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Technology Is Vital To The Hospitality Industry Revival

Tuesday, June 9, 2020  
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Technology Is Vital To The Hospitality Industry Revival

Hospitality Net - June 9, 2020

The travel and tourism industry has been widely and significantly impacted by today's unprecedented health crisis. For the first time ever, more than 70% of the worldwide hospitality sector has been shut down. Though it is very difficult to predict when the hospitality industry will return to 2019 levels, I believe there will be two phases in the recovery process.

Phase 1

We are slowly beginning to see a ramp in demand for holiday stays within home countries that address leisure and relaxation for families. To meet this demand I predict that we will see an increase in 'staycation' offers that propose affordable packages and encourage people to stay local. Additionally, some hotels have launched the concept of a 'daycation' which consists of a day-pass including room, lunch, and access to facilities such as the pool, beach and other activities.

During phase 1 business travel will be very limited as most companies will not want to put their employees at risk. Reduced travel will result in drastically cut expenses. In addition many businesses will adopt communication platforms to facilitate business continuity.

Depending on the country and the health crisis measures, it is possible that this phase may last into Q1 2021.

Phase 2

As the world heals and people start to move more freely, phase 2 will begin as corporate business travel and events ramp up. In addition, international travel, exhibitions, fairs, corporate events, and personal events including celebrations and weddings, will enable the hospitality sector to gradually resume business. The challenge for hoteliers will be to get through phase 1 while preparing for phase 2 and beyond. And, when I say 'beyond' I mean prepare for future crisis that will undoubtedly arise.

First, however, we will need to face the financial fallout from today's global health crisis which may take some time to overcome. Whatever the crisis going forward, whether it is a natural disaster, geopolitical incident, war, economic, pandemic, local or global, the key learning for the travel industry will be to be better prepared for the future based on our experience in 2020.

2020 hospitality industry insights

The 2020 global health crisis has brought with it some drastic changes to the hospitality industry. As reopening unfolds I see four major challenges that hotel operators will need to navigate. 

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