Hospitality, one of the hardest hit sectors by the pandemic. Having to battle multiple lockdowns, restrictions and furlough, it has been a slow road to recovery. July 2021, brought us ‘Freedom Day’, resulting in the hospitality sector seeing it’s first signs of revival, with the first weekend increasing footfall by 13%. But with the sector reliant on in peron working and the ‘pingdemic’ forcing 1/5th of staff within the industry to self-isolate, are we trying to run before we can walk? and will these futher challenges hinder recovery even more?
With companies being forced to close and reduce opening hours due to lack of staff, it is causing futher delays in recouping the losses made over the course of the past two years. It is still looking uncertain for those companies operating within this sector, having to hold onto hope that cases will not continue to rise, restrictions will not be reimposed and there will be no more lockdowns, it’s no wonder business confidence is falling by the day, with only 15% of companies within the hospitality sector having high confidence that they will survive over the next 3 months. When we compare with consumer confidence we see a different story, with their levels rising significantly, and it will come as no shock that this is particularly amongst the younger age groups. We could end up seeing a situation where demand begins to outstrip supply for the remainder of 2021.
It is time for companies to adapt once again. Addressing the changes in consumer behaviour and shopping habits post pandemic, through reimagining the customer experience, re-engaging with their customers to build trust, improve operations and gain some financial resilience with the overall goal to see business performance improve.
Minimising costs can be the difference between an organisation staying open or shutting its doors, in times of crisis and recovery. Look at the likes of Google, Amazon and HSBC, cutting costs by more than 1 billion. But with expenses in the hospitality sector being harder than ever to control, it’s essential hospitality companies review their procurement strategy and practices.
60% of companies said it will take more than two years to pay off debts caused by the pandemic. With 1 in 2 saying it will be more than 5 years before it’s fully paid.
At Tessiant we have completed various projects within this area, producing outcomes for organisations such as minimised costs, operational savings and embedding new procurement practices. We hold both the skills and experience within our exclusive network to help you achieve a significant reduction in operational and major project spend whilst embedding new practices into the organisation to achieve best value.