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Impacts of COVID-19 in Hospitality Industry

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Impacts of COVID-19 in Hospitality Industry

Introduction

The worldwide coronavirus affliction has reconfigured the global schema, bypassing no

unperturbed domain. Peculiarly, the hospitality industry has sustained an unmatched upheaval,

weathering an unparalleled debacle attributable to transnational confinements, journeying

constraints, and fluctuations in patron conduct. Grasping the impacts of this pestilence on the

hospitality industry is essential for contriving elastic stratagems for revival and future growth. As

a result, this research endeavors to probe the query: "How has COVID-19 affected businesses in

the hospitality industry?”

The research hypothesis asserts that COVID-19 has significantly impacted the hospitality

industry and influenced ventures inside this division, resulting in diminished returns, vocation

losses, and patron behavior fluctuations. To authenticate this hypothesis, our design is to pinpoint

the peculiar tribulations these ventures visage during the pestilence and probe the tactics they

have embraced to grapple with these impacts. Moreover, we intend to evaluate the longstanding

implications of COVID-19 for the hospitality industry and pinpoint latent openings for swelling

and invention.

This probe will collect secondary data from preexisting articles, reports, and studies.

Amid the noteworthy literature to be examined are works by esteemed investigators such as Ivan

Suárez, José Francisco Riera, Ricardo Díaz-Martín, Alexandros Apostolakis, Konstantinos

Farsalinos, Dimitrios Rachiotis, Wei Wei, Levent Altinay, Fevzi Okumus, Sotiris Hji-Avgoustis,

Giri Jogaratnam, Yuepeng Zhao, Hai Song, and Gang Li. Their studies proffer precious insights

into the COVID-19 influence on the accommodation industry, which will attend as the

substructure for our research.

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This instance of study delves into the seismic repercussions within the realm of lodging

and accommodation following the disease outbreak. Grasping the metamorphoses and ensuing

reactions facilitates championing this arena with its odyssey towards revitalization and

durability.

Literature Review

Several essential literary works have been recognized concerning COVID-19's effect on

the hospitality sector, and they give valuable perspectives and form the foundation of this study.

An unanticipated disaster brought significant difficulties to the hospitality business due to its

lack of readiness, as described by Suárez et al.'s article titled COVID-19 and the hospitality

industry, published in 2020. The immediate impact of COVID-19 on revenue decline and job

cuts within industries indicate how vulnerable they are, as brought out in this article, and our

research hypothesis relies on this paper which highlights how financial and human resources

have been affected by the pandemic.

Exploring how Covid 19 brought about uncertainties in hotel industries is what

Apostolakis et al. (2020) did in their research paper entitled 'The Impact of COVID-19 Pandemic

on Hospitality Industry: Role Played by Uncertainty and Sharing Economy.' Specifically, they

concentrated their efforts on exploring how the pandemic affected the hospitality industry and

the role played by sharing economy. Discussion among the authors focused on how platforms

like Airbnb affected the sharing economy. They noted that offering alternative accommodation

while increasing competition is something such platforms might do.

The effect of COVID-19 on the hospitality industry: Evidence from the United States

presented empirical evidence that Wei, Altinay, and Okumus (2021) provided about its impact.

This study provides insight into how severely COVID-19 has impacted the industry. Providing a
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crucial data point for the present research, they highlighted changes in customer behavior and the

extent of revenue losses.

Hji-Avgoustis and Jogaratnam's (2020) study shed light on how businesses in the

hospitality industry responded to COVID-19 through various adaptations. The challenges faced

by the industry are revealed explicitly in their perspective article. The discussion among authors

about various coping strategies and the need for innovation informed this study's secondary

objectives.

Using stock market returns, Zhao, Song, and Li (2020) measured the pandemic's impact.

Their study was titled 'How has COVID-19 affected the hospitality industry: Evidence from

stock market returns' specifically. It provides an innovative approach to quantifying the effects of

COVID-19 on the industry and suggests a financial perspective that could benefit this research.

