The coronavirus pandemic has actually become the global tourism industry - all experts admit this. But it is also true that before the outbreak of the disease, the industry was healthy and showed strong growth for several years in a row.
Skift, together with the consulting company Publicis Sapient, analyzed the impact of the global crises of the past years on the tourism industry and predicted what consequences one should be prepared for.
After the first Gulf War, Marriott Corporation, for which this was a difficult test, split into two companies: Marriott International and Host Hotels. It is a pioneering franchise model that has become widespread in the hospitality industry around the world.
Prior to the 9/11 attacks, private contractors were primarily responsible for airport security in the United States. After the tragedy, this area was taken over by the Transportation Security Administration (TSA). This has led to the development of partnerships between the public and private sectors.
Many consumers have had to change jobs since the 2008 financial crisis. This has fueled the growth of sharing economy companies such as Uber and Airbnb, which were founded in the midst of economic uncertainty.
How will travel and hospitality evolve after COVID-19? Here are four things travel brands can take to prepare for the future.
Many travel companies are cutting their marketing budgets for cost reasons, but promotion is more important than ever.
Research from past crises has shown that brands can accelerate their recovery from a recession by adding brand value and brand recognition during a recession.
It should be remembered that business is an integral part of society, and therefore, for example, it should be very actively involved in the fight against COVID-19.
I decided to follow the example of my friend and neighbor Mikhail Schwartz and write a post about the results. And then for a long time he did not tell anything about himself. True, my friend constantly uploads pictures from the next trekking in the mountains of Tenerife. I cannot boast of similar movements, since a small child takes a lot of time and effort. But I am mastering local cafes, stock trading and Xiaomi smart home.
If you are going to the Canary Islands, then to his blog for track routes, and to me for cafes and dozas available by car.
Situation in Tenerife, crown and tourism
First, about the coronavirus, a burning topic. In the Canary Islands, the quarantine ended in early June (as it was, I already wrote) and since then, in general, life has flowed in a more or less normal course.
Hotels, restaurants, offices, shopping centers and shops are open, beaches are open. Yes, not all establishments were able to survive this year, and some of the tourist sites are now closed, such as a water park and a zoo. There are tourists, but they are several times smaller than usual, so the once crowded streets of resorts (for example, Las Amerkas) are deserted. It's funny another thing, the locals have fallen for the rest and sometimes hammered restaurants and beaches on weekends to the eyeballs. Not kidding, it felt like it was easier to find parking on a weekend near the beach before Covid. And it was just necessary to lock people up for 2 months ...
There are tourists from Europe, but few. No one was allowed from Russia and they are not allowed now, only with a residence permit. In summer, there were more holidaymakers, as the Canary Islands were the least affected region. On New Year's Eve, another outbreak began, both in Europe and in our country. Somewhere they banned flights to us, somewhere they introduced quarantine upon their return.
In the Canaries themselves, the main limitation is the mandatory wearing of a mask. Everywhere, not only in the store, but also on the street. At the same time, in a cafe, the mask can be removed, which is what everyone uses. You sit on a bench a meter away from the cafe wearing a mask, sit down at the table and take off your mask. So it goes.
Other restrictions - you cannot gather in groups of more than 6 people, cafes must not be fully occupied, a curfew. A ban on leaving the island was also introduced for 2 weeks, but it was already removed (it all depends on the stage of quarantine).
Honestly, I am very glad that we got to Spain before Covid and this is where we got stuck during the pandemic. Have time! It is much easier to sit out here: summer, sun, sea, fresh air and so on. And part of Europe is open to us even during a pandemic. I already wrote a post about the pros and cons and so far nothing has changed much.
Initially, we came for a year for a test. Now we are thinking of living for another couple of years :) In any case, while the crown is raging and the borders are closed, we are unlikely to move anywhere, maximum from the south of Tenerife to the north, so that it is cooler and closer to a large city.
Investors are well aware of the challenges the pandemic has created for the global travel industry. As a result, shares in many companies in the airline, hospitality and other industry segments fell 50-70% from their 2020 highs in the first weeks.
Today we take a close look at FTSE 250 stocks in Carnival Cruise Lines (LON: CCL) (NYSE: CCL). We will also look at hospitality stocks, including InterContinental Hotels Group (LON: IHG) (NYSE: IHG) and airline stocks such as International Consolidated Airlines Group (LON: ICAG) (OTC: BABWF), owner of British Airways, to see if now is the right time to invest in travel stocks.
The new coronavirus has added several phrases to our vocabulary, including "the new normal". This phrase, of course, can mean different realities for different industries or organizations. For the Federal Reserve, for example, this basically means an era of record low interest rates.
A recent McKinsey study urges businesses to prepare for a "near-normal consumer." It says:
“Consumer behavior is likely to change until we get to the next normal level. Companies need to rethink how and where they interact with consumers. They must anticipate that they will face structural problems and shocks in many aspects of their operations. ”
The tourism business is making every effort to adapt to the new reality in which tourism activity remains low, especially in terms of international traffic. Typically, tourism generates over 10% of world GDP per year.
However, 2020 is an unusual year. According to the World Economic Forum:
“Up to 120 million tourism jobs are at risk and economic damage is likely to exceed $ 1 trillion in 2020 alone. COVID-19 could set the global tourism industry back 20 years. "
This is how some of the big travel companies are doing during these challenging times.
Now is the time to start doing business. Why this is so and how you can make money, read the article ...
News: Greece plan to open borders in June
Haris Theocharis, Greece's tourism minister, says Greece is scheduled to begin receiving tourists in July. The government will begin to gradually loosen border closures from May 4, and year-round hotels will be able to reopen on June 1.
He also noted, “I think this is a million dollar question. But we plan to open the borders to tourists sometime in July 2020 ”.
“Of course, this will not be done for all countries, but we must try to open a bilateral message with at least some states,” he added.
It turns out that at the end of June Greece will restore international flights. At the same time, hotels and seasonal tourist accommodation facilities will start operating in early July.
What does this information mean for an investor?
If you do not have enough ideas for the tourism business, then read our article Business in Greece: why and how it is profitable to work with tourists
And we offer you the most optimal scheme, in our opinion, where to invest and make a business profit.
About the project
Olga Filipenkova, Marketing and Sales Director, Rosa Khutor Mountain Resort
Mikhail Safonov, Founder, General Director, Polar Circle Tourism Center
Vadim Mamontov, Founder, Russia Discovery
Olga Yakovina, Editor-in-Chief, National Geographic Traveler
Ruslan Bayramov, Head, Ethnomir Cultural and Educational Center
Levon Shakhnazarov, Director, Euronomer Trading House
Maria Znova, Business Development Director, Carlson Rezidor Hotel Group
Vladimir Ilyichev, Senior Development Director, Russia and CIS, Hilton Worldwide
Alexis Delaroff, Regional Director for Russia, Georgia and the CIS, AccorHotels
Yuri Barzykin, Vice President, Russian Union of Travel Industry; Chairman of the Committee on Entrepreneurship in Tourism, RF CCI
Sergey Ivanov, Chairman of the State Committee for Tourism, Government of the Republic of Tatarstan and Yuri Zakharov, Head of the Department for External Relations, Tourism and Resort Business, Government of Altai Krai