One of the industries struck hardest by the Pandemic is Tourism and Hospitality. There was a total shut down. Present relaxing of lockdown restrictions everywhere has shown some hope but the effects are quite visible.
Malls & Restaurants are open, but there are hardly any footfalls. They are completely relying on deliveries and takeaways. Hotel & Resort occupancy is down by 90% and the industry is struggling to sustain expenses or pay salaries. Everyone wants to know when the situation will change or what they can do to make it happen!
- In total, Travel & Tourism generated US$8.9 trillion, yet due to the current pandemic the financial impact of Covid-19 on world tourism has resulted in a total revenue loss of $195 billion worldwide in the first four months of 2020.
- There are three basic forms of tourism: domestic tourism, inbound tourism, and outbound tourism.
- As one of the biggest contributors to the global GDP, this industry directly employs nearly 77 million people worldwide, which comprises about 3% of the world’s total employment.
- The Tourism and Travel industry also contributes to indirect employment generation to the tune of 234 million or 8.7 % of the total employment implying that one in every twelve jobs in the world is in the tourism industry.
- The industry also represents about 12% of the total world exports.
Global market trends indicate that long-haul travel, neighboring country tourism, rural and ethnic tourism, wellness and health holidays, cultural tourism, spiritualism, ecotourism, sports and adventure holidays, and coastal tourism and cruises are a few emerging areas of tourist interest.
When will the Sun Rise for Tourism and Hospitality Industry ?
The Future is better than you think!
Getting upto the pre-Covid19 speed will take a long time but according to renowned Astro Strategist Hirav Shah, here are the recovery phases you can hope for:
- The next 6 months will be slow, but the graph is going up.
- Phase 1: By November 2020, 20-30% improvement will be seen. Business travel will also increase.
- Phase 2: By February 2021, 50% recovery will be seen. People will fear less and look forward to traveling or visiting restaurants.
- Phase 3: By April 2021, 70% rise in tourism, travel & hospitality will be visible. This will mark the revival of this industry!
Your Strategy today, will define your Future
According to Astro Strategist Hirav Shah’s analysis, two prime strategies will bring your hospitality & tourism business back to life.
Some businesses are already offering prepaid packages (flight tickets, dining or stay). Selling them on a large scale (B2B) on future use – nonrefundable basis will accelerate recovery and motivate buyers to travel. This will help sustain current business and pay wages.
2. Hybrid Model
This is the need of the hour. Businesses will have to adapt to the post Pandemic era.
- Restaurants can look forward to the start of dine-in by Feb 2021. But social distancing measures will require tables to be reduced. They should focus on the 50-50 model – half resources on deliveries/takeaways and half on dining.
- Hotels & Resorts should invest in converting 20-30% of their rooms to service apartments. This expense will give long term benefits and give people a chance to stay without fear of eating outside. Business travelers will greatly prefer such options even for long duration accommodation.