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Find out Hotel Businesses Post Covid 19: What Should You Consider in Your Hotel Investments? Covid-19 has affected every sector in the economy all over the world. This is especially true in Indonesia that rely on the tourism and hospitality business. After Covid 19, however, things would be different in the hotel industry. Your hotel investment will have to be able to cope with it and to change accordingly.

Indonesia has become one of the countries with highest cases of infections. In early September the cases reported had reached above 200,000 cases with death toll up to more than 8,000. Jakarta has the greatest number of cases, and of course death, is running out of cemetery space.

Because Indonesia cannot prove its ability to bring down Covid-19 cases, many countries have closed their doors to and from Indonesia. This brings calamity to the tourism and hospitality sectors in Indonesia, especially for regions that are just promoting their places.

The Indonesian Travel Agents Association (Astindo) recorded an almost 90 percent drop in sales due to cancellations as of March 12. According to Central Bureau of Statistics, the number of foreign tourist visits or foreign tourists to Indonesia in July 2020 has decreased by 89.12 percent compared to the number of visits in July 2019. This is a common trend seen throughout 2020. This of course results in decreasing Room Occupancy Rate (TPK) of star-classified hotels in Indonesia in July 2020. It only reached an average of 28.07 percent, far below July 2019 that was recorded at 56.73 percent.

The Finance Minister, Ms. Sri Mulyani just announced that Indonesia is officially in recession. Economists are talking about possible scenarios in the post Covid 19 crisis recovery. The first is U-shape. It means that the recession will be short and followed by fast recovery. The second and more possible is the L-shape. It means the recession will be long with unknown recovery time.

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What does it mean for Your Hotel Investment?

So the question is when will Indonesian hotels see full rooms again? When will your hotel investment give you return again? The recession means that Vacancy sign will be hanged a little longer, as historically hospitality businesses, including hotels will be last to recover after recession.

hotel investment

hotel investment

Business and leisure travel will return at different paces, as will domestic and international travel. For business travelers, demand will likely come back unevenly as different industries recover at different time. Some even may not see the brighter days. Most expect that certain types of travel—like internal meetings—will never fully return to pre-COVID-19 levels. Business will optimize the use of online meeting platforms, and limit the travels significantly.

For leisure travelers, domestic travels will be higher while foreign tourists will take time to come back. Travel and staying time will be shorter. Different trends will appear. Employees, as more of them are able to work outside their offices will take travelling to a different level. Travelling will be the way of life, as they can still generate income along the way. These trends will have to be watched out by hotel operators because they would demand differently than the traditional travelers.

What Can Hotels Do Post Covid 19?

Hotels have to be more vibrant on their strategies to capture opportunities, different markets, different standards. Beside service quality, hotels should also be watchful for price strategies, what make them different from other hotels in the area, whether they are instagrammable in the eyes of the occupants, whether they are trending in social medias, and so on.

Hotels should also care for their employees, now more than ever. Employees are those who are directly in contact with the occupants. They will reflect the hotel’s core values. Core values just might be the thing that sets a hotel apart from others. People will rate you higher in the hotel online platforms, giving you chances to a wider market.

And as the environment conscious will be higher post Covid-19, hotels should also reflect their views and concern on the environment. Some of the features that may attract environment conscious travelers include green building, how the hotel interacts with the community in the surrounding area, how the hotel acts as the leverage to the culture of the region, and more things like that.

More and more people are more conscientious about becoming a citizen of the world. It means that they want to be involved in community where they live, not just as a tourist but to experience to be the people of the community. Post Covid 19, hotels should also acknowledge these wishes and extend their service to enable their occupants to do just that.

Finally, your hotel investment should also be very wary to the financial  accountability. Although vaccine is expected to be found soon, but the effectivity of the vaccine and the ability of the virus to modify itself into another kind of virus is relatively unknown. The consequence of this is that you will never know when the virus will strike again. So balance out your debt and equity, secure your cash, make your investments in more prudent ways than ever, and be very diligent to research changes around your hotel investment

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