A Dissertation on the Impact of COVID-19 on the Hospitality Industry

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DISSERTATION
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TITLE: Impact of COVID-19 in the hospitality industry.
INTRODUCTION
Background of Research
Impact of COVID-19 spread across whole world, main focus for businesses and
governments is safety of people. COVID-19 has unprecedented circumstances before fragile
hospitality and tourism sector. It has impacted each sector across globe and hotel sector is among
hardest hotel. The hospitality sector is wider category of areas within service industry that
consisting drink service, lodging, theme parks, transportation and others. Investment in the
technology across hospitality in near will be focused on solving the issues and give or bolster the
new business related opportunities as the legacy revenue streams have dwindled. Factors which
were driving hospitality sector before the COVID-19 pandemic consists enhancing the
disposable income level, increasing the online travelling business and new travel trends due to
enhance internet penetration. Ever- expanding global tourism sector was main factor that driving
development of hospitality sector before coronavirus outbreak. Leisure and hospitality sector
mainly contributes 5% of the national GDP and it accounts for the 10% of employment in
country. Impact of the COVID-19 on international travel will based on extent on pandemic and
direction concerned to travel restrictions. Response of public will impact in context to short term
period after lifted the travel restrictions. The hospitality businesses are mainly turning to the
technology to enhance customer loyalty, automated process and communication in order to
maintain the data accuracy in online environment customer may be stumble upon.
Rationale of Research
The present investigation is concerned with situation of hospitality sector after the COVI-
19. Hospitality industry has been hard hit through COVID-19. It has accelerated digital
transformation required through hospitality business that at present have to be rely on the
technology to enhance speed as well as efficiency of processes. It helps in give customer centric
experience. The main reason behind conducting the present investigation is to determine the
impact of COVID-19 on the hospitality industry. Conducting the present investigation in
personal and professional context. In the personal context, knowledge of a learner regarding the
COVID-19 on the hospitality business enhanced. This helps in provide the in- depth information
of a learner improved. Other than this, in professional context learner knowledge regarding
analyse situation of the hospitality sector after COVID-19 enhanced. Through this, skills and
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knowledge of a learner can be enhanced so that it can perform similar kind of investigation 9in
the future.
Research Aim
The aim of the research is “To identify the situation of the Hospitality industry after
COVID-19.”
Research Objectives
To investigate the overall impacts of COVID-19 on the Hospitality industry.
To find out what long term effects of COVID-19 on the provided sector can be.
To discover any combat strategy for the effects of the pandemic on the hospitality
industry.
Research Questions
What are the overall impacts of COVID-19 in the hospitality industry?
What are long term effects of COVID-19 in the hospitality sector?
If any combat strategies can be developed to prevent the effects of the corona virus
pandemic on the hospitality industry.
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LITERATURE REVIEW
It is defined as survey of the scholarly sources which give overview regarding specific topic.
This is mainly follow discussion of thesis statement of paper or purpose of study goals. The
literature review is evaluation and search of available literature in selected subject area. This
documents state of art with context to subject or area. The main purpose of literature review is to
gain understanding of existing investigation regarding particular area. The focus of literature
review is to attaining the research objectives in an in- depth manner. For collection of
information in literature review, there has been secondary sources used such as books, articles,
internet sources, scholars and others. This helps in provide the detailed understanding regarding
the particular subject area in an effective or significant manner.
Overall impacts of COVID-19 on the Hospitality industry
According to Chris Eden (2021), hospitality industry has been hit through COVID-19.
Faced with impact of COVID-19, hotel sector turned to data benchmarking experts at STR
remain connected with the performance trends. The hospitality sector is mainly related to
accommodation and food service industries. It mainly contributed £59.3 billion in the Gross
Value Added to UK economy, almost 3.0% of the UK economic output. The restrictions on the
trading have impacted business turnover of hospitality. The economic output in hospitality
industry has down to 92% in April 2020 as comparison to February 2020. Due to COVID-19
pandemic situation, economy of world was to be shut down. It has confronted hospitality sector
with unprecedented issues. There are some strategies to be flatten COVID-19 curve for an
instance social distancing, community lockdowns, mobility restrictions and stay at home orders
have been resulted in the temporary closure of several hospitality businesses. This reduced the
business demand that were permit to be operate on continue basis. While hospitality sector is
recovering slowly, COVID-19 crisis continues to be exert the impact about operations of
hospitality business. It is expected to make the changes to operations in situation of COVID-19
to assure about health and safety of customers and staff members. It also enhances the
willingness of customers to be patronize business. COVID-19 has more impact on hospitality
marketing and sales of business. Hospitality sector thrives on visitations patterns and
considerable efforts are mainly placed through decision makers in order to attract the visitors for
supporting sector.
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As contrary to this… The UK lock-down and social distancing affect the impact on
hospitality sector. Restaurant could not book their table for diners. As their business were almost
shutdown which is unpredictable challenge in the industry and the booking percentage was slow
down in January of this year which is affected by the lock-down restriction such as stay at home
and travel and other restriction has affected the business. The highest fall in quarterly GDP
recorded in this year. For employment, hospitality sector is the third largest sector. In COVID-19
the employment impacted directly and their income affected by this. Pandemic has impacted on
the economy that has severely damaged the sector. This impact financial growth of the business.
UK hospitality sector suffered the sales in 2020. Now, the hospitality sector is slowly recovering
and ensures customers about their health and safety. Impact of jobs in UK reducing their
employees and cut their salary as impacts mass unemployment and it result in decrease in
revenue in the sector. In the current COVID-19 environment fear employee’s migrant their
places to their home town and the workers are moving to the other job where they can get their
salary easier and faster. It is surveyed that due to the pandemic support is required for opening of
new hotels in the UK.
https://www.reputation.com/resources/blog/analysing-covid-19s-impact-on-the-uks-
hospitality-sector/
Long term effects of COVID-19 on the provided sector can be
On the basis of Francine L. Shaw (2021), it has been stated that hospitality sector is mainly
hit through COVID-19 pandemic. 2020 year was worst for the hotel occupancy because of stay
at home orders, quarantines and travelling restrictions. Health pandemic has been scarier,
disruptive and overwhelming for many. Some of economic losses may covered through the
business interruption insurance mainly if hotels and its related businesses had the insurance that
covers the losses because of the government order of shutdowns. The entities like hotels, case,
bistros, bed & breakfast and beach bars to name few, small businesses are likely to be live crisis
worse than the other actors in private industry because of vulnerable to the change. They shall be
impacted through change in supply chain, less demand and even shot down until recovery taken
place. With heavy impact, hospitality sector will need to learn about function in such a manner
that seen before.
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Dining will shift online- Perhaps biggest long term change promoted through COVID-19
is shift from on the premise to the off the premise dining. They will be relying more on the
delivery and also takeout than the before. People will get used to ordering online food or picking
this up at hotel to be enjoy at the home with family. In regards to this, hotels will be realising that
they require to have online ordering system to be survive and it will provide the benefits to hotel
and customers both.
Menus will be rethought and re-engineered- In hotel sector, learns to be adapt and also
evolve the amidst ripple impact that will felt long after gone of COVID-19. There will be see
various changes in menus. Family meal boxed will popular for the delivery and takeout as they
are affordable option for the people which want to be eat at the home with family.
Seating will have reorganized and communal tabled will disappear- For the hotels who
relied on enhancing use of the seating and space in order to enhance profit, health and safety
related regulations are big limitations. Individuals do not feel comfortable with sitting to others
mainly indoors. In regards to this, social distancing has become norm and continue to be far long
time, so hotels require to maintain less safety distance among tables.
Technology that minimizes human interaction will seep into industry- The main goal of
hotels is to reducing interaction among consumers from various parties, staff and customers. It
can be done through cutting edge the technology. Once the hotels begin using technology, this is
not likely that they will go back to old ways. Contactless payment is one of easiest technology
implemented that done online when the consumers order delivery or contactless cards. In context
to digitalized menu, scan QR code at table to access menu that is effective and safe way to
deciding what they want to be order without interaction with waiter. Perhaps, ideas to implement
and long term consists touchless elevators and dining experience which is contactless from
starting to end.
https://www.hotelbusiness.com/covid-19-changed-the-hospitality-industry-for-the-long-
term/
Combat strategy for the effects of the pandemic on the hospitality industry.
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FINDINGS AND ANALYSIS
For quantitative
QUESTIONNAIRE
Q1) Do you have understanding about the COVID-19 within hospitality sector?
a) Yes
b) No
Q2) According to you, how COVID-19 influence on the hospitality sector in UK?
a) Inability to provide salary to staff
b) Loss in the earnings
c) Discontinuation of main operations
Q3) What do you think, does COVID-19 is reason behind loss of staff job within the
hospitality industry?
a) Yes
b) No
Q4) What should hotel staff do if guest develops the COVID-19 symptoms at
accommodation establishments?
a) Contact local health authority
b) Follow health authority instructions
c) Should be isolated in room
d) Proper sanitization
Q5) According to you, how COVID-19 impact on the training policies of hospitality sector
within United Kingdom?
a) Positive manner
b) Negative manner
Q6) As per your perspective, what are the major issues faced by human resource function
of hotel during COVID-19 pandemic?
a) Difficulty in provide training
b) More risk in contamination of staff
c) Work with employee at minimum retention rate
Q7) What are the effective strategies can be adapt to hospitality sector during COVID-19
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disruption?
a) Training and information
b) Deployment of resources
c) Supervision
d) Communication
Q8) What precautions hospitality sector should be take and comply with protective
measures against the COVID-19?
a) Physical distancing measures
b) Hand cleaning
c) Ventilation and air conditioning
Q9) What are the combat strategy can be used by hospitality industry for the effects of
COVID-19 pandemic?
a) Temperature check on continuous basis
b) Maintain social distancing
c) Proper sanitization
Q10) Recommend ways through which hospitality sector can provide training to staff for
enhance customer satisfaction.
