The Hotel Industry Amid The Pandemic
- VLMG
- Oct 27, 2020
- 5 min read
The travel industry has taken huge a hit since the pandemic began. For a time, travel restrictions, community lockdowns, and stay-at-home orders were the norm. People couldn't and wouldn't travel.
Eight months in, destinations are reopening their borders. Top accommodations are either looking at or are already welcoming visitors again. More and more flights are resuming, both domestic and international. People are slowly beginning to travel again, growing confident with public health measures that airlines and accommodations have put in place.
It's the uncertainty that still keep people from traveling. There’s no vaccine guaranteed to come out by the end of the year (or before that) and case surges can be unpredictable. The travel restrictions can sometimes fluctuate from lax to fully restricted. All these factors can affect anyone’s decision to travel.
Changes in travel frequency also affects the tourism industry. According to the American Hotel and Lodging Association (AHLA), four out of ten hotel staff members need employment. Following layoffs and operational cuts because of losses to hotel revenue.
These are numbers we can feel. Big hotel chains have reduced their operations and staff. Marriot International has closed 9% of its properties. These closures include the iconic Marriot Marquis in Times Square. Hilton Hotels have had to let go of 22% of its corporate workforce. They also decided to permanently close Hilton Times Square after 20 years, which took over 200 jobs. Hotel and casino giant MGM Resorts has laid off 62,000 employees. InterContinental Hotels Group furloughed 10% of its corporate staff.
Consumer travel numbers are still at a low as well—only 33% of the American population has traveled since March. It’s said that 38% are likely to travel by the year end. Traveling for leisure can soften the blow to the hotel industry. After all, people have been keeping safe indoors for so long, working from home for the past few months.
Vacations are still on people’s calendars and it’s no surprise to know that people are thinking about the picturesque seaside accommodations in La Romana or taking their lockdown to Paws Up in Greenough. Options remain for both international destinations and domestic travel, and despite the bleak data, plenty of hotels remain resilient. Many luxury hotels, even resorts across the country and all over the world, are still in business.
Auberge du Soleil in California, for example, continues to offer world-class luxury accommodations. Their Michelin-starred restaurant, elegant hotel rooms, and state-of-the-art spa remain operational. The Victorian-inspired hotel, Ocean House, in Watch Hill, Rhode Island is still open as well.
People looking for unforgettable, luxurious holidays are never without options.
Hotels in Europe
If you're looking for options overseas, you're in luck. Border restrictions are starting to lift in Europe. Hotels in the region are also reopening their doors.
France has lifted hotel lockdowns last early June. Travelers can now visit places like the legendary Alpaga Chalet in Megeve, France. It's burrowed in the French Alps, boasting views over Mont Blanc. It even houses La Table de l'Alpaga, a restaurant with two Michelin stars.
While American tourists are still restricted from entering France, there are some ways to get through the borders. American tourists make up the greatest number of visits to the country. The country’s GDP also sees around 8% coming from tourism alone. Over 90 million tourists visit France, making it one of the most visited countries in the world.
Italy has also resumed operations. Known for their high-end hotels, they're ready to take in visitors. The Hassler in Rome reopened in September. It features a captivating combination of classic and contemporary interiors. It also has its own Michelin-starred restaurant, Imago.
Rosewood Castiglione del Bosco in Sienna is another luxury option as well. The hotel is one of Italy's best-preserved historic estates. Their lavish accommodations have been open since July. It offers villas with plush interiors overlooking the charming view of the countryside. Rosewood Hotels and Resorts also have other hotels in the region, managing Hôtel de Crillon in London and Paris.
Italy is keen to get their tourism industry back on track. It brings in 13% of the country's GDP. The country sees tourism as a way to recover and restabilize the country.
The country has reopened borders. Airlines are now waiting for international flights to be back at 100%. In the meantime, the tourism industry is looking at domestic travel. They are seeing local tourism as means to revive the industry in the meantime.
To increase the demand, hoteliers are focusing on providing service with no hint of the virus. Isolation periods and variations of acceptable and standard testing procedures before entry are still in place. But with that, they're also using advanced technologies to deliver a seamless, memorable experience. Hassler, for example, has app-based check-in and digital room keys, with daily newspaper uploads to guest devices.
African Accommodations
Seychelles is another luxury destination now open to international tourists. They reopened their borders last July and they’re trying to mitigate tourism decline, with around 30% of their GDP coming from tourism.
Visitors can go to Fregate Island Private. It's the perfect destination for travelers looking for exclusivity and privacy. It's been open since June and allows private jet travel again. It's the first luxury destination in the country to do so. If you're looking for ultimate luxury, the resort is offering a special rate until October 2020. Guests can rent an entire island for themselves.
Looking Ahead
The future of travel and tourism is still be up in the air, but it's getting better. More hotels are opening up shop and more countries are lifting travel restrictions.
Still, the continued effects of the pandemic to the industry are undeniable. There's a projected 29% decline in annual hotel occupancy over the next 12 months. Room revenue alone stands to lose billions. Though, research bodies predict the industry will resume its pre-pandemic standing by 2023.
In the U.S. many hotels are open. The federal Paycheck Protection Program, a stimulus package, are assisting with funds. This is a huge help to hotels and the industry as a whole.
It’s too early to tell how the hotel industry will adapt in the months to come. Many hotels are still standing eight months into the pandemic. This is true for both hotel giants and boutique accommodations alike. Large-scale hotels and minor players are adapting with the times. Current projections can sound bleak at times, but hotels are looking forward and rising up to the challenge. Through technology and creativity, visitors can still enjoy the highest standards of service and an experience that’s sure to be unforgettable.
