Impact of COVID-19 on the global lodging industry: Hot Topic Brief - Issue 3
- April 2020 •
- 18 pages •
- Report ID: 5892745 •
- Format: PDF
COVID-19, commonly referred to as the Coronavirus, is dominating headlines the world over. The travel & tourism sector is suffering significant disruption and the lodging industry is very much impacted.
- The trend in new deaths caused by COVID-19 worldwide has jumped back up over the last week, after a decline in last week’s figures. The change has mostly been fueled by the rising number of deaths in the US, where COVID-19 has claimed 25% of global deaths so far. In Europe, early trends show that the peak might have already been passed. Both Italy and Spain appear to be witnessing a slow but steady decline in the number of new deaths registered every day. The picture is less clear in the UK and France, where the numbers of new deaths fluctuate from day to day but are generally trending downwards.
- This trend creates both positive and negative reading for major players in the lodging industry. Companies such as Marriott and Hilton will take hope from the fact that the situation in Europe is gradually improving. However, companies such as these were originally based in the US and operate a large number of locations there. In order for these hotel companies to fully start their recovery, domestic travel in the US needs to be a likely possibility in the short term, this does not seem likely right now.
- Many hotels that are either family-owned or by small or medium sized enterprises (SMEs) are in even poorer circumstances in the US. Although they benefit from the Paycheck Protection Program (PPP) which offers federal guaranteed loans to businesses with fewer than 500 employees to cover payroll and other essential costs, many hotels find themselves in difficulty because of other associated costs, including those of being a franchisee to one of the big hotel chains.
- This report provides insight into the current state of play, offers a look at potential future scenarios and assesses the actions that lodging operators can take to mitigate the impact of COVID-19.
Reasons to Buy
- Gain an overview of the current global COVID-19 situation
- Understand the impact that COVID-19 is having on the industry
- Explore future industry scenarios
- Assess possible mitigating actions
- Compare key industry players’ actions