What would be the world after Coronavirus is under control? What would the recovery look like? How long would it take for the hospitality industry to go back to normal?
First of all, economic downturn would be inevitable. People lost their jobs and companies need times to recover. Purchasing power would drop in the next 3 to 6 months. Consumers would be cautious about their spend and their health. Young people would start spending before older people.
Holiday is considered a luxury product. It’s not necessary to have holidays. It would take a bit longer for consumers to put holidays in their priority list. There would be a lot of super cheap deals from hotels, airlines, and travel agents in the market. Margin would be very slim. Profitability would be thin.
Hospitality industry is weak in branding. OTAs have set the scene to drive the price down. There would be a massive price war in the market.
I believe in creating a minimum viable audience, an ecosystem. This strategy has our true customers in the system. People who care about our product and see our product as their life’s solution. It’s the only way to win the price war.