Impact of COVID 19 on Sustainability in Hospitality Industry

This document analyzes the impact of COVID 19 on sustainability in the hospitality industry, with a focus on Hilton. It explores the challenges faced by Hilton and the practices used to promote sustainability during COVID 19.

corona virus (covid 19)

Table of Contents
Research Objectives:....................................................................................................................4
Research Questions:.....................................................................................................................4
Literature Review............................................................................................................................4

Topic: An analysis on impact of COVID 19 over sustainability in hospitality industry. A case
study on Hilton
Research Objectives:
 To identify the impact of COVID 19 over performance of Hilton.
 To explore appropriate practices to promote sustainability within hospitality sector during
COVID 19.
 To determine the challenges faced by Hilton while promoting sustainability during
COVID 19.
Research Questions:
 What are the impacts of COVID 19 over performance of Hilton?
 What are the practices used to promote sustainability within hospitality sector during
COVID 19?
 What are the challenges faced by Hilton while promoting sustainability during COVID
19?
Literature Review
Impact of COVID 19 over performance of Hilton
According to Dube, Nhamo and Chikodzi, (2020) in current time, COVID 19 has become
an emerging issue across the world. It is affecting daily life of people as well as business. It has
put several adverse impacts over economies of different countries by minimizing job
opportunities and more. In addition, higher authorities are taking several initiatives to control the
transmission of virus for the betterment of people as well as whole nation. Further, hospitality
industry is highly affected with COVID 19 as now people are highly scared to visit hotels,
restaurants and so on. Now, managers are required to make necessary arrangements for security
and safety of visitors. It is analyzed that now safety has become priority for visitors as well as
hotel administration. So, they take all the necessary measures to ensure higher safety and security
of guest. Pandemic has significantly affected profit margin of organizations within industry by
lowering down number of visitors. Now, people are more likely to stay at their home rather

visiting outside location. In context of Hilton, it is also highly affected with pandemic. It is
monitored that 1000 hotels of organization have been shut down. These hotels covered nearly 16
% of global presence of company. In addition, it has also adversely affected revenue of entity.
After COVID 19 now people likely to avoid to visit hotels so it is influencing business of
company. Further, managers also need to make some necessary steps to ensure hygienic
environment within Hotel. It also increase overall cost of operation and minimizes profitability.
It is stated that during outbreak organization has cut down nearly 1500 jobs at global level. It
reduced down their efficiency to provide effective services. On other hand, it also affect
predefined image of entity at market place. Therefore, pandemic has great influence over
company. So, managers are required to prepare appropriate strategies in order to deal with
situation in an effective manner.
Practices used to promote sustainability within hospitality sector during COVID 19
According to Chen, Huang and Li, (2020), It is analyzed that COVID 19 has bring
several changes in business sector. There is higher competition prevailing in market so it is quiet
difficulties for companies to sustain for longer duration. For this, they need to require to change
in their current practices so that they can provide better services to customers. Here, managers
are required to prepare necessary strategies in order to ensure sustainability. It is monitored that
now hotel administration needs to focus on hygienic and clean environment to ensure better
services to visitors. In addition, marketing and communication is also important in current time.
Here, managers need to get in touch with visitors on regular basis so that people stay with
company for longer duration. For this, they use advertisement, social media platforms to promote
services at wide level. Now, people are in panic so it is essential to maintain proper
communication. So, hotels are promoting their services and use of hygienic practices so that
people more likely to visit organization. It is analyzed that hotel administration are also highly
concerned regarding safety of visitors so they ensure to provide clean and hygienic environment.
However, hotels are taking appropriate measures by prioritizing safety and security of
their guest but it is quiet difficult to regain the trust of individuals. In this regard, companies need
to required to maintain proper communication with customers in order to build trust. It is
essential to retain customers for longer run. In addition, there is higher competition prevailing
within industry due to existence of higher number of companies. So, it is also vital to adopt

