Hospitality Lodging Industry Post

Covid-19 – Strategies and more.

Dr. Amit Mehrotra
New York City College of Technology
City University of New York
Coronavirus: impact on the lodging industry worldwide
CORONAVIRUS: IMPACT ON THE LODGING INDUSTRY WORLDWIDE

Global
Forecasted change in revenue from the travel and tourism industry due to the coronavirus (COVID-19)
pandemic worldwide from 2019 to 2020 (in million U.S. dollars)
Global change in travel and tourism revenue due to COVID-19 2019-2020

800000

711,944
700000 685,065

600000
Global revenue in million U.S. dollars

500000
447,412

400000

300000

200000

100000

0
2019 Original 2020 forecast 2020 restated

Note: Worldwide; 2019 and 2020

Further information regarding this statistic can be found on page 42.
2 Source(s): Statista; ID 1103426 Global
Forecasted change in revenue from the travel and tourism industry due to the coronavirus (COVID-19) pandemic
worldwide from 2019 to 2020 (in million U.S. dollars), by region (in million U.S. dollars)
Global change in travel and tourism revenue due to COVID-19 by region 2019-2020

2019 2020

250000
225,889
211,972

200000
181,805
Revenue in million U.S. dollars

150,404
150000
129,230
124,209

100000

50000

0
North America Europe Asia

Note: Worldwide; 2019 and 2020

Further information regarding this statistic can be found on page 43.
3 Source(s): Statista; ID 1103431 Global
Countries with the largest number of international tourist arrivals in 2018 (in millions)
Countries with the largest number of international tourist arrivals in 2018

International tourist arrivals in millions

0 10 20 30 40 50 60 70 80 90 100

France 89.4

Spain 82.77

United States 79.62

China 62.9

Italy 62.15

Turkey 45.77

Mexico 41.45

Germany 38.88

Thailand 38.28

United Kingdom 36.32

Note: Worldwide; 2018

Further information regarding this statistic can be found on page 44.
4 Source(s): UNWTO; ID 261726 Global
Monthly hotel occupancy rates worldwide from 2018 to 2020, by region
Monthly hotel occupancy rates worldwide 2018-2020, by region

Asia Pacific Americas Europe Middle East and Africa

90.0%

80.0%

70.0%

60.0%
Occupancy rate

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%
Jan Feb Mar Apr May Jun Jul 18 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul 19 Aug Sep Oct Nov Dec Jan Feb Mar Apr May
18 18 18 18 18 18 18 18 18 18 18 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20

Note: Worldwide; January 2018 to May 2020

Further information regarding this statistic can be found on page 45.
5 Source(s): STR Global; hotelnewsnow.com; ID 206825 Global
Monthly hotel revenue per available room worldwide from 2018 to 2020, by region (in U.S. dollars)
Monthly hotel revenue per available room worldwide 2018-2020 by region

Asia Pacific Americas Europe Middle East and Africa

140

120

100
RevPAR in U.S. dollars

80

60

40

20

0
Jan Feb Mar Apr May Jun Jul 18 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul 19 Aug Sep Oct Nov Dec Jan Feb Mar Apr May
18 18 18 18 18 18 18 18 18 18 18 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20

Note: Worldwide; January 2018 to May 2020

Further information regarding this statistic can be found on page 46.
6 Source(s): STR Global; ID 206844 Global
Monthly average daily rate of the hotel industry worldwide from 2018 to 2020, by region (in U.S. dollars)
Monthly average hotel daily rate worldwide 2018-2020, by region

Asia Pacific Americas Europe Middle East and Africa

180

160

140
Average daily rate in U.S. dollars

120

100

80

60

40

20

0
Jan Feb Mar Apr May Jun Jul 18 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul 19 Aug Sep Oct Nov Dec Jan Feb Mar Apr May
18 18 18 18 18 18 18 18 18 18 18 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20

Note: Worldwide; January 2018 to May 2020

Further information regarding this statistic can be found on page 47.
7 Source(s): STR Global; ID 206840 Global
Hotel occupancy changes year-over-year due to the coronavirus (COVID-19) pandemic in selected countries
worldwide for the week ending March 21, 2020
COVID-19: year-on-year drop in occupancy worldwide as of March 21 2020, by country

0.0%

-20.0%

-40.0%
Drop in hotel occupancy

-48%
-60.0%
-59%

-68% -67%

-80.0%

-100.0% -96%

-120.0%
Italy China United Kingdom United States Singapore

Note: Worldwide; March 26, 2020

Further information regarding this statistic can be found on page 48.
8 Source(s): PhocusWire; STR Global; ID 1109521 Global
Hotel occupancy rate affected by the coronavirus COVID-19 outbreak in China from January 14 to 26, 2020
Coronavirus impact on hotel occupancy rate in China during Chinese New Year 2020

80.0%

70%
70.0%

60.0%

50.0%
Occupancy rate

40.0%

30.0%
22%
20.0% 17%

10.0%

0.0%
Jan 14 Jan 24-26 Jan 26

Note: China; January 14 to 26, 2020

Further information regarding this statistic can be found on page 50.
11 Source(s): Website (ttgasia.com); STR; ID 1109791 China
Estimated impact of the coronavirus (COVID-19) on revenues of the tourism industry in Italy in 2020, by sector
(in million euros)
Impact of the coronavirus (COVID-19) on tourism revenues in Italy 2020, by sector

2019 2020 (best-case scenario) 2020 (worst-case scenario)

