Impact of COVID-19 Pandemic on Hospitality, Leisure, and Travel Sector

This report examines the significant negative impacts of the COVID-19 pandemic on the hospitality, leisure, and travel industry, highlighting the challenges businesses face in this sector. It discusses the decline in employment opportunities, the financial losses incurred due to reduced customer numbers and government restrictions, and the difficulties in implementing innovative technologies to maintain safety standards. Key challenges include revenue management, financial crises, maintaining hygiene standards, and safeguarding staff. The report concludes that the pandemic has severely affected the industry's employment and economic growth, making survival and financial management particularly difficult for businesses. Desklib offers similar solved assignments and resources for students.

CHALLENGES OF
HOSPITALITY, LEISURE
AND TRAVEL INDUSTRY
DURING COVID-19
PANDEMIC

Table of Contents
INTRODUCTION....................................................................................................................3
MAIN BODY............................................................................................................................3
CONCLUSION.........................................................................................................................4
REFERENCES.........................................................................................................................5

INTRODUCTION
This report will outline the negative impact of global pandemic COVID-19 on the
hospitality and travel industry. The study will define the challenges which are faced by
business operating in the hospitality and tourism industry due to COVID-19.
MAIN BODY
The global pandemic COVID-19 is responsible for creating an adverse impact on
businesses operating within the hospitality and travel sector. As hospitality and travel
industry has been a vital sector in economy and due to pandemic, this has been adversely
influenced. This pandemic has been responsible for decreasing the employment opportunities
within the hospitality and travel and tourism sector which has created a negative influence on
the economic growth and development. According to United Nations World Tourism
Organization (UNWTO), over around 100 million jobs are at risk in micro, small and
medium sized enterprises and around 54% jobs are represented by women (Impact of
pandemic, 2020). Service such as contact- intensive are the hey to travel and tourism sector
and such service are highly influenced due to global pandemic. Due to global pandemic,
many businesses operating within the hospitality and travel industry has faced serious
outbreak and have been closed due to huge loss in finances. It can be seen that COVID-19
has created negative impact in terms of operations and finances.
According to the observations, the Covid-19 pandemic, has had a significant impact
on travel risk and management perceptions (Effect of COVID-19 pandemic on travel risk and
management perceptions, 2021). Risk management, service delivery, transportation patterns,
distribution channels, avoiding overcrowded destinations, and hygiene and safety were all
linked to the perception of travel risk and management.
The COVID- 19 pandemic has driven various risk, threats and uncertainty to the
hospitality and travel industry and adversely manipulated the economic growth and stability.
There are various challenges which are faced by this industry due to pandemic and this has
also influenced the consumer trends as the threat of deadly virus has influenced consumer
interest. Due to the global pandemic, finances are the major concern and challenge for people
which has been a challenge for the hospitality and travel industry. This industry has seen
decline and fall in the customers and due to government restrictions, the stability within the

industry can be seen in the upcoming years when the economy can have stable growth in their
finances. The decline in number of guests has been a challenge and a source for reducing and
decreasing the profitability of business operating within the hospitality and travel sector.
Some of the challenges such as use of innovative technology in order to maintain the safety
standards, this requires huge investments and funds which has been a challenge for the
companies operating in the hospitality and tourism industry (Challenges in hospitality
industry, 2020). Management of revenues, financial crisis, maintaining the safety and hygiene
standards and safeguarding the staff are some of the challenges which are faced by businesses
due to COVD-19 operating within this industry.
CONCLUSION
From the detailed study of above report, it can be concluded that global pandemic has
created a significant impact on the global pandemic which has affected the employment and
economic growth of the world. The industry has seen major downfall due to the pandemic
and has been a challenge for businesses operating in this industry to survive and manage their
financial crisis.

REFERENCES
Online
Impact of pandemic, 2020 [Online]. Available through
<https://www.imf.org/external/pubs/ft/fandd/2020/12/impact-of-the-pandemic-on-
tourism-behsudi.htm>
Effect of COVID-19 pandemic on travel risk and management perceptions, 2021 [Online].
Available through
<https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0256486>
Challenges in hospitality industry, 2020 [Online]. Available through
<https://qloapps.com/challenges-in-the-hospitality-industry-in-the-year-2020/>