Restoring Consumer Confidence Will Be Key for Recovery
A famous quote reads, 'Nothing happens to us; everything happens for us.' Yet, holding on to that frame of mind right now – in the midst of a global pandemic – is, for many businesses, admittedly easier said than done.
Since travel and tourism are cash-heavy industries dependent on small margins, many companies will face great hardship, from laying off long-term staff to foregoing upgrades or repairs. Although many unknowns remain, here are seven things you should take into account if you are operating in the travel and tourism industry during the global pandemic.
The world is slowly opening up again, new research from the World Tourism Organization (UNWTO) indicates, with destinations cautiously easing travel restrictions introduced in response to COVID-19. As the United Nations specialized agency releases its Global Guidelines for Reopening Tourism, signalling a transition into gearing up for stronger and better recovery, 3% of all global destinations have now taken steps to ease travel restrictions.
According to the GlobalDatas Q3 2019 UK consumer survey, 45% of respondents said they typically take a city break. However, a 14-day quarantine means such trips will not be considered viable due to the extra demand it will place on annual leave for many people. Currently, there is much concern among operators as many urge industry leaders to abandon quarantine.
New measures help to rebuild confidence for travellers Latest protocols aid the reopening of Travel & Tourism sector
The world is currently taking a collective break from travel, but it wont last forever. And when the tourism industry starts moving again, Covid-19 will still be in the forefront of most peoples minds.
OTAs Expedia and Booking.com have cut teams and each drawn in more than USD3bn, to give them enough cashflow to survive the coronavirus shutdown. The cutbacks and cash calls come as Expedia is already into a restructuring, under new leadership. But for Booking, an adjustment to the effective halving of revenues has been more painful, with substantial divisional layoffs.
Swiss Education Group is collaborating with Mandarin Oriental Hotel Group on a research initiative to study the effects of the ongoing pandemic on the hospitality industry.
Currently, the Uniform System of Accounts for the Lodging Industry, 11th Revised Edition (USALI) does not consider the possible alternative use of hotel assets during an international pandemic. To help guide hotels during this time, the USALI Global Finance Committee came together to collaborate and issue their recommendations for recording expenses in a variety of situations that are both extraordinary and unique to the current pandemic.