Weathering the storm: Crisis management and revenue recovery in the wake of Cyclone Alfred
In any emergency, accommodation operators must take proactive steps to ensure they are best prepared for the impending event.
By Chris de Closey, Director Switch Hotel Solutions
The recent lash of Cyclone Alfred across Queensland has reminded us how our industry is susceptible to nature and its wildness from time to time. It’s also reiterated the importance of preparedness and resilience in the hospitality sector.
In our space, we have the added challenge of ensuring guest safety, protecting our owners’ investment properties and ensuring our business comes out as unscathed as possible.
This article was originally published in the latest edition of Resort News. Read it HERE.
In any emergency, we need to ensure that we take steps to be best prepared for the impending event.
- Pre-event planning
Risk assessment and insurance review: Begin with a thorough risk assessment specific to weather-related threats. Ensure that your insurance coverage adequately protects against such disasters, covering not only property damage but also business interruption (this one proves a bit harder sometimes!). This includes removing items from balconies, and ensuring gardens are cleaned.
Communication plan: Develop a clear communication strategy that includes notifying guests, staff, and owners efficiently. Utilise multiple channels—email, SMS, social media and your website—to share information quickly and seamlessly.
Staff training: Regularly train your staff on emergency procedures and roles during a crisis. This training should cover first aid, evacuation routes, emergency contacts, and guest assistance.
Infrastructure resilience: Invest in infrastructure that can withstand severe weather, such as storm shutters, backup generators, and water pumps. Regular maintenance checks are crucial to ensure everything operates as expected when needed.
- During the event
Safety first: The immediate safety of guests and staff is the priority. Activate your emergency plan and ensure everyone adheres to it strictly. Keep communication open and ongoing throughout the event. Only keep essential staff onsite, if your teams can work remotely, they should do so.
Document everything: Maintain detailed records of the event’s impact on your property. This documentation will be invaluable for insurance claims and future planning.
Support and reassurance: Provide guests with regular updates and necessary supplies if you can. A calm and prepared presence from staff can significantly comfort guests during such stressful times.
- Post-event recovery
Rapid assessment and response: As soon as it is safe, assess the damage and start the recovery process. Quick action is essential to resume operations and mitigate financial losses.
Communicate proactively: Update all stakeholders on your status and recovery steps. Be transparent about the extent of the damage, how long recovery might take, and what guests can expect in the coming days.
Leverage digital marketing: Update your website and social media platforms to inform potential guests of your operational status. Use digital marketing strategies to communicate that your location is safe, operational, and welcoming guests. ‘Open for business’ style communication helps guests to understand this.
Flexible rebooking and cancellations: Implement flexible rebooking policies to accommodate guests who were unable to stay during the cyclone. This helps in retaining guests but also boosting your reputation as a guest-centric business. As a note – force majeure may apply and under ACCC guidelines, a refund must be given. You can ask the guest to hold it as a credit to help support your recovery, however if the guest is pushing for a refund, you must give to them under force majeure.
Special offers and incentives: Once operational, consider launching special promotions to attract guests. This can include discounts, package deals, or complimentary services. This can help recover lost bookings and attract new guests.
Long stay / weekly packages: Offering a weekly special or a long stay rate (at a significant discount) can help to accommodate locals who may be impacted by the event. It will ensure that your owners’ income is replaced quickly and provide a safe haven for those who might not be able to stay in their homes.
Insurance bookings: Reach out to insurance agencies to ensure that they are aware you can accommodate guests for a longer period if they need to. This will ensure your property is front of mind to the agencies who look to relocate those who have been impacted.
Engage with the community: Participate in community recovery efforts. Supporting local recovery initiatives can enhance your standing in the community and promote regional tourism.
- Long-term strategies
Regular reviews and updates: Continuously update your crisis management plan based on lessons learned from past events and evolving best practices.
Network with local businesses: Establish connections with other local businesses to support each other during crises, from sharing resources to cross promoting each other’s services.
Weather events like Cyclone Alfred pose significant challenges, but with efficient planning and crisis management, your business can recover quickly with strategic revenue management tactics. Remember the age-old adage: if you fail to prepare, prepare to fail.
Read the latest edition of Resort News. HERE.
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