The COVID-19 is a black swan event which has affected each and every industry in the world; however the effect it has had on the Travel & Hospitality sector in a very short period of time has been unseen or unheard of. While the lockdown has been done keeping the best interests in mind, it has had a catastrophic effect on the country’s economic activity and a recession in the coming few quarters may well be imminent. It has had a massive cascading effect on the hospitality industry in India, with the cancellation of flights & trains across the country, hotel bookings have faced monumental cancellations and that has had a ripple effect on Travel Agents, Tour operators and many more. Hotels across the country are now virtually closed for the last few months or so with essentially zero revenues while having to bear with mounting fixed costs.
Over the past few weeks, we have come across plenty of publications and articles that have discussed the impact of COVID-19 on the Travel & Hospitality sector of India, however most of the conversation has been restricted towards the mid-market/premium branded hotels segment of the market. However, independent/unbranded operators, who form the bulk of the hospitality industry, are generally ignored or overlooked. This article primarily draws attention to smaller chains of Hotels and alternative accommodations like ours that have facilitated the Domestic & International Traveler.
The growth of hotel industry after the COVID-19 depends on some factors:
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Domestic Travel Will Be Key to the Revival
Domestic Travel Will Be Key to the Revival
As all international travel is blocked for the time being we have to depend on domestic travel.
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Recommendations for the Government of India
Recommendations for the Government of India
The Government has already taken a step in the right direction by announcing its plans to set up a COVID-19 Taskforce to undertake measures necessary to combat the economic effects of the pandemic in the country.
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Provide a moratorium of ~ 6 – 12 months on all loans (principal & interest), including working capital payments and overdrafts.
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With the fall in oil prices, subsidies on Heat-Light-Power (HLP) costs should be extended, as HLP is among the largest fixed costs for the sector.
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Provide a 12-month corporate tax holiday to travel, tourism and hospitality sectors.
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Appoint a think tank to evaluate and decide the measures necessary for the revival of the sector.
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Waive / Reduce GST on products offered by the sector for a one-year period
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Incentivize travel by introducing a one-time opportunity for Leave Travel Allowance to be part of the new income tax slabs.
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Recommendations for Hotels
Provide a moratorium of ~ 6 – 12 months on all loans (principal & interest), including working capital payments and overdrafts.
With the fall in oil prices, subsidies on Heat-Light-Power (HLP) costs should be extended, as HLP is among the largest fixed costs for the sector.
Provide a 12-month corporate tax holiday to travel, tourism and hospitality sectors.
Appoint a think tank to evaluate and decide the measures necessary for the revival of the sector.
Waive / Reduce GST on products offered by the sector for a one-year period
Incentivize travel by introducing a one-time opportunity for Leave Travel Allowance to be part of the new income tax slabs.
Recommendations for Hotels
According to recent reports, over 90% of domestic hotels in China had resumed operations at the end of February 2020, just 2 months after the first COVID-19 case was reported in the country. Hotel bookings have also been increasing with business travelers accounting for the largest segment. Hotels located in proximity to transportation hubs have been the popular choice. So, the Indian govt also needs to step ahead and take such decisions.
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Prepare and Plan for the Reopening
Prepare and Plan for the Reopening
The reopening plan of a hotel should be viewed through the prism of past pre opening plans that were devised for the hotel prior to its initial opening. The only critical difference in this instance being that the hotel will now reopen post a horrific event that would have fundamentally altered the foundation of the hospitality sector globally.
Hotels should look to implement the reopening plan in the shortest possible time available, as when demand returns the customer will become a bigger and more demanding ‘King’.
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Task Force Management Team
Task Force Management Team
‘Stop Gap Plan’ task force team to handover the hotel to an operational ‘Reopening Plan’ task force team. The task force team should evaluate short term recruitment to bridge any gaps in operations.
