The overall hotel and travel market situation is in serious trouble. We must be prepared that the current situation will remain unchanged for at least the upcoming six months. Although the continued development of “testing” can bring about some secure feelings and more courage to travel. Cities with overcapacity will displace outdated hotel properties, especially when international and business customers will stay away for a while longer. A new way of business planning and “rethinking” the business model is very much needed.
The summer has given a whole new meaning to the topic of "vacations in your own country". In many places the vacation hotel industry is booming - although there are already strong differences here depending on the hotel category. In the future it will be impossible to predict bookings on a long-term basis; first several hotels will be booked for the same period of time and spontaneously decided according to desire, weather and current quarantine regulations. The current update on the vacation hotel industry records the course of the past summer season and gives a preview of the upcoming winter season.
The current situation is serious and fragile. While the leisure hospitality is prospering in many regions, the city hospitality is struggling, and the market recovery will take longer than originally expected. International fairs are being cancelled and business tourism stays uncertain. The danger to turn into a local infection-hotspot makes forecasts nearly impossible. Product- and location specific judgement and valuation is needed. The mutual togetherness of banks, operators and investors is more important than ever before. The attached paper gives you insights and details about the current situation in Europe while highlighting the performance of some major cities.
In times of Corona a business trip does not necessarily mean plane and hotel, but a laptop transfer from desk to sofa. The Global Business Travel Association (GBTA) has published some very clear numbers.
a small summary of do's and donts during crisis situations
The coronavirus – a challenge that also affects the hotel market, which is otherwise spoiled by growth
Many hoteliers, operators and owners are faced with a previously unknown exceptional situation. In Berlin, for example, where several trade fairs (IHIF/ITB) have now been canceled or postponed
In the hotel the guests stay away – definitely not a desirable situation, but there are ways to minimize the damage.
Hotels certainly did not want empty hotel rooms or canceled reservations. Even if hotel owners and operators cannot act as desired due to the difficult demand situation, they can still react.
Crisis situations also challenge the asset class, which is basically performing and developing positively.
Pandemics typically show deep declines in hotel occupancy rates, which cannot be increased in the short term but usually recover faster than expected.
Part of this para hotel industry is the well-known best-performing startup Airbnb. The holiday home provider, which itself emerged from the financial crisis in 2008 as the new winner,