The Corona virus may not be the biggest threat to the hospitality industry

Key Take Away

The travel industry has come to a halt with the COVID-19 virus causing a third of the world's population to stay home and forcing the majority of the world to practice social distancing. 

With the travel industry at a stand-still, hoteliers are taking the opportunity to revisit their technology partnerships to be in a strong competitive position when the market rebounds and travelers take to the skies, roads, and hotel beds. The last thing the industry and hoteliers need right now is the loss of trust when travelers return.

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Maldives Conducts Webinars For Indian Market, Commences Campaign With Kayak

Maldives Marketing & Public Relations Corporation (MMPRC) has conducted webinars for travel trade in India and  has commenced a campaign with an Indian travel agency Kayak from today till 22nd May 2020.In an effort to inspire travelers to keep dreaming about the destination.

India is one of the key source markets likely to be amongst the top post-pandemic tourists to the Maldives when traveling resumes once again. In January 2020, there were 13,846 tourist arrivals from this market which was a 19% increase when compared to the same period from last year.

These sessions were held to train potential travel agencies and tour operators to yield the maximum business and achieve a greater reach in the market. The webinars by MMPRC also aim to lead engagement in promoting the Maldives and answer destination FAQs over the course of the lockdown.

Till date, these webinars have reached over 302 pax from tour operators and travel agents in India such as Ease My Trip, SOTC Travel Ltd, Travel Triangle and Vacations Exotica to name a few.

The joint campaign with Kayak will have ads depicting ‘Visit Maldives…later’ displayed throughout the website. The messaging in the campaign is intended to encourage visitors to travel to the Maldives once the pandemic has been overcome.

Attracting Travelers After COVID-19

As states and countries relax their restrictions on quarantine and social distancing, airlines and hotels will likely start offering generous discounts in order to generate demand and entice travelers back out into the world beyond their front doorstep.

A major step towards recovery in this segment is likely to come when larger corporations relax business travel restrictions, and other smaller companies follow suit. It is estimated that 5-10% of business travel may be eliminated permanently due to reduced travel budgets, business closure, unemployment, and the growth of online meetings.

 A survey conducted by LuggageHero, indicated that 58% of Americans are planning to travel between May and September 2020, as long as their destinations aren't in quarantine.

Some analysts predict that air travel will not return to full strength until at least mid-2021 which means that leisure travelers are more likely to be taking staycations or car trips to surrounding states.

2020 may bring the re-birth of the road trip and hotels should pay particular attention to their drive markets as the likelihood is this segment is going to be the most likely to celebrate their post-quarantine freedom by taking a short trip within 2-3 hours' drive.

For these reasons, along with continued fear around the pandemic, leisure travel may recover at a slower pace and only recover to previous levels once a vaccine is developed.

The best way to manage your segmentation mix is to take a data first approach. Segment towards drive markets and test what works before expanding your reach and media spend. Also try to understand in-bound travel data as an indicator of where guests are arriving from and choose to target those areas first.

Top Ten Largest Travel and Tourism Businesses

The travel and tourism industry was thriving through the end of 2018, making it the eighth straight year of sustained industry growth. More than 1.4 billion people arrived at international ports around the world

 In 2019, the United Nations World Tourism Organization estimated that one out of every ten jobs globally was linked to the travel and tourism industry.

This growth trend was projected to continue through 2022 until Covid-19 changed everything.To get an overview of what the Travel and Tourism industry looked like before this unprecedented disruption, we’ve compiled a list of the top 10 Largest Travel and Tourism Businesses in the World, arranged in order of 2018 total revenue. Two of the ten on our list are family-owned.

10. Travel Leaders Group

Country of Origin: USA

Revenue: 7.12 billion

Number of Employees: 4,000

Founded in 2008 and headquartered in New York, Travel Leaders Group is a relatively new company that caters primarily to upscale and corporate clientele. 

In 2018, 71 per cent of revenue came from business travel, 25 per cent came from leisure travel, while four per cent came from other categories. Its network of hosted agents generated approximately $436.6 million in sales. Recent estimations suggest more than a third of all agents in North America work under the Travel Leaders Group umbrella either directly or indirectly

9. Royal Caribbean Cruises

Country of Origin: USA

Revenue: 9.49 billion

Number of Employees: 77,000

Royal Caribbean Cruises is one of just two cruise lines to make our list of top tourism businesses in the world. Founded in 1968 in Miami as Royal Caribbean International, the business has grown to become the world’s second-largest cruise line.

