When has a hotel in Africa factored in the impact of the U.S. elections outcome when drawing an annual revenue budget?
Yet, the industry today is grappling with adverse effects of policies being passed in the US, and are seeing a significant drop in revenues. In Kenya alone the industry will loose approximately $126 million in 2025 following the closure of USAID. This impact is being felt across airlines, ground transport, accommodation, conferences, and events.
As a result, hotels must reassess their market segments and identify strategic approaches to recover and thrive.
The NGO sector is unlikely to rebound in the short term because should funding resume, the focus shall be on stabilizing core projects before reinstating previous levels of corporate travel and events.
It is therefore essential to look through the segments and re-forecast with strategic and informed structures to recover lost business in individual, group & corporate travel.
Strengthen MICE and E-Commerce Strategies
Corporate and group business will continue to be a major driver of hotel occupancy especially the business hotels and some of the resorts. These hotels should therefore evaluate the business in competition which they can give a competitive advantage and win, and, business in ‘lower’ hotels that they can match the rates and close it, as base business. This is mainly high volume business or business that cuts across the year that can be looked at as base business.
Larger hotels need to evaluate the need to secure more conference opportunities by joining international MICE organizations such as ICCA. You can build strong partnerships with associations, academic institutions, and industry organizations that tenderr for annual destination conferences.
Greater focus on Direct Sales & Marketing
With the entrant of big brands in the market, we have seen the impact of loyalty and referral programs. A hotel could either build its own program or join a global one like I Prefer. This way you can tap into their marketing initiatives and big databases by giving special discounts or membership perks to guests.
It is also important to relook at your TMC and consortia participation, analyze these communities’ data keenly to evaluate which ones contribute to your markets, and at what average rates. For those that you want to grow their marketshare, consider paying for a higher listing. Go a step further to engage directly with offices that have greater traffic into your destination to grow business.
Use data available in your PMS or sales tools to understand your corporates, their productivity over the years and see which ones you dropped off along the way,. Is it because they could no longer pay your rate? Rethink renegotiating and getting that company back. Look at companies that have been on your top 50 for at least 2 years in the last 4yrs (covid period excluded) and win them back. You now need that business
Lastly, get to know the calendars for chamber of commerce groups, and diplomatic missions, negotiate attractive group rates to secure group business for the year. They have business.
Expanding Weekend and Leisure & Bleisure Market Segments
Your hotel can re-think how to incentives business guests stay through the weekend to boost occupancy during these need periods.
Why shouldn’t someone winding up their business in your hotel stay for the weekend? A well curated city excursion, a huge discount on weekend extended accommodation or perhaps throw in a weekend family package.
The Gen Z and millennial demographics are emerging as dominant spenders in the leisure market. Recent events in Kenya, such as the World Rally Championships and the Ngemi Festival, were initially expected to attract an older audience but instead saw high spending from the 28–35 age group. This shift highlights a major opportunity for hotels to curate experiences that resonate with younger travelers.
Notably, this demographic shares their experiences in real-time on social media, offering hotels free organic marketing. By analyzing their travel trends and preferences, hotels can design tailored offerings such as experiential packages, digital nomad-friendly workspaces, and social media-worthy moments to attract them.
In conclusion, the ripple effects of global political shifts have underscored the urgency for hotels to revisit and realign their strategies. Reforecasting is no longer just a financial exercise; it is a survival tactic.
By considering applying the suggested strategies, hotels can not only recover but reposition themselves for sustainable growth. The road ahead demands agility, data-driven decisions, and bold innovation. Those who take a proactive approach now will be best placed to thrive in a market that continues to evolve.
At HKC, we partner with forward-thinking businesses to turn disruption into direction. Whether you’re reevaluating your segment focus or looking to build new revenue channels, we’re here to help.
Let’s re-forecast together—with strategy, agility, and results in mind.
Reach out to us via info@thehospitalityconsult.com.