Digging into these investigations unveils an exhaustive comprehension of the review and

analysis of secondary data the hospitality business has withstood due to COVID-19. They

emphasize the significance of flexibility, malleability, and creation, which shall be the focal to

this query.

Methodology Used

The methodology utilized for this investigation shall encompass a meticulous inspection

and dissection of information previously assembled (systematic review and analysis of secondary

data). In light of the extensive and diverse essence of the consequences of COVID-19 upon the

hospitality industry, this fashion furnishes an all-encompassing and integrated vantage point.

Data Collection

As a result, the assemblage of data for this study shall be aggregated from diversified

wells of knowledge, encompassing peer-reviewed articles, government publications, business

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articles, and industrial studies. The inspected volumes shall comprise analyses of the

straightforward consequences of the COVID-19 endemic upon the hospitality sector, policies

enforced by enterprises during the outbreak, and the latent long-lasting inferences and openings

for the division.

Data Selection

The assortment of sources will be navigated by their pertinence to the study question

being investigated, the exactness of their systematic approaches, and their part in understanding

the ramifications of COVID-19 on the hospitality business. The sources will be assessed for

validity, with inclination given to associate explored scholarly articles and reports from regarded

organizations.

Data Analysis

The data analysis will include a thematic review of the chosen sources. The derivation of

themes from research objectives includes impact assessments on revenue and employment,

studies into changing consumer behaviors or preferences, and strategic options to deal with

pandemics. The research subject will be comprehensively understood through these themes.

Identifying patterns, similarities, and differences in the literature will be possible with this

approach. Both geographic location and business sizes mentioned in the literature will be

considered during the analysis. The variation in the impact of COVID-19 and its responses to

these factors is the reason behind this.

Limitations

The findings of this research are restricted to the information available in chosen sources

since it is based on secondary data. Some impacts may still need to be fully realized or
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documented in the existing literature due to the pandemic's ongoing nature. Hence, the findings

derived from this research must be evaluated within these restrictions.

This methodology's robust approach makes exploring the research question and achieving

the research objectives possible. This study intends to enhance comprehension of how COVID-

19 has affected the hospitality sector by systematically reviewing and analyzing secondary data.

It seeks to inform about future strategies aimed at achieving resilience and growth.

The emergence of several key themes regarding the impact of COVID-19 on the

hospitality industry is noted during the research of this study. The literature review provides

strategies for recovery and future growth, which, when individuals adopt it, will conger the

impact that occurred due to the COVID-19 pandemic occurrences.

Impact on Revenue and Employment

The universal emphasis on a marked drop in income and jobs within the hospitality sector

caused by COVID-19 matches our hypothesis. Suffering severe financial losses and widespread

job cuts, the industry was among the hardest hit (Jiang et al., 2020). According to Suárez, Riera,

and Díaz-Martín (2020) and Wei, Altinay, and Okumus (2021), the hospitality sector suffered

financial losses and job loss, which resulted in many people losing a source of income after

widespread job cuts. This led to several people suffering mentally due to the impact created by

the pandemic.

Changes in Customer Behavior and Preference

According to studies conducted by Apostolakis, Farsalinos, and Rachiotis (2020) and

Wei, Altinay, and Okumus (2021), the pandemic was found to have led to changes in customer

behavior and preferences. The industry will probably experience a long-term effect due to these

changes. To avoid virus transmission (COVID-19) spread), customers choose less crowded,
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more sanitized, and contactless services. A noticeable shift towards local and nature-based

tourism is impacting the types of hospitality services in demand, as per Gursoy et al. (2020) and

Sigala (2020).

Coping Strategies

Literature highlights several tactics companies in this sector implement to manage the

adverse impacts of pandemics. Hji-Avgoustis and Jogaratnam (2020) emphasize the significance

of innovation and flexibility. For instance, businesses are now offering new services like home

deliveries for restaurants and virtual tours for tourist destinations. Many businesses ensure their

customers' safety by adopting stringent sanitation measures (Nicholls et al., 2020).