8. Walt Disney Parks, Resorts & Leisure

Country of Origin: USA

Revenue: 20.29 billion

No of Employees: 170,000

Disney Park’s 2018 total of $20.29 billion marks its ninth straight year of increases and nearly doubles the 2009 total of $10.67. Disney’s most attended Park is the Magic Kingdom in Florida with just under 21 million visitors in 2018

In total, Disney boasts six resort destinations with 12 theme parks and 53 resorts in the United States, Europe, and Asia. They also run a successful cruise line with four ships and plans for three more to be completed in 2021, 2022, and 2023.

7. Carnival Corporation & PLC

Country of Origin: USA

Revenue: 20.83 billion

Number of Employees: 120,000

Carnival Corporation & PLC holds the distinction of being the world’s largest leisure cruise line with a combined fleet of 102 ships visiting more than 700 ports all around the world. Carnival is a family-owned business

These cruise lines attract nearly 11.5 million guests annually – approximately half of the total global cruise market. With 225,000 daily cruise guests and 100,000 shipboard employees, an estimated 325,000+ people are sailing aboard the Carnival Corporation fleet every single day.

6. Flight Centre Travel Group

Country of Origin: Australia

Revenue: 21.8 billion

Number of Employees: 20,600

Flight Centre Travel Group was founded in Sydney in 1982 and currently stands as the largest retail travel agency in Australia

In 2018, Flight Centre Travel Group sold travel valued at approximately $60 million every day.  Flight Centre travel group is currently headquartered in Brisbane. It operates more than 2,800 retail outlets in Australia, New Zealand, the United States, Canada, the United Kingdom, South Africa, Hong Kong, India, China, Singapore, the United Arab Emirates and Mexico with licence agreements in another 80 countries.

5. CWT

Country of Origin: USA

Revenue: 25 billion

Number of Employees: 18,000

CWT is a Minnesota-based, family-controlled travel management company perhaps best known by its former name Carlson Wagonlit Travel, which was rebranded as CWT in February 2019

4. BCD Travel

Country of Origin: Netherlands

Revenue: 27.1 billion

Number of Employees: 13,800

BCD Travel is a travel management company headquartered in Atlanta but is a subsidiary of the BCD Group located in the Netherlands. BCD Travel operates travel management services such as travel bookings, consulting and meetings and events in 109 countries around the world

3. Global Business Travel

Country of Origin: Netherlands

Unit Sales: 33.7 billion

No of Employees: 17,400

Initially American Express Global Business Travel, GBT is a world leader in business travel planning and management. The business is incorporated in the Netherlands but is headquartered out of New Jersey.

In 2018, Global Business Travel acquired Hogg Robinson Group, a travel company with roots that trace back to the 19th Century.

2. Booking Holdings

Country of Origin: USA

Revenue: 92.7 billion

Number of Employees: 24,500

Booking Holdings is one of the largest online search and booking platforms for flights, lodging, dining, car rentals and other travel-related services.

In 2017, travellers booked 673.1 million room nights of accommodation, 73.0 million rental car days, and 6.9 million aeroplane tickets using websites owned by Booking Holdings. That year, 93.4 per cent Booking Holdings’ revenues were from commissions, while 6.6 per cent of revenues came from advertising.

1. Expedia Group

Country of Origin:USA

2018 Revenue: 99 billion

Number of Employees: 24,000

One of the most recognisable brand names in the tourism industry fell just short of $100 billion in total revenue to top our list of tourism businesses. The Expedia Group provides an online platform for various travel-related needs  In 2018, the business changed its corporate name from Expedia, Inc. to Expedia Group, Inc.

Just under 69 per cent of Expedia Group’s 2018 revenue came from lodging, 8 per cent from airline bookings, 9.7 per cent from advertising and media, and 13 per cent from other sources.

U.S. Leisure and Hospitality Industy Lost 8.2 Million Jobs in 2 Months

The U.S. leisure and hospitality industry in April lost 7.7 million jobs, a 47 percent drop, and was the worst-hit sector among non-farm payrolls for the second month in a row, according to the Bureau of Labor Statistics

April was the first full month where the coronavirus pandemic raged in the United States. The job losses come on top of half a million jobs lost in leisure and hospitality in March.

It was food and drinking establishments, rather than hotels, that were most-impacted in April. The bureau stated that restaurants and bars lost 5.5 million jobs in April, or 71 percent of the total decline in leisure and hospitality employment.

The April job loss in leisure and hospitality was more than three times greater than the second-most-impacted sector, education and health services, which saw a decline of 2.54 million jobs.

The two-month employment drop, including March and April, reached 8.2 million in leisure and hospitality. Some 459,000 jobs were lost in leisure and hospitality in March, versus February, as the coronavirus pandemic began to take its toll. As in April, dining establishments and bars took the brunt of the hit.

In late April, the U.S. Travel Association and Tourism Economics projected that the coronavirus pandemic would lead to the loss of 8 million jobs out of a total of 24 million in the U.S. economy. 

