WH&LA COVID-19 Survey Results Overview & New Updates
March 18, 2020
Dear WH&LA Lodging Member:

Before we get into the survey results, there are three items to share. First, we need to respectfully ask you to retain this information only with WH&LA Lodging Members, as it is intended to be a helpful resource to you, as a dues-paying member, but is not intended for the media or others. Thank you for honoring this request.

Second, the American Hotel & Lodging Association (AH&LA) is making every effort to convince Congress to provide support to our industry during this pandemic and financial time of need. They are asking lodging members to contact their U.S. Senators (Senator Tammy Baldwin and Senator Ron Johnson) as well as your Wisconsin Congressional Representative to ask their support on 3 components they feel may be able to move forward with enough voices from our industry to Congress. Here is today’s AH&LA Urgent Action Alert !

Third, just minutes ago we received an update from Andria Lure Ryan from Fischer Phillips to share:
Congress Finalizes COVID-19 Coronavirus Response Act: Prepare To Provide Paid Sick Leave And FMLA - The Senate passed the Families First Coronavirus Response Act today, an economic stimulus plan aimed at addressing the impact of the COVID-19 outbreak on Americans and introducing paid sick leave and an expanded family and medical leave act to the nation’s employers. An earlier version of this Act (H.R. 6201) was previously passed by the House in the early hours of Saturday, March 14 before being significantly altered late Monday, March 16. The bill now awaits President Trump’s signature, which is expected later today or tomorrow as he has already publicly supported the bill. Once he signs the bill, it will become effective in 15 days.

WH&LA COVID-19 Impact Survey Results

Thank you to the over 100 lodging members, representing approximately 140 Wisconsin lodging properties, who participated in this important survey! Please keep in mind the surveys were completed March 16-17(in the midst of state Orders on gatherings of 50+ then just 10 people)

Survey Participants: 
  • There was an even split between franchise and independent properties, which helped to provide a balanced perspective
  • There was also a good balance in property size representation with about 1/3 in each category (1-50 rooms/units; 51-100 rooms/units; 100+ rooms/units)
  • 75% of the participants represented Hotels or Motels, 22% from Resorts, and 10% each from condo properties (some represent multiple property types)
  • Central Wisconsin had the most participation, followed in sequence by Northern, Madison, Milwaukee, Southern, Door County and the Dells

Lost Business due to the pandemic:
  • Meetings/Convention Business: 71% have lost 50+% so far; 43% lost 90% or more, and 23% had already lost 100% 
  • Business Travel: 89% lost 50% or more; 45% lost 75% or more, and 25% lost 90% or more
  • Leisure Travel Business: 62% lost 50% or more; 35% lost 75% or more, and 20% lost 90% or more
  • Lost Dollar Revenue estimates to date: 59% have lost $50,000 or more; 45% have lost over $100,000, and 11% have lost over $1 million

Cancellations from May on
  • For May & June: 80% have had over 15% in cancellations; 64% have had over 25%, and 24% have had over 50%
  • For July & August: 57% have had 10% or more; 26% have had 20% or more

Handling Cancellations
  • 36% are waiving all cancellation fees, even for same day cancels
  • 13% are accepting without needing a reason
  • Many are offering credits or rescheduling options
  • Many individual additional options are used

Communication with Upcoming Guests
  • 46% either have or will this week initiate new communications with pending guests
  • 40% said they have not
  • Of those that have or will, most are outlining enhanced steps in ensuring guest safety

Employees
  • 11% have staff already unwilling to come in to work, and 17% more said employees are already talking about this
  • 28% have already had to lay off staff, and another 26% said they have not yet, but will need to do so
  • 86% of those laying off have done so for 20% or more of their staff; 28% of those laying off have/are laying off 75% or more of their staff
  • There are a variety of approaches being considered, with most relying upon Unemployment Compensation and/or FMLA, with 17% noting no pay

Operations
  • 5 properties have had self-quarantines located at their property
  • 50% did not have an Emergency Plan that would address a pandemic, and 30% said they did have one in place
  • 41% plan to stay open to guests; 8% have or will close temporarily, and 35% remain undecided
  • 40% have put their marketing on hold; 27% are keeping the same level of marketing, and 17% are decreasing marketing investments
  • Of the Pandemic resources needed, 27% said government financial assistance, 16% said availability of key products (i.e. Sanitizers, etc), and 14% said continued updates and information on the pandemic

Top Challenges Right NOW
  1. Revenue Needs
  2. Staffing/lay-offs
  3. Unknown future/difficulty in forecasting
  4. Guest & Employee Safety

Top Challenges as the Pandemic Subsides
  1. Staffing Recovery
  2. Recouping business
  3. Restoring customer trust in traveling
  4. Ramping back up
  5. Returning to a profit
  6. What will the future of travel look like?
  7. Having funds for maintenance & improvements
  8. Generally getting travelers traveling again

We hope that you find this survey and it’s results helpful as you continue to address your challenges now and into the future. Further surveys will be sent to gauge further developments.

Sincerely,


Trisha
Trisha A. Pugal, CAE
Interim CEO
Wisconsin Hotel & Lodging Association
262-782-2851