Hospitality industry
The hospitality industry was showing significant growth due to the rising purchasing power of consumers across the globe coupled with digital innovations in the industry. Additionally, the stable economy of the developed, as well as emerging economies, also contributed to the growth of the hospitality industry. However, the COVID-19 pandemic since December 2019 has impacted the hospitality industry very severely. Moreover, the sufferings of the hospitality industry due to COVID-19 are anticipated to last longer as the travel will be restricted for a longer period of time.
Not just hotels, all the segments of the hospitality industry including cruise, airlines, and theme parks have been incomplete shut down since the COVID-19 outbreak was declared a pandemic by World Health Organization (WHO). As a result of completely shut down the working professional in the hospitality industry have suffered a severe loss in jobs. For instance, WestJet Airlines Ltd. announced that it will lay off 3,000 from its US staff in May 2020. According to Selectusa.gov, the air travel industry of the US provides approximately 0.9 million jobs in the US. Similarly, in March 2020, Air Canada announced to temporarily lay off nearly half of its employees in the second quarter.
Covid-19 pandemic is becoming major scrutiny for the hospitality industry. According to the American Hotel and Lodging Association, approximately 45% of all the jobs are being eliminated or will be eliminated that are related to the hospital industry. There was a forecast of approximately 30% drop in the hotel occupancy over the year which would result in the loss of nearly 4 million hotel jobs in the hotel industry. For instance, due to travel cancellation across the globe, Marriott Hotels is furloughing its thousands of employees from all of its branches. This loss due to pandemic is not only restricted to big hotel chains, around 33,000 small businesses hotel operations and franchise owners that represents 61% of the industry are also being affected
Numerous small businesses that are suffering, as major events across the hospitality, entertainment, and sports industries have been canceled, postponed, or suspended as per the government notice across the world. For instance, South by Southwest and Coachella, St. Patrick’s Day parades in cities such as Dublin and New York are all being canceled. Additionally, the most affected tourist destination visited traditionally by Chinese travelers especially during the Chinese New Year holiday in the USA, Europe, and surrounding areas of China. Due to the cancelation of annual event hospitality including local businesses are experiencing downfall as most of them rely on the traffic and sales generated during these events.
Moreover, in major tourist cities, a number of lodging and restaurants also depend on tourists, and with the cancelation of tourism, it is becoming another source of turmoil for the hospitality industry. Given the impact of a pandemic on travel demands, the hotel industry is registering a loss of around $1.4 billion in revenue every week. Apart from tourists, the local population is also avoiding the hotels, amusement parks, and restaurants, minimizing the business of hospitality industry as per the government notice to practice social distancing as much as possible
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The Report Covers
- Comprehensive research methodology of the hospitality industry.
- This report also includes a detailed and extensive market overview with key analyst insights.
- An exhaustive analysis of macro and micro factors influencing the market guided by key recommendations.
- Analysis of regional regulations and other government policies impacting the hospitality industry.
- Insights about market determinants that are stimulating the hospitality industry.
- Detailed and extensive market segments with regional distribution of forecasted revenues.
- Extensive profiles and recent developments of market players.
Verticals Affected Most
- Food and Beverages
- Travel and Tourism
- Lodging
- Recreation
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