Hotel Industry Recovery: 7 Signs That Hotel Owners Will Thrive After COVID-19
Industry stakeholders all over the world are struggling to find a way to survival and hanging on to the thin hope of a post-COVID thrive. However, there seems to be positive signals, at least from APAC region where the situation is somehow under control.
Since the beginning of the outbreak, every one has been talking about the impacts of COVID-19 to the Hotel & Travel industry. It is easy to understand that people are having a gloomy look toward the industry, given the situation in the US and Europe. While an impact analysis is still necessary, it is time for us to think about the Hotel and Travel industry recovery in post-COVID time. Should stakeholders in the industry be worry about the great recession post-COVID? How is consumer demand for travelling and accommodation when everything ends? Should they, if being capable of, find a way to exit? etc.
Though there is no clear answers for all the questions above, there are signals from the market that anyone interest in Hotel and Travel industry should not look over. Below are 7 highlighted signs that we have been observing recently.
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#1. Consumers are eager to buy their delayed purchase.
Overall, there is a relieve sign of economy recovery. The percentage of people who plan to buy their delay purchase when the outbreak begins to decrease / is over is showing an upward trend. It is surprising since one might think the lengthening outbreak will make consumer’s budget thinner, thus it will take a while to rebuild their small fortune before they can think of purchasing anything. However, it seems like the outlook of a normal life excites people which make them easier and more open in spending.
When we take a closer look at countries in APAC region, the picture is somehow similar. Two exceptional case are China and Philippines. While there should be little to no worry about the decreasing purchase power of Filipino, the downward trend of China may need to be looked at with prudence. As the most populated country in the world, a small decrease in purchase intention of Chinese consumers may mean a tremendous impact to the whole world’s economy. However, it is not that much of a concern at the moment to the hotel industry recovery outlook. We will talk about this in the section #7 — China’s recovery.
#2. People are setting up their travel plan after COVID.
We are witnessing the eager of people to start their travel plan again. In a recent study of US Travel Association, we ask US travelers the activities they would do after COVID-19. The results show that 52% of respondents said that they would be eager to travel for leisure. 26% would be eager to travel for business.
Another set of data from GlobalWebIndex shows similar pattern, in which 4% of US citizen would revive the travel whenever the restriction is lifted. Another 23% said that they would travel again within the next 3 months. Obviously, the ability to travel again will depend much upon the actual situation of disease spread and how governments are dealing with it. However, those still are positive numbers showing that we are somehow having the necessary optimism to recover in the post-COVID time.
The remaining signs include:
#3. Flight search is surging, again.
#4. Travelers are more conscious about their dining.
#5. Higher class accommodation may become the first choice.
#6. Luckily, the money for travelling is still there!
#7. Last but not least, China’s tourism is healing.