European hospitality industry amidst the pandemic
European hospitality industry amidst the pandemic
During the last twenty years, the European hospitality industry has undergone a profound strategic change, flexibly adapting to the changing world and new customer needs. Then, however, the Covid-19 pandemic struck, and multiple lockdowns made the sector one of the biggest economic victims of the global health crisis.
The measures introduced by public authorities in Europe, coupled with cost reduction plans and major changes in hotel business models, have made it possible to temporarily cushion the sector’s drop in activity, but will not preserve it in the long term.
Fortunately, hoteliers are not waiting around, implementing vast cost reduction plans, opting for lighter and more defined business-focused brands, developing mid-range products and adopting more variable rent models. The winners of this crisis will be those able to respond quickly by implementing operational and financial transformation plans, and – in particular – to address the daily challenges of a low occupancy rate, while taking the opportunity to act as a consolidator in the sector.
There are clear signs that at the end of the pandemic, the fundamentals of the hospitality industry should be protected, and the sector will regain its attractiveness.
