Tourism and Hospitality Industry After COVID-19

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Table of Contents

Introduction
Changes in Tourism and Hospitality Industry
About Booking.com
Consequences for Booking.com
Conclusion
References

Introduction

The world is constantly changing under multiple factors’ impact, and changes are reflected in the various industries. One such circumstance, COVID-19, was declared a public health emergency, but it affected all areas of human activity and forced the countries’ leaders to introduce quarantine measures (Jong et al., 2021). Having caused significant damage to the economy, the restrictions imposed by quarantine significantly affected tourism and hospitality. Travel opportunities have almost disappeared, companies have lost profits, and many industry employees have lost their jobs. Assumptions about an imminent return to the situation before the pandemic have been dashed, meaning tourism and hospitality will face profound changes. One of the industry’s powerful companies – Booking.com, has also been hit by the fallout and be example to show pandemic consequences. Despite the losses incurred and additional challenges, companies monitor new trends in the industry and adapt to the situation.

Changes in Tourism and Hospitality Industry

The restrictions imposed due to pandemic impacted travel opportunities, bringing significant losses to the industry, and many employees lost their jobs. The fall in tourism was estimated at 97%, and a sector suffered losses of 195 billion (Salas-Paramo et al., 2021). The pandemic potential impact was underestimated, and the world was not ready for such a blow (Gössling & Schweiggart, 2022). As a result, hope influenced the assessment of possible recovery scenarios, forcing people to expect a quick return to circumstances before COVID-19. Unfulfilled optimistic assumptions demonstrated the precarious position of the industry.

Studies on the impact of coronavirus on this area have several distinct directions. A significant part of the literature focuses on the effects of the pandemic, the response to it, changes in the tourists’ opinion, the industry’s future, and the technologies introduction (Yang et al., 2021). Many researchers expected that after COVID-19, the industry would return to its previous state. Still, others shared the opinion that there would be a shift involving a more stable and mindful model of industry development (Aldao et al., 2021). It is becoming increasingly clear that a return to the previous conditions is impossible, and various companies find confirmation of the second assumption.

The pandemic’s consequences of the COVID-19 have affected the tourism and hospitality business not only from an economic perspective but also in terms of consumer behavior. Tourists choose safer travel destinations where measures have been taken to protect their health (Salas-Paramo et al., 2021). Moreover, travelers increasingly choose environmentally friendly routes and try to contribute to their communities (“The pandemic effect,” 2021). Their movements have also become predominantly domestic, preferring home countries over travel abroad (Menze, 2020b). According to Schaal (2020), tourists also book in advance less and prefer alternative accommodation to hotels. Such changes can affect the companies’ strategies and the need for innovations.

COVID-19 creates additional problems in the industry as its impact is ripple. At some points, the incidence decreases, and at some, it increases, making working conditions unpredictable (Shivdas, 2021). In Europe, instability is supported by geopolitical tension due to Russia’s actions (Forman, 2022). Nevertheless, industry companies are adapting to the new conditions and has directed efforts to new initiatives, particularly technological transformations. For example, Booking.com’s activities include the development of customer-service technology, support for connected trips, pushing mobile, and other innovations (Forman, 2022). The tourism and hospitality companies respond to pandemic challenges implementing changes and creating new initiatives.

About Booking.com

Booking.com is one of the influential companies in hospitality and tourism affected by the pandemic. It was founded as a small startup in 1996 in the Netherlands and gradually expanded its activity in the e-commerce in the industry worldwide (“About, Booking.com,™” n.d.). The company cooperates with organizations that provide opportunities for accommodating tourists and unites them on one platform for convenient access for potential customers. The advantages of Booking.com are that it builds relationships with companies in various countries of the world and strives to provide better service through low prices, safe booking, and customer support (“About, Booking.com™,” n.d.). Coronavirus, which introduced restrictions on movement, significantly changed the circumstances and opportunities with which the company works.

