Will Covid-19 Rule the Hospitality Industry?

 Will covid-19 Rule the Hospitality Industry?

Covid-19 AKA Corona virus is affecting more than 200 countries causing death to nearly millions of people. It is causing far more worst than health crisis, affecting communities and economy at its core. It has caused global recession with billions of population still under lock-down. Covid affected every sectors and Hospitality sector is one of it. We can say, Hospitality is hardest hit sector by this pandemic. It is nothing like we have seen before and been described as 'invisible Foe' 

Everyday we hear about covid and it's negative impacts on daily life. Millions of people have lost their job and another millions are facing salary cut. Unemployment rate is skyrocketing. Almost all hospitality sector are closed as the occupancy rate was less than 20% for hotels while over 70% booking made cancelled for travel sector. Every destination in world is under travel Re-striction now and there is travel ban around the country due to this force majeure. 

One in ten people works in Hospitality and tourism. There are over seven lakh hotels throughout the world which contributes more than trillions of dollar to global economy. All hospitality industry are struggling to stay afloat due to which almost all staffs are on unpaid leave. When compared between economy and luxury scale hotel , economic scale hotel may recover very soon as their fixed cost is relatively lower than luxury hotels. It will be very hard journey for Luxury hotels to recover even though cutting fixed cost and variable costs for months. The debt capital(investment) to be paid covers certain percent of interest which has to be paid and investors are pessimistic to invest on hotel sector for certain years.

So, will hospitality industry recover? Or it will be ruled by covid-19? It will be the hardest recovery among all economy hits. pandemic is temporary and good time may come. Hope it shall pass However, a majority of population will not be travelling still for a year. The chance of traveling for entertainment, vacation and re-creation is extremely low. More than hundreds staff are required to run big hotels so , there is  a fix chance of cutting employment to reduce labour cost. New technology may evolve and there will be extensive practise of PMS - property management system. This will facilitate contact less check in , check out. Robots may be seen delivering the food and beverage . Pools ,jyms, spa ,laundry will be closed so definitely, there is going to be massive employee cut-down which we have not seen till now. 

Hotels can use this time too. This is not only Time to get worried and can be utilized on renovation of hotel , deep cleaning of entire property. Right New protocols should be developed to change hotel policies and procedures which should emphasis on social distancing. There should be optimum investment on technology and Remember ,if you are owner of the Hotel , Don't decrease Room rates,instead, offer discounts . The travellers will not be looking for Lower price. They will be looking for hygiene and sanitation. Similarly, closing your business for months to cut losses is also not going to help you, instead, promote domestic tourism. Use marketting tools efficiently and ensure new revised protocols are evenly followed like distancing, hand wash and sanitizer on lobby , every floor corridors , used of Property management system, close monitoring of employees health, Rapid test for guests, free protective equipments e.tc . It's again time to gain trust of your guests by Focus mainly in health, hygiene and sanitation. If your property was running in profit from years then don't hesitate to pay your employees. If you can't pay in full , make sure they survive because they were the one helping your business to survive!!