Challenges of Hospitality Leisure and Travel industry during Covid19 pandemic

This report discusses the challenges faced by the hospitality leisure and travel industry during the Covid-19 pandemic, including fixed and variable expenses, finding the right staffing, pricing elasticity, technology, and health and wellness. It also explores the positive impact of Covid-19 on the industry, such as increased opportunities for digitalization, innovation, use of robotics, and establishing online presence.

Challenges of Hospitality
Leisure and Travel industry
during Covid19 pandemic
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Contents
Introduction......................................................................................................................................1
Main Body.......................................................................................................................................1
Conclusion.......................................................................................................................................4
REFERENCES................................................................................................................................5
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Introduction
Hospitality leisure consider as one of the biggest segment of tourism in over the world as it
includes broad category of fields including food service, event planning, theme parks, lodging
and other tourism oriented products and services. Basically, this sector is highly sensitive to
competitive market condition and economic as well. It put direct impact over the economic
condition of specified nation. In this context, leisure travel is a famous form of travel in with the
main motivation of people is to take break from their daily life. This is the reason that hospitality
industry is growing day by day and improve economic condition as well (Kaushal and
Srivastava, 2021). Leisure travel is often characterized by staying in good resorts, hotel,
experiencing local tourist attractions and many more. As per current scenario, COVID-19 is
major challenge for hospitality industry as it impacts over the performance and growth of
company. Due to pandemic, leisure travel is also get affected and the reason behind this is
resulting lockdown across the globe. Therefore, it is important for hospitality industry to operate
their business as per market condition and also tries to evaluate appropriate ways to sustain their
business in pandemic situation. Report is going to discuss about challenges of hospitality leisure
and travel industry during Covid-19. In addition to this, positive and negative impact of Covid-
19 over the hospitality leisure and travel industry that assist in drawing a meaning conclusion
within the project.
Main Body
The tourism industry is referring as one of the famous and fastest growing industry that
would be greatly affected by COVID-19 pandemic. As, it is one of the major effects over the
entire world and the primary focus of government and business is safety of their people. In this,
it put huge impact but at the same time not yet predictable over the revenue and supply chains.
This is the primary reason that hospitality industry takes decisions to shut down theme parks,
hotel, restaurants. All these have a significant impact on worldwide tourism. On the other side,
pandemic situation is also bringing new business opportunities and models that can put its
positive impact on economic condition (Davahli and et. Al., 2020). Therefore, it is significant for
hospitality industry to be prepared to quickly respond towards the changes and make proper
decision accordingly. In this context, there are major challenges that hospitality leisure and travel
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industry face during Covid-19 pandemic situation. These issues or challenges can be understood
by following points:
 Fixed and variable expenses: In the pandemic situation, government mandated
social distancing and cleaning ordinances is one of the important factor for
hospitality industry. It may lead to higher fixed and variable expenses that is more
challenging for industry to manage their operational activities in market place and
also put negative impact over the profitability of hospitality industry.
 Finding the right staffing: Forecasting and analysing customer habits and
preferences is one of the major concern for company. This will put negative impact
over the company and its profitability as well. Thus, it is crucial for travel and
hospitality industry to finding right staffing level so that company can provide right
and quality services to its customers as per their needs and wants. Without improper
services, travel industry cannot be able to attain success at market place or pandemic
situation as well (Hao, Xiao and Chon, 2020).
 Pricing elasticity: Pricing is considered as a major issue or challenge that hospitality
industry faced in pandemic situation. As, supply of hotel rooms is less as compare to
before. In this context, lower prices, low occupancy rates and lack of demand is
directly affect the revenue and profitability of hospitality leisure and travel industry.
 Technology: At hotel premises, electronic check-in/ check-out become more
important for hospitality industry because of new social distancing measures and
primary focus on cleanliness. As, guest avoid to come to the front desk in order to
get a key. Implementing digital technologies through mobile phone applications
requires significant initial cost. It is one of the major challenge for hospitality
industry to afford this type of expenses as it directly impacts on overall cost of
industry.
 Health and wellness: In hospitality industry, promoting health and wellness for
customers is important and growing trend as it required to upgrades design. This
procedure with take more time to implement. It became more challenging for travel
industry because millennials demanding more sustainable accommodations and
organic foods. This is the reason that, hospitality industry face issue in pandemic
situation.
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Positive impact of Covid-19 over hospitality leisure and travel industry:
The hospitality industry includes wide array of business such as hotel restaurants, bars,
tourism, leisure and sports (Awan, Shamim and Ahn, 2020). In relation to this, the hotel and
leisure industry is considered as a high risk and high reward sector that is sensitive to economic
conditions and market as well. As, there are some positive effects of Covid-19 over the travel
industry and hospitality leisure:
 Increase opportunities to go digitalisation: During Covid-19 situation, travel and
hospitality leisure not only faces losses but also get positive impact over the
organizational performance. In this situation, use of digitalization is increasing rapidly as
it provides benefits to company in improving their brand image at online market. By
using this, hospitality industry connects with their guest from different online or digital
framework including Instagram, Facebook, Twitter and many more. With the assistance
of this, travel company can communicate with large number of customers and at the same
time also improve their competitive image at market place.
