Comprehensive Review and Analysis

of Impact and Challenges for Hotel

Industriesduring Covid-19
Gajraj Singh Shekhawat
(Assistant Professor)
PIHM,Poornima University, Jaipur

influence on both business and survival. Many

Abstract
Hotels in India's hospitality sector are expected to
drop sharply during the first quarters of 2020, due firms have been forced to close as a result of
in large part to the outbreak of the covid-19 virus. government-imposed closures, therefore finding a
The number of visitors and business travelers is method to securely restart has become a top issue.
drastically decreasing as a result of the temporary COVID-19 has prompted a flurry of analysis and
suspension of travel and the implementation of decision-making among the hotel industry's leaders
containment measures. There is a consensus as they try to determine the best course of action
amongst the owners of hospitality companies that going forward. (1)
the industry has poor business practices, is unable
i) People management
to pay employees' salaries and other obligations,
generates low liquidity, is unable to repay loans A company's most valuable asset is its workforce.
and other debts, employs a bare minimum of Corona virus has had a very terrible time here,
personnel and lacks adequate financial support. sadly. The COVID-related blog post Managing
The influence of covid-19 on the hospitality People
industry and the profile of hospitality companies
are vastly different. Negatively, significantly, and In order to deal with the issues posed by the
strongly linked to the performance of hospitality worldwide pandemic, 19 provide advice on how to
businesses is the effect of covid-19 on the effectively handle this important resource. We take
industry That's why covid-19 is having such a care of difficulties like vital communication,
negative impact on the operations and growth of whether you're reporting directly to your staff or
hospitality businesses and the rest of the industry via a virtual team. In these trying times, your
as a whole, and they need help from banks and employees need to know how important you are to
the government right away. For the next six to them, and taking the initiative and keeping in touch
nine months, hospitality companies must with them will ensure that they do.
renegotiate payments and dues with their business
partners, and they must pay at least half of their
ii) The effect on hotel employees
employees' wages until normalcy returns. In The COVID-19 pandemic has the greatest effect on
addition, the hospitality business should delay those working in the hospitality business. Many in
major capital investments and reduce operational the business have not only lost their employment,
costs. In order to respond swiftly to market but they've also seen significant shifts in the way
changes, hospitality companies must develop and jobs should evolve as a result of these
implement efficient revenue generation and developments. COVID19: The Impact of
management strategies for pricing their products Hospitality Workers on the Industry Examines the
and services. Moreover, the government The Many
hospitality industry should be given a one-year Workers' Exposures During and After the Process
tax break and further financial aid. When it comes to the hotel industry, India, Europe,
and China have fared worse, according to the story.
Keywords: hotel industries, tourism, In the last six months, the United States has
management models, market changes, hospitality likewise experienced record cancellations and a
industry severe commercial downturn. (2)
Introduction
All hoteliers have been affected by the global
As a result of COVID19, the world has been epidemic in one way or another. The impact of the
taken by surprise and has had a significant corona virus on hotels and their employees around
the world may be seen in how hoteliers are group representing bars, cafes and hotels, are
dealing with the situation. Some hotels have been causing considerable harm. The KHN study
forced to close permanently because of power indicated that hotel businesses fear they could
outages that have lasted for a long period of time. suffer losses of 33% as a result of government
Even a few hours of downtime can have a emergency measures. Cancellations have increased
devastating effect on businesses that operate on a by nearly half.
tight budget. Understanding and supporting your
In China, occupancy has dropped by as much as 68
workers, keeping your rates from decreasing
percent compared to this time last year. When it
drastically, and showing that you understand how
comes to dealing with the corona virus in China,
they feel by staying in touch until the next crisis
they are the first to stabilize. According to the data,
provides Danger are some of the tips in this
87 percent of the population (5)
article for hoteliers completed. (3)
Many people's lives are being jeopardized as a Hotel rooms are starting to fill up as the country's
