The travel industry is no stranger to adversity and has been seriously damaged by the novel virus. We have all witnessed leadership actions in companies that keep their people above water and focus on long-term growth. Most players in the industry have tapped into new sources of liquidity, instantly acted to retain customer goodwill, and worked effectively with unions. People have started focusing on innovation and making better customer experiences.
The impact of the coronavirus on the industry
The Corona Virus has changed the way we live and how we travel. Covid19 has brought ominous feelings about the future. Who would have even guessed that the industries and the world would have to face a crisis as severe as the pandemic in such a brief time? The insidious virus has cast a pall of fear, gloom, and demise throughout the world, leaving regions and countries without strategies and ways to deal with the pandemic. The local and international health organizations and the governments are taking responsible actions and responding at differing rates of speed to the spread of the deadly Corona Virus.
How long do we have to wait until things go back to normal? Will people be allowed to travel again safely? Do the tourism and hotel workers get to keep their jobs? Will all of this come to an end? Let us dive a little deep and understand how the virus has impacted the travel industry.
Impact Number One
People wish to continue traveling again once the restrictions lift – some are ready to do it before the vaccine is available. China, South Korea, and some countries in Asia have effectively controlled the spread of the virus and have already started seeing leisure and business travel segments recovering domestically. While Germany and Europe have shown first signs of encouraging travel demand recovery, other geographies, including the United States, have not controlled the spread effectively. Despite the increase in the number of Covid19 patients, there has been an increase in advanced bookings and searches.
Impact Number Two
Due to the necessary safety precautions and public health measures like closures, quarantines, and other restrictions, chances are the leisure area may be limited to do anything purposeful at the destination. Correspondingly, most business travelers who are ready to fly again may be restricted by the corporate travel companies and their policies to focus on everybody’s safety and care.
Impact Number Three
There is an exceedingly high chance that working-from-anywhere can permanently blur the lines between business travel and leisure. The pandemic and the rise of remote work seem to be accelerating the growth of these travel segments. All the players across the travel value chain must think through all the critical implications.
Impact Number Four
The nonprice factor has become quite crucial to the customers. The industry is supposed to cover other terrains before the demand stimulates its way out of the crisis and instead restores the confidence of the traveler. The travel industry is only as strong as its weakest link, so the customers must be comfortable with all touchpoints in their journey.
Impact Number Five
A self-reported sentiment may not accurately reflect behavior and preferences despite being easy to gather, particularly when in the depth of the crisis. Therefore travel companies can’t rely only on stated preferences; they are supposed to advance how they keep a pulse on travelers’ activities through leading indicators.
Corona Virus’s impact on the world’s economies and livelihoods has vaulted from serious to catastrophic at the macro level. The USA’s exact development when claims from unemployment insurance increased over 6M inconsecutive weeks. In countries with large informal economies, government decrees aggravate the crisis by dictating self-isolation, social distancing, and the closure of nonessential businesses.
All in all
There is no doubt that the virus has hit the travel industry hard. With canceled flights and countries on lockdown, the hotel occupancy rates hit zero. The impact of the virus has been predominantly catastrophic for the tourism and travel sector. The statistics on international air travel show how the industry has come to an abrupt halt. However, the suspension is said to come to an end soon enough, and everyone shall get on with the everyday life we knew.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.