Hoteliers - do not 'overshoot' rates for 'Staycations'
Due to the continuing presence of COVID-19, it behoves those in the hospitality industry in Sri Lanka, to not expect significant increases in international tourism any time soon. The figures tell the story; 13,547 visitors in August this year, rising to 22,771 in October. Whilst these numbers, barring any setback, will increase in the coming months, it would not be sufficient to fill the thousands of hotel rooms in the island. Thus, this coming season, hoteliers will have to continue focusing on the resource that is there in abundance – “Staycations”.
Derived from the words ‘stay’ and ‘vacations’, it refers to a holiday that someone spends in their own country rather than traveling across borders / overseas. Ironically, “Staycations” is a travel trend that has been lurking in tourism’s backyard for decades. Disclaimed by the hotel industry as an ‘orphan’ in good times and openly welcomed as a ‘long lost child’ during the bad times.
I recently came across a post on a Facebook group dedicated to hotels in Sri Lanka. The poster had written (reproduced verbatim, with no edits) and I Quote… “Friendly Request for my Local Hotel Owners. Sri Lankans Earn in Rupees and Spend in Rupees. Not Like Foreign Tourists. So please kindly consider your Rates and do not try to get all your lost Profits from locals, as I can see so much high prices at several places. So keep it in mind and give your best discounted rates.” Unquote.
I can relate to this, as I’ve been constantly saying that our hotels are overpriced for locals, and this was the case well before COVID-19. I’ve written in a previous article, how back in December 2016, my wife and I decided to spend our honeymoon in Kuala Lumpur, as it was cheaper to fly there, stay on BB basis in a four-star suite for six nights and cover all our food and beverage costs, transport charges and visa fees… than to book a similar six-night holiday in Sri Lanka.
Last year, when the pandemic hit the industry like a ton of bricks, we saw some smaller hotels coming up with fabulous offers that beggared belief. I took up some of these offers and they were astounding ‘value-for-money’. This year, it seems that whilst some have continued this trend, there are others (small, medium, and large) who are capitalizing on the public’s yearning to travel to ‘make a quick buck’. Whilst there is a segment that is capable of, and willing to pay these prices, there is a much larger segment that cannot, and will not. As the ‘FB poster’, said above, Sri Lankans earn in rupees, and spend in rupees. Their rupee incomes have remained fixed or declined - unless they are a part of a lucky (and elite) segment.
Therefore, you should not be looking to ‘make a fast buck’ at this stage. Everyone is still recovering from the devastating economic impacts of the pandemic. Just like you don’t immediately go back to running ten kilometres a day straight after recovering from a serious illness, you can’t expect your profits to skyrocket when the local and global economies are still in serious recession. Of course that doesn’t mean you have to go bankrupt trying to serve smoked salmon on a shoestring. Just ‘right-size’ you’re offering.
But one thing that you should absolutely not compromise on is your cleanliness protocols. Don’t skimp on the cleaning supplies or water down the hand sanitizer. Cleaning, sanitizing and disinfecting are non-negotiable, and you can check out our article and associated video on these aspects for a ‘refresher’.
Ashraaq Wahab - Technical and Marketing Director - Hospitality Sri Lanka, Automotive Journalist, Marketer and Writer, who enjoys penning his thoughts, insights and ideas on a variety of topics.
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