Impact of Covid-19 on the Hospitality Industry

Impact of Covid-19 on the Hospitality Industry

Covid-19 Has had a drastic impact on several industries all over the world. But, the impact on the Hospitality and Tourism industry is greater. In this article, we will see how Covid-19 has impacted the Hospitality Industry all over the world.

Hospitality Industry: The Scenario Post Lockdown

The pandemic has severely affected the hospitality industry all around the world to a great extent.

The pandemic has severely affected the hospitality industry all around the world to a great extent. Travel and tourism segments are facing a major bleak due to the lockdowns that are happening. The major impact on the Hospitality industry is observed in major regions like those including North America, Europe, Asia-Pacific amongst the other part of the world. Ever Since the Covid-19 outbreak, many cities in Asia-Pacific are in complete lockdown that had restricted the growth of the hospitality industry.

Key companies that are affected include Burger King, Choice Hotels International, Domino’s Pizza,  Expedia Group, Four Seasons Holdings, Marriott International, McDonald’s and many more.

Impact on the Industry Post Lockdown

  •  Various strategies opted by the government like the lockdowns, social distancing, Orders from staying at home, travel restrictions have had a direct impact on the hospitality industry. Therefore, this has lead to the temporary closure of many hospitality businesses.
  • Restaurants were asked to limit their operations and accept the takeaway orders only.
  • There was a sharp decline that was seen on the revenues due to the various policies framed.
  • The world travel and tourism council had warned earlier that this pandemic would lead almost 50 million people to lose their jobs.
  • Due to fear many of the front line staff of the Hospitality industry have moved back to their native. 
  • All these, as a result, had a great impact on the Indian hospitality industry which could leave the majority of people jobless.
  • The current situation has impacted both the revenue and supply chains of the hospitality and tourism industries.
  • The loss faced by the entire industry during this lockdown is tremendous and various statistics tell that it will take many years for the revenue and Return on Investment to normal.

Hospitality Industry: The Next Normal 

Travellers are cancelling their planned trips and not scheduling any trips for the near future. While the hotels and airlines are operating at half capacity. Therefore, digital Presence is becoming prominent in the next normal.

The various technologies that will help the hospitality industry recover to some extent are as follows:

  • Online ordering for takeaways.
  • Loyalty programs.
  • Remote or Virtual training for the new staffs onboard.
  • Contactless payment.
  • Customer experience.
  • High-tech security solutions.
  • Artificial Intelligence enabled assistance. For instance, chatbots.
  • The next normal will take place by structural shifts, around the aspects that cover customer expectation for hygiene and flexibility.
  •  Initiatives to promote the staycation or holiday concept.
  • Digital marketing to establish constant communications with the guest about the new strategies adopted.

How to Gain the Customer’s Trust?

  • The security should check the guest’s temperature with a remote thermometer, shower a light sanitizer mist on the guest and keep sanitizers at the lobby, elevator and, guest rooms.
  • There should be a sign stating that the room has been sanitized.
  • Hotels must open only one or two floors that are open for operations with essential facilities and a limited number of staffs.
  • All staffs should wear surgical gloves and a mask.
  • Encourage self-service to reduce contact with the guests.

In conclusion, even though the Hospitality and Tourism industry is going through a rough phase right now, this is not the end. Everything will be back to normal sooner or probably a little late. Therefore, do not lose hope!


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