result of COVID-19's unrelenting march across lodgings open for business.
the globe today. The global economy is feeling Countries outside of the United States: As a result
the effects of the many efforts being taken to of the pandemic, hotels across the United States
combat the pandemic. The nomadic character of have seen an unprecedented number of
the hospitality workforce, as well as the halt in cancellations (this accounts for 50 percent of all
global travel, tourism, and restaurant services, are hotel jobs in America). 96 percent of the average
among the variables affecting the business in this occupancy in Italy and 67 percent of the average
article.(4) occupancy in the United Kingdom have decreased
Travel and tourism's impact on the since last year.
economy Affect on hospitality jobs
With the unprecedented travel restrictions, the The COVID-19 pandemic, according to the World
United Nations World Tourism Organization Travel & Tourism Council, could lead to the loss of
forecasts a 20% to 30% drop in international 50 million jobs in the travel and tourism industry
tourists in 2020, compared to 2017. worldwide. Asia is predicted to be the hardest
Additionally, they drew comparisons to the affected by an Oxford economics study, and data
SARS outbreak of 2009, which resulted in just suggests that the industry could take several
0.4% of the global tourism market being affected. months to recover from this setback.
Approximately 10% of the worldwide GDP is Due to travel bans, border closures, and quarantine
generated by the hospitality business. procedures, many workers can no longer reach
Initially, the disruptions were concentrated in their workplaces or carry out their activities, which
Asia, but they have since expanded to supply have an impact on their salaries, particularly for
systems around the globe. In the aviation, tourist, those who are self-employed or operate in the
and hospitality industries, there is a real risk of informal and contract sectors. Investment,
revenue decreases, insolvencies, and job losses in purchasing of goods, and the hiring of new
specific sectors, regardless of the size of the employees are likely to be put on hold as a result.
organization. Small and medium-sized businesses According to research, the impact on India's
will have a particularly tough time continuing hospitality industry could result in the loss of
operations. employment for the vast majority of the country's
workforce. The Indian tourism industry is bracing
There is a good chance that the hospitality itself for widespread bankruptcies, business
business in India would be severely affected. closures, and a spike in unemployed workers as a
Hotel companies in the United States are result of this pandemic. (6)
expected to see bad revenues in FY20 and worse
in FY21. Corporate, MICE, and leisure travelers As a whole, hotels and restaurants may become
all cut back on travel in March as a result of more efficient and leaner, requiring a balance
widespread disruptions. For the time being, between smart and competent employees. Because
business in India's tier 2 and tier 3 hotel markets of this, a significant portion of the labour force is
is shrinking slightly. Occupancy rates were only returning home in big numbers, which implies that
slightly lower in the early half of March, despite the bulk of hotel front-of-house workers will be
certain states being infected with the virus. working in their home countries. In the beginning,
temporary workers will be the first to be laid off,
A profit decrease of between 11 and 29 percent followed by permanent employees, as hospitality
has been predicted for the worldwide hotel organizations may be forced to reduce costs. This
business in 2020 by industry specialists in could be the case.lead to a big number of people
Europe. Since the virus has spread so quickly, switching industries in order to find a place with a
emergency measures taken by the KHN, a trade
faster income flow. This mass migration of is, however, the market's embrace of these concepts
skilled workers from all corners of the world that will lead to the end of the tunnel. Employers
might have devastating effects on the labor and governments that remain connected and
market, which may not recover unless companies concerned about their resources may choose to
and governments alike work to restore public keep the bulk of their workforce, thus lowering the
trust. Businesses can save the workforce only if stress on their HR cycle and giving them a
they take a sympathetic stance toward their competitive advantage.
employees. (7)
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reason. Covid-19's impact on the global
commercial landscape will be fully realized only
in time. Because the hotel industry's landscape is
constantly shifting, we need to come up with new
ideas to ensure our relevance. On the internet,
there is a wealth of information about global
hospitality trends that might inspire new ideas. It