Impact of Covid 19 on hotel industry

This report discusses the positive and negative impact of Covid 19 on the hotel industry, current issues faced by the hospitality industry, and measures taken by hotels to address the challenges. It also explores the changes in customer behavior and expectations, and the impact on hotel profitability and revenues.

Impact of Covid 19 on
hotel industry

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Concept and context ..............................................................................................................3
Positive and negative impact aspects ....................................................................................3
Current issues ........................................................................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
In the modern days, covid 19 pandemic outbreak has presented unprecedented
circumstances. This pandemic has highly affected the hospitality and tourism sector. As this
pandemic has affected the hotel in positive and negative impact (Anguera-Torrell, Aznar-
Alarcón and Vives-Perez, 2020). Hotels has taken various measures to solves the issues and
challenges. Hotels have fired many employees from their organisation because of lack of money
and decrease in revenue of them. In this report it is mention the impact of Covid 19 on the
hospitality industry. It covers what are the positive and negative impact of pandemic has faced
and hotels. Then there is the current issues which are faced by hospitality industry.
MAIN BODY
Concept and context
According to the views of Vikrant Kaushal and Sidharth Srivastava, 2020, Due to covid-
19 pandemic, the world's economy was shut down. The pandemic has severely affected the
hospitality industry. By this hospitality industry has faced so many issues and challenges. This
pandemic has affected their profitability and revenues for sometime (Hospitality and tourism
industry amid COVID-19 pandemic, 2020). For that company has taken various measures that re
to be used by every staff members and customers who visits there. They have taken steps like
community lock downs, social distancing and stay at home orders etc. while hospitality sector is
slowly recovering, the covid crisis continues to exert the profound that what impact dose it on
the business. Hospitality sector has taken several changes in their daily lives so that this crisis did
not affect the customers. And they have taken various measures in considering customers health
and safety. By this hotel business has increased.
Positive and negative impact aspects
According to the views of Dogan gursoy and Christina G. chi, 2021, hospitality industry
is the biggest industry in modern days. There is a huge impact of covid pandemic on the
hospitality industry. There can be positive and negative impact of pandemic on hotel industry. As
due to pandemic government has declared lock down in all over the world. This impacts
negatively hotels as no customers are coming in their hotels. By this there revenues and profits
has fallen down. Government has declared social distancing, use of sanitizers and stay at home .

These decrease the popularity of hotels. Also by this, pandemic has created positive impact on
hotels. As hotels are using more safety measures in the organisations and with their employees.
They are using various measures to attract customers. They are maintaining proper hygiene
facility in their rooms and covered areas. This attracts customers and they are moving to the
hotels now. Covid pandemic has changed everyone's life and livelihood of the people and also
affect the business. Many people lost there jobs and become unemployable. Hotels are firing
employees because they do not have enough money to provide them salary or other benefits. But
slowly the condition of hotel industry is improving. As they are following government rules and
regulations in their hotel. They are maintaining proper sanitation and making hygiene their
rooms after every guest left. They are following social distancing and taking home orders also
(Effects of COVID-19 pandemic on hospitality industry, 2021).
Hospitality industry are making sustainable changes in the operations after the covid
pandemic. So that they could not harm customers or visitors. With the changes in hospitality
industry, they have faced some unpredictable changes that made researcher to do research on
hospitality sector. After this covid crisis, customers are willing to travel open destinations while
going at fine restaurants. The major impact of covid is on financial department as hotel cannot
able to earn that much profits which are required by them. Hotels have move towards the
alternative vendors who provide them short term findings. The impact of covid is on the revenue
and on the supply chain. The major challenge which hotels are facing is current conditions, and
second is relates with the vital learning of industry. As a team, hotel managers are trying to
mitigate to the cash and working capital issues. The hotel industry is making certain sub- themes
according to the current situation. There are certain themes in which industry is engaging is
included in the need of multitasking and professional development. The subsequent themes for
hospitality industry included “Health and Hygiene”, “Human resource management” and
“continuity and concerns”. Several countries like Spain, France, South Korea, India and Italy etc.
are experiencing the spread of this disease and life loss from several months. But slowly hotels
are going better and engaging staff members also in their decision making activities and process.
This will helps them in staying connected with all the stakeholders. But the good think is that
now customers are visiting hotels after a long time. But now Hotels are improving the
productivity of employees (Knight and et.al., 2020). Hotel managers are providing proper
training and communication skills to the employees or staff member working in a business

