Impact of Covid-19 on Hospitality Sector: A Quantitative Analysis

This report analyses the impact of Covid-19 on the hospitality sector using quantitative analysis of datasets sourced from the Office of National Statistics (ONS) website. It covers the business research problem, literature review, visualisations of data, and findings drawn from the analysis.

Problem Based Report

Table of Contents
Introduction......................................................................................................................................1
Business research problem...............................................................................................................1
Literature Review covering concepts, models and theories.............................................................1
Identify dataset sourced from the Office of National Statistics (ONS) website..............................2
Quantitative analysis of the dataset using tools and techniques......................................................2
Visualisations of data drawn from the quantitative analysis...........................................................8
Findings drawn from the quantitative analysis of the dataset........................................................16
Conclusion.....................................................................................................................................19
References......................................................................................................................................20

Introduction
The chosen business problem is based on the hospitality sector and how is it affected due
to coronavirus pandemic in the recent years. The current will analyse the impact of covid 19 on
hospitality sector while focusing on the restrictions in 2021 which further includes the
information regarding that how the industry has performed and also the details in terms of
employment future in hospitality sector. The following discussion will cover some of the
important aspects of the research which includes in depth analysis of business research problem
and literature review covering concepts, models and theories along with the dataset sourced from
the Office of National Statistics (ONS) website and Quantitative analysis of the dataset using
tools and techniques. Moreover, it will also cover the visualisations of data drawn from the
quantitative analysis and findings drawn from the quantitative analysis of the dataset.
Business research problem
Research is based on the hospitality sector which has hit hard by the covid 19 pandemic.
It has a drastic impact because bars and clubs has faced the losses in the recent years. It is
analysed that customer has started spending on the hospitality services and has increased in may
2021 but then too it was less than 70% at the stage of pre pandemic levels. It was basically one
quarter lower than the 2019 levels. There were the large spendings by the hospitality sector but
return on investment is less than what expected during pandemic. Some of the organizations lay
off the employees due to losses and some have hired many employees so that they can innovate
their operations for profits (Dube, Nhamo and Chikodzi, 2021).
Literature Review covering concepts, models and theories
Due to the covid 19, hospitality sector has suffered a lot in its food and beverages
services along with the accommodation and many more. Therefore, companies has undertaken
various theories and models in order to scale up their operations on a large basis even at the time
of pandemic (Filimonau, 2021). Such theories and concepts includes the introduction of the
unique selling elements while developing the unique selling propositions. Innovating the
company culture and new media generations are the major aspects. Maintenance of the green
initiatives and sustainability practices in order to maintain the corporate social responsibility in
the company has initiated by the hospitality organisations (Li, Yao and Chen, 2021).
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Identify dataset sourced from the Office of National Statistics (ONS) website
There are different types of dataset sourced from the Office of National Statistics website
which is represented below with graphical representation. Eleven data sets are analysed on the
business research problem of covid 19 in hospitality sector. Some of the sources used are the
Office for National Statistics - Monthly Business Survey, Revolut, Vocalink, Office for National
Statistics - Business Insights and Conditions Survey, HMRC CJRS and PAYE Real Time
Information, Pay as you Earn Real Time Information, Office for National Statistics - Vacancies
Survey and PAYE Real Time Information. These are sources from where the different data sets
is identified and formed the graph accordingly in the below sections.
Quantitative analysis of the dataset using tools and techniques
Research methodology
The research undertaken is based on the different types of research methodologies. Such
as research philosophy used is the positivism philosophy. Research approach used is the
deductive approach. Research choice used is mono method in the form of quantitative choice.
Research strategy used is survey strategy with the help of several datasets and graphical
representations. Research time horizon is used is the cross sectional study which is a short term,
study. Research techniques and procedures used is the primary type of data collection. Data is
collected from different years which is related with the customers sales and profits as well. There
are total 11 datasets used for the in depth analysis with 11 graphical representation and 11
findings as well (Şengel, Çevrimkaya, ZENGİN and IŞKIN, 2020).
Dataset of figure 1
2

Dataset of figure 2
3

Dataset of figure 3
Dataset of figure 4
4

Dataset of figure 5
Dataset of figure 6
5

Dataset of figure 7
6

Dataset of figure 8
Dataset of figure 9
Dataset of figure 10
Dataset of figure 11
7

