The COVID-19 outbreak that started from China has sadly brought the whole tourism industry to a sudden halt. As you know travel is one of the first things you choose in order to limit your stress when a crisis hits but in the last couple of weeks, many companies, as well as counties, have put heavy restrictions on social interaction aka social distancing and curb on travelling to reduce the risk of spreading the disease. In a time like this, what the hotel says and responds withholds significant importance to the future of the said property, and will directly impact the level of pain they will witness in their profit and loss account.
Research Insights conducted by HSMAI and RateGain
In order to assist hotels and help them with performance analysis and accelerate growth, HSMAI Asia Pacific has collaborated with RateGain to provide us with some of the best industry practices along with data directly extracted from RateGain’s customers that stretches over 130,000 properties around the world. It goes without saying that the hospitality and travel technology businesses go hand in hand in times like this showcasing strength as they bounce back every time. The industry has experienced something like this before as well such as 9/11, SARS in 2003, and the financial crisis in 2008.
“Now, with the help of RateGain, you have a unique vantage point of keeping a check on both distribution trends and pricing trends happening all across the globe. Now is the time you learn from the past event and make data-based decisions in order to completely avoid things such as providing unnecessary discounting and rather focus on finding new opportunities that will help retain momentum in the market and help accelerate growth as soon as the things turn around”- Chinmai Sharma President, Distribution RateGain
Covid 19 Impact on Hotel Industry and how STR data shows the recovery is possible
While the industry is in danger, the STR data shows that the recovery is very much possible. Now the question arises- How and When? To understand this, you need to understand what’s impacted and why? Hence, the report is there to your rescue that will help you understand the situation better. This report focuses on booking and cancellation trends that will help hotels to decide what measures they want to take for a faster recovery.
Let us take a quick look at the global statistics.
Starting from 1st January to 29th February 2020, the room revenue trend (that consists of the bookings made in the month for the same month) showcases a steep decline globally.
It shows a 16% month-over-month decline for the month of Jan-Feb 2020. The analysis was done based on the bookings made during the same month. However, during the month of February, a significant decrease in the overall month was seen. Furthermore, when RateGain analyzed the reservations made during the month for any future date in the next 12 months, it was found that the bookings are globally down by 9%. This will directly affect the hotel and tourism revenue, as more and more visitors are now actively cancelling their trips.
The study also reveals that the cancellation that was made in the last eight weeks has increased by 41% globally when you compare it to the cancellation that happened the same week but last year(Jan 20th to Mar. 16th, 2019). What hotels need to do is come with a strategy that will help increase the number of bookings, so in order to do so, it was important to look at this from a different perspective.
In conclusion, the impact of COVID-19 is changing every day; what you can do is show empathy with the customers and your employees. Never forget your brand values and where you came from and try to stick by it.