Responsible Tourism Is Key To Driving Travel Industry Recovery In A Post-Lockdown World

The travel industry has been impacted by environmental disasters including the droughts in Cape Town and the bushfires in Australia, which have awakened our business and personal consciousness. The industry has arguably been late to sustainability and we are now at our own ground zero. This is a unique moment in time to take a pause, right the wrongs, and move away from viewing responsible travel as a 'nice to do'. There should be no such thing as 'sustainable tourism', simply 'tourism' where acting ethically and responsibly sits in the DNA of every travel brand.

 Destinations need to move away from acting as marketing organisations and focus on being responsible management companies with an environmental and social emphasis which in turn will help reap long-term economic benefits

Health and safety will also be embedded into travellers' decisions. This means that destinations will need to work closely with the health ministries, banks, investors, insurance companies and the private sector to achieve this moving forward in a well-coordinated, informed and transparent way. Carbon offsetting also needs to be looked at more closely by all travel brands to ensure their schemes are ethically driven.

It's important, now more than ever, that brands and destinations prioritise responsible travel as the cornerstone of all recovery plans. Amid Covid-19, we can't lose sight of the Paris Agreement, out of this tragedy will come innovation and greater responsibility that the travel industry must act on.

International Tourist Numbers Could Fall 60-80% in 2020

The COVID-19 pandemic has caused a 22% fall in international tourist arrivals during the first quarter of 2020, the latest data from the World Tourism Organization (UNWTO) shows. According to the United Nations specialized agency, the crisis could lead to an annual decline of between 60% and 80% when compared with 2019 figures. This places millions of livelihoods at risk and threatens to roll back progress made in advancing the Sustainable Development Goals (SDGs).

Tourism has been hit hard, with millions of jobs at risk in one of the most labour-intensive sectors of the economy

Available data reported by destinations point to a 22% decline in arrivals in the first three months of the year, according to the latest UNWTO World Tourism Barometer. Arrivals in March dropped sharply by 57% following the start of a lockdown in many countries, as well as the widespread introduction of travel restrictions and the closure of airports and national borders. This translates into a loss of 67 million international arrivals and about US$80 billion in receipts (exports from tourism).

Although Asia and the Pacific shows the highest impact in relative and absolute terms (-33 million arrivals), the impact in Europe, though lower in percentage, is quite high in volume (-22 million).

Prospects for the year have been downgraded several times since the outbreak and uncertainty continues to dominate. Current scenarios point to possible declines in arrivals of 58% to 78% for the year. These depend on the speed of containment and the duration of travel restrictions and shutdown of borders. The following scenarios for 2020 are based on three possible dates for the gradual opening up of international borders.

• Scenario 1 (-58%) based on the gradual opening of international borders and easing of travel restrictions in early July

• Scenario 2 (-70%) based on the gradual opening of international borders and easing of travel restrictions in early September

• Scenario 3 (-78%) based on the gradual opening of international borders and easing of travel restrictions only in early December.

  Under these scenarios, the impact of the loss of demand in international travel could translate into:

• Loss of 850 million to 1.1 billion international tourists

• Loss of US$910 billion to US$1.2 trillion in export revenues from tourism

• 100 to 120 million direct tourism jobs at risk

  This is by far the worst crisis that international tourism has faced since records began (1950). The impact will be felt to varying degrees in the different global regions and at overlapping times, with Asia and the Pacific expected to rebound first.

  Experts see recovery in 2021

  Domestic demand is expected to recover faster than international demand according to the UNWTO Panel of Experts survey. The majority expects to see signs of recovery by the final quarter of 2020 but mostly in 2021. Based on previous crises, leisure travel is expected to recover quicker, particularly travel for visiting friends and relatives, than business travel.

International tourist arrivals, 2019 and Q1 2020 (% change)

International Tourism 2020 Scenarios

International tourist arrivals in 2020: three scenarios (YoY monthly change, %)

When do you expect tourism demand in your destination will start to recover?

Time for the Hotel Industry to “Remove the Box”

The hotel industry is one of the worst-hit industries during this crisis. A lot of studies have been conducted to help us understand the impact on the economy and our organization's bottom-line. Industry experts, through their various associations, have predicted that the average hotel occupancy in Malaysia for the year will stand at around 25% or less.

According to a recent study by Malaysia Association of Hotels (MAH), the industry is looking at a potential loss of RM6.3b in rooms revenue alone. Assuming rooms revenue accounts for 60% of the total hotel revenue, with F&B and other income accounting for the remaining 40%, the industry is facing a RM10.5b in potential losses.