 Increase innovation: Due to Covid-19, each and every business get affected but when
we talk about positive side, then it also gives opportunities to travel industry in
improvising their performance at market place. In order to execute their activities and
handling guest expectation, hospitality industry include new and innovative ways to
communicate with their guest. As, travel company provide offers and extra benefits to
customers that help them in improving their customer base. With the assistance of this,
hospitality industry can easily sustain at market place for longer period of time in the
pandemic situation.
 Increase use of robotics: In order to execute day to day activities in pandemic situation,
travel industry focus on using robots to serve their services its customers as per their
requirements. Basically, robots can take various different forms that assist in improving
number so satisfied customers towards its services (Ocheni and et. Al., 2020). As it is
part of artificial intelligence that assist in completing task activities without any kind of
error. Now a day’s customers are seeking self-service methods as it increases the
possibilities of using automation in which travel industry use robots to deliver excellent
customer services that directly contributes in managing its competitive brand image in the
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pandemic situation. In addition to this, it also saves time and serve quick services to
customers and keep them highly satisfied with its services.
 Established online presence: In pandemic situation, every business organization focus
on operating their operational activities without any kind of mistake. In this, travel
industry uses different social media platform that provide change or opportunities to
improve positive experience. In this, company show their relevant post on it at a time
they want and also make better case of engaging customers attention towards its post
(Baum and Hai, 2020). Hospitality industry also focus on improving their online visibility
over the search engines so that customers can easily get important information about the
company and its services. This will directly contribute in increasing the possibilities of
establishing competitive image in Covid-19 pandemic situation.
Conclusion
From the above mentioned report, it can be evaluated that hospitality leisure and travel
industry is famous and fastest growing sector that provide quality services to its customers
according to their demand and preferences. In this, Covid-19 is one of the major crisis that
directly affect the travel industry and its operational activities. Due to this issues, company face
huge losses as they reduce their sales and profitability level at market place. In addition to this,
hospitability leisure and travel industry is also face various challenges like Fixed and variable
expenses, Finding the right staffing, Pricing elasticity, Technology and Health and wellness. All
these are affect the productivity level of travel industry because managing their operational
activities may require more time and cost that put adverse impact over the revenue of travel
industry during pandemic situation. On the other side, industry also switch to e-commerce to
connect with large number of customers at a time. This will provide opportunity company in
establishing online presence so that firm can easily reach new customers and serve them
satisfactory service. Along with this, another positive effect of Covid-19 pandemic is the rapid
acceleration of various processes in which travel industry completely depend on digitalization
activities. It may help travel industry in continuously connecting with number of guest and also
make them loyal towards the company and its services as well. By this, companies which is
operating in travel industry easily sustain in market place for longer period of time.
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REFERENCES
Books and journals
Kaushal, V. and Srivastava, S., 2021. Hospitality and tourism industry amid COVID-19
pandemic: Perspectives on challenges and learnings from India. International Journal of
Hospitality Management, 92, p.102707.
Davahli, M.R., Karwowski, W., Sonmez, S. and Apostolopoulos, Y., 2020. The hospitality
industry in the face of the COVID-19 pandemic: Current topics and research
methods. International Journal of Environmental Research and Public Health, 17(20), p.7366.
Hao, F., Xiao, Q. and Chon, K., 2020. COVID-19 and China’s hotel industry: Impacts, a disaster
management framework, and post-pandemic agenda. International journal of hospitality
management, 90, p.102636.
Awan, M.I., Shamim, A. and Ahn, J., 2020. Implementing ‘cleanliness is half of faith’in re-
designing tourists, experiences and salvaging the hotel industry in Malaysia during COVID-19
pandemic. Journal of Islamic Marketing.
Ocheni, S.I., Agba, A.O., Agba, M.S. and Eteng, F.O., 2020. Covid-19 and the tourism industry:
Critical overview, lessons and policy options. Academic Journal of Interdisciplinary
Studies, 9(6), pp.114-114.
Baum, T. and Hai, N.T.T., 2020. Hospitality, tourism, human rights and the impact of COVID-
19. International Journal of Contemporary Hospitality Management.
Jiang, Y. and Wen, J., 2020. Effects of COVID-19 on hotel marketing and management: a
perspective article. International Journal of Contemporary Hospitality Management.
Jones, P. and Comfort, D., 2020. The COVID-19 crisis and sustainability in the hospitality
industry. International journal of contemporary hospitality management.
Altuntas, F. and Gok, M.S., 2021. The effect of COVID-19 pandemic on domestic tourism: A
DEMATEL method analysis on quarantine decisions. International Journal of Hospitality
Management, 92, p.102719.
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