Plan don’t Panic during this Recession …..it is more than just cutting costs! | Jerry Morrison, ISHC

1. Ignore your previous market studies, financial forecasts and budgets.
2. Ignore the economic pundits. Plan for the economic downturn to be more severe and longer than the “experts” predict. Our industry leads the downturn and lags the recovery.
3. Don’t close the marketing department! Consider imaginative, rate and package development strategies. Study your guest history to determine the purpose of their visits to your property. Identify competition so marketing efforts are not misdirected.
4. Stick to what you do best and don’t try to compete head to head with properties that are not your primary competitors. (For example: All suite to an upper upscale property.)
5. Be proactive, address and manage guest comments and blogs.
6. Don’t reduce preventative maintenance programs and don’t defer cosmetic upgrades if funds are available. (Use your funded reserves for replacements.) Constantly evaluate the physical condition of the property.
7. Beware of reducing your standards to a point of no return.
8. Be careful not to “burn out” management and supervisors in the process of reducing labor costs.
9. Use this opportunity to evaluate your team members and embark on a training/ re-training program.
10. Constantly monitor schedules and overtime in light of occupancy.
11. Remember that the “younger” managers and most of the people you will be dealing with, have never experienced a downturn of this magnitude.
12. Be sure to look at and critically analyze the performance of yourmanagement company and franchisor. Don’t hesitate to ask them for helpand consider and evaluate changing/adding a flag or professionalmanagement company.
13. Consider restructuring financing to reduce debt service.
14. Use outside experts (attorneys, architects, consultants) that have “been there” to assist you and to review your process and conclusions.

All of the above are premised on the assumption that everyone is already looking at slashing expenses and that everything is on the table for discussion.