I also gave out my "expert views" on tourism with the economic situation that hit us hard early 2011-2012 unfortuanately i did not post it on your your blog dear followers and finding it lying around i thought justice in the world could mean posting what i thought in this period of time- Isaac Chikwere Kasenjere
TOURISM INDUSTRY AND this ECONOMIC JAZZ!
The fuel shortage, scarcity of forex and soured relations with the west might be a result and am not sure if the latter is the cause of this wobbling economy we all dread now. Tourism industry has not been spared with this retrogression to development.Infact its among the top list of the industries hit by this economic tsunami. Whether its forex shortage that has seen hotels registering the highest percentage of cancellations or no-shows this year, unofficial statistics from the lakeshore resorts tout 60-70% ,but that matters less now.
Managers should get cracking and review afew tactics on their revenue management and strategic direction on their propertys dashboard. All these things however should accommodate the current “national recession “if that word can be re-coined.
This is the time Managers should be innovative enough to trade even when expenditure shall equal the sales. This is better than no sales at all .Mind you the hospitality product is perishable. Managers are on the rush to reduce hotel rates that one wonders where on earth these rates were when some of our wallets were still fat before an animal called devaluation of kwacha played predator.
Reducing rates is not the only solution, it’s part of it.The irony of adjusting rates down is that hotel owners expect more traffic into their hospitality property,however experience has also revealed to me that we have never seen hotels with cheap rates to trade at 100% occupancy 24/7.Customers will always ask “whats in it for me?”even when your rates are the lowest. Demand shall always be created if satisfaction has been spelt in full by the guest.
Creative measures should be applied by coming up with tailor made products to a spectrum of guest.The chef should come up with menu well engineered that does not only look at dietary needs or names to sell yet same taste and colour . I should remind hotelier that this should not mean lowering the menu food price you have but a new menu that should respond to the winds of economy.Restaurant patrons should not fumble for the last coin in the pocket for the same thing we offered last time they came .Hospitality units should start selling value not rate or price because price and rate are not a service they seek and pay for.
A hotel room has a tv set,airconditioner, a table and chair ,soap,towels and usual turndown service.What have you done to change the features,how many occupants are you allowing this time for a night and amenities added to the room package.Whats on your breakfast menu,add some most liked food items and remove the less liked items by your guests. Human beings will keep on getting married even in times of war,so in this time of economic slump deliberate packages should be made available to such couples, may be a photo shoot , a free massage or a personalized table with a name on it. This shall be enough 100 times slot advert if you may like it that way.What managers should look out for is not the ceiling of 100% occupancy but the demand that comes with it ,so any occupancy over 50% shall see figures soaring.
All I am saying is hoteliers should come up with adjusted packages with new values and features to catch the eye of the guest.Whether you are adjusting upwards or downwards that is your homework with your Accountant. You need a guest who has cash in the pocket and is also willing to spend it at your place. Ignoring the target market demands is letting your tables gather dust in the restaurant and rooms echoe with sounds of vacancy.
While smaller and broadrange of tailor made products should be created, diversification should also be a catchword as we struggle through this time.Our product should stretch beyond food ,drink and bed.
Our culture is one product that is worth forex in question.Engaging a group of villagers for cultural evenings can only cost little and plough back into the hotel coffers.A lodge along the lake shore can use more than lake Malawi as a product.They can use the yao culture and its history.Same works for a lodge in Mzuzu. Lets shift our mindset from just waiting for business of bed and breakfast only. Sightseeing or day activities will see places that are now relying on to make more money even when the occupancy is zero.
The directive by government to have foreign guests pay in foreign exchange should not only be seen as easy go for hospitality owners.There are challenges that should be expected ,therefore knowing this challenge will prepare the attitude of staff and wording of interacting with guests to communicate this Press release by Reserve Bank of Malawi.Scenarios of guests booking out of the hotel because they were ignorant of the currency to pay shall if not already be rampant.Therefore it is my theory that upon reservation this change should be communicated or risk customer emberassment which always goes with a cost to a hotel and our competitor a stone throw can benefit from this mistake.This might also see guests spending little in our revenue centres if we leave the job of spreading the message of this new law with the Government alone. The excuse can only be “I have already changed my forex to kwacha”.Managers cannot afford to see their licence be snatched away because they failed to assist the government the regulation of forex.
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