A flurry of reports published in the last month or so suggest that demand in the hotel sector is set to grow over the coming year, perhaps faster than previously expected. Hurrah! This is fantastic news for hoteliers who can now set about recovering some of their losses from the pandemic and get things back on track financially.
Here’s how to ride this wave of recovery to make sure you are ready to make the most of the return to form for the hotel industry after its toughest ever couple of years.
Strong demand to drive 2022 recovery
According to the latest PwC Hotels forecast, occupancy levels will return to very near pre-pandemic levels in regions of the UK, and to qzas high as 70% of pre-pandemic levels in London by the end of 2022.
This growing demand will drive average daily rates in the capital to £112.26, up by £27.78 on average 2021 daily room rates. Revenue per available room (RevPAR), is set to increase to an average of £63.69 this year. Overall, it’s great news for the hotel sector, which may have been imagining a much longer period of recovery in terms of occupancy levels.
And the good news doesn’t stop in London. The study found that, in the UK regions, occupancy levels, by the end of next year, could reach as high as 96% of pre-pandemic levels. This then drives RevPAR to £42.36.
Challenges still to come
Although the future looks promising on the whole, there are still some major challenges that hotel owners will have to navigate. Overcoming these challenges will enable hoteliers to cash in on the growing demand for hotel rooms later in 2022.
Here at Leslie, we are always on the side of the hospitality industry and are striving to make things simpler, and more profitable for people running businesses. Here’s our look at some of the challenges you might meet on your way to recovery along with our top tips on how to overcome them.
As we move into the beginning of 2022, cashflow is set to become an issue for a number of hoteliers. Meeting increasing costs after a prolonged slower period was always going to be tough, but it doesn’t have to be impossible with these simple steps:
Analyse your cashflow
Take a good hard look at your outgoings and check where savings can be made. Make changes right away that will help to free up cash for investment and growth in 2022. You may need to bring on more staff, undertake renovations or repairs, or increase your marketing in order to make the very best of the growth in demand that’s on its way.
Consider where savings can be made
Look at costs like:
- Staffing efficiency
- Special offers
Consider your pricing
Look at your pricing and consider whether your margins are big enough. Could you afford to increase prices, or could you boost occupancy with better or more offers and packages?
These days, innovation is the lifeblood of success. If you’re happy to remain stagnant, your business could go stale very quickly. Consumer demands are changing all the time and it’s up to business owners to keep their fingers on the pulse and adapt their businesses in response to these changes.
If you’re often welcoming guests who are traveling solo, especially those staying with you for a work trip, have you thought about ways to better serve these customers?
A key part of innovation is thinking of ways to improve how your business works with an open mind to new technologies and tools. Signing up to an at-table ordering tool like Leslie can help you to grow the profits from your restaurant and boost your staff productivity.
Then there’s the opportunity to introduce QR code-based ordering systems for your room service. With Leslie, guests can view your menu on their device without having to sign up, log in or download any apps. They simply choose what they would like to order and collect it from the kitchen or reception when it’s ready. What could be better or more convenient to a business traveler?
Removing the ‘service’ element of your room service keeps your prices down. It also means you can offer in-room dining without the staff support traditionally needed.
Constant innovation, alongside a healthy cashflow that gives you the freedom to spend when you need to, is the key to growing your business in 2022 and maximising profits as occupancy levels improve. If your business has survived Covid, you’ve come a long way. Now it’s time to be one of the hotel industry’s success stories in 2022!