CLIENT PORTAL

What Will Hotel Recovery Look Like After COVID-19?

Learn More
by Onyx CenterSource in Blog ,

Reading Time: 2 minutes

 

Much speculation has been expressed across the hospitality industry about what hotel recovery will look like after COVID-19. Rightfully so, as we saw the steepest decline in travel history happen swiftly within days of outbreaks in major cities and regions across the globe.

Many hotels are still shuttered, awaiting word from governmental agencies on when they can safely reopen. Other hotels, that have either remained open or have reopened, are not yet seeing the amount of business they need to sustain long term. With occupancy rates at 36.6% as of the end of May according to STR data, what will hotel recovery look likefor hotels as the world begins to travel again?

Onyx has used its internal analytics, OnyxComp, to model realized stay data numbers showing increased business in areas of relaxed COVID-19 restrictions combined with lower rates of infection.

China-Specific Hotel Recovery

Below is a graph showing that as COVID-19 cases dipped below 2,500 in the third week of February in China, realized stay volumes progressively increased through the end of April.

China hotel recovery pattern
 

Southeast Asia Hotel Recovery

In comparison, the rest of East Asia’s COVID-19 cases, which were reported slightly later, continued to hold steady through the end of April. Therefore, stay volumes have not yet begun to bounce back, as displayed in the graph below.

Eat Asia hotel recovery pattern

 

What can Hotels Expect?

While the graphs in this post are representative of China and Southeast Asia, a similar pattern can be expected around the globe.

For example, Onyx has seen parallels in the U.S. as well. States like Florida and Texas, who began actively reopening in early May, have seen consistent increases between 8-18% week over week in the first half of May. In states like Illinois, where some of the largest metropolitan areas are taking a more conservative approach to reopening, hotels have seen little to no increase in realized stays.

Business and leisure travel have long been expected to be the first travel segment to bounce back, and avoidance of COVID-19 “hot spots” is still a major priority for most businesses and travelers. Hotels can expect that major cities still battling infection rates will see a slower rise in confirmed stays. This will most likely be representative of the entire state where these cities reside, as major cities see the bulk of business and leisure travel.

Access OnyxComp Insights

While we are still early in our recovery, OnyxComp is collecting ongoing data from realized stays in key global regions. As we have more insights, we will be sharing them with hotels and travel agencies interested in the progress of travel recovery.

To access more insights and information from Onyx CenterSource, please subscribe here.

Leave a Reply

Your email address will not be published. Required fields are marked *


Bitnami