Four travel industry experts gave strategic advice and a delivered snapshot of the depth and breadth of the impact of Covid-19 on the travel industry. They said there was no alternative but to adapt -- and keep going. Based on survey results, they indicated what the travel landscape may look like on the other side.
Rob Gurney, CEO of oneworld, Sergio Morino, Co-founder of iVisa, Stig Williams, Head of International Partnerships at Avis Budget Group, and Caroline Dal’lin, Director of Business Development at Bidroom, gave the insights during a I Meet Hotel webinar 22 April, organised by Bidroom.
Aviation Grounded
Dal’lin, who hosted the webinar attended by over 100 travel industry professionals, told the audience that airlines were losing US$1.6 bn a day, according to an IBIS World report.
The oneworld CEO added that US$314 bn of passenger revenue had been lost by 14 April, according to IATA. Aviation is all-but fully grounded. The industry is in economic “triage,” said Gurney. Passenger numbers in the US have plummeted 96%. The industry is now defined by wide-ranging cost-saving measures, massive capacity reductions, and entry restrictions in airlines’ home countries, destinations and transit hubs.
Airlines have responded with flexible re-booking policies, fee waivers, extensions of frequent flyer privileges, enhanced cleaning procedures at all touch points, and modifications to inflight F&B service.
Things won’t return to normal any time soon. An IATA survey in April found that 47% of passengers would prefer to wait “a month or two” before travelling again; 28% said six months, with 12% saying it would take over a year for them to fly again. However, 14% said they were ready to fly anytime. So there is some hope.
Shape of Rebound: Technology to Ease Impact of New Health Regulations
Sergio Morino, Co-Founder of iVisa.com said that 77% or respondents in a Luggage Hero survey of people who had already booked travel for 2020 said that they would still travel in Q3 & Q4 2020, as long as their home country and final destination weren’t in lockdown. The same survey reported that 48% of respondents intended to travel internationally in 2020 if government restrictions allow it. Some 44% said they would replace international travel with domestic.
Morino predicted that domestic travel will come back first. There will be an emphasis on more purposeful travel as tourists will want to be appreciative and ‘give back’. However, it is impossible to predict prices. One scenario suggests low prices as airlines and hotels struggle to get customers back on board. Another is higher prices due to fewer flights and rooms available.
Travel on the other side will become defined by hygiene and sanitation regulations, contactless service and virtual substitutes, said Morino. New apps will be developed to facilitate health declarations. We may even see ‘contact tracing’ apps. This would raise data privacy issues. Things could get surreal. There are already food delivery services in China that show the body temperature of the delivery man.
Stig Williams told the audience of travel industry professionals that Covid-19 was accelerating change in car hire. More emphasis is being placed on keyless entry and ignition. Apps will replace face to face contact. The industry is ultimately moving towards self-driving car fleets, he said.
“In the short-term, the travel sector is being hit hard,” said Dal’lin. “When we are in difficult times we need to keep going,” she said. “We should innovate and prepare for recovery. We need to be flexible as there are still many conflicting scenarios out there.”
To sign up or find out more about upcoming I Meet Hotel webinars click here. Or email kristian@imeethotel.com.
Additional information: https://www.imeethotel.com.
To help hoteliers during the crisis, Bidroom has waived all hotel membership fees for 2020. |
|
|
