winner – with less risk, guests are more likely to make a booking. This might mean you lose some bookings here and there, but it's a good way to attract new bookings in a time of uncertainty.
Selling points
Focus on the selling points you've got direct control over – local amenities and attractions might not always be open, or at full capacity. If you've got top-notch amenities on the property, pop that right up the top of your listing. Things like fast Wi-Fi, a stocked kitchen, toys, and games are always a winner. Let your guests know what they can enjoy even if they can't go for a night out at the local pub.
4. Communicate with current and future guests
Keep in touch with guests in case things change.
Reach out to guests to set up expectations/processes for checking in – for future bookings, this can be mentioned in your listing description. Guests will appreciate contactless stays, with keyless entry lockboxes, etc. Let them know what additional cleaning measures you are taking to ensure their safety.
Despite your best efforts, you’ll likely face some coronavirus related cancellations. While it's not ideal and can be annoying, bear in mind that this is a genuine reason and that people don't enjoy cancelling their holidays.
5. Stay Informed
Make sure you're on top of the latest developments and government advice: