COVID-19 Pandemic's Impact: Hospitality, Leisure, Travel Challenges

This report analyzes the significant challenges that the hospitality, leisure, and travel industries have faced as a result of the COVID-19 pandemic. The report examines the impact on employment, with substantial job losses due to decreased travel and tourism. It highlights the increased expenses related to health and safety measures, including enhanced hygiene protocols and the implementation of technology. The report addresses the issue of low occupancy rates, which have severely impacted revenue and profitability, and discusses the challenges related to pricing strategies and the need for health and wellness considerations. Furthermore, the report covers the lack of budget for maintenance, the importance of technology adoption, and the operational and financial impacts, including the need for revised marketing strategies. The conclusion emphasizes the need for the industries to adapt, embrace digital solutions, and prioritize customer health to recover from the pandemic's effects. The report references various books and journals to support its findings.

Challenges during
COVID-19

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
The challenges faced by challenges of hospitality, leisure and travel industry during COVID
19............................................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
Books and Journals.................................................................................................................7

INTRODUCTION
Hospitality industry is one of the vital industries that are contributing a lot to GDP of the
nation. It is seen that COVID 19 has changed the scenario and operations of the company. It is
pandemic that is causing various challenges that is faced by the industry and that is causing the
loss of profitability (Baum and et.al., 2020). So, it is vital to know about these challenges and
that helps to find solutions of these issues. In this report there is discussion related to the
challenges that are faced by leisure, hospitality as well as travel and tourism industry.
MAIN BODY
It is seen that hospitality industry largely represents hotels, bars, restaurants and leisure
companies. It is seen that people like travelling and entertainment and that is reason they boost
hospitality industry. It is seen that hospitality industry contributes around 4% to GDP of UK. But
at the present time each and every one is changed and stopped due to COVID 19 pandemic
around the world (Martínez-Martínez and et.al., 2019). It is seen that all the business
organisations in hospitality industry are facing loss due to lockdown. It is predicted by the
experts predicted that the profitability has declined by 11 to 29%.
The challenges faced by challenges of hospitality, leisure and travel industry during COVID 19
There is various numbers of challenges that are caused to COVID 19 as the pandemic has
put a stoppage to the lives of people. They are unable to go out and their no travelling done. The
description related to these challenges is done below:
Impact on jobs
It is seen that nowadays people to not go out for travel and tourism as well as there is no
opportunities seen in the hotel. So this has caused a major issue in the operations and functioning
of the industry. So for this reason there is loss of job full stop various employees have lost their
jobs due to covid-19 pandemic as there is no use of more employees due to lack of customers. It
is also seen that people have no work to do and no profitability in the hotels is the main reason
that they are taking out employees. It is observed that various customers have lost their job and
the problem of unemployment has also increased due to covid-19 pandemic. It is observed that
there is problem in income level of the employees. Various people have migrated towards their
home countries and are unable to come back and also are not getting any salary as there is no
work in the hospitality industry.

Fixed and Variable Expenses
Now due to Covid-19 people have become more conscious about their health and hygiene. It is
seen that has enhanced the expenditure on safety of customers as well as employees. There is
expenditure done by the companies on quality of products and services that are offered
(Zsarnoczky, 2018). As well they have become more attentive for taking care of hygiene of the
customers. The business organisations in hospitality industry is now focusing on cleanness as
well as sanitising of the hotels and the accommodations that are provided to the clients. It is also
a challenge as the industry is already facing loss and the expenses are rising.
Low Occupancy
It is seen that hospitality industry is a seasonal industry. But due to covid-19 they are facing a
huge challenge of low occupancy (Qiu and et.al., 2019). Is there was a situation of lockdown in
various countries of the world because of which the travel and tourism industry has showed a
low trend with minimum occupancy of around 0 to 20% and this is a major reason of loss for the
industry. As now the spending power of customers has reduced the people are not willing to go
out for travel and tourism a purpose and they prefer to stay at home due to the outbreak of
disease in the entire world. It is one of the challenges that are faced by hospitality industry as
well as the tourism industry.
Price elasticity
Another challenge that is failed due to Covid-19 pandemic is related to pricing strategy of the
hotels. It is seen that there is a negative impact on the demand of the hotels and along with that it
is vital to know that there is low at occupancy rate that is reducing down the profitability of the
hotel's seen that the hotels are planning to reduce the prices so that the people can afford the
hotels at the time of low-income (Cobanoglu and et.al., 2021). Seem that through the past years
it's such a major problem of reducing the prices as their margins are also reducing this is causing
losses in the industry.
Health and Wellness
It is vital to note that now health and weakness is now a trend. It is seen that it becomes
important to take care of health and wellness of clients has become important. It is seen that there
is increases in demand of organic products to make food. As people is keeping health at upmost
priority. As people have to take care of their health and hygiene to safe themselves from Covid-
19.