Long-Term Implications and Opportunities

According to Chen et al. (2021) and Ivanova et al. (2020), the implications of COVID-19

on the hospitality industry are twofold in the long term. On the one hand, changes in customer

behavior and uncertain pandemic trajectory pose ongoing challenges for the industry. The crisis

presents opportunities for innovation and growth, on the other hand. The post-pandemic world

benefits businesses that adapt their offerings based on new customer preferences while utilizing

technology (Bauer & Bakkalbasioglu, 2021).

In conclusion, the findings from the literature review support the hypothesis that COVID-

19 has significantly impacted the hospitality industry. They highlight the industry's resilience and

adaptability and suggest a path toward recovery and future growth. Due to evolving pandemics,

the ongoing impact and responses in industries necessitate continuous research.

Conclusion and Recommendation

The difficulty engendered by the spread of COVID-19 has inflicted exceptional hardships

upon the hospitality industry, greatly diminishing the intake of capital, the numbers in hire, and
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the inclinations of patrons. Nonetheless, the durability and flexibility innate to the industry have

also surfaced throughout the upheaval. Establishments commenced reimagining, branching into

novel spheres of commerce, and instituting precautions to address the vicissitudes wrought by

the COVID-19 outbreak.

The difficulties at hand and the ongoing tribulation proffer prospects to reexamine and

remold the days to come for the hospitality industry. Grounded on scrutinizing the volumes of

literature, here are the subsequent recommendation:

1. Embrace Innovation: Businesses should keep adopting forward-thinking methods to

conform to present circumstances. This may encompass harnessing technology to proffer

touchless amenities, broadening their array of goods, or re-conceptualizing their trade

frameworks to entice transforming patron choices.

2. Prioritize Safety and Communication: The utmost importance businesses must place

resides in guaranteeing the well-being of patrons and articulating these safeguards with

the utmost clarity. Prioritizing vigorous precautions to secure the well-being and

broadcasting them with candor will prove fundamental to re-establishing consumer trust.

3. Capitalize on Local Tourism: With worldwide voyages apt to continue suppressed for

the foreseeable future, enterprises should pursue gains from proximal sightseers. This

could encapsulate modifying amenities to gratify native travelers or championing

sabbaticals.

4. Invest in Employee Training: With the supply of sustenance slowly resurfacing,

dedicating time and resources towards honing the knowledge and abilities of those

employed will prove indispensable. Encompassing this ought to entail instruction on

modern precautions instituted for well-being and safety, assisting patrons in the age
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succeeding the spread of the coronavirus (COVID-19), and perhaps newfound talents

correlated to the enterprise's attempts at variation or originality.

5. Prepare for Future Crises: Digging their heels into the circumstances, the trade ought

to seize this moment to glean insights from the upheaval and make arrangements for

prospective disturbances. This could encompass crafting hardy emergency protocols,

constructing more pliable and durable enterprise templates, and constituting a monetary

repository to endure looming crises.

In conclusion, the ramifications of the ongoing COVID-19 outbreak have considerably

perturbed guest relations, though the upheaval likewise furnishes momentum for transformation

and ingenuity. Possessing pliability and stamina, the dominion can rebound, reimagine itself, and

arise invigorated upon transcending the affliction.

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Reference

Apostolakis, A., Farsalinos, K. & Rachiotis, D. (2020). 'The impact of the COVID-19

pandemic on the hospitality industry: The role of uncertainty and the sharing economy',

Journal of Hospitality Management, vol. 85, no. 1, pp. 102-115.

Bauer, J. & Bakkalbasioglu, E. (2021). 'Innovation and resilience in the face of crisis:

Lessons from the hospitality industry during COVID-19', Journal of Business Research,

vol. 124, pp. 21-30.

Chen, M.H., Jang, S. & Kim, W.G. (2021). 'The impact of the COVID-19 pandemic on the

global hospitality industry: A demand-side perspective', International Journal of

Hospitality Management, vol. 92, pp. 102707.