Frequency Table
Q1) Do you have understanding about the COVID-19 within
hospitality sector?
Frequency
a) Yes 40
b) No 11
Q2) According to you, how COVID-19 influence on the hospitality
sector in UK?
Frequency
a) Inability to provide salary to staff 15
b) Loss in the earnings 20
c) Discontinuation of main operations 16
Q3) What do you think, does COVID-19 is reason behind loss of
staff job within the hospitality industry?
Frequency
a) Yes 45
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b) No 6
Q4) What should hotel staff do if guest develops the COVID-19
symptoms at accommodation establishments?
Frequency
a) Contact local health authority 15
b) Follow health authority instructions 15
c) Should be isolated in room 10
d) Proper sanitization 11
Q5) According to you, how COVID-19 impact on the training
policies of hospitality sector within United Kingdom?
Frequency
a) Positive manner 44
b) Negative manner 7
Q6) As per your perspective, what are the major issues faced by
human resource function of hotel during COVID-19 pandemic?
Frequency
a) Difficulty in provide training 12
b) More risk in contamination of staff 18
c) Work with employee at minimum retention rate 21
Q7) What are the effective strategies can be adapt to hospitality
sector during COVID-19 disruption?
Frequency
a) Training and information 22
b) Deployment of resources 15
c) Supervision 10
d) Communication 4
Q8) What precautions hospitality sector should be take and
comply with protective measures against the COVID-19?
Frequency
a) Physical distancing measures 15
b) Hand cleaning 18
c) Ventilation and air conditioning 18
Q9) What are the combat strategy can be used by hospitality
industry for the effects of COVID-19 pandemic?
Frequency
a) Temperature check on continuous basis 20
b) Maintain social distancing 20
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c) Proper sanitization 11
THEME 1: Understanding about the COVID-19 within hospitality sector
Q1) Do you have understanding about the COVID-19 within
hospitality sector?
Frequency
a) Yes 40
b) No 11
THEME 2: COVID-19 influence on the hospitality sector in UK
Q2) According to you, how COVID-19 influence on the hospitality
sector in UK?
Frequency
a) Inability to provide salary to staff 15
b) Loss in the earnings 20
c) Discontinuation of main operations 16
THEME 3: COVID-19 is reason behind loss of staff job within the hospitality industry
Q3) What do you think, does COVID-19 is reason behind loss of
staff job within the hospitality industry?
Frequency
a) Yes 45
b) No 6
THEME 4: Hotel staff do if guest develops the COVID-19 symptoms at accommodation
establishments
Q4) What should hotel staff do if guest develops the COVID-19
symptoms at accommodation establishments?
Frequency
a) Contact local health authority 15
b) Follow health authority instructions 15
c) Should be isolated in room 10
d) Proper sanitization 11
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THEME 5: COVID-19 impact on the training policies of hospitality sector
Q5) According to you, how COVID-19 impact on the training
policies of hospitality sector within United Kingdom?
Frequency
a) Positive manner 44
b) Negative manner 7
THEME 6: There are some major issues faced by human resource function of hotel during
COVID-19 pandemic
Q6) As per your perspective, what are the major issues faced by
human resource function of hotel during COVID-19 pandemic?
Frequency
a) Difficulty in provide training 12
b) More risk in contamination of staff 18
c) Work with employee at minimum retention rate 21
THEME 7: Strategies can be adapting to hospitality sector during COVID-19 disruption
Q7) What are the effective strategies can be adapt to hospitality
sector during COVID-19 disruption?
Frequency
a) Training and information 22
b) Deployment of resources 15
c) Supervision 10
d) Communication 4
THEME 8: Precautions hospitality sector should be take and comply with protective
measures
Q8) What precautions hospitality sector should be take and
comply with protective measures against the COVID-19?
Frequency
a) Physical distancing measures 15
b) Hand cleaning 18
c) Ventilation and air conditioning 18
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THEME 9: There are combat strategy can be used by hospitality industry for the effects of
COVID-19
Q9) What are the combat strategy can be used by hospitality
industry for the effects of COVID-19 pandemic?
Frequency
a) Temperature check on continuous basis 20
b) Maintain social distancing 20
c) Proper sanitization 11
Qualitative basis
INTERVIEW
Q1) As per your perspective, what is that long term impact of COVID-19 on hospitality
sector?
Q2) How hospitality industry provide training to staff during COVID-19?
Q3) What are the issues faced by hospitality sector due to arisen of COVID-19 pandemic
situation?
Q4) According to you, what are the different strategies hospitality sector should be adopt to
overcome from COVID-19?
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