MAH represents about 1,000 hotels out of the 4,880 hotels registered with the Ministry of Tourism Arts & Culture (MOTAC). However, these 1,000 hotels with 164,000 rooms represent 56% of total rooms inventory available throughout Malaysia.

 The number of hotels closing for business is increasing by the day, indicating not only loss of business, but also loss of jobs. The current estimate is that 1 million travel industry personnel (including hotel, airline, cruise and travel agents) will lose their jobs by the end of this year.

While we take stock and moan how the hotel industry's poor prospects, let us focus our attention on what we can, and should, do moving forward.

According to a study by the University of Singapore Technology and Design, China is expected to be the first to get back to normalcy while Malaysia's magic date is predicted to be July 6. Whether we like it or not, we should look at China as one of our main feeder markets, besides the domestic market of course. Consider appointing representatives or affiliates based in key cities in China to work with online platforms and mainstream travel agents there and start re-promoting Malaysia as a destination. Hoteliers need to actively prepare for this, and as soon as China reopens its doors, hotels must already be "Chinese friendly" at all service touch points

A financial reprojection is necessary to understand your hotel's new breakeven point. We often hear that the breakeven point (BEP) in an operating hotel is at 40% occupancy levels

At least for the short to mid-term, hotels will be looking at domestic travellers as a main source of customers. This will indeed be the fastest strategy to regain some occupancy. Malaysians still love the "Cuti-Cuti Malaysia" short getaways

Hotels may in the near future need to be certified "Social Distance Compliant" by authorities after they have practised and passed SOPs set by authorities. This is going to be very similar to the HALAL certification we see displayed on public areas. This could be something we will all be used to in the near future.

Hotel Industry 2020 – The New Normal

 The "light and warmth of hospitality," coined by Conrad Hilton, will not be apparent upon entrance to a hotel post COVID-19. Expect acrylic covered front desks, masks and gloves, signage advising guests to use caution, frequent disinfecting of public spaces, wide open lobbies with limited seating and restaurants and bars that have six feet of separation in every direction. The good news is that we are approaching the re-opening of the economy!

According to the top prognosticators in the hotel industry, here is what we are looking at from an occupancy, average rate (ADR), RevPAR perspective:

The best case seems to point to a drop in occupancy from 66% in 2019 to 50% in 2020 and a drop in ADR from $133 to $107 resulting in a RevPAR drop of over 30% from $88 to $55. Worst case scenarios have us dropping well below 50% in RevPAR, close to Armageddon. Once STR releases an April forecast, the overall average should increase. These firms have done a tremendous job of analysis given the completely different demand generators—the bad news here is that even in the best scenarios, there are no net profits forecast for 2020.

Operations

Profits will be gone in 2020 with hopes of a return to closer to normal revenues and profits in 2021 or 2022. The implementation of completely new protocols including hospital grade sanitization, masks and thermometers will be fairly expensive relative to supply costs.

Valuation

We can expect values to decline in line with net income, but with less deals done. The real question will be when will values come back to 2019 levels and will it be a buyer's or seller's market. The latter depends on how long it will take for this destabilized market to bounce back. Over-leveraged sellers will be at risk as short-term values will take a precipitous drop. However, lenders will only foreclose on operators who do not engage in a sincere way. They do not want to own hotels. Transaction volumes will be down according to an April, 2020 Lodging Industry Investment Council survey.

Supply

Airbnb and short-term rentals will continue to impact hotels. With unemployment numbers at new highs, millions of Americans will need to find a way to supplement their income and home sharing may be people's means to do so. New supply for those accommodations could surge and have a negative impact on hotel room rates in general. But many cities have sued Airbnb and our original prediction was that they would become an online travel agency (OTA) by 2020. Well, only time will tell, but they have postponed their 2020 IPO.

Demand

We will start to see two separate groups emerge - those who feel they can travel freely, and those who are still susceptible to the virus. The first group is made up of individuals who have tested positive for the virus anti-bodies - meaning they had the virus and lived and those who believe they are not at significant risk. This group will be our primary source of demand, while others may continue to quarantine and limit travel. This summer, we can expect to see "pent up" demand. After being stuck at home for eight or more weeks, consumers will be itching to travel.

WTTC Outlines What “The New Normal” Will Look Like As We Start To Travel

The World Travel & Tourism Council (WTTC) has outlined what the "new normal" will look like as countries begin to end their COVID-19 lockdowns and ease travel restrictions.

"Travelling in the New Normal" is part of WTTC's plan which includes critical steps and coordinated actions, including new standards and protocols, which offer a safe and responsible road to recovery for the global Travel & Tourism sector as consumers start planning trips again.

Public-private collaboration between business and governments is vital to develop new health protocols which will form the travel experience and also provide people with strong reassurances when travelling.