Consequences for Booking.com

Booking.com felt the consequences of the COVID-19 in a significant way. After the pandemic began, the company’s revenues in 2020 fell by 19% compared to the previous year, and its share price decreased (Jong et al., 2021). Menze (2020a) notes much more significant losses – a decline of more than 80%, and that later, in the same year, the volume of bookings on the platform fell by 91%. The company’s CEO, Glenn Fogel, foresaw that the recovery would take many years, and he had to propose significant changes, including cutting 25% of employees (Menze, 2020a). The response to such severe consequences as the pandemic brought requires decisive measures from companies.

Booking.com’s response to the pandemic included concern about the interests of users. The company introduced a force majeure policy, expecting its partners to reimburse users or provide opportunities in the future to use paid services (Miguel et al., 2022). Meeting the target audience’s needs is an essential part of success in today’s world. Since another major short-term rental player, Airbnb, also prioritized customers, the industry had to adapt to the actions of this company and Booking.com (Miguel et al., 2022). Even in adverse circumstances, the company protected its users and influenced its colleagues.

Conclusion

Thus, the pandemic COVID-19 changed all economic activity and significantly strongly affected tourism and hospitality. As the coronavirus forced many restrictions to ensure people’s safety, travel fell, reducing tourists’ activity and lowering the companies core revenues. Many researchers have concluded that the pandemic will lead to a shift in the industry. Signs of change are already manifesting themselves, including in activities Booking.com. It is one of the biggest and most influential companies in the industry. Its activities aim to establish ties with organizations providing accommodation and offering these capabilities to platform users Booking.com. As this company’s example shows, industry representatives are introducing more technological changes and adapting to new tourist preferences – more ecological and safe routes. Finding new opportunities for development and taking care of the interests of its users helps them maintain activities.

References

About Booking.com™. (n.d.). Booking.com. Web.

Aldao, C., Blasco, D., Poch Espallargas, M., & Palou Rubio, S. (2021). Modelling the crisis management and impacts of 21st century disruptive events in tourism: The case of the COVID-19 pandemic”, Tourism Review, 76(4), 929-941. Web.

Forman, L. (2022). Booking Holdings shareholders need a staycation.The Wall Street Journal. Web.

Gössling, S., & Schweiggart, N. (2022). Two years of COVID-19 and tourism: what we learned, and what we should have learned.Journal of Sustainable Tourism, 30(4), 915-931. Web.

Jong, M. C., Puah, C. H., & Soh, A. N. (2021). The impact of COVID-19 pandemic and commodities prices on Booking. com share price.Advances in Science, Technology and Engineering Systems Journal, 6(2), 185-189. Web.

Menze, L. (2020a). Booking Holdings feels “full impact” of coronavirus as gross bookings plunge 91% in Q2 2020. PhocusWire. Web.

Menze, L. (2020b). Booking Holdings sees uptick in Q3 bookings driven by domestic travel. PhocusWire. Web.

Miguel, C., Pechurina, A., Kirkulak-Uludag, B., Drotarova, M. H., Dumančić, K., Braje, I. N., & Giglio, C. (2022). Short-term rental market crisis management during the COVID-19 pandemic: Stakeholders’ perspectives.International Journal of Hospitality Management, 102, 1-11. Web.

Salas-Paramo, J., Escandon-Barbosa, D., & Munoz, A. (2021). Changes in lifestyle preferences in tourism and their impact in the consumer satisfaction experience under pandemic conditions.International Journal of Entrepreneurship, 25, 1-6. Web.

Schaal, D. (2020). Booking Holdings sees first signs of changing traveler behavior brought on by pandemic. Skift. Web.

Shivdas, S. (2021). Booking shines on travel rebound, COVID in Europe casts doubts on holiday demand. Reuters. Web.

The pandemic effect: Booking.com reveals an increased desire to travel more sustainably. (2021). Booking.com. Web.

Yang, Y., Zhang, C. X., & Rickly, J. M. (2021). A review of early COVID-19 research in tourism: Launching the Annals of Tourism Research‘s curated collection on coronavirus and tourism.Annals of Tourism Research, 91, 2-17. Web.

Click Here To Order Now!