From small seaside cafes to hotels in the heart of South Africa’s bustling cities, all hospitality businesses are seasonal. Whether one relies on tourists or business clientele, local or foreign, there will normally be peaks and troughs in occupancy volumes which impact the flow into the establishments.
Below are a few initiatives that hospitality establishments can consider, to maximise volumes and occupancies.
- Extend the season
Host or participate in special events, festivals, or themed weekends to attract visitors outside the peak season. One can also offer promotions and discounts during lower seasons to encourage bookings, and partner with local attractions, restaurants, and event organisers to create packages that draw visitors year-round.
- Diversify offerings
Introduce new services such as wellness retreats, workshops, or adventure activities that appeal to different customer segments. It’s also worth considering to cater to different customer groups, such as families during school holidays, couples for romantic getaways, or corporate groups for retreats and meetings.
- Optimise labour costs
Flexible staffing allows one to hire temporary employees during peak seasons, ensuring that one has sufficient staff to handle increased demand without committing to long-term employment contracts and associated costs. This assists in maintaining profitability during peak periods and reduces financial strain associated with off-peak periods.
Working with a business partner that maintains a pool of trained temporary employees, ready to be called upon at short notice, reduces recruitment and training costs, as well as the time required to obtain new hires up to speed. The correct business partner will also utilise data from previous seasons to assist one to predict peak trends and schedule staff accordingly to avoid overstaffing. On-demand staffing solutions also train employees to handle multiple roles. This flexibility can assist one to reduce the number of employees required at any given time.
- Optimise operations
Adjust inventory levels based on seasonal demand to avoid overstocking or shortages. This also minimises unnecessary costly stock holding, perishables expiring, etc. One can also implement dynamic pricing strategies to adjust rates based on demand, such as offering early bird discounts for bookings secured well in advance.
- Enhance customer experience
Provide personalised services to enhance customer experience, such as welcome packages, custom itineraries, and tailored recommendations. Actively seek and act on guest feedback to improve offerings and address any issues promptly.
From a staffing perspective, flexibility enables one to hire specialists for specific tasks or events, ensuring that one’s customers receive high-quality service, yet quickly adjusting staffing levels based on real-time demand, assists to maintain service quality without overstaffing, which can otherwise negatively impact customer satisfaction.
- Build strong local relationships
Engage with the local community by supporting local events, charities, and businesses. This assists to build community goodwill and can attract local guests. One can also form partnerships with local tour operators, transportation providers, and attractions to create attractive packages for visitors. At a staffing level, working together with an experienced partner is critical, who can supply on-demand labour.
- Focus on sustainability
Customers are increasingly looking at how businesses operate and their impact on the local environment and local economies. By implementing sustainable practices such as reducing waste, conserving energy, and sourcing locally, one can attract eco-conscious travellers, businesses that also need to meet their own ESG (environmental, social and corporate governance) goals, and improve one’s brand image. Once these practices are in place, one can pursue certifications and awards related to sustainability and hospitality to enhance one’s credibility and marketability.
Making Rands and sense
From a purely financial perspective, the peak season is the perfect time to trim back on costs, increase revenue and cash flow, and then allocate a portion of peak season profits to a reserve fund specifically for off-season expenses.
To trim back costs, order supplies and inventory as needed to avoid excess stock and reduce storage costs and negotiate bulk purchase discounts for essential items. Many hospitality businesses are also investing in energy-efficient appliances and lighting and implementing energy-saving practices, such as programmable thermostats and motion-sensor lighting. With South Africa’s water restrictions, using water-saving fixtures and encouraging guests to participate in towel and linen reuse programs reduces utility costs and is a benefit for the environment. It is worthwhile to regularly review expenses to identify areas where one can reduce costs without compromising guests experience.
To increase working capital, train staff to upsell services and amenities. Focus on ways to increase average transactional values. For example, offer packages or add-ons that enhance the guest experience and increase revenue per booking and create bundled packages that include additional services, such as dining, spa treatments, or local tours.
How Zest Hospitality can help
More and more hospitality establishments are realising the need and benefits of outsourcing their front and back of house staffing requirements to hospitality experts. Flexibility is crucial, due to fluctuating occupancies and associated pressures in the hospitality sector, whilst maintaining an enhanced customer service and experience.
Zest is a leading managed services provider with over 40 years’ experience in hospitality and a reputation for service excellence.
We provide hospitality and corporate establishments with outcomes-based solutions through a range of bespoke frontline and support services that deliver superior quality customer-service.