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Re-engagement and Support for Returning Team Members
Re-engagement and Support for Returning Team Members
* Provide adequate support to the returning employees to restart their work life, including assistance on matters such as housing etc.
* Roll out training and re-engagement processes for their specific duties and departments.
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Maintain Pricing Charts
Maintain Pricing Charts
Hotels should think ‘long-term’ and promote value-added services and flexible booking terms instead of reducing rates.
Discounts can be creatively packaged, by bundling services into customized packages & promotions, without adding substantially to the hotel’s cost while leveraging the property’s exclusive characteristics to remain competitive.
Offering a flexible cancellation and rebooking policy will reassure existing & potential guests.
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Front of House Facilities
Front of House Facilities
‘Demand outlook’ should be the funnel through which decisions for the opening of multiple fronts of the house facilities such as restaurants, Spas and Gyms are made.
As demand improves, hotels should gradually re-open the areas which earlier were temporarily shut down.
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Increase Ancillary Revenues
Increase Ancillary Revenues
Focus on ancillary revenues that may be generated through non-core revenue-generating areas such as Gyms, Spas, etc.
Provide services that have traditionally not been part of the hotel’s core offerings such as food delivery through online platforms or leasing of kitchens for cloud kitchen requirements.
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Prudent Spending
Prudent Spending
Refrain from any form of spending that may not have a direct revenue benefit
Continue cost-saving measures even when demand is back to normal to recover the losses during the crisis
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Compliances
Compliances
Ensure that the hotel is compliant with any revised government and brand norms.
Ensure the hotel continues to follow the health and cleanliness guidelines.
Reassure Guests and Employees by intensifying routine maintenance and increasing deep clean measures.
Growth of the hospitality sector in India after this scenario
The growth of the hospitality sector in India is immensely contributing and is projected to grow in the next decade. In today's context, the demand for hospitality professionals is also growing, and the sector is expected to come up with more trained professionals in the coming decade.
Also, it has been observed that the demand for hospitality is also rising in small cities in India. People are involving themselves in travelling as compared to the past because of better connectivity and ease of flying. With the advancement in technology, hotels rooms can now be booked with a click of a button. From budget hotels to five-star properties and home stays to boutique resorts, there is something for every traveller.
Overall it is important for hospitality professionals to plan for the long-term, so asking for highly trained professionals is increasing more and more.
The talent gap refers to a lack of skilled individuals in the industry. Every sector occasionally faces the tough issue of the talent gap. It also leads to a negative impact on individual motivation as they feel demotivated due to lack of talented people. To fill this talent gap an individual needs to know skills, abilities, and knowledge about their sector.
Due to technology, youngsters are not paying attention to the things which are necessary for them to learn in today's decade, but they are ignoring and focusing more on irrelevant things due to which the sector is facing the problem of the talent gap. While there are ample opportunities, students need to evaluate their aptitude for a career in hospitality before coming right into it.
Growth of the cruise lines after this scenario
Cruise ship company has announced a wide-ranging programme of job losses and pay cuts as it desperately seeks to cut costs in the face of the Coronavirus pandemic.
However, it is thought to affect thousands of workers worldwide. In the UK, Cruise companies plan to cut about a quarter of its workforce, with 450 job losses expected and 20% pay cuts for those staff remaining. Some cruise companies employed 150,000 people globally before the crisis.
Career Opportunities in the Cruise Industry
If you long to feel the cool ocean breeze and excitement of traveling to exotic destinations all over the world, while still making a living, then the world aboard a cruise liner will be perfect for you. In every port, in every country, there are cruise ships that are constantly looking for eager individuals to hop on board and join the team in one of the many cruise employment opportunities offered.
Whether you want to enjoy the carefree life at sea as a part of the hotel staff or an instructor, or whether you are looking to further your career as a gourmet chef, entertainer, cruise ship employment will be your best bet. The pay is great, the experience is one of a kind, and, you get to travel for months at a time. If you are interested in making a permanent career from working at sea as a sea captain, mate, able seaman, deckhand, oiler, wiper, electrician, or engineer, cruise liner employment will offer you a more glamorous option than working on an oil rig or container ship.
