The novel coronavirus is hammering a lot of industries, but the hospitality industry has had probably the hardest hit. Coronavirus impact on the hotel industry may lead to 20 to 40 % fall in occupancy rates in the next three months, a report has said. The Indian hospitality industry is expected to suffer losses up to 620 cr in upcoming months during the COVID-19 epidemic.
According to economictimes – Hotel bookings in February declined across all categories in 90% of India’s states and union territories following the COVID-19 outbreak, as per the data shared with ET by B2B SaaS startup RateGain.
Indian online travel solution companies have reported that Delhi/NCR, Kerala, and Maharashtra were worst affected and hotel bookings dropped by 60%, 54%, and 42% respectively in February.
The factors adding up to decline in growth of Hotel industry during Covid- 19 hit include:
- Governments have closed national & state borders
- Suspended visas for international travel
- Airlines have reduced their flight’s operation to Indian as well as international destinations.
- Cancellation of events like IPL, concerts, etc
COVID-19 outbreak is increasing Travel restriction which is impacting hotel chains, restaurants, and events. Hotels, even five stars, have seen a fall of 50 to 70% in revenue. Less traffic in hotels will have a clear impact on the revenue of F&B, MECE, and other commissions.
As CEO of Marriott, Arne Morris Sorenson said in a video “It is nothing like we have seen ever. The impact of Covid-19 on our business is worse than 9/11 or even world war 2.” As a measure to support his staff during these challenging times, Arne announced that he won’t be taking his salary for the rest of the year.
The most important requirement in these times is customer trust & loyalty. And some companies are putting up exemplary actions during this situation. One of the biggest Travel companies in India, MakeMyTrip, has announced the company will not charge any fee for processing cancellation or rescheduling requests for domestic as well as international flights up to April 30.
Amid the losses to companies, there are lots of jobs in danger during the Coronavirus impact on the hotel industry. As predicted by experts, 4 million jobs could be lost during the COVID-19 epidemic. American Hotel and Lodging Association has announced that some 45% of all hotel jobs have been eliminated or will be eliminated in the next few weeks.
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