The current situation is having an enormous impact on the hospitality industry worldwide with Coronavirus hitting the beating heart of every hotel! Most hotels are closed down with hoteliers being unsure of what to expect after the crisis.
Their customers are developing new habits and new ways of staying connected in business and private life. Many challenges are being seen on the horizon but also brand new opportunities in the New Era AC-19 (After Covid-19). Hotel owners are required to create new strategies that will help them ‘Navigate the Storm’ and get out of the crisis like winners. Given the fact that we cannot predict the duration and scope of the crisis, we cannot but ask ourselves: Who will be the guest of the New AC-19 Era? And how this will impact and change the Hospitality Industry?
Survey results
The New Era traveler has created several new habits and needs that are changing the way he chooses, lives and appreciates the travelling experience:
The New Era traveler has created several new habits and needs that are changing the way he chooses, lives and appreciates the travelling experience:
The current pandemic has forced an immediate shut down of the operations in the Hospitality Industry while it is also expected to be among the last to start over. On top of it, this long period is helping the customer to cement his own new habits and needs!
Lots of uncertainties in an Industry that represents a pillar of the real GDP in many countries and it is now showing its structural limits:
Highly fragmented with the majority of the operators who are leading a single hotel; the crisis will drive a market consolidation with only 70-80% of the operators that are expected to survive. Big Chains with solid financials will have the opportunity to strengthen their market position in strategic geographies via M&A!
Lack of managerial skills: many hotel operators closed down, postponed all investments, resized the structure, cut costs, and waited for the crisis to pass. Very few stayed close to employees and suppliers, upgraded the digital platform, and redefined the strategy in line with new customer needs. These (20 to 30%), will be likely to experience a good new beginning.
Overall, it is expected a structural market contraction of more than 20%, even though it prevails a general optimism about the industry's capabilities to rebound.
The crisis in hotel and restaurant sectors, as a consequence, has generated a domino effect on other market participants such as tour operators, travel agencies, furniture manufacturers, interior designers/architects, etc. Also, the overly present Booking and Airbnb seem to be in trouble!
As for Hospitality, a substantial reduction of the market participants is expected with closures and mergers.
To face the moment, we believe there is NO SPECIAL RECIPE, if not to:
As a dear friend wrote in an article on Retail Banking:
See a more detailed analysis of our survey findings in the exhibit below!
The current situation is having an enormous impact on the hospitality industry worldwide with Coronavirus hitting the beating heart of every hotel! Most hotels are closed down with hoteliers being unsure of what to expect after the crisis.
Their customers are developing new habits and new ways of staying connected in business and private life. Many challenges are being seen on the horizon but also brand new opportunities in the New Era AC-19 (After Covid-19). Hotel owners are required to create new strategies that will help them ‘Navigate the Storm’ and get out of the crisis like winners. Given the fact that we cannot predict the duration and scope of the crisis, we cannot but ask ourselves: Who will be the guest of the New AC-19 Era? And how this will impact and change the Hospitality Industry?
Survey results
The New Era traveler has created several new habits and needs that are changing the way he chooses, lives and appreciates the travelling experience:
The New Era traveler has created several new habits and needs that are changing the way he chooses, lives and appreciates the travelling experience:
The current pandemic has forced an immediate shut down of the operations in the Hospitality Industry while it is also expected to be among the last to start over. On top of it, this long period is helping the customer to cement his own new habits and needs!
Lots of uncertainties in an Industry that represents a pillar of the real GDP in many countries and it is now showing its structural limits:
Highly fragmented with the majority of the operators who are leading a single hotel; the crisis will drive a market consolidation with only 70-80% of the operators that are expected to survive. Big Chains with solid financials will have the opportunity to strengthen their market position in strategic geographies via M&A!
Lack of managerial skills: many hotel operators closed down, postponed all investments, resized the structure, cut costs, and waited for the crisis to pass. Very few stayed close to employees and suppliers, upgraded the digital platform, and redefined the strategy in line with new customer needs. These (20 to 30%), will be likely to experience a good new beginning.
Overall, it is expected a structural market contraction of more than 20%, even though it prevails a general optimism about the industry's capabilities to rebound.
The crisis in hotel and restaurant sectors, as a consequence, has generated a domino effect on other market participants such as tour operators, travel agencies, furniture manufacturers, interior designers/architects, etc. Also, the overly present Booking and Airbnb seem to be in trouble!
As for Hospitality, a substantial reduction of the market participants is expected with closures and mergers.
To face the moment, we believe there is NO SPECIAL RECIPE, if not to:
As a dear friend wrote in an article on Retail Banking:
See a more detailed analysis of our survey findings in the exhibit below!
