Though no industry was lucky enough to stay untouched by COVID-19, the hotel industry has seen the worst downfall due to the virus and pandemic. Several different strategies to level the COVID-19 bend, like lockdown, stay-at-home requests, travel, and tourism limitations, have brought about brief closing of numerous hotels and altogether lowered the interest for several small scale hotels that had the permission to keep on working. According to some researchers, more than 50 million people working in the hotel industry have lost their jobs. Here we have jotted down three of the most terrible effects of covid-19 on the hotel industry.
- The downfall in the overall worth of the hospitality industry
We saw the impacts of Covid 19 on the hospitality industry in almost all continents. There is a sudden decline in the reservations and booking of the hotels and inclination to cancel the already reserved hotels. The small bars and cafes also faced the worst. For instance, in China, there is a 15% decrease in the reservation in March 2020.
On the other hand, in the USA and Europe, the occupancy rate remains below 25 percent during March 2020. However, this rate was 70 % in 2019 during this period. Similarly, in Italy, the reservation lies below 96%.
The survey conducted by KHN Europe estimated a decline in the profit by 11-29% in the hotel industry because of the government’s emergency measures in the wake of Covid 19. Alone in the US, the hotel industry faced a loss of $ 13 billion in the revenues of rooms only.
- Employment issues
The downfall of the hotel industry brings the downsizing of the workers. By April 2020, the American Hotel and Lodging Association reported that nearly four million layoffs would get seen in the coming weeks. By March, the restaurants and bar owners cut 419,000 workers across the USA. The downsizing of the workers brings monetary losses and, consequently, adverse health issues such as stress and depression. Due to the pandemic, the flights were off. And the workers could not get to the workplaces and lose their jobs. In America, 17.4 % of the employees in the hotel industry are immigrants. This Covid 19 adversely impacts the employment rate not only in the USA but in the world.
- Reduction in Money Requirements
The onset of this global pandemic has altered the masses’ thinking, and they are devising ways to adjust to the new normal. The hotel industry can reduce its operating cost to save money to enhance the profit and be in safe hands in times of crisis. The most critical step in saving money is to go green. It saves you money and brings benefits to the environment. It involves using less lighting, monitoring food waste, low flow toilets, buying accessories in bulk, and saving money for the hoteliers.
Now, the world’s situation is getting a little better, and the hospitality industry is also recovering but at a languid pace. The primary reason is that people’s interaction is the biggest reason for the spread of the disease. And hotels are all about business. Anyway, to cover up the damage created due to the pandemic, the hotel owners need to develop a strategic plan. But overall, it will take a few years for the hospitality industry to get back on its feet.