Visualisations of data drawn from the quantitative analysis
8

9

10

11

12

13

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Findings drawn from the quantitative analysis of the dataset
Findings drawn from dataset 1
It is analysed that there are several sub sectors of hospitality industry who have seen the
large fall in their sales and revenue generations turnover. There are two major sectors which is
researched about and those are the accommodation sector and food and beverage service quality
activities sector. This is because of the several restrictions imposed by the government and which
are yet to be recovered. Monthly turnover of the business is analysed in Billion (Pound Sterling)
of the recent years of 2019 and 2021. Therefore, it is find out that in the mid of 2020, there was a
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high declines of the hospitality sector majorly of the accommodation and food and beverage
sector (Canhoto and Wei, 2021).
Findings drawn from dataset 2
It is analysed that there were several customers who were majorly spends their incomes
on the services of hospitality sector but as the rise of crises of covid 19, it has fallen on a large
basis due to the rise of the restrictions because of the covid 19 lock down. There are different
sections in which the graph is divided such as data of spring lock down has seen the major
decline and eat out to help out has rose in a slight manner, autumn and winter restrictions has
again seen the fall in customer spending and then there was the lock down in the weakly 2021
lock down where still it was declining and has impacted the drinking and eating places that are
the restaurants are majorly affected.
Findings drawn from dataset 3
It is analysed that there is a great fall in the payments value to the contractors and
suppliers which are yet to be fully recovered from the hospitality business. This dataset is also
broken into the spring lock down which was declined from the Jan 2020 to Apr 2020. Autumn
and summer winter restrictions in 2020 has still faced the decline in the hotel and holiday
accommodation along with the food and drink sector. All such payments has drastically lost their
value in a large manner (Foroudi, Tabaghdehi and Marvi, 2021).
Findings drawn from dataset 4
It is analysed that the employees who are working in the hospitality sector, initially they
worked during the long hours and now it is declining to the rate of working due to the less
number of customers. It has resulted in the decline of salaries also the lay off of the employees.
This has resulted in the unemployment. Data set is based on the average number of hours worked
by the employees of hospitality sector before pandemic and also after the pandemic so that the
comparison can drawn out.
Findings drawn from dataset 5
It is analysed that there was rise in demands for the holidays which are domestic in nature
and has resulted in the turnover performance in a strong manner of some of the camping grounds
and similar accommodation. The graph and the dataset is based on the change in monthly
turnover in UK in Jan 2020 to May 2021 as compared to the same month in 2019. sectors which
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are affected are the beverage serving activities and mobile food services activities along with the
trailer parks as well (Jones and Comfort, 2020).
Findings drawn from dataset 6
It is analysed that at the initial stages of pandemic, hospitality industry was facing the
severe losses due to the strict restrictions imposed on the services of hospitality sector. But as the
time passes, restrictions were eased and it has resulted in the less severe losses in hospitality. It
has been found out that businesses share in the hospitality has reported that there is a drop of
20% profits or more in the recent years. Graph is represented in four quadrants where different
sections are analysed. There are the profit losses in various sectors of hospitality such as in the
accommodation sector and pubs and bars along with the unlicensed restaurants and cafes or take
away and even in the licensed restaurants as well.
Findings drawn from dataset 7
It is analysed that there are organizations which are demanding for employees instead of
laying off them. The reason being is that they have taken pandemic as an opportunity in order to
grow and innovate their business by planning and processing the unique selling proposition for
better decision making. That is why there was the increase in demand of the employees as well
by some of the organisations. Therefore, furlough numbers has decreased due to the increase of
demands of the labours in the accommodation and food service industry. All such demands is
because of the opening of the outdoor hospitality and resuming of indoor dining as well
(Anguera-Torrell, Aznar-Alarcón and Vives-Perez, 2021).
Findings drawn from dataset 8
It is analysed that there is the increase in number of employees in June 2021 from the
decline of 2019 and 2020. It was the seasonal adjustment of the pay rolled employees in the
