Travel restrictions imposed in order to limit the spread of Coronavirus (COVID-19) had a dramatic impact on lodging in 2020. Global travel came to a halt as countries around the world closed their borders, with demand for domestic trips also hit by local restrictions and social distancing measures. Ongoing concerns about the virus and the uncertain economic outlook were expected to continue to exert downward pressure on demand even as official restrictions on travel were eased.
As investments continued to be seen in transportation infrastructure and lodging facilities, as well as the continued growth of Airbnb and local short-term rentals players in the region, lodging sales were recording consistently positive annual growth in Asia Pacific over the review period.
However, 2020 resulted in an unprecedented decline in the region’s lodging sales as the travel industry was rocked by the pandemic. Travel, including lodging, was one of the worst-affected industries by the virus and the measures implemented to contain its spread. This saw, for example, the lodging occupancy rate in China fall close to zero in February 2020.
Enhancing digitalisation strategies will be a key factor in 2020-2025. COVID-19 familiarised growing numbers of consumers with online channels for a wide range of needs, their convenience, competitive pricing and reduced risk of public exposure to the virus. Lodging players will therefore need to work on making their websites and apps effective touchpoints and booking channels.
Short-term rentals was the most dynamic area in the lodging industry in 2015-2020, which is expected to remain the case over the forecast period. In China, for example, increasing investment from Airbnb, which is implementing a localisation strategy in the country, and Xiaozhu, a leading local player in short-term rentals, will support expansion between 2020 and 2025.
After 2020’s sales slump, lodging is expected to quickly rebound in the region over the forecast period. While, initially, domestic travel(lers) will be a key focus for industry players, as borders reopen and international tourism begins recovering, this should guarantee healthy growth rates throughout 2020-2025.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page