Dialing in your cruise career options is easy once you become a member, as you will have instant access to hundreds of real cruise ship jobs that you can apply for immediately. You will be able to access all types of shipboard job postings, or shore-based cruise jobs, and locate the best cruise line companies to work for.
Types of Cruises
To work on a cruise liner, you will firstly need to understand the various types of cruises and cruise liner employment that is on offer. Most countries in the world offer ocean liner cruises, but you can also find companies that offer exciting river cruises for example. Some cruises journey mainly in Europe, and the Americas, while some aim for the exotic islands of the Caribbean. The best thing to do when you become a member is to decide where you would like to work and find companies offering cruise ship jobs in that specific area. You can also find cruise liner employment even if you want to be land based. There are tons of jobs at the ports where many of the large cruise liners have private lodges and recreation centers for their guests during land excursion part of the cruise.
Cruise Ship Career Paths
With most cruise liners being like mini cities (some ships can hold 2,000 guests or more), with staff reaching over 3,000, you can just imagine the multitude of jobs that wait. There are certain sections on board a cruise ship where you can find the job that is most appropriate to you and your relevant skills or qualifications:
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Restaurants (chef jobs, kitchen staff, waiters, barman, manager, etc.)
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Hotel Facilities (cabin crew, housekeeping, reception, manager, butlers etc.)
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Leisure Center (instructors, lifeguards, activity leaders, etc.)
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Gym (personal trainers, workers, etc.)
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Salon and Spa Jobs (massage therapist, hair stylist, etc.)
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Land Excursion Team (tour guide, seaman, recreation staff, etc.)
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Merchant Marine Jobs (captain, mates, able seaman, deckhands, etc.)
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Engine Department (chief, DDE, assistant engineer, oiler, wiper, etc.)
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Shops (cashiers, managers, bookkeepers, etc.)
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Casinos (dealers, security, hospitality, etc.)
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Entertainment (production manager, director, actors, comedians, dancers, lighting, sound engineer, backstage crew, etc.)
Restaurants (chef jobs, kitchen staff, waiters, barman, manager, etc.)
Hotel Facilities (cabin crew, housekeeping, reception, manager, butlers etc.)
Leisure Center (instructors, lifeguards, activity leaders, etc.)
Gym (personal trainers, workers, etc.)
Salon and Spa Jobs (massage therapist, hair stylist, etc.)
Land Excursion Team (tour guide, seaman, recreation staff, etc.)
Merchant Marine Jobs (captain, mates, able seaman, deckhands, etc.)
Engine Department (chief, DDE, assistant engineer, oiler, wiper, etc.)
Shops (cashiers, managers, bookkeepers, etc.)
Casinos (dealers, security, hospitality, etc.)
Entertainment (production manager, director, actors, comedians, dancers, lighting, sound engineer, backstage crew, etc.)
In each of these areas you can find tons of cruise liner jobs that will appeal to you. Certain positions require some form of qualification whether it is in the hospitality industry, retail sector, medical wing, or maritime, but some of the entry level positions are open for those that have no qualifications as yet, like students or high school graduates looking for a bit of adventure while they make some money.
The writer is Co-Founder, Gandhi Gurukul Group. He pursued Bachelor in Hotel Management & also Completed Masters in Hotel Management from Kanpur University. He worked in the Hospitality sector for a period of 3 years in different International Hotel chains like Ramada, Radisson and Hyatt. He Co-founded Gandhi Institute in the year 2005 and Gurukul Management Studies in 2011. He became a member of F.H.R.A.I and conducted a lot of training programs in different Hotels across India and also worked as Turnkey project consultant for many hotels and restaurants. Got awarded by C.S.R award Navjyoti Award Rotary Samman and many more.