The 2017 Hurricane Season That Was: What We Learned

By John Welty Practice Leader, SUITELIFE, Venture Insurance Programs | June 24, 2018

Seventeen named storms, 10 hurricanes, and six Category 3 or stronger hurricanes swept through the Atlantic Basin in 2017, well above the 30-year average of 12 storms, six hurricanes and two major hurricanes, Weather Channel data show. This placed 2017 among the top 10 most active Atlantic hurricane seasons on record, according to Dr. Phil Klotzbach, tropical scientist at Colorado State University.

Three devastating hurricanes – Harvey, Irma and Maria – hit Texas, Florida, Puerto Rico and the surrounding Caribbean so hard that the impact of the storms is expected to be felt for many years to come. Harvey, alone, dumped 50 inches of water along the eastern coast of Texas and brought the region to a complete standstill along with catastrophic losses worth $75 billion. Tourist haven the Florida Keys took a direct hit from Irma, a storm so strong that at least 25 percent of the homes there were destroyed. Its losses could reach $83 billion. Maria, meanwhile, was the strongest hurricane to hit Puerto Rico in 85 years. Dubbed a $95 billion storm, it resulted in hundreds of deaths and devastated the island's already fragile economy.

Hotels in the eye of all three of those hurricanes (and other storms) are back in business thanks to the savvy response by hoteliers and, in part, to insurance coverage secured well before the tempests ever hit. Hotels, though, weren't affected equally. Some never closed at all while others took months to deal with damages that rendered them inoperable. It's one thing for a hotel to reopen after calling in a crew do deal with a felled palm tree. It's a whole other matter when a roof is ripped away, nearby roads and bridges are ruined or in-house technical and operations systems have been destroyed.

Preparing to make the best of a bad situation

For the most part, the hotel industry was ready for the storms. Many of them, thanks to years of planning and an understanding of what each hurricane season may bring, were poised to put their emergency efforts into action days before the storms made landfall. They took proactive measures like procuring extra food, bringing in more generators and even having employees set up rooms in their homes for evacuees who couldn't find a spot at hotels or shelters.

The bulk of hotel properties in hurricane zones know the importance of establishing a successful working relationship with a trusted insurance partner to understand the best lines of coverage, not only to help keep the business up and running but to recover from property damages. The hotels that fared the best after the 2017 hurricanes understood their policies, coverages and deductibles before the storms ever made landfall. Their insurance agent was just a call away when the recovery work had to begin. Yet experts say there still are too many hotels that are unaware of what their policies cover or even exclude. Some specialty hotel insurers are able to hone in on the unique needs of a lodging business to offer solutions such as an all-lines insurance and risk management program for independent and boutique properties with added catastrophic capacity.

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Coming up in June 2019...

Sales & Marketing: Selling Experiences

There are innumerable strategies that Hotel Sales and Marketing Directors employ to find, engage and entice guests to their property, and those strategies are constantly evolving. A breakthrough technology, pioneering platform, or even a simple algorithm update can cause new trends to emerge and upend the best laid plans. Sales and marketing departments must remain agile so they can adapt to the ever changing digital landscape. As an example, the popularity of virtual reality is on the rise, as 360 interactive technologies become more mainstream. Chatbots and artificial intelligence are also poised to become the next big things, as they take guest personalization to a whole new level. But one sales and marketing trend that is currently resulting in major benefits for hotels is experiential marketing - the effort to deliver an experience to potential guests. Mainly this is accomplished through the creative use of video and images, and by utilizing what has become known as User Generated Content. By sharing actual personal content (videos and pictures) from satisfied guests who have experienced the delights of a property, prospective guests can more easily imagine themselves having the same experience. Similarly, Hotel Generated Content is equally important. Hotels are more than beds and effective video presentations can tell a compelling story - a story about what makes the hotel appealing and unique. A video walk-through of rooms is essential, as are video tours in different areas of a hotel. The goal is to highlight what makes the property exceptional, but also to show real people having real fun - an experience that prospective guests can have too. The June Hotel Business Review will report on some of these issues and strategies, and examine how some sales and marketing professionals are integrating them into their operations.