The pandemic has hit the hospitality industry hard and hotels have been severely affected by the spread of the virus. Most countries are in lockdown, which means no foreign tourists are allowed in. Hotels can only depend on domestic tourism and for most, this simply isn’t enough. It is becoming increasingly clear that Covid-19 is having a negative impact on the hospitality industry and occupancy rates all around the world have hit record lows.
The Effects of the Pandemic
Some of the top hotels around the globe, such as the Grand Mercure Golden Empire have been badly hit by the pandemic. People are no longer allowed to travel, and the hotels can only depend on domestic tourists as they wait to see what happens with the coronavirus pandemic. All around the world hotels have been forced to close and some countries are reporting occupancy rates as low as 3%. In Europe, it has been reported that the rate fell from 61% to 25% – the biggest plunge since World War 2.
What Will Happen in the Future?
With people continuing to stay in their homes and governments keeping the borders closed to non-nationals, the future looks bleak for the hospitality industry. But some hotels aren’t taking it lying down. They are having to adjust and become creative with new strategies to help to increase their revenue. There is no doubt the pandemic is having a profound impact on the hospitality sector and knowing what the future holds is difficult. Many hotels now see that contingency planning is crucial and they will look to cut costs as they continue to deal with the effects of the pandemic.
Managing the Industry Downturn
There are many ways hotels can deal with the downturn caused by the pandemic, they just need to be resourceful and take advantages of a unique opportunity. Here are some ways leading hotels around the world are dealing with the crisis.
In response to the pandemic, most hotels have ramped up cleaning and announced new programmes. Some of the most common methods are to increase the amount of times public areas are cleaned and treated, install additional hand sanitisers, use the right cleaning products, and teaching employees the correct protective protocols.
- Restructure the Company
Many hotels are using the situation to restructure the company as the environment doesn’t allow much time for this during busy times. Focusing on marketing and other revenue strategies have become a top priority.
Offering panic discounts because of the pandemic is something a lot of hotels are doing. The problem is when things return to normal, customers have an issue paying what looks like an increased rate.
There is no doubt that the hospitality industry and hotels in particular have been badly affected by the pandemic. It has set foot on every continent and it continues to make its unwanted presence felt around the world. Although large hotel chains have the capacity to bounce back, some businesses have past the point of no return as the pandemic lingers on.