(TAN): This year was devastating for the travel and hospitality industry. Travel operators have seen their revenues plummet by almost half, hotel occupancy is at an all-time low, even casinos, which are surprisingly recession-proof, have seen their revenues tank.
Macau casinos have reported revenue drops of over 70% in November, followed by drops of up to 90% in the previous months due to the travel restrictions, while in the US, casinos still struggle to rebound after a devastating spring – their revenues are still close to 20% below last year’s results. The only branch of the industry to come out of this year with gains is online gambling. Online casino operators in the US reported growth of more than 200% in the first nine months of the year, while in the rest of the world, online gambling groups have reported drops in their revenues mostly because of the suspension of sporting events, offset by a growth in online casino use.
The light at the end of the tunnel?
Around the world, scientists from institutions and pharmaceutical companies are working on Covid vaccines, with some of them already approved for large-scale use. This is seen by many as the first glimmer of light at the end of the tunnel, the very thing that will finally allow the world to return to a pre-Covid normal.
So far, the United Kingdom and Canada have approved the vaccine developed by Pfizer and BioNTech, and are preparing for mass vaccination. In China and Russia, locally developed Covid vaccines are already rolled out. Millions of people are set to receive their shots in the coming months – still a far cry from true mass vaccinations but it’s a start. But even this limited rollout is apparently boosting the public’s interest in travel for 2021.
Planes, trains, and… cruises?
Cruise ships received a lot of bad publicity this year, several of them turning into floating outbreaks. And the early attempts to set sail again were not very successful either – hundreds of passengers aboard the MS Roald Amundsen were quarantined in August after dozens of passengers tested positive for the coronavirus, while a Singapore “cruise to nowhere” aboard the Quantum of the Seas turned into a Covid scare a few days ago after an 83-year-old passenger tested positive.
But the news about vaccinations becoming available are putting cruises back on the menu, with interest in this type of travel expected to speed up again in the coming months.
Ski resorts
Ski resorts across Europe are preparing for an influx of guests — but the guests might not come in all countries. Several countries, including France, Germany, Italy, and Austria, have announced that they won’t be opening their ski resorts for the time being in an effort to control the spread of the virus.
Airlines
Airlines have also welcomed the rollout of Covid vaccines but were also quick to cool down the travellers’ (and investors’) enthusiasm by calling them what they are: a ‘first bit of sunshine’. Airline executives across the board did salute the rollout but warned that this is but a first step in the right direction — returning to ‘some degree of normal’, as Ryanair CEO Michael O’Leary put it, will take at least until next summer.
The news about the many Covid vaccines being approved in an increasing number of countries is, indeed, good news for the travel and hospitality industry. But it’s just the beginning of a long and tedious process that will, eventually, lead to a return to normal.
