The rapid spread of COVID-19 virus from China, and beyond, has brought the worldwide tourism industry to a sudden halt. Travel is often one of the ﬁrst things we choose to limit when a crisis hits, and in the last few weeks, many countries as well as companies have been putting heavy restrictions on travelling and social interaction.
In times like this, the hotel revenue leader’s response could be crucial to the future of the property, and certainly will impact the level of pain they’ll witness in the Proﬁt & Loss account. To assist hoteliers, HSMAI Asia Paciﬁc is happy to collaborate with RateGain to bring our industry best practices alongside solid data directly from RateGain’s customers with 130,000 properties across the globe. The data highlights booking and cancellation trends provide a picture from many global markets.
The analysis is based on the cumulative data of the ‘destination’ countries that had minimum 50 unique properties on RateGain’s products. These countries include, Austria, Brazil, Colombia, Czech Republic, Denmark, Egypt, Germany, India, Indonesia, Japan, Malaysia, Mexico, Philippines, Saudi Arabia, Spain, Sri Lanka, Switzerland, Thailand, United Arab Emirates (UAE), the United Kingdom (UK), the United States (US), and Vietnam.
Coronavirus impact on Hospitality Industry
Our study reveals that during the week starting from March 8th, 2020, the key destinations worldwide posted a significant decline in bookings. Bookings across Italy declined by 68%, followed by Singapore (declined by 49%), Denmark (declined by 44%), Spain (declined by 40%), the USA (declined by 25%) and more.
Similarly, during the week starting from March 1st, 2020, the key destinations globally registered a significant increase in reservation cancellations. Cancellations across Europe increased by 131%, followed by Americas (increased by 81%), APAC (increased by 22%) and Middle East & Africa (increased by 13%).
This study is a detailed representation of the answers to the key questions being asked by hoteliers:
In the meantime, our HSMAI Revenue & Marketing Advisory Board members are working on developing a short online lesson on some best practices hoteliers can employ during an extended low demand period. Watch out for this course on our HSMAI Academy website. We strongly believe that all the key players across the hospitality ecosystem should come together to build a #BetterTomorrow.