The Covid19 that China instigated has radically spread in many nations of the world. With many states announcing crisis and total closure, there are numerous businesses that are affected by this, such as the sales sector, the transport sector, the tourism sector and many others.
Among many segments that are being greatly affected in many countries, the hotel industry is one of them. The hospitality industry, in fact, is a very large sector and includes accommodation services, food and beverage, event organization, transportation and amusement parks, the work capacity is also quite large in this sector and with the pronouncement of the confinement in the country all this has been slowly affected.
Covid and its financial impact
The coronavirus (COVID-19) pandemic is instigating the hospitality industry around the world to take a hit. In the United States, this can be seen through a year-over-year decline in the industry’s most significant key performance indicators. In the week ending September 12, US hotels had 48.5 percent occupancy, showing a year-over-year decrease of 30.2 percent.
Covid19 is affecting all lines of the hotel industry, but again, not everyone has the same ability to recover. Large hotel establishments will definitely bounce back quickly, but for all other institutions, the Covid-19 illness is a test of flexibility and ingenuity. The industry fallout that is currently being recounted is admittedly baffling to even the most skilled hospitality business owner, which is why it has never been more important to gather all the information at your disposal and plan ahead.
Several businesses are working seriously due to reduced hours or total closure of places due to quarantine measures. The concern with this when it comes to hospitality is that hotels that lower room charges and do so for long periods of time have a hard time raising them again once the market eases.
If your business is new and you don’t have cash, you can always check what government assistance it provides, along with any other loans, and consider an enhanced payment plan with your bank.
The way to follow
Scheduling employees should be the priority task in demand, but you shouldn’t have the urgency to fire recent hires. In all likelihood, you wouldn’t have a business like you did last year, which means regular help wouldn’t be needed and you’d want to rely on your workers that you’ve trained properly, who would be willing to have a job, even if it means taking some cuts or reductions in salary at the current time.
For some of the affected businesses the worst is yet to come and while we can never be sure how bad it will turn out, it is more vital than ever to retain the influence of partners and contractors as very little of their business would go on. Ditto if you abruptly cut ties with everyone who helped progress you to what you are today.