- ECONOMIC IMPACT -

Latest update: 19 May 

The global economy is forecasted to return to pre-crisis levels by the end of 2021 or early 2022.

The unemployment rate in OECD nations stood at 6.5% in March 2021, down from 6.6% in February.

4.3%

The EU Commission has raised Eurozone's economic growth forecast for 2021 to 4.3% from its earlier projection of 3.8%.

$289tn

Global debt declined by $1.7tn to $289tn in Q1 2021, for the first time in the last ten quarters, according to the Institute of International Finance.

- SECTOR IMPACT: TRAVEL AND TOURISM -

Latest update: 19 May 

Tourism market imapact

100m

In the UK, the easing of restrictions has created a resurgence in domestic tourism bookings. In 2021, GlobalData projects over 100 million domestic trips will take place.

25.5%

Scratch-cooking trends, price consciousness, and restrictions on in-house dining will continue to impact full-service restaurants in future. The channel is anticipated to see growth of 25.5% this year after significant decline in 2020, though it will only recuperate its 2019 value in 2022.

Demand disruption

The travel & tourism industry has not seen the kind of turnaround it was hoping for. Concerns over new variants that may be more contagious have led to the re-imposition of stringent travel restrictions and quarantine requirements in many parts of the world, most notably in Europe.


Hotels have largely struggled as demand remains low. Alternative accommodation providers have, however, provided some optimism. Home sharing providers ,such as Airbnb and Expedia's Vrbo have noted more success in comparison to leading hotel providers worldwide.


This highlights the current trend is for self-catered accommodation away from urban city centres in more remote locations. 


Hotels will need to adapt quickly to changed demands. Staying ahead of the digital curve will be crucial.

TRAVEL & TOURISM MITIGATION STRATEGIES

Short term (six to 12 months)

Covid-19 has hit the tourism industry hard. While it is predicted that 2020 will bear the brunt of disruption, it is impossible to say when travel will return to 2019 levels. Over the coming months, players at all stages of the value chain will need to focus on survival.


For the hotel industry, this may require decision makers to implement cost-cutting measures and/or secure credit and government funding. Hoteliers should also focus on promoting high hygiene standards to instil confidence in potential guests.


Mid-term (one to three years)

Decision makers should assess how demands and expectations may change and adjust their product and marketing strategies accordingly. For example, by investing in marketing campaigns to entice international visitors or tapping into the momentum that domestic tourism gained during global travel restrictions.


Long-term (three to five years)

One key challenge that hotels face is the possible long-term shift to reduced business travel as people have become more confident in videoconferencing.


However, customer behaviour will not be static so hotels should continue to re-evaluate and adapt branding and services.

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