Higher costs on the horizon?
For most of this year, hotels have lost significant business from all segments of travel, including vacationers, corporate travel, and social events, like weddings. When you add in new payroll costs (remember the hygiene manager?), pricey cleaning chemicals, personal protective equipment (masks and gloves), technology and training to their already strained bottom lines, it's safe to assume some of this cost will have to be passed along to the guest.
"It's a huge cost factor, particularly in more modest hotels and properties," says Taffer, who predicts some of that cost may be recouped in the form of a COVID-surcharge, much like a resort fee or room service fee. "But it's an investment that needs to be made. It's a real commitment. There can't be outbreaks in our properties. We know that. We can't have employees getting sick. We're fighting for our lives and we as an industry really do feel that level of pressure to get this right."
DelliBovi agrees: "If a hotel wants to remain a profitable business, it will have to go over the top in being safe to earn travelers' trust. But staying safe is expensive, and I believe many hotels will be closing by the end of 2020. This will create less supply and expanded costs. Expect hotel rates to increase once we are stabilized regarding COVID." Find out more things that will start costing more due to the pandemic.
12 Ways Hotels Are Changing Forever, Source:https://www.rd.com/list/ways-hotels-are-changing-forever/
