With Occupancy Down 32% Due To Covid-19, Here’s How Hotel Chains Are Trying To Convince Customers It’s Safe To Stay
30 Oct 2020
Since March, global hospitality groups like Marriott, Wyndham and Hilton have fought an uphill battle to stay above water in the pandemic economy. Chains have seen their occupancy rates and revenues collapse with the onset of the virus, prompting hotel closures and mass layoffs. As of September, the American Hotel and Lodging Association, an industry trade group, estimated that American hotels had lost over 870,000 jobs, over a third of the total workforce, and Statista estimates that occupancy has declined nearly 32% this year.
Industry disruption is certain, but for the big players, weathering the storm is likely a temporary problem. In the long run, business travel will resume, families will vacation again and public events will reopen to fanfare. People will find reasons to return to hotels. And by relying on their massive franchisee networks and light capital expenses, hotel groups can likely break even despite a low occupancy rate.