Hotelier: Offer more value, not covid19 discounts

Mt Irvine Bay Hotel chairman Jacqueline Yorke-Wescott
Mt Irvine Bay Hotel chairman Jacqueline Yorke-Wescott

Tobago tourism stakeholders are being advised not to decrease their rates to attract more business, as the island’s tourism sector continues to feel the full brunt of the covid19 pandemic. International borders have been closed since March 22 and the cruise ship season was suspended on March 12. Since then, Tobago's tourism industry has been struggling to stay afloat with just visitors from Trinidad to generate income.

In a virtual panel discussion hosted by the Tobago Tourism Agency Ltd on Friday morning, panellist and chairman of the Mt Irvine Bay Hotel Jacqueline Yorke-Wescott advised hotels, guesthouses, restaurants and inn owners not to give discounts. Instead, she said they should look at the option of enhancing the value of the product.

She was responding to a question posed by one of the viewers on the live stream.

The panel discussion, themed, The New Normal: Adapting and Thriving in the Current Reality, focused on ways the Tobago tourism industry can remain afloat as the world battles with covid19.

The question was about reducing rates as a way to boost activity.

In response, Yorke-Wescott said, “I would say try and keep your rates as normal as possible. And by that I mean, don't go for drastic cuts right now, because there's going to come a time in 2021 where you would want to raise your rates and you won't be able to, because you got them so low that there's no way you're ever going to get the returns that you have now.

The I Love Tobago sign at the Scarborough Esplanade. PHOTO BY AYANNA KINSALE -

"Also, realistically, our operational expenses now are higher, because you've got to put a lot more care into the product that you sell. And there's a lot more involved in terms of training, in terms of PPE, in terms of precautions.

“And rather than looking to cut prices what you should be looking at is, what can I add in terms of value or maintain the same rates, but what can I add to the package that I'm offering that gives value to the consumer?

"I mean, people want to stay somewhere that's safe. So how can I demonstrate to the consumer that this is actually going to be safe? Am I going to be having a lot of signage around the place on my stuff...(being) certified?

"Keep the rates the same, but try to add more value.”

Currently, the number of flights to Tobago is reduced, and restrictions on bars and alcohol sales for in-house dining continue to affect restaurants on the island.

Until the restrictions are lifted, she encouraged stakeholders to adapt to the new way of doing business.

“However, we can't go back to the way we did things in 2019, because people now want a different type of travel experience,” she added.

“There will always be a market for cheap and cheerful all-inclusive sun, sea and sand holidays, but increasingly we will see people demanding more personal space.

"And what is interesting, they're now willing to pay for it. Cost is still the main deciding factor when it comes to the choice of quality experience, but safety is now the second-highest consideration, followed by convenience.”

While business activity remains slow and empty rooms are frustrating stakeholders, Yorke-Wescott urged them to see the importance of taking advantage of the downtime. She said businesses should review insurance coverage and negotiate lower premiums.

“One of the gifts that the pandemic has given us is time-enforced closure, lockdown, gave us time to learn about the pandemic, train staff and plan for the future. So we now face critical issues: how can we serve food safely in restaurants? How can rooms be serviced to covid19-acceptable standards in a timely manner without incurring excessive operational expenses? How can tours be conducted safely within covid19 prevention guidelines? How many employees do I really need?

“Luckily we don't have to figure everything out ourselves, because there are a lot of free online resources for the industry, and I stress the word ‘free.’”

Within the past three months, Tobago hotels, guesthouses, and inns have been introducing new rates and specials to attract guests from the domestic market. Many have said they plan to close permanently, since even with assistance from the government, they continue to struggle to cover bills and pay staff members.

She encouraged all stakeholders to look at ways to use what is available to generate extra income until the business can get to a level of normality.

“There’s no magic bullet that's going to go, 'Pandemic, go away,' and make everything hunky-dory again.

"Do we need government assistance. Yes.

"Can we survive in the long term? Maybe.

"But invest in your people, restructure your business. In a nutshell, pivot.”

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"Hotelier: Offer more value, not covid19 discounts"

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