COVID-19 has changed the world. Thousands of events around the globe have been canceled or postponed. Which, in turn, has severely affected the tourism, hospitality, and travel industry.
The hospitality and food services sectors made up more than half of March’s net losses—about 459,000— with even more significant losses anticipated for April’s job report. And with the COVID-19 pandemic still in its early stages, we have yet to register its full effect.
The president’s $2 trillion stimulus, known as the CARES Act, has now been signed to help maintain the US economy. Individuals will receive about 600 billion, while corporations will receive the remaining bulk of the money. This act provides a variety of grants, emergency loans, tax law changes, and other forms of relief for the travel and tourism industry and includes incentives to retain jobs.
Hotels
With the World Health Organization (WHO) declaring COVID-19 a pandemic, the earlier positive forecasts for US hotel occupancy has unsurprisingly fallen short. The decline has become so impactful, that some hotels, such as this Hyatt hotel in Lenexa, Kansas, have decided to close until June 1, 2020.
As hotel stays are decreasing, many companies have begun offering a variety of flexible cancellation policies and offering credits or refunds. For example, Hyatt hotels are doing their best to listen to the concerns of their patrons and have taken steps to offer flexibility and future stay opportunities. These include:
- Free cancellation: With 24-hour notice, reservations booked on or before April 1, 2020, for arrivals through June 30, 2020, can be canceled at no charge. This includes Advance Purchase Rate reservations.
- Future travel changes and cancellations: Reservations made between April 2, 2020 and June 30, 2020 for any future arrival date can be changed or cancelled at no charge up to 24 hours before scheduled arrival, though some exclusions apply.
- 10,000 bonus World of Hyatt points: Special exceptions exist for all Advance Purchase Rate non-refundable reservations made on or before March 8, 2020, for arrivals before June 30, 2020. Guests holding these fully prepaid reservations who have decided not to travel may still opt, at least 24 hours before their stay, to receive 10,000 World of Hyatt Bonus Points compensation instead of both their stay and the offer above (if eligible).
- More time to use points and earned rewards: Forfeiture of points has been suspended through December 31, 2020, and all unused Free Night, Suite Upgrade, or Club Lounge Access awards expiring March 1 through December 31, 2020, have been extended to December 31, 2021.
Airlines
As the pandemic continues, and the ban on international travel from certain countries, with many enforcing complete border closures to foreigners such as Canada and Mexico. The United States has issued a Level 4 “do not travel” advisory, the highest travel advisory the federal agency can issue.
With the pandemic, the airline industries will lose $75 billion and 273,000 jobs because of the coronavirus pandemic.
While the airline industry is cooperating with authorities and acting in accordance with both the Centers for Disease Control and Prevention and the State Department, they are also continuing to accommodate customers with options such as:
- Waived change fees: Change fees will be waived until September 30, 2020, with rescheduling options until December 31, 2021.
- Capped fares for European travel.
- Enhanced cleaning practices: Airlines have stepped up their standard cleaning procedures aboard all aircraft as well as within the gates and check-in kiosks.
Amusement Parks
The major outbreak of COVID-19 in the United States occurred during the ever-popular time of spring break. Trips to amusement parks, concerts, and sporting events were canceled not only by the attendees but by the attractions themselves.
Disney, one of the industry’s giants in theme parks, closed its parks March 14. They are waiving their change and cancellation fees for those with reservations through June 30. This closure could mean a loss of $13 million per day, about 30 percent of the company’s operating income.
Casinos
Las Vegas was officially shut down by Governor Sisolak on March 16. In an effort to limit COVID-19’s spread, he officially announced that only essential services would remain open.
Last year at this time, 3.5 million people visited Vegas. Now more than 206,000 workers are unemployed, setting a record for the most unemployment claims in the state’s history.
Will They Recover?
Tourism, hospitality, and travel industries are working on programs and initiatives to welcome back their patrons when the time is right. And as soon as the world is once again traveling and vacationing, they will be there with open arms.
Unfortunately, still in the midst of this pandemic, things will undoubtedly get worse before they get better. Until then, the tourism industry will continue to play their part in stopping COVID-19.
