RESUMO
The COVID-19 pandemic foiled the hospitality industry offering no clear insight as to what to expect regarding the emergence of possible new industry standards as likely corollaries of the pandemic. The accommodation sector is one of the most affected sectors in the hospitality industry, especially small lodging establishments incurring the most dramatic brunt of the pandemic's long-tail effects. This study employed a breakeven (BC) analysis to examine the pandemic's opportunity cost and the financial resilience efforts that SLEs should undertake to bounce back or bounce forward. The case study centers on the Superior Small Lodgings (SSL) of Florida, USA. The results suggest that the opportunity cost varies depending on the SLE profiles, and hence resilience approaches should consider heterogeneous business responses.
RESUMO
The COVID-19 pandemic has had substantial negative impacts on the global economy. While all sectors of the economy are expected to be adversely affected, the economic implications of this pandemic for the hotel industry have not yet been widely investigated. The purpose of this study is to examine the extent to which the COVID-19 pandemic has affected the U.S. hotel industry. The results showed that daily room OCC, ADR and RevPAR have plunged about 74%, 47% and 86%, respectively. Although the impact is observed across all hotel segments, economy-scale hotels were more resilient, whereas luxury-scale hotels experienced the largest decline. Also, chain-managed hotels are the most affected by the COVID-19 pandemic as compared to franchise and independent hotels. Quantifying the magnitude of this impact, we found that the U.S. hotel industry's revenue losses accumulated to over $30 billion between March-2020 and May-2020. Implications for practitioners, policy-makers, and researchers are discussed.
