Being able to invest in your business and simplify operations now will help companies coming out of the downturn, said members of the Lodging Industry Investment Council.
REPORT FROM THE U.S.—While every company has seen their operations shift as a result of the COVID-19 pandemic, members of the Lodging Industry Investment Council seemed to agree that companies poised to invest into the crisis are more likely to succeed.
Steve Van, president and CEO of Prism Hotels & Resorts, said his company has focused on keeping staff to better succeed.
“We’ve kept our staff together—particularly sales support for the properties—and increased companywide our (revenue per available room) penetration by 35%,” he said. “In fact, the Hyatt Regency LAX has gone from 125% RevPAR penetration to 205%.”
Doug Dreher, president and CEO of The Hotel Group, said the pandemic has underscored the importance to quickly make changes within a company to succeed. That has led to a lot of streamlining at his company.
“One of the aspects we’ve talked about a lot is the more detailed your forecasting, for example, the less accurate it is,” he said. “So, we’ve really simplified and streamlined a lot of our HR accounting and even forecasting models to adapt to the new normal.”
For more takeaways on how hotel companies are changing, watch the video below.