Luxury Hoteliers Magazine 2nd Quarter 2020 | Page 8

MARKETING AND PROMOTIONAL ADVERTISING MMGY Travel Intelligence, in partnerships with Destinations International Foundation, released findings of surveys taken by resorts in the United States early and mid-March, which reported that 80% of destination organizations surveyed had reduced or postponed sales and marketing spend, and over 60% had asked employees to work from home. Expectations are that the coronavirus will have an extreme impact on business over the next six months as early surveys reported 40% cancellation of events, attractions, conferences and business meetings to 100% in mid-March. Interestingly, only 30% of resorts had a pandemic plan in place, though MMGY attributes this to organizations relying on state governments for national crises. A third round of survey results found that 95% of North American destination professionals have chosen to reduce or postpone paid promotional advertising, and 80% have shifted sales, marketing or messaging and more than half expect to return to paid promotional email campaigns, paid search and paid social media campaigns in the next the next 60 days. Half of respondents said that they expect paid advertising to resume in that timeframe. “COVID-19 has had a substantial financial impact on the tourism industry, and destination organizations have responded quickly by deferring marketing funds in a responsible manner,” said Craig Compagnone, chief operating officer, MMGY Global. “However, search data is telling us that there is still a strong desire to travel, and we believe this pent-up demand will result in a high volume of shorter booking window trips when bans are lifted and consumers believe it is safe to get out and explore again.” SUPPLY CHAINS There is no doubt that supply chains will be interrupted as effects of the virus unfold very rapidly on a daily basis. Chip McIntyre, Senior Vice President of Strategic Sourcing, Avendra told us that the biggest supply chain impact continues to be in critical short-supply items, specifically: masks, hand sanitizer and thermometers. They are putting a great deal of effort into sourcing and making these available for their clients. “Eventually,” he told us, “the supply chains will adjust to the “new normal” for these products, but we are still several weeks away from that happening. The foodservice (as opposed to retail) food supply chain is secure and operating with minimal disruptions. While there are some empty shelves at retailers, we do not anticipate broad food or food-related (e.g., disposable packing) shortages or widespread factory shut-downs to try to contain the virus. However, some plants, as we have seen recently with a few meat processing plants, will need to temporarily close or run with skeleton staffs. As a result, distribution of food and other materials may be delayed, or distributors may go to fewer delivery days/week because of either skeleton staffs or reduced demand.” Looking to the future, we believe that the supply chain will be even stronger in some areas than it was before. Increased scrutiny on cleanliness and enhanced quality assurance measures will drive improved business practices, more transparency and accelerated product innovation. We are working with our suppliers and clients to provide input on these new approaches so that our clients have what they need (masks, hand sanitizer stations, enhanced cleaning practices, social distancing signage, etc.) as the industry reopens.“ THE FUTURE OF WORK AND TRAVEL Already, hotels are reimagining the future, with leaders experimenting with everything, from business models and distribution systems to the organization of work and the management of a largely home-based workforce, according to Rohit Talwar, CEO of Fast Future. “At the macro level, previously unthinkable ideas are being considered and actioned, such as the notions of guaranteed basic incomes, compulsory health testing of an entire nation, total population lockdowns, and global flight bans. Organizationally, for many, innovation has become a true survival priority rather than just a budget line item,” says Talwar. He goes on to say that effective leaders are needing to drive change at a far greater speed than ever before as they maneuver major culture challenges and new virtual realities as well as flattened management structures that yield increased responsibility due to redundancies. Learning is constant at every level, from negotiating how to work productively with your children nearby to the need to use remote working tools and expanding your technology awareness. At the macro level, leaders and employees are needing to prepare for a COVID-19 future and are starting to think about the need to be better prepared for the unexpected in the short and long-term future. “The situation has presented organizations with a “not to be wasted” opportunity to acquire new approaches, ways of thinking, and skills that can help navigate the current crisis and lay the foundations for the next future of work,” says Talwar. 8 ILHA