After checking today’s COVID numbers, I turned my attention to News in Business. Layoffs, furloughs, closures, lawsuits, hand outs… sigh.
And then this:
“While Covid-19 is still significantly impacting our business, our results for the third quarter showed continued improvement in demand trends around the world.”
This from Marriott International Chief Executive Arne Sorenson in the Wall Street Journal. Yes – that’s Marriott the HOTEL CHAIN.
How does an international hotel chain *make money* in the middle of global pandemic pandemonium?
With a very close look at its numbers, it turns out.
I’ll get to the HOW in a second – but what struck me first was the big picture lesson here:
Don’t give up; get imaginative.
Things may be tough… I mean, if any industry was going to throw up its hands and forgive itself for its losses this year, it would be the hospitality industry, right?
But resolve and resourcefulness pays off.
First, Marriott found a way to replace some of the revenue lost when out-of-towners stopped booking overnight visits. It offered hotel rooms as rentable 6am – 6pm work spaces. Genius.
(When you know your business inside-out and have been making your money through certain services sold to a specific audience, it can be super-hard to think outside the box. Want to chat, and see if we can brainstorm some hidden-in-plain-sight solutions for your business? Book a call with me here.)
Second, Marriott got creative by slashing expenses. The hotel chain managed to cut costs by 57% in Q3. Fifty seven percent.Now, a lot of that was “heart-wrenching” salary eliminations, salary cuts and hiring restrictions, but there was also budgeting prowess at play, including delaying renovations and deferring furniture and equipment purchases.
(That’s the magic of profitability – it’s a cool relationship between income and expenses. Want to chat, and get a better handle on how we can make your business more profitable? Book a call with me here.)
Businesses big and small are feeling the pandemic in some way. I mean, some of my clients are having their best years ever, even while international giants like Marriott are working budgeting miracles to stay alive.
Whether your revenue is up or down, there may be some ingenious ways to improve your profit. And now may be the perfect time to look closely at how.
I’d love to know how you’re doing, and if there are out-of-the-box solutions you might consider. Book yourself in for a forty-five minute non-sales call with me, tell me how business is, obviously in total confidence. I’ve cleared a few spots in my calendar for us to talk – find your time.
To your financial success!