WTTC believes younger travellers in the 18-35 age group, who appear to be less vulnerable to COVID-19, may also be among the first to begin travelling once again.

"We should avoid new, unnecessary procedures that create bottle necks and slow down the recovery. However, a quick and effective restart of travel will only happen if governments around the world agree to a common set of health protocols developed by the private sector, such as those we've outlined.

"These must provide the reassurance travellers and authorities need, using new technology, to offer hassle-free, pre-vaccine 'new normal' travel in the short term."

This includes the International Air Transport Association (IATA), the Airport Council International (ACI), Cruise Lines International Association (CLIA), United States Travel Association (USTA), Pacific Asia Travel Association (PATA), International Civil Aviation Organisation (ICAO), the Organisation for Economic Co-operation and Development (OECD), the European Travel Commission (ETC) and the World Tourism Organisation (UNWTO).

IATA, ACI and ICAO are pooling their crucial expertise and are working closely to define the best protocols to keep travellers and employees safe to enable the aviation sector to recover. The World Health Organisation (WHO) and other health experts have also contributed by providing their experience from various global medical crises.

There will be new protocols for check-in involving digital technology; hand sanitiser stations at frequent points including where luggage is stored; contactless payment instead of cash; using stairs more often than lifts where the 2 meter rule can be harder to maintain; and fitness equipment being moved for greater separation among other examples.

There are positive signs of the first green shoots of recovery. Research by travel data and analytics expert Cirium shows that over 30% of domestic capacity has returned to the Chinese aviation market in the last two months

WTTC says the Travel & Tourism sector is now facing over 100 million job losses worldwide due to the coronavirus pandemic, at a cost of up to US$2.7 trillion of GDP.

In 2019, Travel & Tourism contributed 10.3% of Global GDP, was responsible for generating one in four of the world's new jobs and, for nine successive years, had outpaced the growth of the global economy.

Hospitality Industry United for “Buy One, Give One” Campaign to Jumpstart Travel, Support Hotels and Provide Thank You to Healthcare Workers

To help Jumpstart Leisure Travel, the hospitality industry has united to launch Buy One, Give One, a "vacay layaway" program designed to generate immediate revenue for hotels, while simultaneously providing a "thank you" to healthcare workers who have been tirelessly working on the front lines.

Available at BuyOneGiveOneStay.com through June 30, the initiative incentives consumers to purchase future travel now with special offers ranging from discounted stays to gift cards to loyalty points for redemption prior to travel.

In return, participating hospitality brands/hotels will donate room nights, gift cards, or loyalty points to organizations, including the American Nurses Association and NewYork-Presbyterian, among others of their choice, to distribute to medical professionals who can use them toward future leisure stays.

 MMGY Global, the largest integrated marketing company specializing in the travel, tourism, and hospitality industry, and the Hospitality Sales & Marketing Association International (HSMAI) partnered to launch the effort.

Hospitality has been one of the industries most impacted by the coronavirus pandemic with 70% of hotel employees laid off or furloughed and eight in 10 hotel rooms empty, according to data released by the American Hotel & Lodging Association (AHLA).

From the comfort of their homes, travelers can explore enticing offers from more than 30 participating hospitality brands and hotels and counting. They can also take comfort in knowing that their purchases will result in meaningful donations by the participants.

"In these unprecedented times, it is more important than ever for all of us to join together to fuel recovery," said Bob Gilbert, CHME, CHBA, President & CEO of HSMAI. "With Buy One, Give One, we offer a collective charitable response to the pandemic across the hospitality industry, providing immediate funds to hotels in addition to a much-deserved respite in the future for those who have put their lives on the line to care for the sick."

A Message to Employees From Tripadvisor CEO and Co-founder, Steve Kaufer

Due to the effects of the COVID-19 pandemic on our business, Tripadvisor announced a workforce reduction that will impact more than 900 employees, which is approximately one-quarter of our total workforce. 

Here’s a brief summary of what I shared with our team earlier today:

Team:

I delivered some tough news about steps we are taking as a company to seek significant cost savings that will help Tripadvisor get to the other side of the COVID-19 pandemic. I know that today marks a difficult day for many of our colleagues and friends.  Everyone’s lives have been upended by this virus, and I continue to be profoundly humbled by and, at the same time, so proud to see everyone in this company rising to the occasion. I’ve been in awe, watching you all work day and night to ensure travelers and our travel partners receive the high level of service expected of our brand as teams remain virtually connected and productive.

But sometimes, the most valiant of efforts aren’t enough to counter outside circumstances and, as a public company, it is our responsibility to adjust, adapt and evolve to the environment that surrounds us. 

Here is our new reality as a company

We need to take action to ensure Tripadvisor can focus on its mission to serve travelers for years and decades to come. The management team and I have been executing a three-phased plan to navigate near-term challenges and position our business for recovery. 

