The Impact of Coronavirus on Lodging - World

Delivery

This report comes in PPT.

Key Findings

Hotels experienced the steepest decline

Given that the lodging industry has been impacted more negatively by COVID-19 than any other previous crisis, the highly capital-intensive hotels sector is investigating recovery strategies that may change the way hotels operate in the future.

Safety drives redesign of operational practices

With safety being at the core of the service-orientated sector, players at all levels from travel associations to tourism boards and brands focus on safety assurance.

Lodging evolves from traditional accommodation role

While international tourism comes to a halt, players in lodging find themselves in new roles given the demand dynamics triggered by the pandemic.

Change in consumer experience preferences to reshape lodging

As consumers’ lifestyles evolve in the post-pandemic period with greater work-life balance, greater domestic travel and away from city locations, the lodging sector is likely to adapt, with resulting changes in offerings and location of properties.

Digital to be integral of consumer journey

Digital will remain integral in both offline and online components of the guest journey, while online booking will offset offline booking, in-property services such as contactless check-in and access to ancillary services are expected to be redesigned across digital platforms.

Synergies and vertical expansion expected to be the way forward

With hotels restructuring business segments, brands are likely to find synergies through M&A, offloading assets, developing franchisee pools and vertical expansion into related services.

Next 2-3 years critical to determine structural changes in the industry

Many hotel brands are expecting a recovery of assets over a horizon of 2-3 years - which would determine the financial positions and the future direction for hotels.