Hospitality and Tourism, Surviving Covid-19 and Adapting for the Future.

It is clear that we are going through one of the toughest times in humanity and it seems it won’t be a short-term crisis. Covid-19 has come to shake things up for everyone, and the Hospitality and Tourism industry is one, if not the most impacted of all the industries. I dare say this, because our business thrives from social interaction and not social distancing. It is true, this is not our first rodeo with a global economic or epidemic crisis, but somehow this one feels different, it feels like the light at the end of the tunnel is far, far away. However, I deeply believe we have an opportunity as an industry to change and evolve in the way we have been doing things for decades. We can learn how the massive flow of tourists affect a destination, how cruise lines and airlines impact the environment, and how we could improve our operations throughout the whole chain to become more environmentally conscious and more sustainable, while reducing costs and operating safely and more efficiently.

All of us now know how hard this has hit home. Hotels, resorts, independent restaurants, chains, casinos, event venues, suppliers, we have all experienced the impact. Destinations are completely “closed for business,” and others are trying to win the battle until the last minute, irresponsibly I might add. I don’t want to bore you with statistics that you can easily find online, but just to give you an idea, The National Restaurant Association estimates that the industry’s sale will decline by $225 billion in the next three months. As of today, the UNWTO estimates “that in 2020 global international tourist could decline between 1%-3% down from an estimated growth of 3% to 4% forecast in early January of 2020.” In fact, California, who would be considered the fifth economic power as a standalone country is shut down, and now we see other states doing the same. Think about this: layoffs, furloughs, you name it, we are experiencing a nightmare. It is here is where creativity needs to kick in. I believe creativity is the motor of success, and today, the key to survival. It is the extent to which we can get creative that may result in the survival of our businesses. According to an article in Forbes, some restaurants are turning their dining spaces into market like spaces, selling ingredients that customers can cook at home. Roberta’s Pizza in NYC recently posted a picture on Instagram where they promoted new product: a DIY pizza box that included pizza dough, sauce, and a topping, to make at home. There are countless initiatives that restaurateurs are coming up with to keep their heads above water. 

In addition to creativity, we should also take this moment to work on a contingency plan for future events. Martha Hoover, from Patachou restaurant group did so quickly this month, and put together a playbook which goes through different possible scenarios, that will allow her group to be ready in the face of future decisions made by local and state authorities. We should not wait until we find ourselves staring at a big wall of trouble, instead have a plan for future crisis’s that will unquestionably arise. Right now, we as an industry should have one voice, one message, and support each other. 

For now, I pose the question to all of us: what are the lessons learned from this situation? With this question, I refer to the impact a quarantine has had on the environment. We know there has been a positive impact on the environment, and it has to do with many factories being shut down, but also to the lack of overcrowded destinations and traveling. We also know it won’t last long, because the second we have green light to go at it again, the diminishment of gas emissions will be gone. Bear with me for a second and ask yourself the following question: Is it possible to overwork a destination? The obvious answer is YES. It’s like overworking a muscle at the gym, you might injure yourself to the point of not being able to achieve your goal. In the same way you can exploit a destination and with it, affect restaurants and hotels and other businesses. Take Venice as an example. Venice has been hurting for a while because of an uncontrolled tourist flow. Today, many Venetians have seen for the first time in their lives clear water in their canals. Isn’t that a beautiful scene? Of course, it is! For locals and visitors. Would Venice consider keeping it this way, by implementing a strict control system regarding tourist flow? How is this going to change the way we manage destinations and cruises? These are questions that need an answer soon.

We need to start thinking how the industry could change from this point forward. Will this have an impact on how people plan their travels? Where they choose to stay? How they get there? Where and what they eat? I believe we should be getting ready for what the consumer will want from this point on. Things like new or different kind of amenities in hotels, housekeeping procedures, organization of big events, gaining back the consumer’s confidence when eating out, etc. We should be analyzing big data and forecasting the new needs or wants of the travelers. Big data and technology will play a huge role for the industry, not only in being able to understand consumers, but even in border security and who and when destinations allow visitors to come in. It is a great opportunity for the industry to become more sustainable, environmentally and socially conscious. We live in a globalized era, but not only regarding commerce, and trade and connectivity, but through digitalization as well. We are more informed than ever before and therefore more easily influenced by the media, social media that is. I hope we all find the creativity within on how to survive this year, and I also hope for our industry to become a smart, sustainable one for the future.