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  • 20
  • Dec

Dynamic Budget Strategy for Hotels to Deal with Covid-19

We all know that the whole world is still dealing with the profound impact of Covid-19 pandemic. This has impacted hotels’ ability to generate cash flow to cover debt service and operating expenses. To deal with this situation, many hotels have temporarily closed than open in the low occupancy atmosphere. However, with the course of time many hotels reopened but the uncertainty can’t be fully ignored.

By leveraging a proactive budget strategy tailored to the state of the pandemic, hotels can develop the financial flexibility required for surviving in a rapidly changing industry environment. Furthermore, this approach will make it easier when budgets for Resorts in Madagascar are updated regularly.

Budget for Covid-19 environment

For hotels, demand is undoubtedly going to be low or intermittent during peak periods of the pandemic. In 2021, hotels will need to continue operating with a budget that can account for revenues lost due to low occupancy. Hotels need to determine internal and external variables such as average stay durations, daily rates, customer needs, etc. By determining these variables, hotels will be able to draft both short term and long term budgets to deal with the pandemic.

Budget for non-Covid 19 environment

As the pandemic begins to subside, the hospitality sector will enter its recovery phase. Hotels will require a budget that is suitable for a gradual return to businesses. For instance, the first few months of vaccine distribution, where healthcare workers and high risk individuals are the ones to become vaccinated first. With case reductions, there will be significant improvement in consumer confidence in business or leisure travel. This will lead to enhanced occupancy, causing budget variables and operating needs to change significantly.

However, even with new standards, the budgeting will increase due to heightened sanitation protocols, contactless check-ins, reduced percentage of stayover room cleaning, automated service, etc. Madagascar Beach Bungalows will need to account for these variables in the long run as well as in their daily operations and staff scheduling.


Regardless of the state of the world around, a proactive budgeting strategy will be among the most critical factors for hotels to address any kind of financial constraints both during and post pandemic times. By developing a robust budget, you will be better prepare for uncertain future that lies ahead.


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