organisation. They are providing several opportunities to the customers and this may results
increasing productivity of the hotels. After the time of long duration, customers are visiting
hotels with using safety measures. Hotels are also maintaining hygiene and clear facility to
customers so that they do not feel insecure. The situation currently is very god as compared to
previously. Customers are not cancelling there bookings and are enjoying the current situation.
This engage employees and staff members in performing all their business activities (Smart and
et.al., 2021). And results in hotels profitability and revenues. Coronavirus has make severe
impact on hospitality industry by decreasing their profits ratio and decrease in visiting of number
of customers or guests.
Current issues
According to the views of Roop pratap choudhary, 2020, The hospitality industry hit by
the Covid 19 pandemic very severely. As customers cannot able to come to the hotels because of
lock down or later on safety issues. The hospitality industry is earning very high before the
pandemic as this affect the industry in positive and negative way. By facing this pandemic most
of the customers did not wants to go in a covered restaurants. They wants to go to the outer areas
where there is a less risk of covid and they can enjoy more. Because of this hotels are using
various measures to improve their services. They are providing proper training and development
programmes to the employees and making them effective in performing there job in effective
manner. They are offering more promotional packages to the employees and other befits to them.
They are also providing offers and discounts to the customers so that customers are attracted
towards there hotel. One of the biggest challenge faced by hospitality industry is restoring
confidence. For this they are using safety measures in the hotel. These are on- site medical care,
hygiene product and rooms, hand sanitizer, social distancing and temperature check (Challenges
in times of Covid-19, 2020).
The another biggest challenges faced by hotels is the bad whether condition and focusing
on recovery of roadmap. There is economic downturn and low expenditure which is going to be
short term challenge for the hotel. Moreover, the major challenges could be changing of
customer behaviour, expectation, demands, preferences and trends etc. Owners of the hotels
should more focus on the redefining safety, sustainability and productivity of the business
organisation. Hotels managers are struggling to manage price wars, pressure in reduce rates ad
occupancy drops. Low occupancy hotels are gong to the biggest challenge for boutique hotels

owners in initial recovery phase. Pandemic also brought with itself health and hygiene that is
going to be impact customer demands and lifestyles. After suffering from this disease, hotel are
now providing online facilities to the customers. They are making updates on online platforms
like social sites, search engine optimization and emails etc. social media promotions can be done
through Instagram, online application of hotels etc. This will helps them in engaging towards
their offers and discounts and this leads to increase in visiting number of customers to the hotels
and results in increase in profits of the hotels (He and et.al., 2020). Hotels are now achieving
mental and physical fitness, they are consuming organic foods and fresh foods to the guests.
CONCLUSION
From the about and decrease in customers and guests. Covid 19 brought itself health and
hygiene in the hotels to attract customer and they are also using all safety measures so that
customers will not ft literature review it is concluded that Covid- 19 has severely impacted
hospitality industry. Covid- 19 affects the hospitality industry in various ways. As in hotels there
is a decrease in funds and there could be no affecting from disease. In addition, hotels needs to
follow certain challenges which can helps them in gaining customer attention. Also they needs to
adapt changing customer behaviour which will helps them gaining profitability.

REFERENCES
Books and Journals
Anguera-Torrell, O., Aznar-Alarcón, J.P. and Vives-Perez, J., 2020. COVID-19: hotel industry
response to the pandemic evolution and to the public sector economic
measures. Tourism Recreation Research, pp.1-10.
He, P and et.al., 2020. COVID–19’s impact on stock prices across different sectors—An event
study based on the Chinese stock market. Emerging Markets Finance and Trade, 56(10),
pp.2198-2212.
Knight, D.W and et.al., 2020. Impact of COVID-19: research note on tourism and hospitality
sectors in the epicenter of Wuhan and Hubei Province, China. International Journal of
Contemporary Hospitality Management.
Smart, K and et.al., 2021. COVID-19 IMPACTS, COPING STRATEGIES, AND
MANAGEMENT REFLECTION: A LODGING INDUSTRY CASE. International
Journal of Hospitality Management, p.102859.
Online
Challenges in times of Covid-19, 2020. [online] Available through
<https://hospitality.economictimes.indiatimes.com/blog/challenges-in-times-of-covid-
19-owner-driven-hotels-and-independent-chains-face-market-crisis/4159>
Effects of COVID-19 pandemic on hospitality industry, 2021. [online] Available through
<https://www.tandfonline.com/doi/full/10.1080/19368623.2020.1788231>
Hospitality and tourism industry amid COVID-19 pandemic, 2020. [online] Available through
<https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7528873/>