As I shared with you a few weeks ago, this included a series of Phase 1 decisions: 

• We cut nearly all but the most essential discretionary spending, effectively ending all business travel, ending non-essential vendor relationships, pausing nearly all hiring and significantly reducing office perks and benefits; 

• I declined a salary for the remainder of 2020; and 

• We would pull every lever we could in order to preserve as many jobs as possible. 

As the pandemic progressed faster than anyone anticipated, we determined the need to enact Phase 2 of our cost reduction plans. 

Taking advantage of government subsidy programs in Europe, we were able to swiftly furlough hundreds of employees, primarily at TheFork, in sales-related roles.  We hope to bring back these furloughed employees later in the year as the industry recovery is realized. This immediate action helped Tripadvisor to preserve needed operating capital. 

We had hoped cutting discretionary expenses and furloughs would be enough, but as the pandemic worsened, it became clear that the company needed to take additional cost saving measures. 

Today, I announced Phase 3, which includes a significant workforce reduction and additional Tripadvisor employee furloughs.  

In most markets, we will also be asking for the majority of our remaining salaried employees to take both a temporary pay reduction and also to work a reduced schedule for the summer months. 

Some of the guiding principles that influenced these decisions include a focus on:

• Reducing our overall headcount across the company, particularly in areas where we are seeing reduced client demand;

• Reducing management layers, giving more responsibility to a fewer number of people;

• Closing open roles within the company that are not deemed essential to our immediate needs, as we radically focus on the most important priorities; 

• Reducing our global real estate footprint (which currently includes 52 offices we maintain around the world);

• And importantly, supporting our people as they exit the organization.

  To help, we are launching the Tripadvisor Alumni Network, a community of current and past employees of this company who can assist in transition efforts. As a part of the network, we are creating an opt-in list of impacted employees that we will share with our network in the hopes that they might help our teammates who are seeking future employment. We will also provide a secure, private way for both our employee and alumni communities to share job leads, provide support, and keep in touch.  iT will support those leaving the organization by facilitating connections, sharing job leads, and, for those employees who opt-in, making their names visible to organizations that are hiring.

Our path moving forward

Tripadvisor was organized in a way that allows for ambitious and transformative improvements to the consumer experience. We reorganized Tripadvisor to more directly focus on the traveler.  As ONE Tripadvisor, we’re thinking more holistically about the traveler seeking advice on where to go and stay, thinking about how to get there and what to do when they arrive. Decisions that impact travelers have been made holistically, with detailed consideration of the trade-offs that relate to our Tripadvisor platform operations, our business strategy and our anticipated financial results.

Creating compelling consumer offerings for travelers and diners

As a result of these changes:

• We are integrating the Tripadvisor Flights, Car and Cruise teams into the B2C team under Lindsay.  

• Cruise Critic will continue to run as a standalone business, and will now report into Ernst Teunissen, our Chief Financial Officer and a member of the Executive Leadership Team.

• Additionally, we will also be dissolving SmarterTravel as a business unit. As we determine the future path for these media brands, we will integrate SmarterTravel’s portfolio of branded sites into Lindsay Nelson’s organization. 

  Serving our media partners and the 8 Million+ travel, hospitality and tourism businesses listed on Tripadvisor

  Kanika Soni, our Chief Commercial Officer, will lead a unified B2B organization that supports all 8 million+ partners listed on Tripadvisor by helping them reach our highly qualified audience via the Hotel Auction and our existing advertising products and media solutions. 

  As we look to diversify and grow our revenue, our B2B teams will also:

• Merge Tripadvisor’s B2B Restaurants team with our B2B Accommodations team By joining forces with the group formerly known as Hotel Solutions, we are going to bring the best minds in the company together to deliver and offer best-in-class support for ALL of our partners

• Focus on launching and expanding our new SaaS offerings (e.g. menu distribution, reputation management) for both our Hotel & Restaurant partners.

• Unify our advertising sales organizations, inclusive of the non-endemic display sales team

  The future of experiences and restaurants reservations

  Our experiences and restaurant reservations businesses face the same challenges as Tripadvisor during this pandemic, but I continue to believe that both TheFork and Viator have bright futures before them as each of these brands navigate this crisis. As such:

• TheFork has been one of the fastest growing businesses within Tripadvisor’s portfolio, and with Bertrand’s entire focus back on this business, we are confident this trend will continue. 

• Viator’s future remains bright as a standalone Experiences OTA, under the leadership of Ben Drew as its president and ELT member

World Tourism Organization Underscores Tourism’s Importance for COVID-19 Recovery in Audience with the King of Spain

The Spanish Head of State was briefed on the global response being led by the UNWTO at the audience, which acknowledged the importance of the tourism sector for economic and social recovery in the face of the pandemic.

