PERSPECTIVES AND ADAPTATION STRATEGIES OF HOTEL ENTREPRENEURS IN CHANTHABURI IN RESPONSE TO THE RISK OF A COVID-19 PANDEMIC OUTBREAK

Abstract

The purposes of this study were: 1) to investigate the impact of the COVID-19 epidemic on the accommodation business in Chanthaburi Province 2) to examine the perception of risk from the COVID-19 pandemic affecting the adjustment of strategies, and 3) to analyze the business adjustment strategies in response to the COVID-19 pandemic crisis in five phases, comparing the key strategies before and after the outbreak. This study employed a qualitative research approach. The study involved 15 hotel executives, managers, or operators as informants, selected through the convenience sampling method. Data were collected using semi-structured interviews and analyzed through a process of data analysis, synthesis, and the extraction of meanings in alignment with the conceptual framework and research objectives.

The research reveals that:

The COVID-19 pandemic has caused a significant crisis and created complex challenges for the small hotel business. The results showed crisis management practices in the hotel industry at different phases of the crisis.

1) In the initial and emergency phases, small hotels may struggle to formulate effective management strategies due to rapidly changing and uncertain situation.  Defensive and survival strategies are adopted as revenues decline. The government's role in stimulating demand and implementing public health measures to boost customer confidence is crucial.

2) During times of crisis, hotels may implement a hibernation strategy, which includes reducing staff and temporarily suspending certain services. To boost cash flow, hotels engage in sales promotions and offer food ordering services targeted at local communities. The relaxation of credit terms from financial institutions plays a crucial role in ensuring the survival of hotels during this challenging period.

3) During the recovery phase, certain hotels need for organizational restructuring. Some hotels introduce service automation innovations to reduce physical contact during the service process, ensuring service quality and hygiene as a well-being for customers. Hotels demonstrate adaptability and implement flexible booking policies and new strategies based on their specific nature and location.

4) In the resolutions phase, entrepreneurs place a strong emphasis on hygiene measures and implement targeted marketing strategies customized to meet the specific needs of each market segment. Establishing and maintaining networks with customers and related agencies become imperative for ensuring business continuity. Contingency plans are the most crucial factors that shaped the adjustments for any unforeseen challenges, while a proactive approach is adopted to leverage technology and enhance productivity, in line with long-term planning.