by Apra Law
Without foreign tourists, the movement of people in the country is also limited, leading to the tourism industry in general and the hotel industry in particular being heavily affected. According to statistics, the majority of hotel representatives have not achieved 30% of revenue during the pandemic compared to the same period of the year without the epidemic.
So how have hotel businesses reacted amid the pandemic?
Service discounts: Many hotel businesses said that room rates have decreased by 70% – 50%, even 30%, and the prices of many other ancillary services have also dropped sharply.
Staff reduction: According to a survey, 18% of businesses have laid off all employees and 48% of businesses have laid off with a rate of 50-80%. This helps businesses cut costs and can use that cost for other purposes, mainly maintaining the existence of the hotel.
Model transformation: Depending on each segment, hotel businesses during the epidemic season have changed their traditional hotel business to new models. Small hotels have switched to long-term stays, rented rooms, and are aimed at working people and business travelers. Large hotels in the upper-class segment, with luxurious design, amenities and many classy ancillary services right on the premises have provided low-cost resort packages to exploit the source of neighboring customers.
Decommissioning: The solutions mentioned above are all reactive solutions, which cannot bring regular revenue for hotel businesses. Meanwhile, the costs to maintain hotel facilities and human resources are always high. Therefore, it is inevitable that a large number of hotel businesses have to shut down. Walking around Hanoi’s Old Quarter, where the hotel business is busy, it’s noticable that hotels have closed or posted signs for lease, or have turned to fashion business.
The challenge of the hotel business after the pandemic: The recovery of tourism activities is an aspiration of hotel businesses. However, getting ready for the recovery is also not a small challenge. Problems that businesses must solve include continuing to maintain the existence of the hotel. By continuing to apply solutions, along with supportive policies of the State, hotel businesses have been and continue to be in a state of resistance. The post-translational human resource problem will also be a big problem for hotel businesses when a large number of skilled personnel have been inactive for a long time.


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