During the audience, UNWTO Secretary-General Zurab Pololikashvili stressed the urgency of mustering a coordinated political response at the international level, as well as a real commitment to support tourism, a sector that accounts for 10% of jobs worldwide.

The COVID-19 crisis has coincided with the beginning of the Decade of Action, the countdown to the achievement of the 17 Goals deriving from the 2030 Agenda for Sustainable Development.

According to the UNWTO’s figures, tourism accounts for 12% of the GDP of Spain, which in 2019 received nearly 84 million international tourists, whose expenditure amounted to 80 billion US dollars. In 2018, the country was the world’s number two destination in terms of both tourism arrivals and receipts. 

Today, tourism is among the hardest hit sectors due to COVID-19 and its consequences. The UNWTO estimates that international tourist arrivals worldwide this year could fall by as much as 30%, with a corresponding loss of international tourism receipts of up to 450 billion US dollars.

Scenarios for What the Travel Industry Might Be Dealing with After Covid-19 - Travel Weekl

Smart Travel Lab, which is focused on sustainability in travel, has got together with Kantar, to put together four scenarios to depict what a post- Covid-19 travel industry might look like.

• Close Call: "The Surge for Survival" describes how companies taking drastic measures to survive will also need to be prepared for the pent-up demand as consumers are released from lockdowns. There will be a "short window of opportunity to recover from losses" but stresses companies need to have the resources to compete.

• Panic Attack: "Stay local, stay safe" predicts that consumer behavior, naturally more risk averse during the crisis will have changed habits for the longer term. This means travel companies will need to earn trust again.

• Recurring Nightmare: "Two seasons, two travelers" describes a scenario where the virus comes back for portions of the year. This leads to consumers able to travel for a part of the year and in lockdown for the remainder. In this scenario, more well-off segments of the population able to spend the year away from it all while others are unable to afford to travel. Brands would need to choose who they target in this model.

• Brave New Reality: "Travel Safety by fiat" envisages a world where Covid‐19 is a permanent feature but governments step in to manage it with regulation. The scenario would see borders close as and when infection emerges and would mean companies could operate in "a relatively stable and prosperous business environment" but be prepared for restrictions being put in place.

Should Hotels Consider Resuming Google Ads and Other Search Campaigns? - PhocusWire

After the brutal shock to the travel industry due to the coronavirus crisis, the vast majority of hotels stopped or questioned all their investments in online marketing, mainly Google Ads and metasearch.

This decision made a lot of sense given the severity and exceptional circumstances of the moment.

Investment fell 80% in the second half of March, compared to the first half, and 90% when compared to the same period in 2019 - figures that correspond with those in a Cleveland Research report.

They illustrate the huge concern that hotels face and new variables to consider that did not exist before:

• Cash flow. In the current situation, one of the objectives of any company, including hotels, is maintaining the highest possible amount of cash. The vast majority of investments in online marketing are paid in advance and that is a problem now.

• Uncertainty. Most hotels have no idea yet when they can reopen. They have tentative dates that are pushed back as the days go by. It is impossible to forecast if the gradual reopening of hotels will start in June or September. Given this great uncertainty, how can we risk investing in a model such as CPC (cost per click) without a guarantee of conversion and that, above all, those reservations will not be cancelled?

• Profitability. Many hotels anticipated that their campaigns would not be profitable in this situation and, when facing this, the best thing is to pause it all.

48% of Americans Canceled Summer Travel Due to Coronavirus Concerns

Uncertainty surrounding the coronavirus pandemic has caused nearly half (48%) of Americans to cancel their summer travel plans for this year leading to more distress for the travel industry

Here's what our survey found:

• 46% of those who had upcoming travel plans lost money on nonrefundable deposits and cancellation fees, averaging $854.30 per person. Most of the lost costs came from airline tickets (59%) and hotel rooms (44%).

• The coronavirus pandemic is changing consumers' views about travel. Forty-three percent feel more negatively about the industry as a whole, and many will change their behavior as a result. For example, 55% said they're less likely to take a cruise once the pandemic is over, and 52% are more fearful of overseas travel.

• 1 in 4 Americans are planning a celebratory trip once the threat of the coronavirus disappears, especially millennials, Gen Xers, parents of children under 18 and six-figure earners.

• 40% of consumers said they're more likely to purchase travel insurance for future trips due to the coronavirus. However, 18% said the health crisis made them less likely to consider insuring their future trips.

Hong Kong’s Top Tourism Executive Plans Marketing Blitz to Revive Travel by July

The impact of the novel coronavirus on Hong Kong’s tourism sector is unprecedented and the city can hope to start seeing things returning to normal by July, in part by trying to develop new markets, the head of the tourism board told Reuters.

