Question

Case study Hotel owners and operators recognize that while we are currently living in a world of scant lodging demand, talk of reopening the country is the necessary precursor to a recovery in travel and the need for hotel accommodations. Just like cities and states need to plan, closed hotels must plan the "how" and "when" of their reopening. As in any business decision, the costs and benefits of remaining closed versus resuming operations must be weighed. During a time when travel is restricted and little can be done to stimulate demand, the primary objective is to limit operating losses through cost containment. At the same time, hotel owners and managers must prepare for an eventual recovery in demand and the reopening of their property. Touch base with your competitors to see when they plan on reopening. It may or may not make sense to reopen when they do, depending on the anticipated depth of demand at that time. Beyond their timing, are your competitors shifting their mix of business and/or distribution strategy? How has their pricing changed since prior to the crisis? Online research or market research providers will help you determine shifts in their marketing or positioning, or lack thereof, potentially providing you with alternate opportunities. Drive-to locations such as regional resorts are more likely to benefit, as well, due to the pent-up demand for vacations and weekend staycations. While urban destinations have historically attracted drive-in demand during a recession because consumers save money, compared with the costs of flying, city centers may have less appeal in this downturn until the fear of group mingling and dense locations diminish. Urban hotels, particularly those with a group orientation, will have to find ways to adapt creatively to this new environment. Government lodging contracts for first responders, medical professionals, and quarantined individuals are helping many urban hotels survive this period of low demand. Another consideration is the hotel's historical transient vs. group mix, which will often parallel the amount of meeting and function space relative to the number of guestrooms. The more the hotel is dependent on group demand, the more it will be critical to see clear indications from planners of the intent to book in order to identify when to reopen. Transient travelers, whether they be corporate, leisure, or any other sub-segment, can make and implement travel decisions quickly, whereas the lead time for group demand is longer than that for the transient segment, making the lead time for reopening necessarily longer, as well. Another factor to consider when weighing when to reopen is the weekly volatility of demand. Will you be opening to accommodate infrequent events that generate high occupancy temporarily and then be faced with abnormally low occupancy that caused you to close in the first place? Having to carry the ongoing costs of an open hotel may only be worthwhile if an adequate level of steady demand is sustainable. If this is a risk, opening just parts of the hotel, such as wings/floors or only certain outlets, could mitigate the financial exposure. As a member of a leading 5’star hotel in Sri Lanka and a under graduate how would you find answers / give alternatives for the below questions.

1. Based on the given case study identify when receiving goods/raw material to the hotel?

2. Identify temperature checks for the staff and guests?

3. Based on the given case study how are you going to promote adventure tourism to the local
market?

4.Based on the given case study identify Why do you need to monitor the competition for
Arugambay?

5.Based on the given case study identify What health and safety measures you are going to
implement for tourists who are going to visit Sri Lanka from 1st of August after Covid – 19

6.EpidemicsEvent management can generate a lot of revenue comparatively in a short period of
time. Plan an event for 1750pax in your hotel by providing an event sheet an appropriate menu with
vegetarian choices and a sample budget (generic fixed and variable costs). Please elaborate your
answer with appropriate examples.

7.Why emerging tourism trends are playing a vital role in terms of revenue generation? How can
we promote destinations within the island to create a niche market for this demand? Please explain
your answer with appropriate examples.

Answer 1

Answer 1:

The goods or the raw material should be received only when the demand for occupancy is sufficient and on a continuous basis. For infrequent demand, business might end up losing on the cost of raw material and inventory rather than making up the substantiate revenues.

Answer 2:

The EEOC stated that measuring an employee's body temperature is a medical examination and The Americans with Disabilities Act (ADA) prohibits medical examinations unless they are related to the job and are very necessary for conducting the business. Thus, hotel can perform temperature check of its employees as it is required for smoothly conducting the business as they come in contact with the guests and therefore it is also very necessary to check the temperature of the guests as well.

Answer 3:

Adventure tourism can be promoted by ensuring the customers that the hotel will take necessary care for social distancing and would provide the needed safety kit to every individual which would provide them the guarantee of not getting infected from the disease.

Answer 4:

Monitoring competition is necessary in order to determine the strategies that could be used to run the business and to attract the customers in the hotel by taking into consideration all the security measures. Monitoring competition would also help in analysing the strategies that are being implemented by the competitors so that the hotel could also formulate its own strategy for maintaining the competitive advantage.