5 STRATEGIC TIPS FOR RE-OPENING AFTER PANDEMIC (by Gabriela Otto)

Tip 1 – Keep still and don’t put prices down In 2008 during the financial crisis hotels that made a dramatic change on prices needed much more time to recover the Average Daily Rate value. So, the first to put prices down, the last to recover. Demand will return little by little, turnover however, will require strategic decisions along the way. Panic because your competitors’ prices will only take you down all the way. For example, do not price the end of 2020 nor 2021 thinking back May or June 2020. Pricing is a rational process. When you are in panic your decisions can play against you. Tip 2 – Daily Data are “The New World Order” In order to make more assertive decisions and minimize mistakes (because there won’t be any margin for mistakes) it's necessary to closely monitor market, analyze data daily, make short term decisions. Work specific promotions but protect your public rate and keep long term prices stable. For example: 20% off for your loyal clients is a good strategy, since it's for a short time. However, a 60% discount for the rest of the year with no criteria is desperation. Tip 3 – Amplify your offer Value With less demand and competitors reducing prices, offering better value to possible clients can guarantee a good market share. Offer discounts or more benefits in a private way, such as loyalty programs, segmented mailing, a code on your site, loyal guests/habitués for advance payment, repurchase, etc. Don’t forget domestic market returns first, therefore use communication and promotion for you segmented mailing geographically. Example of benefits: breakfast, parking, transport, room upgrade, early check in, late check out. Be creative! Tip 4 – Manage cancelations wisely Hotels are not insurance companies. It is necessary clients understand this is a difficult situation for everybody. Let your non-refundable rate now does not mean it needs to disappear. Keep pace with market, follow it constantly. During hard times people get closer and now it is time to humanize relations. It’s time to talk, negotiate everything with everybody, clients, suppliers, middlemen, everybody! Tip 5 – It is not enough to be the cleanest and safest. It is necessary to communicate! Soon, hygiene protocols will be commodities, and this will be the minimum to keep in the market. If a hotel posts on social media that surfaces are cleaned and sanitized 5 times

a day and the other does not say anything, where will you feel safer? It is necessary to decrease client’s anxiety with a personal touch on communication, making them feel safe and letting them know you are in control of the situation. Use you site, social media and newsletters

In a nutshell, trust, reputation and transparency are the new currency! Move on confidently, down to Earth and working hard to guaranty your passport to future! Gabriela Otto has worked for more than 20 years in chain hotels such as Caesar Park, InterContinental (IHG), Worldhotels and Accor as Regional Sales Manager,

RM and distribution of Sofitel Luxury Hotels brand for Latin America. Currently she co-owns GO Consultoria e Palestras (Consulting and Lectures), President of HSMAI Brazil, Executive Education

Teacher at ESPM for luxury sector. Moreover she keeps a YouTube Channel “Depois das 6”, a blog on Panrotas (Check-in) and she also writes for other platforms about Strategic Analyses of Market. Go Consultoria | gabriela@gabrielaotto.com.br