14000
12,519
12000

10000 9,288
Revenues in million euros

7,825
8000

5,991
6000

4000 3,339
2,903 2,644
1,818
2000
948

0
Hotels Travel agencies and tour operator Non-hotel tourist facilities

Note: Italy; March 2020

Further information regarding this statistic can be found on page 55.
17 Source(s): Cerved; ID 1105157 Italy
Estimated impact of the coronavirus (COVID-19) on revenues of the tourism industry in Italy in the first half of
2020, by sector (in billion euros)
Impact of the coronavirus on tourism revenues in Italy H1 2020, by sector

-2

-4
Revenues in billion euros

-6
-6.1
-6.7
-7
-8

-10

-12

-13
-14
Accommodations Catering Tourism transport Shopping tourism

Note: Italy; H1 2020

Further information regarding this statistic can be found on page 56.
18 Source(s): Confederazione Nazionale dell'Artigianato e della Piccola e Media impresa; ID 1111074 Italy
Estimated impact of the coronavirus (COVID-19) on international tourist arrivals and overnight stays in Italy in
2020, by quarter (in millions)
Impact of the coronavirus on inbound arrivals and overnight stays Q1-Q3 2020

Arrivals Overnight stays

-20

-25 -25

-40

-60

-80
-82

-100
-98.5

-120
Q1 and Q2* Q3

Note: Italy; Q1 to Q3 2020

Further information regarding this statistic can be found on page 59.
21 Source(s): Confederazione Nazionale dell'Artigianato e della Piccola e Media impresa; ID 1111092 Italy
CORONAVIRUS: IMPACT ON THE LODGING INDUSTRY WORLDWIDE

Spain and France

Number of hotels in three of the main chains in Spain temporarily closed due to the coronavirus (COVID-19) in
March 2020
Closure of Paradores, Iberostar and Meliá hotels due to coronavirus Spain 2020

120

100 96
Number of temporary closings

80

60

45

40 38

20

0
Paradores Meliá Iberostar

Note: Spain; March 17, 2020

Further information regarding this statistic can be found on page 66.
29 Source(s): Hosteltur; ID 1104999 Spain and France
Impact of novel coronavirus (COVID-19) on hotel occupancy rates in France from February 26 to March 17
COVID-19: impact on hotel occupancy rates in France as of March 2020

70.0%
65.3%

60.0%

50.0%
Occupancy rate

40.0%

30%
30.0%

20.0%

10.0%
3.3%

0.0%
Feb 26 Mar 12 Mar 17

Note: France; February 26 to March 17

Further information regarding this statistic can be found on page 68.
31 Source(s): STR; CoStar; ID 1106001 Spain and France
Impact of novel coronavirus (COVID-19) on hotel occupancy rates in Paris, France, from January 17 to March 17
COVID-19: impact on hotel occupancy rates in Paris as of March 2020

90.0%
84%

80.0%

70.0%

60.0%

50%
Occupancy rate

50.0%

40.0%

30.0%

20.0%

10.0%
1.8%
0.0%
Jan 17 Mar 3 Mar 17

Note: France; January 17 to March 17

Further information regarding this statistic can be found on page 69.
32 Source(s): STR; CoStar; ID 1106003 Spain and France
CORONAVIRUS: IMPACT ON THE LODGING INDUSTRY WORLDWIDE

United States
Impact on the hotel industry's key performance indicators in the United States due to the coronavirus (COVID-
19) pandemic for the week ending June 13, 2020
COVID-19's effect on hotel KPIs in the U.S. as of June 13, 2020

Year-on year percentage decrease KPI

Occupancy (in percent) -43.4 41.7

Average daily rate (in U.S. dollars) -33.9 89.09

Revenue per available room (in U.S. dollars) -62.6 37.15

Note: United States; week ending June 13, 2020

Further information regarding this statistic can be found on page 70.
34 Source(s): hotelnewsnow.com; STR Global; ID 1109880 United States
Potential impact on hotel room nights in the United States due to the coronavirus (COVID-19) pandemic in
2020 (in millions)
COVID-19: predicted impact on U.S. hotel room nights 2020

Percentage drop in occupancy rate (from average of 66 percent) Loss in room nights in millions

-20 percent -380

-30 percent -570

-40 percent -760

-50 percent -950

Note: United States; as of March 17, 2020

Further information regarding this statistic can be found on page 74.
38 Source(s): AH&LA; Oxford Economics; ID 1105211 United States
Potential impact on hotel sector employment in the United States due to the coronavirus (COVID-19) pandemic
in 2020 (in millions)
COVID-19: predicted impact on U.S. hotel industry jobs 2020

Percentage drop in occupancy rate (from average of 66 percent) Job loss in millons

-20 percent -2.6

-30 percent -3.9

-40 percent -5.2

-50 percent -6.5

Note: United States; as of March 17, 2020

Further information regarding this statistic can be found on page 75.
39 Source(s): AH&LA; Oxford Economics; ID 1105284 United States
 Strategies
Find New Alternative Revenue Streams

Safety

Communication

Technology
 Strategies - 1
Find New/Alternative Revenue Streams
Leisure and business tourism may not get to pre-pandemic levels for a
few years. Best case scenario will be 12-18 months.

Finding new revenue streams (Social, cultural, local)

Monetize lodging space (Food, Offices/Small gatherings)

 Strategies -2
Safety
Guests need to feel safe and secure.

At the same time guests also need to be made to feel they are still being
given a service based on brand standards.

Processes need to be put in place so as to minimize contact at every step

yet keep the communication on going.
 Strategies - 3
Safety
Preregistration and reservation systems (contactless).

Flex check-in and checkout timings .

Minimal or monitored movement of staff around the hotel.

Mandatory masks in public areas

Sanitizing station at every entry/exit or contact point

 Strategies- 4
Communication and Technology
Continuous Communication with guests (Apps, platforms, emails, texts)

Identity Verification

Digital Kiosks

Using Apps/platforms/texts to provide services

Monitoring guest access, and services remotely