Will There Be Any Effect of Omicron on the Hotel Industry?

I am tired of this entire COVID scenario. Whenever I feel things are coming back to normal, there’s another variant knocking at our door.

I will keep my rants for some other day. Let’s talk about the topic at hand today.

On 24th November 2021, South Africa reported a heavily mutated version of the coronavirus — Omicron. And today, it is fast spreading all over the world.

According to various reports, Omicron has been confirmed in more than 25 countries and the number of cases are expected to spike significantly.

Now, amid all of these hotchpotches, there are rising concerns in the hospitality industry — Will omicron bring a pause to the hospitality sector’s recovery? What will be the effect of Omicron on the hotel industry?

Well, there’s no solid answer to this.

However, I will try to break down some points from this entire shebang to help you stay informed and prepare (just in case).

Current Happenings Around the Omicron Variant

Experts from all around the world are trying to determine the ins and outs of omicron. But what has surprised everyone is a case from Hong Kong.

The omicron variant spread among two fully vaccinated travellers across the hallway of a Hong Kong quarantine hotel, a report states.

This has raised several concerns regarding the omicron’s mutations which may affect vaccine effectiveness and increase its transmissibility.

Restrictions are back again

While many nations are still focusing on reviving their economy, various European countries have taken strict measures by imposing restrictions.

Several reports state that recently, more than 10,000 new Omicron cases have been confirmed in the UK. Scientific advisers have warned the country that hospital admissions could reach 3,000 each day if a lockdown isn’t implemented by January 1.

Witnessing this new covid-19 variant surging across the United Kingdom, Germany has become the latest European country to ban most travellers from Britain. However, German nationals and residents will still be allowed to enter from the UK under certain guidelines.

These are just examples of two nations. There are other countries as well that are enforcing new and strict covid protocols in an effort to slow the spread of the Omicron variant.

Are Travellers Rethinking Their Vacation Plans?

This is a very tricky situation to talk about.

So, before I go about it with solid insights from the industry, I would like to write what I am witnessing.

I am from India and while I am writing this blog, the number of Omicron cases have crossed the 200-mark here. 

To be honest, this is frightening for me and for a lot of people I am sure. However, all I can see is people travelling whatsoever. Even I have plans to visit a hill station this new year and I am not calling it off.

You must have understood what I am trying to point here.

People have been longing to travel. And now when they are vaccinated and getting a chance to do what they love, they are all game for it.

This sounds a little sentimental, but it is actually happening. There’s no exaggeration!

To put it simply, people who want to take risks to travel have already taken it and are likely to continue doing so.

Do Hotels Need to Worry?

According to a report, even during the first week when the Omicron variant was detected, it didn’t seem that anything had majorly torpedoed how hotels run. 

Now to answer the question of whether hotels should be worried, I would say both YES and NO.

The reason why hotels should be worried

Even if people are travelling (or at least, intending to step out) the RISK of getting infected is still out there.

And guess what?

As per a recent report, Rajesh Bhushan, Secretary of the Ministry of Health and Family Welfare has sent out a letter to all Indian states and Union Territories (UTs), mentioning Omicron is three times more transmissible than the Delta variant.

Once travellers start getting infected, a fear will emerge, resulting in people either travelling less or not travelling at all.

Not just that, the Centers for Disease Control and Prevention (CDC) announced on 14^th December 2021 that the Omicron variant may trigger a massive wave of infections that peaks in January.

This is why travel restrictions are again coming up in various countries (like I mentioned above). And this might make hotels experience torpedoes in terms of business.

Now, let’s talk about the other side of the story

We all know that it’s been just a few days that Omicron was reported, and it is a very early stage to generalise about the nuts and bolts of this variant. However, many doctors and experts have said that preliminary findings indicate Omicron is milder than the Delta variant.

Meaning, it drives a sense of relief in both hotels and travellers.

Leading infectious-disease specialist, Anthony S. Fauci has also said that travel certainly presents risks; however, vaccinated and boosted people can still go ahead with their trips. They just need to make sure that they are following precautions.

How Can Hotels Be Prepared to Deal With Omicron?

This, without a doubt, is the most burning concern. I am sure, amid all the news around the Omicron, hotels must be wondering if there’s another pandemic incoming. If that’s the case, how can hotels be prepared?

The bitter truth is, if Omicron continues to spread, even at the rate it is spreading now, hospitality will inevitably be hit again.

However, I am being optimistic. And looking at the current scenario, it might not be havoc like the first covid outbreak.  

But again, hotels need to brace themselves up and lay a solid blueprint to tackle the pandemic.

1. Focus on local

If you have been catering to guests from different states and countries, then you might want to shift a bit of your focus to your local guests. The reason is that; the restrictions might get imposed on international or interstate travel. So, you need to have a backup plan to keep your hotel minting revenue.

Segments like staycation and workation are now trending, and people from your region might be interested in booking a stay with your property.

2. Learn from your past mistakes

Next up, start analysing your data from the time when your hotel was hit by the pandemic. This is supremely imperative because you have to understand what went wrong back then, what are all the strategies you missed out on.

3. Start working on your budget

The year 2022 is around the corner. It is definitely the right time to start preparing your budget and hotel demand forecast amidst Omicron. This will help you have an idea of what the industry might look like. And accordingly, you can prepare your operations strategies.

4. Revamp your cancellation policies

There are chances that travellers might start cancelling their trips if the new Omicron variant continues to create panic. So, start working on your cancellation policies.

Word to the wise: Even though your focus is on generating revenue, do not make your policies so harsh that it impacts travellers. Have a sympathetic yet strategic approach towards it.

5. Incorporate contactless technology 

Many hotels stopped using contactless solutions, thinking it’s only necessary for the covid episodes. However, that’s not the case. Travellers today are more inclined towards hotels that offer contactless check-in and check-out. So, make sure, you’re still making the best out of this sought after hotel technology.

6. Start implementing strict hygiene measures

This goes without saying. Hygiene and hospitality go hand in hand. Period.

If your property isn’t spick and span in all aspects, then you’re certain to face repercussions. And amid this ongoing covid scenario, hotels need to up their hygiene game.

7. Reassure your guests/potential guests

Now, this is more of a marketing-centric task. You have to use every possible platform to spread the word about your hotel’s safety measures and ensure safe booking amidst Omicron.

Let people know that your top priority is always the guest, and to make them happy, you’re walking all the extra miles.

8. Start cost optimisation at your property

When I am saying cost optimisation, I am not saying that you have to discard amenities or let go off your staff. It is something that many hotels fail to master.

Recently, I wrote a very detailed blog on cost optimisation and I highly recommend you to give it a read.

9. Work with revenue management experts

Revenue management is the backbone of a hotel business. When you start working with experts, you increase your chances of generating better revenue and also stay afloat during shortcomings.

Currently, things are uncertain for hospitality businesses and working with revenue managers will enable you to reap benefits even during covid times.

These are just a few points to help you get started with your prep phase. There’s an in-depth blog, especially for hotels to recover from the pandemic. You can give it a read and follow the mentioned strategies.

COVID-19 Survival Kit For The Hotel Industry