#1 Solid business planning
For the next few months, every entrepreneur will need to operate on the basis of a well thought-out, continuously updated business strategy (with detailed plans, e.g. occupancy rate, employee budget, marketing plan etc.). We recommend considering three different, location-dependent scenarios, seen from today’s perspective:
- Best case scenario: the summer season will start in mid-May, with restrictions and half-open borders.
- Realistic scenario: the summer season will start in the second half of June, with relatively heavy restrictions until the end of July, and a relatively positive August and autumn.
- Worst case scenario: the summer season won’t start until September, providing us with income in the autumn months. The next winter season is secured.
#2 Open and cooperative communication with banks
To secure cash flow, it is important to negotiate with banks personally, based on the various scenarios and the relevant business plans.
#3 Price reduction is not a solution
What is now required is a proactive pricing policy instead of price dumping: moderate concessions must be coupled with psychological pricing measures (price reductions subject to conditions, flexible terms for short-notice cancellation etc.).
#4 Keep staff motivation high
Even if it is difficult and many are on short-time work, it is important to keep in touch with the employees right now. This exceptional situation requires a lot of understanding from all parties involved. Team spirit is of paramount importance right now. Challenging times and experiences often bring people and teams closer – both at work and in private life.
#5 Focus on what is positive
The tourism industry needs to keep its focus on the good things in life. For many people currently “trapped” at home, the prospect of a holiday in early summer feels like a light at the end of the tunnel.
#6 Optimise cost structure
All internal reserves must be used, postponing or suspending what is not necessary for current operations, and naturally also tapping into any financial support measures offered by governments and interest groups.
#7 Invest in marketing and active communication
Stay in touch with your guests: send them messages from your holiday destination to offer them a relaxing virtual space. When normal business resumes, everyone will start communicating more intensively, all at the same time. This might make it more difficult to make your voice heard. Prepare in advance with a well thought-out operational marketing plan. Intensify your marketing directed to regular guests and keep offering high-quality advice. Under no circumstances should you panic and reduce or increase your marketing budget!
#8 Stay fit
At a time like this, it is important to keep yourself fit for purpose – through exercise and healthy food, but also through online training. Maintaining a harmonious relationship within your family and with your business partners is also very important.