On May 6th, 2020, Norwegian Cruise Line Holdings warned that there is “substantial doubt” about its ability to continue as a “going concern”*. The cruise industry has, of course, been hit extremely hard by the covid-19 pandemic, with revenue rapidly dropping to zero. Adding insult to injury, the industry has been hit with substantial costs associated with repatriating crew who were stuck on ships all over the world – severely constrained by travel restrictions.
While all companies in the travel and transportation and the hospitality industries have been adversely affected, some leaders have demonstrated great courage, foresight and optimism in their approach. HospitalityCo, a global company in the hospitality industry, took an inspiring approach that may hold lessons for others.
When the crisis arose and contagion started to spread around the world, a key topic of discussion in the C-suite was: “Where is the opportunity?” While not perfect, the approach chosen by leadership was balanced, yet bold. Rapidly HospitalityCo’s top team agreed on a five-pronged approach:
- Reduce spending and preserve cash – where this causes little harm to the company
- Establish new revenue streams – building on existing assets and capabilities
- Strengthen individual leadership capabilities
- Strengthen collective leadership capacity
- Strengthen the organization in preparation for the rebound.