appropriate practices of marketing and promotion. It helps to enhance sales and profitability of
organization that is crucial to ensure long term sustainability. In context of Hilton, they
encountered several challenges during COVID 19 that affect performance of company. So, they
adopted several practices such as communication, advertisement and more in order to ensure
long term sustainability in market. They are providing hygienic services to ensure safety of
visitors. There are ample of guidelines have been issued by WHO regarding for hotels. Managers
of respective organization are adopting all the necessary measures as per guidelines of WHO in
order to ensure better services. They are taking care of proper hygiene and sanitization in rooms
and other places. Now, social distancing has become a crucial measure so administration of
company is taking care of this. They are running hotels at half capacity in order to prevent
transmission of virus. So, it is not easy for companies to sustain at competitive market place but
there is requirement to prepare effective strategies in order to ensure sustainability. In COVID
19, it is highly difficult to maintain predefined level of sales and profit margin. For this purpose,
Hilton is adopting necessary practices so that company can sustain in market for longer duration.
Challenges faced by Hilton while promoting sustainability during COVID 19
According to Bas and Sivaprasad, (2020), the present time is highly difficult for
individuals as well as business personnel’s. It is analyzed that pandemic has put several impacts
over social, economical conditions of country. During Outbreak, there were strict lockdown in
most of the countries which not only affected daily life of people but also put several adverse
impact over business. Hospitality industry is worst hit with pandemic as ample of people have
lost their jobs. People are only looking to meet with their basic necessities. They are not likely to
visit in hotels, resorts and more. It affected their sales and overall profit margin. Here,
administration is not able to even pay salaries of staff so they have to cut down jobs. In addition,
there are a lot of small as well as large hotels that stopped their operations due to unavailability
of funds and other resources. It is monitored that COVID 19 has bring a lot of uncertainties as
well as disruptions within industry. It has reduced down demand of hotel services in market and
also changed customer behavior, attitude as well as buying pattern which will affect management
as well as marketing practices of company.
Now, managers are required to centralize their activities towards hygiene and cleanliness.
They need to take care of safety and security of people as per guidelines issued by World health

organization. It is analyzed that there are several challenges faced by Hilton during pandemic. It
has reduced down sales and profitability of organization at lower level. It is monitored that
nearly 1000 hotels of Hilton chain has been stopped operations during COVID. In addition,
managers have to lay off employees as they were not able to pay them. Further, sales and
revenue of entity has reduced down drastically so managers find it difficult to meet with their
operating expenses. Pandemic has also brought changes in buying behavior, pattern of customers
as they are highly concerned regarding safety and security. Now, customers ensure that hotels are
following safety measures and not before check in. So, it is vital for administration to be highly
conscious regarding hygiene and sanitization. These practices are essential but also increase
overall cost of company. They have to make necessary arrangements so that visitors feel safe and
secure. For this, managers also required to provide training to employees so that they can work
with predefined guidelines. It is monitored that due to COVID 19, there are travel restrictions
that also put negative impact over sales of entity. Here, travel and hospitality industry are highly
associated with each other so restrictions over travel will put negative impact over hospitality
industry. However, Hilton is a multinational company but it faced ample of difficulties during
pandemic. They have to cut down staff, expenses so that they can somehow manage business.
Further, they also have to take financial assistance in order to meet with expenses. It is monitored
that company is not even able to meet with operating expenses. Therefore, there are a lot of
challenges faced by Hilton in while operating business in pandemic. So, managers are required to
prepare appropriate strategies in order to deal with situation in an effective manner.

REFRENCES
Books and Journals
Dube, K., Nhamo, G. and Chikodzi, D., 2020. COVID-19 cripples global restaurant and
hospitality industry. Current Issues in Tourism, pp.1-4.
Chen, H., Huang, X. and Li, Z., 2020. A content analysis of Chinese news coverage on COVID-
19 and tourism. Current Issues in Tourism, pp.1-8.
Bas, T. and Sivaprasad, S., 2020. The impact of the COVID-19 pandemic crisis on the travel and
tourism sector: UK evidence. Available at SSRN 3623404.
(Dube, Nhamo and Chikodzi, 2020)(Chen, Huang and Li, 2020)(Bas and Sivaprasad, 2020)