Lack of budget for maintenance
One of the major problems that are faced by hospitality industry is lack of budget for
maintenance. It is seen that due to Covid-19 tourism is decreasing day by day and because of this
hospitality industries are facing financial problems and even they are unable to meet their
maintenance expenses (Majid, Yasir and Qudratullah, 2019). They are also not able to pay off
salary to their employees on time. That's why employees are not doing their work with full
efficiency and due to this these companies in hospitality industry are facing losses and unable to
achieve their target on time.
Technology
It is seen that social distancing norms have to follow by all the business organisations in
hospitality industry (Sheehan, Grant and Garavan, 2018). So nowadays it is important to use
updated technology such as electronics check in points that help the customers to not get in touch
with any one. It is important to enhance the norms as well as use of digital payments to reduce
the interaction with people. Usage of latest technology will enhance the working of hotel and this
enhances the expenditure on usage of technology.
Operational impact and mitigation
As there are various issues and one among them are operational problems that are faced by
business organisation in the industry. As people are not able work in an effective manner. There
is no work that is the reason it is a challenge.
Financial problems
It is another major challenge that is faced due to Covid-19 pandemic. As there is lack of
occupancy and demand in the market for hospitality industry. Covid-19 people are not going out
of their homes and that reduces the sales of these forms that are operating in in hospitality
industry. They have to give salary to those who are employed in the company as well as there is
expenditure on maintenance. So it is one of the issues that is faced by them. They are unable to
manage the finances as there is no profit from some time it is seen there is no guest and that
reduces to revenues of the hotels and accommodations.

Marketing strategies and expenditure
They have to formulate new marketing strategies that will help them to attract and retain back the
customers in this covid-19 pandemic (Jaykumar, 2018). It is seen that they have to spend money
on the formulation of marketing strategies for which they need to conduct a good research. It is
seen that due to covid-19 the expenditure on marketing strategies is changed and each and every
business from its switching to watch digital modes to advertise their organisation. At the same
time it is important to work on giving discounts and offers along with that giving them packages
that are customisable. All this need expenditure and there is no surety of return that they will get.
It is seen that these are the challenges that are faced by the hospitality industry. It is
important to identify these challenges and then worked upon them in such a manner that they are
solved and the companies able to earn more revenue. It is right time for them to think upon new
ideas that will help them to work in effective manner force covid-19 and attract and retain
customers in an effective manner.
CONCLUSION
From the above report it can be evaluated that hospitality industry is not industry. It is seen
that there are various things that are associated with hospitality industry subject travel and
tourism accommodation facility. But it is seen that due to covid-19 all these services has faced
huge losses as people are not ready to travel. In this report there is discussion related to number
of challenges that we organisations are facing due to covid-19. So it is time for them to work on
health and hygiene of people and use latest technologies that a digital in nature so that they are
able to cover up the losses in near future after this pandemic gets over.

REFERENCES
Books and Journals
Baum, and et.al., 2020. COVID-19’s impact on the hospitality workforce–new crisis or
amplification of the norm?. International Journal of Contemporary Hospitality
Management.
Cobanoglu, and et.al., 2021. Hospitality and Tourism Information Technology. University of
South Florida M3 Center Publishing, 17(9781732127593), p.2.
Jaykumar, P., 2018. Hospitality Management Institutes-the Skills Training Industry
Perspective. Journal of Services Research, 18(2).
Majid, A., Yasir, M., Yousaf, Z. and Qudratullah, H., 2019. Role of network capability,
structural flexibility and management commitment in defining strategic performance in
hospitality industry. International Journal of Contemporary Hospitality Management.
Martínez-Martínez, and et.al., 2019. Knowledge agents as drivers of environmental sustainability
and business performance in the hospitality sector. Tourism Management, 70, pp.381-
389.
Qiu, and et.al., 2019. The effects of authentic leadership on trust in leaders, organizational
citizenship behavior, and service quality in the Chinese hospitality industry. Journal of
Hospitality and Tourism Management, 40, pp.77-87.
Sheehan, M., Grant, K. and Garavan, T., 2018. Strategic talent management: A macro and micro
analysis of current issues in hospitality and tourism. Worldwide Hospitality and
Tourism Themes.
Zsarnoczky, M., 2018. The digital future of the tourism & hospitality industry. Boston
Hospitality Review, 6, pp.1-9.