COVID-19 Impact on Tourism: A Segmentation Analysis - Essay Sample

Introduction

In the wake of the recent pandemic that has hit the world, Coronavirus has fallen along with a lot of industries. One of the industries hit by the pandemic is the tourism industry. An industry that had seen a lot of growth supported by the technological revolution has been hit harder by the pandemic. Travel that had become easy and affordable has fast become halted by a virus that demands people to shelter in a place for safety. This paper identifies the four segments of tourism and identifies the sector that has been affected the most. It also discusses a road map of how one of the segments can recover from the crisis. The four segments that are under discussion include cruise lines, resort and resort hotels, business travel-oriented hotels, and airlines.

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The Segment of Travel Affected the Most

It is indisputable that all the sections of the tourism industry have been hit hard. However, of the four the airline as a transport sector has been hit than the rest of the segment. Based on the travel restrictions all over the world, the IATA estimates that the revenue from the air transport industry could fall by 45% A9Vineet 180). The 45% fall is comparable to the 2019 numbers. The 45% could be equated to a fall of $252 billion. Roger Dow, the president and CEO of the U.S travel association equated the loss faced by the airline as seven or six times worse than the 9/11 attacks. In the United States alone, the country had lost revenue of 2.6 Trillion dollars in economic output (Dedi et al. 20). In terms of job security, the are 15.8 economic losses that were equated to job losses alone. Apart from the U.S, Britain lost 75 million jobs and 42.1 million in revenue. In terms of specific airlines, British airlines one of the most prosperous airlines in the world had to suspend 36,000 (Dedi et al. 19) staffers from duty since they could not sustain their wages. These numbers are getting worse by each, compared to the other four sectors the airline industry has suffered the highest loss because of the travel ban and restrictions imposed in nations all over the world.

Compared to the number poised by the other segment of the industry the airline industry seems to have taken the hugest blow. Business travel-oriented hotels have not suffered that much since some countries with tourist destinations like Madagascar did not offer a ban in their countries. The hotel industry has estimated their international losses to $15 billion (Dedi et al. 23) led by their lodging department which no longer receives visitors, but has mostly been turned into quarantine centers. The Cruise and the restaurants have suffered the least blow losing up to less than 10 billion dollars (Dedi et al. 21).

The Segment that Might Recover Fast

The restaurants and hotel restaurants are the segments of the industry that are likely to receive the earlier comeback. Restaurants and hotels can easily expand their operating space to accommodate the new social distance rules placed by the World Health Organization (Raffy and Marquez 12). Most regulations on the countries are also affecting the transport industry but do not have a lot to talk about that regulate restaurants and hotel industry except for distancing and covering one’s mouth and face. Additionally, restaurants have the capability of increasing sales through implementing effective means that limit declines and offer special deals using the pandemic. Even though the restaurants might lose money by offering free deliveries but, in terms of branding they have the best capability to bounce back from the pandemic and drastically increase their sales. Case in the study, in China Wuhan which has seen a recovery in the past few days (Raffy and Marquez 12). The restaurants and hotel restaurants have recovered way before the transport and the hotel sector recover.

Major Changes to Ensure Recovery

If the hotel and the hotel restaurants are to recover, there are major changes that they have to undergo as an industry. The following major changes are important for the restaurants and hotel restaurants to regain public trust and win customers back (Kumar 179).

Firstly, restaurants should reconsider updating their existing health and safety techniques, policies, and procedures. Public trust can only be regained when the restaurants not only coincide with their national recovery standards but also WHO set standards (Kumar 180). The hoteliers should instruct their staff to promote proper health and safety measures some of which include; Social distancing, putting on health certified masks, and the number of people to serve in a day.

More specifically hotel restaurants should consider implementing more non-cash self-service pay systems. Orders can now be done through mobile apps to minimize contact service and order deliveries. Entrances and exits of restaurants should be limited to only a few people and sanitizers installed at the entrances and exits of the restaurants (Sanjay 4). Most restaurants are known to have lounges that can be used to hold meetings, it is only fair that restaurants suspend meetings and gathering in hotel restaurants.

Conclusion

In conclusion, all is not lost in the tourism industry. Even after some time, there are a variety of ways that can be used to overcome these unexpected and challenging times. Taking actions must be the only sure way of returning to doing business as usual.

Works Cited

Centeno, Raffy S., and Judith P. Marquez. "How much did the Tourism Industry Lost? Estimating Earning Loss of Tourism in the Philippines." arXiv preprint arXiv: 2004.09952 (2020).

Dinardo, Dedi, Adri Wanto, and Leonard C. Sebastian. "Global health security–COVID-19: impact on Bintan’s tourism sector." RSIS Commentaries, 033-20 (2020).

Kumar, Vineet. "Indian Tourism Industry and COVID-19: Present Scenario." Journal of Tourism and Hospitality Education 10 (2020): 179-185.

Nepal, Sanjay K. "Travel and tourism after COVID-19–business as usual or opportunity to reset?." Tourism Geographies (2020): 1-5.