The coronavirus crisis has paralysed the global financial hub’s economy, which was already reeling from months of anti-government protests, with travel restrictions to curb the spread of infection grinding tourism to a halt.

The tourism sector accounts for about 4.5% of Hong Kong’s gross domestic product and employs around 260,000 people.

Cheng was speaking hours before the government announced relief measures worth HK$137.5 billion ($17.7 billion) to help businesses and people crippled by the coronavirus outbreak to stay on their feet.

In a bid to stamp out the disease COVID-19 caused by the virus, Hong Kong leader Carrie Lam has already imposed tough restrictions, including banning all tourist arrivals and prohibiting gatherings of more than four people.

The city’s tourist arrivals plunged 96.4% year-on-year in February to 199,123 visitors, the latest data shows, compared with a 52.7% year-on-year drop in January. The number of mainland visitors fell 97.8% year-on-year in February to 98,804.

Changes in the Housing Market Amidst the COVID-19 Pandemic Are the Result of Forces Much Larger Than Airbnb’s Community of Hosts According to Airbnb

COVID-19 has placed enormous pressure on just about every aspect of the economy. With thousands of planes grounded, scores of restaurants shuttered, and few people seeking overnight accommodations, the travel and tourism industry is at a standstill.

Third-party real estate economists have rebutted these claims, but we have received several questions about this matter, so we wanted to address it directly. 

Our analysis indicates that these claims are inaccurate: 

• Today, there are more listings on the Airbnb platform than there were a year ago. 

• In large cities popular with tourists, such as Las Vegas, Montreal, Rome and Paris, the number of active Airbnb listings have increased over the last 30 days. 

• Among the top-20 U.S. and Canada cities, 80 percent saw a net change of fewer than 200 listings over the last 30 days. 

• There has not been any meaningful change to Airbnb’s supply in our top-20 U.S. and Canada cities or in our top-10 European cities.

  We are at an unprecedented moment globally. Unemployment and lost income are rising quickly, leading to a decrease in demand for traditional, 12-month home and apartment leases. In recent weeks, web traffic to web portals has dropped as much as 40 percent, meanwhile U.S. searches for “rental” and “lease” are down 42 and 33 percentage points, respectively, in the last month, according to Google Trends.

Delay of 2020 Olympics Devastating for Tokyo Lodging Industry

Major players based in the Japanese capital will be relieved that an Olympic cancellation has been avoided, but smaller operators will be unable to see a silver lining, says GlobalData, a leading data and analytics company.

Ralph Hollister, Travel & Tourism Analyst at GlobalData, comments: “Many smaller establishments that do not have the high cash reserves that their large-scale competitors possess needed the Olympics to occur this summer

“The closure of major attractions in Japan that encouraged a constant flow of guests such as Tokyo Disneyland, combined with China banning overseas trips, has created a severe lack of tourism in recent months. This lack of guests meant that many lodging operators had to place more reliance on revenues being boosted through a successful 2020 Olympics.”

Japanese lodging companies – especially hoteliers – were banking on a strong tourist year to compensate for significant capital investments. These high-value investments amid already flagging economic growth were made in the confidence that revenue generated from the Olympics would kick start financial return for stakeholders.

“Cash flow problems were becoming of great concern to many Japanese hotels that were starting to feel the impact of the economic slump. Some will simply not have the financial power to stay open in order to reap the financial rewards of Tokyo 2021.”

More Than Six Million Jobs at Risk in the EU and One Million in the UK if Governments Don’t Provide Exceptional Flexibility, Says WTTC

Gloria Guevara, President & CEO of the World Travel & Tourism Council (WTTC), has urged EU authorities and the UK Government to implement flexibility around consumer refunds to alleviate the unbearable pressure on the Travel & Tourism sector.

Research conducted by WTTC shows that 75 million Travel & Tourism jobs are at risk globally due to the COVID-19 pandemic, with at least 6.4 million losses across the EU, and one million in the UK.

WTTC, which represents the global Travel & Tourism private sector, says that this important measure will have a profound effect to reduce the damaging situation that the majority of tour operators and travel agents, online and offline, and are facing due to the previously unimaginable impact of the COVID-19 pandemic.

 The current 14-day timeline for refunds is putting enormous burdens on businesses in the Travel & Tourism sector and will lead to major bankruptcies. These, in turn, will lead to more claims by consumers on credit card firms and ultimately government bonded schemes.

Gloria Guevara, President and CEO, WTTC said, “This measure should be implemented immediately and help lift the already crushing financial pressure on Travel & Tourism organisations and save the millions of livelihoods that depend on them.”