Adaptation Strategies for Survival from COVID-19 Crisis of Small and Medium-sized Independent Hotels in Northern Area of Pattaya during 2020-2021

Abstract

The coronavirus (COVID-19) pandemic has severely affected business sectors, notably tourism and hospitality due to the reduction of tourists visiting. The issue has caused tremendous setbacks to the Thai economy, especially the tourism industry in Pattaya. Different sized hotels have been impacted in different ways, with each needing to adapt for their business to survive. This research, through 4 different sized hotels as case studies, aims to explore and analyse the measures and the adopted strategies undertaken by independent hoteliers to speed up the return to normality and minimize the impact of the economic crisis.

This research found that 3 adaptation strategies for the continuance of hotel businesses during the pandemic which are 1) Hotel expense management; by reducing costs for cutting loss side businesses of medium sized hotels, while small sized hotels opted for operating other business ideas alongside selling rooms. 2) A change in pricing scheme; lower costs to attract more customers and longer staying guests. 3) A new strategy to create new selling points to different target groups; by doing so these hotels have eventually adapted and renovated for their newfound target groups alongside following strict government policies in order to build confidence and resurgence to outlast the travel crunch.

            By researching the strategies and entrepreneurial mindset for business continuity in conditions of different sized hotels, It becomes that small-sized hotels decided to cost-reducing and balancing work time and responsibilities due to cost and area are not enough in the other hand's medium-sized hotels decided to shift business model, marketing, diversify target groups and renovate parts of hotel area for new user requirements as previously mentioned. This research not only will provide an overview and independent hotel owners or governments to adjust reactive measures to help entrepreneurs and remedies but it also provides the private sector or newbies who can apply strategies to their business models.