With all this fresh new time on my hands (due to non-travel), I can’t help but think of how the travel industry will be impacted once the COVID-19 pandemic is over. I’ve taken five major sectors in the industry into account and started thinking out loud what they might look like in the coming months and years.
HOTELS
I imagine that smaller, family-run hotels will likely go out of business or perhaps team up with larger chain hotels for financial bailout once this all ends and borders open up to allow travel. What the landscape will look like is undeniably anyone’s guess. Will the bigger fish win, or minimize properties and keep hotels open only within more popular touristed areas?
AIRLINES
This one is a big guess, as many airlines already faced financial hardships pre-COVID-19. According to CAPA (the Centre for Aviation), most airlines in the world will be bankrupt by mid-May this year. Since Chinese airlines are mostly government-supported, the major players in China (China Southern Airlines, China Eastern Airlines, Air China) will remain solvent. In the rest of the world, with numerous cancellations over the past weeks and lack of demand for flights, this can’t end well for the aviation industry.
CRUISES
While many cruises have been forced to cancel future sailings (many into 2021), there are cruise lines that remain optimistic. Some of our favourite cruise brands (including Viking) are remaining optimistic and keeping all ocean and river cruises off the map until May 1, though their Yangtze and China cruise tours are cancelled through June 2020.
Luxury cruise ship company Oceania has cancelled all Asian cruises through the end of June 2020, however summer Mediterranean sailings will resume, avoiding ports-of-call in Italy. Cruise itinerary date changes are all over the map and it’s best to consult any websites with cruises you may be thinking of taking from now until 2021.
TOUR OPERATORS
Here in Western Canada, Destination BC has started to implement a multi-phase emergency management and recovery marketing plan. Loss of international tourism may create a dent in the industry, however it’s hopeful that visitors within the country will be able to visit some of BC’s sought-after destinations this summer, hoping to lift some of the financial damage here. BC tourism alone generates over $19 billion dollars annually via 19,000+ small businesses that employ over 330,000 people.
TRAVEL AGENCIES
Travel agents have also been hit hard by the spread of the virus, having to deal with non-stop cancellations and reduced services around the globe. Many are simply overwhelmed and will have to wait and see when restrictions will be lifted — and what will remain in business following that time. Economic disruption for both travel agencies and tour operators will likely continue into 2021.
What are your thoughts on the way travel will be impacted in the future? Drop a comment below and let us know.
