COVID-19’s Impact on Travel & Hospitality
Consumer concerns and shelter-in-place orders impacted the travel and hospitality industry significantly from the start of the pandemic. In March, 82% of consumers stated they had no plans to travel during COVID-19. This negative sentiment surrounding travel was immediately felt by the hotel industry, who faced a drop in occupancy from 24% to 53% year-over-year. Luckily, it’s not all bad news for the hotel industry. June showed an increase in occupancy by an estimated 39% in comparison to April, giving hospitality brands a chance to earn back visitor interest.
If hospitality and travel brands want to win over consumers in this time, providing transparency, COVID-19 procedures, and COVID-19 specific information is essential. 65% of guests will only stay at hotels with updates on websites. This is an important time for all travel and hospitality brands to increase communication through all channels to let consumers know the safety measures they have taken to protect customers.
Consumer Behaviors During Reopening
As businesses continue to reopen throughout the country, consumers are slowly returning to businesses while remaining cautious. Our data shows that consumers are continuing to call businesses before visiting, growing by 5.5% from May to June. According to Resonate, in their report on Reopening America: Up-to-the Moment U.S. Consumer Sentiment During the Pandemic they found consumers expect businesses to continuously enforce safety precautions once they’re open:
- All staff wearing masks and gloves (50%)
- Knowledge that stores would be disinfected each night (48%)
- “Forced” social distancing (46%)
- All customers wearing masks and gloves (45%)
- Reduced occupancy in the store (41%).