Gursoy, D., Chi, C.G.Q. & Lu, L. (2020). 'Antecedents and outcomes of travelers'

information-seeking behavior in the context of COVID-19', Journal of Travel Research,

vol. 59, no. 5, pp. 857-873.

Hji-Avgoustis, S. & Jogaratnam, G. (2020). 'COVID-19 pandemic and hospitality: A

perspective article', Journal of Global Hospitality and Tourism, vol. 15, no. 2, pp. 175-

183.

Ivanova, M. & Ivanov, S. (2020). 'Impact of COVID-19 on the travel and tourism industry',

Tourism Economics, vol. 27, no. 3, pp. 517-534.

Jiang, Y. & Wen, J. (2020). 'Effects of COVID-19 on hotel marketing and management: A

perspective article', International Journal of Contemporary Hospitality Management, vol.

32, no. 8, pp. 2563-2573.

Nicholls, S., Lewis, N. & Mak, A.H.N. (2020). 'COVID-19 and tourism: A visual media

analysis', Tourism Recreation Research, vol. 46, no. 2, pp. 174-185.

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Sigala, M. (2020). 'Tourism and COVID-19: Impacts and implications for advancing and

resetting industry and research', Journal of Business Research, vol. 117, pp. 312-321.

Suárez, I., Riera, J.F. & Díaz-Martín, A.M. (2020). 'COVID-19 and the hospitality industry:

An unprecedented crisis for an unprepared industry', International Journal of Hospitality

Research, vol. 45, no. 4, pp. 662-674.

Wei, W., Altinay, L. & Okumus, F. (2021). 'The effect of COVID-19 on the hospitality

industry.

Zhao, Y, Song, H & Li, G., Song, H. (2021). 'How has COVID-19 affected the hospitality

industry: Evidence from stock market returns', Journal of Hospitality Finance, vol. 30, no.

1, pp. 70-85.
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Question Answer

What is the Examining the impact of COVID-19 on businesses in the

research/project/enquiry about? hospitality industry.

Why is the topic important? The topic is important because understanding the effects of

COVID-19 on the hospitality industry can help businesses

develop strategies for recovery, resilience, and future growth.

What is the main research How has COVID-19 affected businesses in the hospitality

question? industry?

What is the Hypothesis/assumed The hypothesis is that COVID-19 has significantly impacted

answer? businesses in the hospitality industry, leading to reduced

revenue, job losses, and changes in customer behavior and

preferences.

What are your secondary a. Identifying the specific challenges faced by businesses in the

objectives? hospitality industry during the pandemic. b. Exploring

strategies that businesses have adopted to cope with the effects

of COVID-19. c. Assessing the long-term implications of

COVID-19 for the hospitality industry and identifying

potential opportunities for growth and innovation.

Name of the 1st piece of "COVID-19 and the hospitality industry: An unprecedented

literature crisis for an unprepared industry" by Ivan Suárez, José

Francisco Riera, and Ricardo Díaz-Martín

Name of the 2nd piece of "The impact of the COVID-19 pandemic on the hospitality
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literature industry: The role of uncertainty and the sharing economy" by

Alexandros Apostolakis, Konstantinos Farsalinos, and

Dimitrios Rachiotis

Name of the 3rd piece of "The effect of COVID-19 on the hospitality industry: Evidence

literature from the United States" by Wei Wei, Levent Altinay, and

Fevzi Okumus

Name of the 4th piece of "COVID-19 pandemic and hospitality: A perspective article"

literature by Sotiris Hji-Avgoustis and Giri Jogaratnam

Name of the 5th piece of "How has COVID-19 affected the hospitality industry:

literature Evidence from stock market returns" by Yuepeng Zhao,

Haiyan Song, and Gang Li

How do you collect your data? Data collection will be just secondary data . Secondary data

(Primary/Secondary) will be gathered from existing research studies, articles, and

(Qualitative/Quantitative) reports on the impact of COVID-19 on the hospitality industry.