accommodation and food service sector. This is because the restrictions were lowered and take
away were increased so that is why the delivery people were highly required by the hospitality
and that is why it has increased the number of employees.
Findings drawn from dataset 9
It is analysed that the job vacancies in the hospitality sector has reached to the number
equal to the number of pre pandemic levels. This is because, there were the resume of the
hospitality services so the people who were lay off were hired again and that is why it has
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increased the employment level again when it was at the time of pre pandemic levels (Sanabria-
Díaz, Aguiar-Quintana and Araujo-Cabrera, 2021).
Findings drawn from dataset 10
It is analysed that hospitality sector has faced difficulty in again hiring of the employees
so they increased the level of payments and wages so that people can apply for the job and get
hired by the companies with good skills and experiences. Therefore, at the end of 2021, people
got hired and hospitality industry again came into practice.
Findings drawn from dataset 11
It is analysed that although there was the increase in operations but still there was the low
confidence among the hospitality sector in the resuming of its services. There is the improvement
of management in the hospitality sector with ease in restrictions. According to the reports,
business share has has resulted in the high confidence if they will survive over the next three
months. This is under some of the sectors of hospitality industry. Such as it is represented that
there is a fluctuation in the confidence in accommodation sector, there is a rise in confidence in
pubs and bars, rise in confidence in unlicensed restaurants and cafes along with the takeaways
and decline in the confidence in licensed restaurants (Le and Phi, 2021).
Conclusion
It is concluded that researching about the hospitality sector is an important concept to
learn and study so that its applications can be applied in the real world organisations. This is
because hospitality sector is the sector which is the most destroyed industry due to the covid 19
pandemic. That is why it is considered as the major business problem so that the level of losses
and operational tactic can be figured out for better analysis for the future. Hence, it is important
to analyse the in depth research problem and literature review concepts and theories. It is
necessary to determine the dataset sourced from the Office of National Statistics (ONS) website
and also the quantitative analysis of the dataset using tools and techniques. It essential to
examine the visualisations of data drawn from the quantitative analysis and findings drawn from
the quantitative analysis of the dataset. Thereby, the above discussion covers all such areas in
order to better understand the impact of covid 19 on hospitality sector.
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References
Books and Journals
Anguera-Torrell, O., Aznar-Alarcón, J.P. and Vives-Perez, J., 2021. COVID-19: Hotel industry
response to the pandemic evolution and to the public sector economic measures. Tourism
Recreation Research, 46(2), pp.148-157.
Canhoto, A.I. and Wei, L., 2021. Stakeholders of the world, unite!: hospitality in the time of
COVID-19. International Journal of Hospitality Management, 95, p.102922.
Dube, K., Nhamo, G. and Chikodzi, D., 2021. COVID-19 cripples global restaurant and
hospitality industry. Current Issues in Tourism, 24(11), pp.1487-1490.
Filimonau, V., 2021. The prospects of waste management in the hospitality sector post COVID-
19. Resources, Conservation and Recycling, 168, p.105272.
Foroudi, P., Tabaghdehi, S.A.H. and Marvi, R., 2021. The gloom of the COVID-19 shock in the
hospitality industry: A study of consumer risk perception and adaptive belief in the dark
cloud of a pandemic. International Journal of Hospitality Management, 92, p.102717.
Jones, P. and Comfort, D., 2020. The COVID-19 crisis and sustainability in the hospitality
industry. International journal of contemporary hospitality management.
Le, D. and Phi, G., 2021. Strategic responses of the hotel sector to COVID-19: Toward a refined
pandemic crisis management framework. International Journal of Hospitality
Management, 94, p.102808.
Li, Y., Yao, J. and Chen, J., 2021. The negative effect of scarcity cues on consumer purchase
decisions in the hospitality industry during the COVID-19 pandemic. International Journal
of Hospitality Management, 94, p.102815.
Sanabria-Díaz, J.M., Aguiar-Quintana, T. and Araujo-Cabrera, Y., 2021. Public strategies to
rescue the hospitality industry following the impact of COVID-19: A case study of the
European Union. International Journal of Hospitality Management, 97, p.102988.
Şengel, Ü., Çevrimkaya, M., ZENGİN, B. and IŞKIN, M., 2020. The effects of novel
coronavirus (COVID-19) on hospitality industry: A case study. Journal of Tourism and
Gastronomy Studies, 8(3), pp.1646-1667.
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